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In this article, we will inform you about interesting details of the Brazilian market, including growth sectors, the best investment niches, the most popular companies in the country, economic details, and other information to give you a general idea of the largest market in South America today.
We mentioned all sources from which we obtained official information and shared some guides on reliable research sources and official government data.
🚨 Important: Economic data may vary depending on the date and the company that released the information. Our role is to compile data and facilitate an understanding of the national market for companies and entrepreneurs outside the country.
We are not responsible for decisions made based on these summaries.
For deeper insights, more thorough commercial research is necessary.
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Important information about Brazil
Image from Google – President Lula
The current president of Brazil is Luiz Inácio Lula da Silva, known as Lula.
He is a politician and former union leader born on October 27, 1945 (78 years old) in Caetés, Pernambuco.
Lula co-founded the Workers’ Party (PT) in 1980 and served as President of Brazil from 2003 to 2011. During his terms, Brazil experienced significant economic growth, poverty reduction, and an increase in the middle class.
He implemented social programs like Bolsa Família. In 2018, he was imprisoned on charges of corruption and money laundering in the Lava Jato case, but his conviction was annulled in 2021, allowing him to resume his political career. In 2023, Lula ran again for president of Brazil and won the election in a close contest against the then-president Jair Bolsonaro (2018-2022). Wikipedia.
According to Wikipedia, Wikipedia, Brazilian Portuguese is the most spoken language, with about 98% of the population using it as their first language. Other languages spoken in the country include:
- Spanish: Although not native to Brazil, Spanish is quite well understood, especially in border regions due to its similarity to Portuguese.
- English: It is the primary foreign language taught in schools and used in business and tourism. According to a study by the British Council, Learning English in Brazil, only 5% of the population speaks English, and only 1% of these are fluent.
- German: Spoken by communities of descendants of immigrants, mainly in Southern Brazil.
- Italian: Also present in some communities, especially in the South and Southeast regions.
- Japanese: Used in communities of Japanese descendants, mainly in São Paulo.
- Indigenous Languages: Various indigenous languages are spoken, although the number of speakers is small compared to the total population. According to the last census by the Brazilian Institute of Geography and Statistics (IBGE) in 2010, Brazil registered 274 different indigenous languages spoken by 817,963 indigenous people from 305 different ethnicities. Funai Data.
Brazil operates under a Federal Presidential Republic model, composed of the Union, States, Federal District, and Municipalities. The exercise of power is attributed to distinct and independent bodies, subjected to a control system to ensure compliance with laws and the Constitution. Wikipedia.
According to data released by the IBGE in June 2023, Census Data:
- The population of the country reached 203.1 million in 2022, with an increase of 6.5% compared to the previous census conducted in 2010. This represents an addition of 12.3 million people during this period.
From 2010 to 2022, the annual population growth rate was 0.52%, the lowest rate since Brazil’s first census in 1872.
According to Dados Mundiais, the average age of Brazilians is 35.1 years. Among the 124 countries analyzed, Brazil ranks 67th with an average age of 35.1 years. Japan leads with an average age of 49.9 years, and Niger has the lowest average age of only 15.2 years.
According to Datafolha data released by G1, the religious distribution of the Brazilian population is as follows:
- Catholic: 50%
- Evangelical: 31%
- No religion: 10%
- Spiritist: 3%
- Umbanda, Candomblé, or other Afro-Brazilian religions: 2%
- Other: 2%
- Atheist: 1%
- Jewish: 0.3%
Brazil has 26 states and the Federal District.
It is common for people to confuse the Federal District with the state of Brasília. The Federal District is a legal entity of internal public law, an entity of Brazil’s political-administrative structure of sui generis nature, as it is neither a state nor a municipality but a special entity that accumulates the legislative powers reserved for states and municipalities. Wikipedia.
Due to its large extension, Brazil has varied climates. According to Brasil Escola, there are six types identified:
- Equatorial
- Semi-arid
- Tropical
- Tropical highland
- Tropical Atlantic
- Subtropical
Updated Brazilian Economic Data for 2024
💡 A country’s GDP represents its gross domestic product, i.e., an indicator that represents the sum of all final goods and services produced by the country during a certain period.
According to Valor Econômico, with data from the IMF, while the largest GDP in the world is that of the USA, Brazil is in the 8th position.
According to IBGE, the Brazilian Institute of Geography and Statistics, the updated data are:
Brazilian GDP
- is R$ 10.9 trillion per year
- R$ 2.7 trillion per quarter
- R$ 42,247.52 per capita (data from 2021)
- Growth of 2.5% per year
These values are frequently updated by IBGE and can be checked here.
Brazilian Economic Structure
Currently, in Brazil, the service sector contributes 80.4% of the country’s GDP in 2021, according to A União.
The main services are:
- Administrative
- Educational
- Health
- Research and development
- Social security
- Commerce
- Maintenance and repair of vehicles
- Real estate activities
Highlights:
- Public administration (40.2%)
- Commerce and repair of motor vehicles (19.8%)
- Real estate activities (12.0%)
- Professional, scientific, and technical activities (8.9%)
These groups, according to IBGE, also have the highest participation in the added value of the state’s economy in general.
Notable growth in:
- Information and communication services (20.6%)
- Professional, scientific, and technical activities (18.5%)
- Accommodation and food services (12.5%)
Industrial Sector
Data indicates that the industrial sector contributes 14.9% of the state’s GDP in 2021. Growth of 5.0% in 2021, recovering from a 3.0% decline in 2020.
Agricultural Sector
The agricultural sector contributes 4.7% of the state’s GDP in 2021. Stable in volume, with 4.2% in 2020.
National Trend
The service sector reflects the national trend, with more than 70% of Brazilian GDP. But what is the service sector and which industries are in the service sector?
According to IBGE, the service sector encompasses all activities related to the provision of services and commerce. It is a very large and diverse sector.
This sector includes basic services like transport and communication to more complex services like consultancy and IT.
Highlights:
Tourism
Tourism activity leads to the growth of real per capita GDP and the influx of resources from other states.
Rodrigo Pinto, president of the Brazilian Association of the Hotel Industry in Paraíba (ABIH-PB), considered that tourism greatly contributes to the Services sector.
He cited a study by journalist Mariana Aldrigui, which concluded that tourism economically involves 571 sectors of the economy (source) of the 1,329 activities recorded in the National Classification of Economic Activities (CNAE).
He said:
“With the increase in tourism activity, there is naturally the growth of real per capita GDP and consequently the increase in the region’s GDP, which receives an influx of resources from visitors from other states, making the economic engine spin with ‘new’ money, thus improving the region’s economic activity as a whole,” he highlighted.
In the national economy, in 2021, the Services sector was the second-fastest-growing in volume in Paraíba (5.6%), showing a real recovery of 10.3 percentage points compared to the previous year when it showed a decline due to the effects of the COVID-19 pandemic.
Images from Google Images
To give you an idea, according to the Rio de Janeiro city hall, the 2024 Carnival moved R$ 5 billion in the country.
And the recent Madonna show in Copacabana, according to Terra, injected R$ 300 million into Rio de Janeiro’s economy. The value is 30 times greater than the invested amount. This shows the power and strength of Brazilian tourism.
Strength in Foreign Trade
According to data from the Brazilian government’s website:
Major forces of the Brazilian market abroad in 2023:
- Record Exports
- Total: US$ 339.67 billion, an increase of 1.7% compared to 2022.
- Export volume grew 8.7%, while prices fell 6.3%.
- Trade Balance
- Record of US$ 98.8 billion, surpassing the previous record of 2022 by 60.6%.
- Number of Exporting Companies
- Growth of 2%, totaling 28.5 thousand companies, a new record.
- Growth of 2%, totaling 28.5 thousand companies, a new record.
- Main Destinations
- China: US$ 105.75 billion, an increase of 16.5% over 2022.
- Argentina: US$ 16.72 billion, an increase of 8.9%.
- Decline in exports to the USA (-1.5%) and the European Union (-9.1%).
- Imports
- Total: US$ 240.83 billion, a decrease of 11.7%.
- Prices of imported goods fell 8.8%, while volume decreased 2.6%.
- Highlighted Export Sectors
- Agriculture: Growth of 9%.
- Extractive Industry: Growth of 3.5%.
- Manufacturing Industry: Decline of 2.3%.
- Featured products: live animals, corn, soy, minerals, sugars, animal feed, and civil engineering equipment.
- Main Exported Products
- Soy, corn, sugar, iron ore, and crude oil (mainly to Asia).
- Soy, corn, sugar, iron ore, and crude oil (mainly to Asia).
- Imports by Sector
- Agriculture: Decline of 21%.
- Extractive Industry: Decline of 27%.
- Manufacturing Industry: Decline of 10%.
- Main products with reduced imports: wheat, corn, latex, coal, oil, natural gas, fuels, and fertilizers.
- Performance in December 2023
- Exports: US$ 28.839 billion (a record for December).
- Imports: US$ 19.479 billion.
- Trade balance: US$ 9.36 billion.
- Growth in exports: agriculture (13.7%), extractive industry (8.9%), and manufacturing industry (8.6%).
- Decline in imports in December: agriculture (-21.7%), extractive industry (-54.1%), and manufacturing industry (-6%).
- Agreements and Partnerships
- Mercosur-Singapore Agreement.
- Expansion of business with Asia, Africa, Europe, the USA, and Latin America, with highlights for President Luiz Inácio Lula da Silva’s initiatives.
Popular Brazilian Companies
Public Companies:
- Petrobras (PETR3/PETR4)
- Value: R$ 499 billion
- Oil and gas sector.
- Vale (VALE3)
- Value: R$ 369 billion
- Mining and logistics sector.
- Itaú Unibanco (ITUB4)
- Value: R$ 260 billion
- Financial services sector.
- Bradesco (BBDC4)
- Value: R$ 182 billion
- Financial services sector.
- Ambev (ABEV3)
- Value: R$ 180 billion
- Beverage production sector.
President Lula inside JBS – Image from Google
Private Companies:
- JBS (JBSS3)
- Value: R$ 72 billion
- Food industry sector.
- BTG Pactual (BPAC11)
- Value: R$ 66 billion
- Financial services sector.
- Magazine Luiza (MGLU3)
- Value: R$ 55 billion
- Retail sector.
- Nubank (NU)
- Value: R$ 51 billion
- Financial technology sector.
- B3 (B3SA3)
- Value: R$ 45 billion
- Financial services sector.
Image from Pixabay by sumanamul15
How is the Job Market in Brazil?
Important: It is crucial to keep in mind that the job market is dynamic and constantly changing. More recent data may present variations compared to the 2022 figures.
According to data from SEBRAE:
- Brazil recorded 52.7 million formal jobs, with an increase of 8.34% compared to 2021.
- The average remuneration for Brazilian workers was R$ 2,620.61.
- The sectors that concentrated the largest number of workers were:
- Public Administration, Defense, and Social Security
- Retail Trade
- Human Health Care Activities
- Almost half (44.2%) of the workers were women, earning an average of R$ 3,477.53. The other half (55.8%) were men, with an average salary of R$ 4,165.22.
- The most common type of establishment is the Individual Microentrepreneur (MEI), representing almost half (49.4%) of all registrations.
What are the main products Brazil exports abroad?
According to Gett, Brazilian exports are heavily concentrated in commodities (raw materials). This strengthens the primary sector of our economy but reduces our potential earnings, especially compared to countries focused on exporting more industrialized products. These products are:
Soybeans
Did you know that Brazil is the world’s largest producer of soybeans, with almost 30% of this production coming from the state of Mato Grosso? (Agroadvance)
Oil (Petroleum)
Oil is the second most exported product, accounting for 11% of Brazilian exports, generating around US$24.2 billion. Brazil is the 8th largest oil producer in the world. (IBP)
Like soybeans, the main destination for Brazilian oil is China, which receives about 64% of what is sold abroad. The state that exported the most crude oil was Rio de Janeiro, considered the largest oil extractor in the country.
Iron Ore
Iron ore accounts for 10% of total exports, generating around US$22.7 billion. This product’s primary destination was also China, which received nearly 60% of the exported iron ore. Its production is mainly concentrated in the states of Pará and Minas Gerais.
Cellulose
Cellulose represents 3.3% of products sold abroad, generating around US$7.5 billion. Its main consumer was China, which once again topped the list, acquiring about 43.5% of the total exported.
Corn
Corn and its varieties represented about 3.2% of 2019 exports, generating US$7.3 billion. Unlike other major Brazilian export products, the distribution of corn is more diversified, with Japan and Iran as the largest buyers. Its production is concentrated in Mato Grosso, which cultivates about 58.6% of the exported grains.
Beef
Beef, which requires high-quality standards for export, accounted for 2.9% of exports, generating around US$6.5 billion. China, our main consumer market, is responsible for 41% of this total. Production is concentrated in the states of Mato Grosso and São Paulo.
Poultry
With the same participation as beef, poultry also reached 2.9% of exports, generating US$6.5 billion, tying for sixth and seventh place. The main destinations are China, Japan, and Saudi Arabia. Its production is mainly concentrated in the state of Paraná.
It is important to note that the most exported mineral product from Brazil remains oil. Brazil has large reserves of this mineral, especially with the discovery of the pre-salt (Enverus), where the main wells with the highest daily flow rates are located.
Next, we have iron ore exports, widely used in the production of electronics, tools, machines, automobiles, and a myriad of other purposes.
How to Invest in Brazil in 2024
According to Empiricus:
Types of Investors
There are two main types of investors in Brazilian stocks: domestic (that resides in Brazil) and foreign.
- Foreign Investor: A foreign investor is an individual or entity from another country that invests in Brazil, seeking diversification, good opportunities, or economic advantages.
Investment Rules: Foreign investors can invest in products available to residents, following procedures such as registration with the Central Bank and obtaining a CNPJ.
- Necessary Representatives:
- Legal Representative: Provides registration information to authorities.
- Tax Representative: Manages tax-related issues.
- Custodian: Controls assets and provides reports.
Taxation:
- Exemption: Capital gains on stocks and agricultural investments are exempt, except if originating from countries with low taxation.
- Taxes: 10% on earnings from some variable income investments and 15% on gains from investment funds and fixed income.
Advantages and Disadvantages: Foreign investments bring capital, stimulate economic growth, and increase market confidence, but can also increase financial volatility. These rules and characteristics make foreign investment a crucial piece for Brazil’s economic development despite the challenges involved.
The official government website provides a guide for foreign investors with various details, which you can download from the link below:
But… Is Brazil Good for Business?
According to E-commerce Brasil, Brazil has made significant efforts to simplify taxation and reduce barriers to foreign investment, but challenges persist.
Carolina Secches, Director of Global Entity Management at TMF Group in Brazil, states that despite various hurdles, the country has undergone crucial changes to attract capital and stimulate sustainable economic growth.
According to Secches, Brazil has made progress in reducing difficulties for foreign investors, especially in the areas of exchange and tax regulation.
Carolina Secches “There used to be many more requirements and obstacles for foreign investment, and many of these have been simplified,” she said. However, she notes that tax complexity remains a significant challenge. “There are tax benefits and tariff reductions for foreign investments, but regulation and constant rule changes create an environment of uncertainty.”
While Brazil is a continental country with significant regional variations, these differences do not heavily impact foreign investment, according to Secches.
“Most foreign investors are concentrated in the Southeast region (Rio de Janeiro, São Paulo, Minas Gerais, and Espírito Santo), which has the highest economic activity. There are some free trade zones with tax benefits, but overall, there are no major regional differences that affect compliance.”
To improve this scenario, Secches suggests greater stability in rules and simplification of import processes.
“We need more regulatory stability and a reduction in import taxation to facilitate business. Hiring a good customs broker can also help navigate the complex Brazilian system.”
Secches maintains an optimistic perspective on the future of the business environment in Brazil.
“I hope Brazil will continue to simplify and improve the business environment, although progress may be slow. The intention to facilitate foreign investment is clear, and I believe the trend is improving.”
Brazil rose from first to seventh in complexity
In the 11th edition of the Global Business Complexity Index (GBCI), TMF Group recently released content showing that Brazil moved from first place in 2022 to seventh in 2024.
This improvement, however, was mainly due to increased complexity in other countries. Greece leads this year’s complexity index, while Latin America remains the most complex region for business. The list includes Colombia, Mexico, Brazil, and Peru among the top 10 most complex countries.
The world’s 10 most complex economies are:
- Greece
- France
- Colombia
- Mexico
- Bolivia
- Turkey
- Brazil
- Italy
- Peru
- Kazakhstan
The world’s least complex economies are:
- Jamaica
- British Virgin Islands
- Jersey
- United Kingdom
- New Zealand
- Hong Kong
- Denmark
- Curaçao
- Cayman Islands
The Best Niches to Start a Business in Brazil
According to Nuvemshop, here are some of the most profitable niches:
Personalization Market: Customizing products and services, such as cosmetics and tailored deliveries, is on the rise. For example, Ray-Ban allows customers to customize their glasses, strengthening the bond between the brand and the customer.
Healthy Food and Veganism: The demand for healthy and vegan food is growing, with significant market growth projected. For instance, Mr. Fit, a healthy fast-food chain, has rapidly expanded to over 500 franchises.
Aromatherapy: Aromatherapy has been gaining popularity since being integrated into SUS (the public health system in Brazil) in 2018. The market for essential oils is expected to grow significantly by 2027.
Dermocosmetics: The beauty sector, particularly products that treat skin conditions like alopecia and melasma, is booming.
Pet Products: The pet market in Brazil is expanding, especially in food, veterinary care, and wellness products. For example, Vegpet has generated R$ 1.2 million in revenue with its pet products.
For more detailed insights on the top 10 sectors, read our full article: “Top Businesses to Start in Brazil for Foreign Entrepreneurs in 2024.”
The Largest Brazilian Companies
Understanding the largest companies in Brazil helps in comprehending the composition of the Ibovespa index, the benchmark for the Brazilian stock market. Here are the top 10 companies by market value according to Prepara Cursos:
- Petrobras (PETR4): R$568 billion – One of the world’s largest energy companies, specializing in oil and gas exploration, production, refining, and distribution.
- Itaú Unibanco (ITUB4): R$315 billion – A major bank in Brazil and Latin America, offering a wide range of financial services.
- Vale (VALE3): R$309 billion – A leading mining company focused on iron ore, nickel, and other minerals.
- Ambev (ABEV3): R$201 billion – A top beverage company in Latin America, producing and distributing beers, soft drinks, and juices.
- BTG Pactual (BPAC11): R$169 billion – An investment bank and asset manager.
- Banco do Brasil (BBAS3): R$165 billion – One of the oldest and largest banks in the country.
- WEG (WEGE3): R$140 billion – A manufacturer of electrical equipment.
- Bradesco (BBDC3): R$136 billion – A leading bank offering loans, credit cards, insurance, investments, and retail banking.
- Santander Brasil (SANB11): R$109 billion – A subsidiary of the Spanish bank, offering various financial services.
- ITAÚSA (ITSA4): R$108 billion – A holding company with interests in financial, industrial, and chemical sectors.
The Largest Multinational Companies in Brazil
Here are the top 10 multinational companies operating in Brazil :
- Apple: Known for its innovative products like the iPhone, iPad, and Mac. Significant presence in São Paulo.
- Toyota Motor: A major automobile manufacturer with a long history in Brazil and a plant in São Bernardo do Campo.
- Samsung: Known for its electronics, including smartphones and appliances, with a growing presence in Brazil.
- Volkswagen Group: An iconic car manufacturer with a strong portfolio in Brazil.
- Johnson & Johnson: A healthcare company with a large factory in São José dos Campos.
- Microsoft: A technology giant known for software like Windows, with its Brazilian headquarters in São Paulo.
- Walmart: A major retail chain operating in various segments.
- Nestlé: A leading food company with a strong presence since 1875.
- P&G: Known for consumer goods like Pampers and Gillette, operating in Brazil since 1988.
- Facebook: A social media giant with a significant user base and an office in São Paulo.
The Most Valuable Brazilian Brands
According to a study by Interbrand, the market value of the 25 most valuable brands in 2022/2023 reached R$ 153 billion, a 6% increase compared to the 2021/2022 study. To compile the ranking, around 1,100 Brazilians from classes A, B, and C, aged over 15, were interviewed. Here are the 25 most valuable brands in Brazil:
- Itaú – R$ 44,385 million (Financial services)
- Bradesco – R$ 28,620 million (Financial services)
- Skol – R$ 18,865 million (Beverages)
- Brahma – R$ 13,325 million (Beverages)
- Banco do Brasil – R$ 10,336 million (Financial services)
- Natura – R$ 9,730 million (Cosmetics and personal care)
- Nubank – R$ 3,837 million (Financial services)
- Magazine Luiza – R$ 3,509 million (Retail)
- Vivo – R$ 3,003 million (Telecommunications)
- Petrobras – R$ 3,003 million (Energy)
- Renner – R$ 1,987 million (Retail)
- XP Investimentos – R$ 1,828 million (Financial services)
- Posto Ipiranga – R$ 1,218 million (Energy)
- Drogasil – R$ 1,163 million (Retail)
- Claro – R$ 1,111 million (Telecommunications)
- Porto Seguro – R$ 980 million (Insurance)
- Havaianas – R$ 942 million (Fashion)
- Cielo – R$ 941 million (Financial services)
- Americanas – R$ 844 million (Retail)
- Assaí Atacadista – R$ 720 million (Retail)
- Atacadão – R$ 684 million (Retail)
- PagSeguro – R$ 645 million (Financial services)
- Localiza – R$ 625 million (Services)
- SulAmérica – R$ 610 million (Insurance)
- Hering – R$ 583 million (Retail)
The 10 Richest Brazilians
According to G1, here are the 10 richest Brazilians:
-
Eduardo Saverin – US$ 28 billion (60th overall)
- Co-founder of Facebook, invests in tech startups and other emerging businesses. Currently resides in Singapore.
-
Vicky Safra – US$ 20.6 billion (94th overall)
- Widow of banker Joseph Safra, inherited a significant portion of Banco Safra and other financial investments.
-
Jorge Paulo Lemann – US$ 16.4 billion (113th overall)
- Co-founder of 3G Capital, invests in global companies such as Anheuser-Busch InBev, Kraft Heinz, and Burger King.
-
Marcel Herrmann Telles – US$ 10.9 billion (195th overall)
- Lemann’s partner at 3G Capital, known for his role in companies like Ambev and Anheuser-Busch InBev.
-
Carlos Alberto Sicupira – US$ 8.9 billion (278th overall)
- Another partner at 3G Capital, influential in managing companies in the beverage and food industries, including AB InBev and Restaurant Brands International.
-
Fernando Roberto Moreira Salles – US$ 7.6 billion (344th overall)
- Member of the founding family of Unibanco, holds a significant stake in Itaú Unibanco and other financial enterprises.
-
Pedro Moreira Salles – US$ 7.1 billion (385th overall)
- Brother of Fernando, also has a large stake in Itaú Unibanco and operates in various sectors of the financial industry.
-
André Esteves – US$ 6.6 billion (417th overall)
- Partner at BTG Pactual, a key figure in the Brazilian financial market with investments in banks and other financial institutions.
-
Alexandre Behring – US$ 6.3 billion (453rd overall)
- Co-founder of 3G Capital and chairman of Kraft Heinz, a strategic investor in large global companies.
-
Miguel Krigsner – US$ 5.7 billion (522nd overall)
- Founder of the cosmetics group O Boticário, transformed the company into one of the largest in the sector in Latin America.
Those numbers can change from month to month, check this Forbes page to see the list of the richest people in the world.
Conclusion
The Brazilian market continues to grow, and we will keep updating this article over time. We hope we have helped foreign readers understand a bit more about interesting data and information regarding the Brazilian market.
Visit the source websites for more information about the Brazilian economic and sociocultural market:
