Wholesalers and distributors earn BRL 308 billion in 2021, says association

Brazilian wholesalers and distributors recorded revenues of approximately R$ 308 billion in 2021, according to data from the Brazilian Association of Wholesalers and Distributors (Abad), released this Tuesday (10).

Despite having remained practically the same as the previous year in absolute values, the sector’s revenue was lower in 2021, when discounting inflation, with a 2.96% decrease compared to 2020, the first year of the pandemic.

In practice, there was a drop of around R$ 1 billion in products sold.

The sector is responsible for supplying products to half of the country’s retail market. And it operates, mainly, in the supply of the small and medium Brazilian trader, according to the entity.

The food group is the most representative and accounts for 40.6% of the total traded in the period. In the second position, hygiene and beauty articles cover a share of 17%, followed by beverages (8%), cleaning items (7.9%), construction materials (7.2%) and bazaar (6.4% ).

In relation to the regions of Brazil, the Southeast registers the largest share of the sector’s revenue: more than R$ 80 billion. The profit of companies in the Midwest, South, North and Northeast ranged between R$ 20 and 50 billion.

“Inflation greatly harms the sector, as well as the entire Brazilian economy. With inflation, there is a loss of purchasing power and, naturally, less consumption, reducing the margin of the entire production chain”, highlights Daniel Asp Souza, Abad’s Retail Service manager.

On the other hand, in 2022, the scenario is one of improvement in the economic scenario and optimism of a higher sales volume.

For 82% of entrepreneurs in the sector, this year, the segment will record higher revenues when compared to 2021. Another 72% expect an increase in sales volume.

The Abad Ranking, made in partnership with the consultancy NielsenIQ, has been published since 1994 and includes the results of distribution agents across the country.