The food sector in Brazil has emerged as one of the main drivers of the economy, showing steady growth. The Brazilian Association of Bars and Restaurants (Abrasel) indicates that the sector grew by 8.5% in the first half of 2024, driven by economic recovery and increasing demand for out-of-home meals. Brazil ranks fifth in the global food service ranking, reinforcing the expansion potential.
Digitalization, delivery, and a variety of business models make the sector an attractive option for new entrepreneurs who see opportunities in it, even in an unstable economic scenario. 10 PASTÉIS, the largest pastel (a type of pastry) chain in the country with 66 operating units, is an example of a company that stands out. With nearly three decades of history, the brand adopts innovation as a strategy to maintain its relevance. Lucas Nagano, director of new businesses at 10 PASTÉIS, states that the key to success is the constant pursuit of evolution.
“I believe that what has brought us here is that we are never satisfied with our delivery and thus, we are always working to better serve our customers. We have a dedicated sector for new products, and the operations team works directly to seek suppliers, study trends, develop practical product and equipment tests, and research consumer needs,” comments Nagano.
The food sector in Brazil offers various favorable factors for investment, including:
1. Growing Demand
The urbanization and lifestyle changes have driven the demand for out-of-home meals, a result of the fast-paced routine and lack of time. This scenario favors the expansion of restaurants, snack bars, and delivery services. With a population of over 210 million people, Brazil represents a significant market, especially with the growth of the middle class, which seeks higher value-added foods. Additionally, consumers have been prioritizing convenience, health, and sustainability in their choices, paving the way for innovations.
“We constantly invest in differentiated products and personalized service, with seasonal flavors and limited editions, such as the ‘Pastel Burguer’ and innovative fillings, to provide unique experiences. The secret is understanding the customer’s needs around you, whether for a service or product, and from there, you have the path to develop innovations that will be responsible for standing out amid the competition,” reveals the director of new business at 10 PASTÉIS.
2. Growing Market
Brazil is the fifth-largest food service market in the world, reflecting both the size of its population and the sector’s relevance to the economy. In 2022, the market moved R$ 208 billion, according to data from the Brazilian Food Industry Association (ABIA), highlighting the potential for new entrepreneurs, with opportunities in both major centers and smaller cities.
According to the ABIA, the food industry plans to invest R$ 120 billion by 2026, reinforcing confidence in the sector. Government initiatives, such as credit lines and fiscal incentives, also boost the segment. “The resilience of the food sector, considered essential, and its diversification in commodities, processed products, and services ensure a constant demand and investment opportunities, even in times of crisis,” shares the executive.
3. Scalability Potential
Models like food trucks, dark kitchens, and franchises allow new entrepreneurs to enter with lower investments. For example, the 10 PASTÉIS adopts the franchise model, offering structured support to franchisees. In the second quarter of 2024, the franchise sector recorded a revenue of R$ 61.205 billion, with a 12.8% growth compared to the same period in 2023, as per the Brazilian Franchising Association (ABF). The food service was the second most prominent sector, with a 16.4% expansion, driven by the demand for cost-effective food, gastronomic experiences, and strengthening of delivery. Technological innovation has also been a differential, with the use of digital platforms that facilitate business development and increase efficiency, reducing operational costs.
Nagano points out that, despite the growth potential, the food sector in Brazil involves risks, such as variations in commodity prices, regulatory changes, and economic instability. However, the opportunities offered make the Brazilian market attractive to investors seeking diversification and long-term returns. “Therefore, it is essential to research the business model that aligns best with your profile before investing,” concludes the executive.
