Small businesses drive 26.5% of Brazil's GDP as coffee sector grows

Small businesses in Brazil have become a cornerstone of the national economy, representing over 96% of active companies and contributing 26.5% to the country's GDP. According to Sebrae, this segment includes more than 24 million active entities and is a primary driver of employment, accounting for eight out of ten new formal jobs in July 2026.

Within this landscape, the coffee shop sector has seen significant expansion. Between 2020 and 2025, the number of active coffee-related businesses grew by 38%, averaging a 7.7% annual increase. The sector currently comprises approximately 482,000 companies, 98% of which are small businesses.

This growth is driven by a shift in consumer behavior toward 'premiumization,' where customers prioritize bean origin, preparation methods, and the overall experience. However, entrepreneurs face challenges such as rising raw material costs—with green coffee prices increasing over 200% in five years—and difficulties in customer acquisition and pricing.