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The rise of the Guaraná export market

    Guarana, a typical product from the Amazon region, is well known in Brazil, as well as abroad. The fact that it is a unique product in the Brazilian territory gives the market a feeling of exoticity and exclusivity of national producers in foreign markets, conditioning this niche to always have a high demand compared to the offer, which makes many traders interested in sell the product to foreign consumers.

  Guarana's exoticity, versatility and exclusivity.

    Furthermore, according to data from Embrapa (Brazilian Agricultural Research Corporation), it is estimated that around 70% of production is turned to soft drink manufacturers, while the rest is sold in the form of syrup, stick, powder, extract and other by-products . Thus, it is possible to notice another characteristic of guarana: it is a versatile product. This attribute adds value in the market and makes international buyers look to Brazil for the supply of this merchandise.  

  Lack of competition abroad and international acceptance.

   In a market research carried out by SEBRAE (Brazilian Support Service for Micro and Small Businesses), guaraná has a national production of around 4 thousand tons per year, of which around 90% is absorbed by the domestic market. The fact that only 10% of the fruit production is turned to the foreign market, as well as the reason that Brazil is the only exporting country of this product, makes the competition in the international market small, with the only competitors in Brazil being the Venezuela and Peru. In this way, the small guarana producer has great chances of fitting into this market. According to data from Conab (National Supply Company), Brazil had gross production value of guaraná  in 2018 of R$27 million. Demand in international markets means that the country already exports to countries such as Japan, Italy, England, USA and Spain, the latter being the main gateway to the European market.  

  International demand growth.

    Guarana is a product certified by the Instituto Biodinâmico Certification Association - IBD, therefore, guaraná is a product certified according to international standards. The fruit has also already had the acceptance of Americans, Europeans and Asians. According to information from Embrapa's guaraná plant genetic improvement program, production will have to double over the next three years to meet demand from the foreign market. Shipments to countries in America, Europe and Asia grow around 20% a year, according to SEBRAE. Guarana exports and its acceptance on the international market is already historic. The Onça project, the Core Organization of Agricultural Communities, from Taperoá, has been sending powdered guarana to Germany since 1995. In the last 13 years, annual shipments had totaled 4.5 tons, with remuneration of up to 14 dollars per kilogram. According to data from the company Agrospice, a producer of guarana, 300 to 500 tons of guarana are currently exported a year, representing around US$ 15 million.

  Intensification of disclosure.

   The consumer profile of guarana today is broader, covering people of different ages and is used for various purposes, this is due to the numerous characteristics of the fruit, which has a high content of caffeine and cardiovascular stimulants. The fruit is even used by athletes, gym and gym goers, beaches and tourists, creating a new and profitable business field for producers and exporters. The consumption of guarana has become a habit.

   The importance of the performance of an international consultancy.

   The foreign market also has favorable growth prospects given the policy of action of large, medium and small companies, as well as laboratories that are investing in new market niches. Given the great commercial potential, entities such as SUFRAMA (Superintendence of the Manaus Free Trade Zone) have intensified the dissemination of guaraná at events to help open new markets and identify business opportunities. Another factor that contributes to the growth of guaraná consumption abroad is the growth of other markets, such as confectionery, cosmetics and beverages, as all of these come in the fruit as a healthier and better quality substitute. In this way, the growing participation of the product in the market, as well as the demands for export, bring great air to the investor who wants to export, who, with the help of a specialized consultancy, would be able to  identify these investment opportunities.

By Antonio Miranda on 06/01/2020

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Sources:

https://bit.ly/2GbDbT9

https://bit.ly/2wBFLSK

https://bit.ly/2jSujsI

https://bit.ly/2Iz1QX5

https://bit.ly/2zautak

https://bit.ly/3dIGIKo