Brazilian consumer and retail market trends

The Brazilian economy has shown various trends in consumer sectors. The home and decoration products industry has seen substantial long-term growth, with its value projected to rise from R$ 37.7 billion in 2016 to R$ 72.2 billion by 2025. In the e-commerce sector, sales reached R$ 210 billion in the first half of 2026. While the volume of orders increased by nearly 35%, the average purchase value fell by 13%, indicating a fragmentation of consumer spending. To address economic shifts, the ‘Compre do Pequeno’ movement has been expanded to encourage support for small businesses, which account for approximately 30% of the national GDP. Recent data from a joint study by Sebrae and E-Commerce Brasil highlights a significant digital shift among small enterprises. Online sales for micro and small businesses grew from approximately R$ 4 billion in 2019 to R$ 67 billion in 2024, with 73% of these businesses now utilizing digital channels. However, operational challenges persist. In 59% of small businesses, a single person manages the entire digital operation, a figure that reaches 76% among individual micro-entrepreneurs (MEIs). Sales are increasingly driven by social media, specifically WhatsApp, used by 82% of small businesses, and Instagram, used by 57%. While marketplaces assist with visibility, they create dependency; 72.6% of small businesses using marketplaces derive up to 40% of their digital revenue from these platforms, exposing them to third-party rules and algorithmic changes. Marketplace expansion is further diversifying the landscape. Mercado Livre has entered the pharmaceutical sector by allowing the sale of prescription medications via a third-party model, a move that prompted the Brazilian Association of Pharmacy Chains (Abrafarma) to seek regulatory clarification from Anvisa and caused stock volatility for retailers like RD Saúde and Pague Menos.