Private label in Brazil: why growth continues to lag
3. Retail structure favours branded value, not retailer value
Brazil’s retail structure further suppresses private label development. The country’s dominant value format is atacarejo (retailers include Assaí, Atacadão, and Maxxi), which is built around bulk purchasing of national brands. These stores normalise brand-led value, not retailer-led value, and train shoppers to expect low prices from familiar branded products.
Discount formats, which are the engine of private label penetration globally, have yet to scale in Brazil. The model struggled to resonate with Brazilian customers, partly because shoppers place a high emphasis on service and colleague interaction, a cultural expectation that conflicts with low-staff discount operations.
Retailers are still investing in private label, particularly at the entry tier. Carrefour’s recent launch of Bulnez at Atacadão is a clear example of this renewed push to build a stronger value proposition. But convincing shoppers to migrate from trusted national brands remains a major challenge.
The greatest opportunity for private label arguably lies in low‑risk, commodity‑led categories, e.g. cooking oil, bottled water, beans, rice and other staples, where brand attachment is weaker, and shoppers are more willing to experiment. Beyond these essentials, however, shifting behaviour away from long‑standing heritage brands will require sustained in‑store marketing, strong quality cues and consistent value delivery.
Image source: Carrefour
Private label penetration: Brazil vs the rest of Latin America
According to ABMAPRO, citing Nielsen, private label accounts for roughly 20% of total FMCG sales nationally, far below Mexico and Colombia, where penetration typically reaches 25% to 35% depending on the category. Even Brazil’s most advanced operators, such as Carrefour, GPA and leading regional chains, reach 20–23%, which is half the level seen in some European markets.
Valor Econômico reports that even during the surge in inflation seen in 2024 and 2025, private label failed to gain meaningful traction, as shoppers switched to smaller pack sizes or cheaper national brands as opposed to retailer labels. This data underscores the point: Brazil is a brand-led market, and private label remains a marginal part of the grocery landscape despite retailer investment.
What this means for suppliers
For FMCG suppliers, Brazil’s private label stagnation is not a threat but an opportunity. The market’s structure ensures that brands remain the primary vehicle for value, and suppliers can continue to grow by strengthening their branded propositions rather than defending against retailer-brand erosion.
Three implications stand out:
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Innovation is a key defence. Challenger brands grow quickly because they feel modern and relevant. Suppliers that innovate consistently, e.g. new formats, flavours, and pack sizes, can stay ahead of this churn.
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Value must be delivered through branded tiers, not private label. Entry-tier branded propositions, regional SKUs and promotional mechanics remain more effective than retailer-brand strategies.
Brazil’s grocery market will continue to evolve, but the structural forces shaping private label resistance are durable. For suppliers, the message is clear: Brazil is a brand-led market, and winning means investing in branded value, not preparing for private label disruption.