Brazil is South America’s largest and most populous country. It occupies 47 % of the continent’s land area, covering 8.5 million square kilometres. Brazil’s population is rising steadily and numbers around 214.2 million inhabitants. Children under 15 years of age make up 21.7 % of the population.

Brazil’s economy and consumption are on the rise

Brazil is the world’s ninth-largest economy. Its gross domestic product in 2017 amounted to some US$ 2,000 billion and is forecast to continue to grow. Low inflation and falling interest rates are providing positive impetus for many consumer goods markets. Accordingly, retail sales have grown moderately in recent years. Brazil’s restrictive import policy benefits domestic manufacturers and brands in particular.

Given the differences in income groups, with unemployment at more than 11 %, there are different purchasing patterns among the Brazilian population in many consumer goods markets. However, the difficulties in the Brazilian labour market seem to be having little effect on the toy sector at the moment.

Brazil is the seventh-largest toy market in the world

Many Brazilians, regardless of income, seem very willing to spend on their children. In 2017, the country was even ranked seventh amongst the largest toy markets in the world, with sales of around 3.67 billion reals, or almost US$ 1 billion. Further growth of 11 % was achieved in the first half of 2018. In Brazil, more than 90 % of all toys are sold in brick-and-mortar stores. The traditional toy trade accounts for the largest share of sales.

Unfortunately, importers do not have it easy in this attractive market. Various import duties and requirements for certifications make it difficult to get toys from abroad into Brazilian stores. For example, toy safety certification is required from Inmetro, the National Institute of Metrology, Quality and Technology.

Brazilian toy trends

Traditional toys are the product group with the strongest sales. Increasingly, traditional toys are being equipped with electronic components. Compared with other markets, model toys, educational toys and craftworks are experiencing above-average growth in Brazil. Construction toys that foster motor skills and children’s creativity are also good sellers. Licensed toys in Brazil are more likely to feature local themes than international brands.