Brazil’s affluent middle class are planning to avoid big vacations, new cars and other major purchases and are prioritising saving money once the coronavirus pandemic is over, according to a new report out today.
In a survey for the new Wine Intelligence Brazil Wine Landscapes 2020 report, out today, nearly 6 in 10 imported wine drinkers in Brazil said they were going to focus on shoring up their personal finances after restrictions are eased. A clear majority of consumers (71%) said they would be less likely to take a vacation abroad, while a similar proportion (67%) said they would be less likely to host a big social event once the pandemic is over.
The news is more encouraging for the food and beverage industries, with 28% saying they would be more likely to treat themselves to a better quality wine after the pandemic, with a similar proportion saying they will try new alcoholic beverages and new styles of food, with 36-40% of respondents saying they would be less likely to do this.
This news comes amid rising concerns among businesses around the world over the health of major economies over the coming 12-18 months. The loss of revenues and jobs in the hospitality and retail sectors in places that have imposed movement restrictions have led to a broader loss of economic confidence, mirrored in a variety of survey data and economic indicators. Brazilian wine drinkers have also been hit by a 30% devaluation of the national currency, the real, versus the US dollar in the past year, making imported wine more expensive for them to buy.
Despite the recent price rises and economic uncertainty, wine has been enjoying something of a renaissance in Brazil, with high quality domestic wines now starting to compete with well known imported brands from Chile, Argentina and Portugal.
The Wine Intelligence Brazil Wine Landscapes 2020 report is now available for purchase here. It includes latest insights pre, during and predicted post COVID-19 restrictions, including beverage repertoire, wine buying and consumption behaviours, brand health and lifestyle behaviour changes.
Commenting on the report, Wine Intelligence Brazil Country Manager Rodrigo Lanari said: “Despite the challenging moment, Brazil was promoted to a growth market thanks to the positive development of the category in the last years. In a stagnant economic environment, wine has shown a high degree of resiliency and ability to attract new consumers. It is remarkable that we have reached 38 million consumers drinking wine on a regular basis in Brazil.”