Every day in 2025, somewhere in Brazil, two new food factories opened their doors. By year’s end, 850 new plants had joined an industrial park of 42,000 companies that collectively produced 288 million tonnes of processed food — enough to feed Brazil, supply 190 countries, and generate a record R$1.388 trillion in revenue. João Dornellas, president of the Brazilian Food Industry Association (ABIA), unveiled the figures Thursday, calling the sector “without a doubt the largest economic sector in our country.”
The number represents 10.9% of GDP, the highest share ever. Revenue grew 8% nominally, though real sales growth was a more modest 2.2%. Production costs rose 5.1%, squeezed by higher diesel, electricity and packaging prices. Yet the industry deliberately absorbed much of the pressure, keeping food inflation at just 1.8% — well under the 4.26% headline IPCA.
Domestic Market Crosses R$1 Trillion
For the first time, internal sales alone surpassed R$1 trillion. Retail food sales expanded 8.4%, while the food-service segment grew 10.1% to R$287.9 billion. The sector created 51,000 formal jobs, representing nearly 45% of all positions generated by Brazilian manufacturing. Total direct employment reached 2.125 million, with 8.5 million more across the supply chain. Aggregate payroll grew 9.94%, more than double the inflation rate.
Exports Weather the Tariff Storm
Brazil held its position as the world’s largest exporter of processed food by volume, with shipments reaching $66.7 billion — 19.1% of total national exports. The food trade surplus hit $57.5 billion, representing 84% of Brazil’s entire surplus. Asia remains the top destination, led by China, followed by the Arab League at $10.3 billion and the European Union at $8.7 billion.
But the headline masks a bruising stretch in the American market. US tariffs that peaked at 50% hammered Brazilian food exports between August and November, with sugar shipments dropping nearly 70% month over month. ABIA estimates the tariff regime cost between $500 million and $1 billion in foregone sales, slowing export growth from a trend rate of 3–4% to just 0.7%. Even so, US food imports from Brazil totaled $4.9 billion for the year, up 9.2%, as companies front-loaded shipments and redirected products to Mexico.
The EU Deal and New Risks
ABIA views the Mercosur-EU partnership agreement, signed in January after 25 years of negotiations, as a potential game-changer. Tariffs on roughly 92% of Mercosur exports to the bloc will be phased out over a decade, opening access to 720 million consumers. Ratification remains uncertain after the European Parliament referred the text to the Court of Justice for review, a process that could take up to two years.
The industry invested R$41.3 billion in 2025, up 6.8%, with two-thirds directed to innovation and new production lines. ABIA had pledged R$120 billion between 2023 and 2026; after three years the running total has reached R$116 billion. One variable being monitored is the global rise of GLP-1 weight-loss drugs like Ozempic. In the US, households with users already account for 23% of food purchases. JBS CEO Gilberto Tomazoni told investors this week it represents “a structural change in consumption habits.” Dornellas called the domestic impact “incipient” but acknowledged companies are adapting.
Feeding Brazil and Beyond
For 2026, ABIA projects 2–2.5% real sales growth and believes exports could breach $70 billion for the first time. The sector processes 61% of everything Brazil’s farms produce and purchases 68% of family agriculture output — reaching 99% in cocoa and 95% in poultry. That connection, Dornellas argued, is what makes food manufacturing the country’s most consequential industry. “It’s not just putting food in people’s mouths,” he said. “It’s helping keep Brazil’s economy strong.”