The vermouth industry in Brazil

This report offers a detailed analysis of the vermouth industry in Brazil. The Brazilian market is an interesting opportunity for Catalan vermouth companies, thanks to the country's trade deficit and the segment's growth potential. Even so, companies will need to develop competitive strategies to counter the advantages enjoyed by other exporting countries and to make the most of the various sales channels available.

A detailed analysis of the Brazilian vermouth market, based on import and export data as well as consumption trends and market characteristics, yields key conclusions for Catalan companies interested in expanding their presence in Brazil.

A market with growth potential

Although per-capita vermouth consumption in Brazil is relatively low compared with other countries, the influence of European food culture and rising purchasing power have boosted consumption of this type of drink in recent years. This is an opportunity for Catalan companies that produce and sell vermouth. 99.9% of all imports come under TARIC code 22.05.10 and in containers of 2 litres or less. 

Origin of vermouth imports (22.05.10) into Brazil in 2021-2023:

Origin of vermouth imports (22.05.10) into Brazil in 2023:

Trade deficit and heavy reliance on imports

Brazil is a net importer of vermouth, reflected in a significant trade deficit for this product. In 2021-2023 the cumulative trade balance was negative by USD 3.19 million. This indicates heavy reliance on imports to meet domestic demand.

Destination of Brazil's vermouth exports (22.05.10) in 2021-2023:

An opportunity for Catalan exporters

The fact that Brazil has a large vermouth trade deficit offers Catalan exporters an opportunity to place their products in this market. Spain currently has a very small share of Brazil's vermouth imports, at 0.4% of the total, leaving room to increase sales.

A variety of sales channels

Catalan vermouth can find various distribution channels in Brazil, from large supermarket and hypermarket chains to specialist shops, wine merchants, online platforms and HORECA outlets. This makes it possible to reach different consumer segments.

Competition from Latin American countries

Some Latin American countries such as Argentina and Uruguay enjoy tariff advantages for exporting vermouth to Brazil, giving them a competitive position. Catalan companies should focus their strategies on product differentiation, quality and promotion in order to compete.

An opportunity to work with bartenders and chefs

Vermouth has a strong presence in Brazilian cocktail-making and cuisine, so Catalan companies could explore opportunities to work with local bartenders and chefs to position their products.

If you would like to know about other commercial activities PRODECA runs in LATAM, you can write to Rosalba Arrufat at rarrufat@gencat.cat or to Laia Villalbí at laiavillalbi@gencat.cat.