Brazil is among the top five countries for innovation in fast moving consumer goods, according to Euromonitor International’s Passport Innovation tracker, with over 12,000 new products tracked entering the market via e-commerce in FMCG industries since 2021. International brands often choose Brazil as an entry point into the wider Latin American market.
In a competitive market marked by ongoing concerns about rising living costs, brand collaborations, often called “collabs”, have emerged as a strategic approach for differentiation and growth. Brand collabs have been gaining momentum, driven by consumers’ desire for new, bold and innovative products and experiences. Social media has further amplified awareness and enthusiasm around these partnerships.
Brand collabs are a highly effective strategy, boosting brand visibility and enabling partners to tap into each other’s customer bases, exposing their products to potential new audiences.
Stronger brand recognition influences consumers’ purchase decisions, as 34% of Brazilian consumers reported that they regularly seek strong and well-known brands, compared to 27% of global consumers
Source: Euromonitor’s Voice of the Consumer: Digital Survey (fielded in March-April 2024)
Additionally, such partnerships allow brands to share the financial burden of production, distribution and marketing expenses. This dynamic is exemplified in the collaboration between Havaianas and Farm – two renowned Brazilian brands in the apparel and footwear industry. Their partnership emphasises themes of nature, a relaxed lifestyle and vibrant prints. While Farm appeals primarily to female consumers who prioritise originality and the newest fashion trends, Havaianas caters to a broader audience spanning all ages, genders and preferences. The partnership’s distinctive flip-flops are available in both Havaianas and Farm stores, expanding their distribution reach.
These collabs resonate with the findings from Euromonitor International’s Voice of the Industry Survey, which highlights the top long-term business priorities, according to industry professionals.
Innovating through nostalgia
Tapping into nostalgia has become a popular strategy in brand collabs, driving success by creating emotional connections to products through familiar memories and childhood experiences. Brazilian consumer health player Athletica Nutrition has partnered with Toddy, PepsiCo’s chocolate-flavoured drink brand, as well as with Dadinho, a traditional peanut sweets brand from Doce Sabor Indústria. These collabs resulted in the release of two new whey protein powder products in 2024, integrating the nostalgic flavours into the realm of sports nutrition. This approach highlights a creative fusion of indulgence and health, appealing to both fitness enthusiasts and those seeking distinctive, emotionally resonant products.
Source: Atlheticanutrition.com.br
In celebration of its 150th anniversary, Maizena, Unilever’s brand known for its corn starch products, partnered with Electrolux to launch a special edition stand food mixer. The appliance evokes nostalgia by incorporating Maizena’s logo and colours, and highlighting the relevance and cultural impact of the Maizena brand in Brazilian households.
Hyping it up through social media
Social media plays a vital role in enhancing visibility and generating excitement around new brand collabs. Social media users in Brazil largely turn to Instagram and YouTube for information about brands and products. According to Euromonitor International’s Digital Survey 2024, nearly 30% of Millennials and 28% of Gen Z consumers indicated they buy goods after seeing an advertisement on Instagram, compared to 28% and 20% of their global counterparts.
Recently, the collab between Carmed, a lip moisturiser brand owned by Brazil’s Grupo Cimed, and Fini, a popular confectionery brand, created significant buzz on TikTok. This partnership introduced three unique lip balm flavours – Bananinha, Dentadura and Beijinho – inspired by Fini’s iconic sweets, blending the fun of confectionery flavours with skin care. Previously, Carmed has partnered with Burger King, launching a lip balm with a grilled scent, as well as a special edition lip balm distributed free of charge at the singer Madonna’s show in Rio de Janeiro in May 2024.
Source: Facebook
Key takeaways for successful brand collabs
Collabs offer a compelling opportunity for innovation by combining the strengths and resources of partnering companies to then achieve mutual goals, such as increasing market penetration, enhancing brand visibility and driving profitability. For successful collaborations, aligning brand values and business objectives is essential, as this fosters authenticity and builds connections with target audiences. Additionally, social media plays a key role in driving consumer engagement, while the creation of unique offerings, such as limited edition products or co-branded events, can help brands distinguish themselves in a competitive market.
Read our articles Top Three Beauty Innovation Trends and Latest Developments in Packaged Food Innovations for more insights on innovation opportunities. At Euromonitor International we track new product launches at online retailers across 54 FMCG categories and 32 countries. Contact us here to see which new products have been gaining ground in your category.
Learn more about consumer trends driving growth in our article Primary Drivers of Consumer Trends in Vitamins and Dietary Supplements in Latin America.