Food and beverage industries earn more than R$1.1 trillion in 2023

The 38 thousand national industries in the food and beverage sector earned R$1.16 trillion last yeara growth of 7.2% compared to 2022. The financial volume corresponds to 10.8% of the Brazilian Gross Domestic Product (GDP).

A review of the sector presented by the Brazilian Food and Beverage Industry Association (Abia) this Thursday (22) also showed that the segment accounted for 67% of formal job creation in the manufacturing industry, with the creation of 70 thousand new jobs. The sector employs almost 2 million workers across the country.

“Brazil has established itself as the planet’s supermarket.”

Executive President of Abia, João Dornellas

Abia’s executive president, João Dornellas, points out that in 2019 Brazil was considered “the breadbasket of the world”, while the sector was betting on “the world’s supermarket” because, in addition to producing, the country transforms, adds value and exports with greater added value.

Last year, 82 million tons of food were exported, with revenues of US$62 billion. “In 2023 we were the largest food exporting industry on the planet. We had already narrowly overtaken the United States in 2022, but in 2023 consolidation came. Nobody exports anymore [em volume] than Brazil”, highlighted Dornellas.

The country that earns the most from exports in the segment is the United States, which recorded US$89.3 billion in 2023 from the sale of 54.9 million tons of products.

National market accounts for 73% of the sector’s revenue

Of the total amount billed last year, R$851 billion (73%) came from the national market. Sales to 190 countries resulted in over R$310 billion (US$62 billion). “We grew in both segments, selling more in Brazil and abroad”, assessed the executive president of Abia.

The Southeast Region accounted for the largest share of revenue, with R$441 billion, followed by the South, with R$337 billion, and the Central-West, with R$216 billion.

Industries have idle capacity of almost 25%

The food and beverage industries invested R$35 billion in 2023, an increase of 52% compared to the previous year, according to Abia. “There were mergers, acquisitions of new plants, technology, innovation, new products, increased capacity and we can continue to grow”, added Dornellas.

In 2023, the segment produced 270 million tons of food, but industrial plants still have around 25% idle capacity, meaning there are professionals, machines and raw materials available, just waiting for markets. “If we need to increase production tomorrow, if there is demand, we can do it without any difficulties. It is very important to open new markets and new commercial agreements”, reinforced the Abia representative.

These industries process 61% of everything produced by Brazilian agriculture and it is the other 39% that the segment is focused on to expand production in the coming years. This untransformed percentage corresponds to the commoditiessuch as soy and corn, and the sale of live animals.

Sector accounts for more than half of the trade balance

With sales of US$62 billion to the foreign market in 2023, Brazil accounted for 18.3% of global sales in the segment. Almost half of what the sector sold last year (43%) went to Asian countriesfollowed by Arab League (16.4%) and by European Union (14.6%).

The food and beverage sector accounted for 55.3% of the Brazilian trade balance. There was a R$54.6 billion surplus. The total Brazilian balance was US$98.8 billion.

“We have the capacity to grow without much effort and investment. If there is demand, the industry can produce more”, considered Dornellas, highlighting that for every 10% of growth, there are 100 thousand new jobs and another US$3.5 billion in the positive balance of trade.

Among the main exports carried out by the food and beverage industries are animal protein products ($23.6 billion), sugar products ($16.0 billion), soybean meal and others (US$12.6 billion), oil and fat ($3.6 billion) and juices and vegetable preparations ($2.9 billion).

For the year 2024, the segment expects – with GDP growth projected between 1.8% and 2% – for a 2.5% increase in revenue; 1.5% in jobs and reach US$ 65 billion in exportss. The eyes now turn to the crop failure in Brazil, just over 6%, which could interfere with the supply of inputs for processing, such as soybeans and corn.