With around 170 million people, Brazil is the most populous country in Latin America. This tenth-largest economy of world is the largest in Latin America.

The policies designed by Brazilian government to keep a tab on inflation have immensely affected many sectors, including Brazilian retail industry. Like other industries, an overall economic progression is needed to sustain and support the retail industry. Brazil, in the context of retail, is an emerging market. But, there are two major challenges to Brazil retail market. First, rising Brazilian population requires more food and second, the country is fast adopting the urban mannerisms.

The increased demand has resulted in the growth of food retail industry. Some segments have witnessed a boom in last two years due to increased purchasing capabilities among Brazilian buyers and invasion by global retail market. These segments include: confectionary, animal protein, dairy, oils and fats; beverages, canned fruits and vegetables, concentrated fruit juices and frozen products.

According to "Brazil Retail Industry Forecast (2006-2010)", a recent report by RNCOS, Brazilian per capita income is rising with the recovering economy. A rise in per capita income and a decline in inflation rates will result in high disposable income that will be invested by consumers in luxury products. High living standards will be a key driving force for the future growth of retail industry of Brazil.