Brasil Pack Trends 2020

BrasilPackTrends2020 56 fatores que influenciam o mercado de bens de consumo continue, for many years, showing high rates of personal income concentration, although decreasing”. Therefore, the Triple A segment should keep the more sophisticated consumer goods market warm, in which the aesthetics and design of packages perform strategic functions for adding value to prestige products. A study of Bain & Company (D’ARPIZIO, 2011) estimated that the luxury market growth in Brazil was around 20% between 2009 and 2011. According to KPMG (RESURGENCE..., 2011), the Brazilian luxury market grew 22% in 2010, amounting to US$ 7.6 billion. KPMG has estimated a growth of 15.2% per year between 2010 and 2025, reaching a value of US$ 63.5 billion, which would represent 6% of the global luxury goods market. However, it should be noted that, in emerging markets like Brazil, luxury goods have distinct characteristics from those known in developed countries. For example, emerging consumers tend to seek social recognition and status symbols, characterized by values such as excess, extravagance and ostentation (D’ARPIZIO, 2011). However, the major driver of growth in the industrial sector should come from two segments that maintain close ties: a New Middle Class and the people at the base of the Brazilian socioeconomic pyramid. Social ascension and consolidation of the New Middle Class (Class C) The Brazil Food Trends 2020 study (BRASIL…, 2010) showed that the participation of groups of individuals of the lower income, in the total income of the country, increased by 52.4% from 1996 to 2008, while the higher income stratum had reduced its relative participation from 47.5% to 43.2% during the same period. This small movement toward a more equitable society regarding income distribution gave a strong positive impact on the Brazilian economy. According to the Fecomercio-SP (2012, p. 6) study, “more than 12 million of families (nearly 40 million of people) climbed to income classes B and C between 2003 and 2009.” According to a study of the Strategic Affairs Department, the federal government (BARROS; DIECKMANN; MENDONÇA et al., 2011), the high income growth of the poorest population promoted a “reduction of inequality and a widening of the Brazilian middle class without precedent in history. “For the authors, the determinants of this movement were the social protection system, the more inclusive model of economic growth, the expansion of the access to credit, the actual increase in the minimum wage, the increase of productivity and the education level of the workforce, among other factors. The New Middle Class has driven the consumer goods demand in Brazil and caused structural changes in the market, since these customers require products that meet their desire for greater sophistication of purchase, for an affordable price, according to their purchasing power, that, even having been enlarged, is still very low. This condition brings challenges for the consumer goods industries. For example, a work of PROFUTURO (WRIGHT; SILVA; SPERS, 2009) indicates some characteristics to be observed to attend this popular products market: affordability, simplicity, adequacy of benefits to popular profile, selective use of technology and suitability for sale in small retail stores, among others. A research of Ipsos company (PESQUISA..., 2008) revealed the heterogeneity of the low-income consumers, classified into five groups, according to their affinity of consumption habits and motivations for buying: Spenders (15% of consumers), Cautious (44%), Indebted (8%), Austere (14%) and Les Miserables (19%). It was observed that three groups (Cautious, Austere and Les Miserables), which represent the vast majority (77%) of low-income consumers, do not value or attach little value to the status provided by the purchase of goods and services of prestigious brands, or do not have sufficient resources to allow that the pursuit of status serves as a major factor of motivation for the purchase. On the other hand, only 15% of these consumers (the group of Spenders) exhibit a behavior similar to consumers in classes A and B, by having higher income compared to the others. The Indebted group also demonstrates some propensity to consume goods and services of prestigious brands, but their debts inhibit their desire for consumption.