Over the past five years, the Brazilian economy has shown steady growth, with GDP increasing from $1.951 trillion in 2023 to $2.173 trillion in 2024. In 2024, Brazil's economy grew by 3.4%, marking the strongest annual expansion since 2021. The annual inflation rate rose to 5.06% in February 2025 from 4.56% the previous month, the highest since September 2023, exceeding market expectations of 5%. Unemployment fell to 6.1% at the end of 2024, the lowest level in over a decade.
For this reason, artisanal gelato is experiencing a period of great success, although it is essential to analyze its motivations and development path. Until the early 2000s, Brazil primarily produced ice cream-like products made with low-cost ingredients such as vegetable fats and artificial flavors. Over the last ten years, thanks to a progressive increase in wealth and greater demand for high-quality products, Italian artisanal gelato has gained popularity. This growing demand for superior products has forced most "sorvete" producers to improve their ingredients—initially replacing artificial flavors with high-quality Italian flavoring pastes, then substituting vegetable fats and water with cream, whole milk, and stabilizers.
In the past decade, the Brazilian gelato market has literally exploded. All new openings now feature authentic Italian gelato instead of traditional Brazilian sorvete. Those who still insist on using low-quality ingredients are gradually losing customers. Additionally, the ongoing European economic crisis is driving many Italians to Brazil, where they see greater opportunities and significant potential for high-quality gelato shops.
Today, there are more than 1,200 gelaterias across Brazil. The highest concentration is in the state of São Paulo, home to the two largest gelato chains, Bacio di Latte and Borelli, each with around 200 stores nationwide. There are also many gelato shops in Rio de Janeiro, especially along the coast and in shopping centers, as well as in the states of Paraná and Goiás.
However, when considering Brazil's 201 million inhabitants and comparing the number of gelato shops to Italy (which has approximately 37,000 gelaterias for 60 million people), the density of gelaterias in Brazil remains very low. This indicates enormous growth potential for the market.
The main cities where opening a gelato shop is most worthwhile, in order of size, are São Paulo, Rio de Janeiro, Brasília (the capital), Belo Horizonte, Salvador, Fortaleza, Recife, Curitiba, Porto Alegre, Manaus, Belém, Goiânia, and Natal. In these cities, essential raw materials such as sugar, milk, cream, and glucose are readily available. However, in some inland and northern regions, these ingredients are difficult to find or expensive, significantly increasing production costs.
To open a gelateria in a major metropolis, entrepreneurs typically have two options: setting up in a shopping mall or opening a traditional street shop ("loja na rua"). There is no universally better choice; both can be successful if all variables are carefully evaluated.
Shopping Mall vs. Street Location
- Shopping Malls: High foot traffic, balanced seasonal sales, and greater security. However, fixed costs are much higher, and profit margins decrease.
- Street Shops: Lower operating costs but higher risks. Selecting a wealthy area with good pedestrian traffic is essential, as Italian gelato in Brazil is considered a premium product.
In Brazil, stores resemble American-style establishments due to the availability of large spaces. Traditional Italian gelato shops without seating are rare, except in shopping malls where food courts provide common seating. Brazilians enjoy sitting and socializing, making it crucial to include spacious seating areas within the shop.
Gelato shop sizes in Brazil typically range from 80 to 150 square meters, including space for production, storage, and sales areas. A growing trend is the open-view lab, where customers can watch artisans create gelato, enhancing customer engagement.
Market Statistics & Investment
- Average monthly gelato consumption: 1,500-2,000 kg, peaking at 2,500-3,000 kg during high season.
- Shopping mall locations: Generally higher sales but lower seasonal fluctuation.
- Investment required: Varies by location and shop type.
- A mid-sized street shop investment ranges from R$600,000 to R$800,000.
- The cost of a fully equipped lab alone is about R$300,000 to R$400,000.
Profitability & Pricing
- Sales breakdown: 70% by portion, 30% by weight (kg).
- Average prices:
- 1 kg of gelato: Sold for R$120, with a raw material cost of R$20.
- 100g portion: Sold for R$18, leading to a gross revenue of R$180 per kg sold in portions.
Human Resources & Challenges
- Minimum staff (excluding the gelato maker): Six employees (two for production, four counter staff working in shifts).
- Flavor selection: Most Brazilian gelato shops offer around 20 fixed flavors, plus 4-6 rotating seasonal options.
- Bureaucracy: Brazil’s complex bureaucratic system necessitates hiring a competent accounting and legal consultancy firm.
- Labor market issues: The rapid economic growth has led to a lack of well-trained staff. Recruitment agencies can help mitigate this issue.
Conclusions & Strategic Advice
Opening an artisanal gelateria in Brazil presents an excellent business opportunity, given the favorable climate and growing demand for high-quality products. Here are some key strategic tips:
- Market Analysis & Location
- Study local consumer preferences and competitors.
- Choose high-foot-traffic locations like shopping malls, beaches, or affluent neighborhoods.
- Legal & Bureaucratic Aspects
- Register your business with Receita Federal and obtain a CNPJ (equivalent to a VAT number).
- Ensure compliance with ANVISA (National Health Surveillance Agency) regulations.
- Check local permits and food licensing requirements.
- Training & Product Quality
- If inexperienced, take an artisanal gelato course.
- Use high-quality ingredients, including local tropical fruits (açaí, passion fruit, cupuaçu).
- Offer lactose-free, vegan, and low-sugar options.
- Suppliers & Equipment
- Source quality semi-finished products, milk, cream, and sugars.
- Invest in modern, high-efficiency machinery for optimal texture and preservation.
- Marketing & Differentiation
- Build a strong brand and effective social media presence.
- Collaborate with local influencers.
- Organize tasting events or launch discounts.
- Offer unique experiences like made-to-order gelato and exclusive Brazilian flavors.
- Cost Control & Competitive Pricing
- Develop a pricing strategy tailored to your target audience.
- Minimize operational waste and optimize production efficiency.
- Consider delivery options through apps like iFood and Rappi.
- Expansion & Customer Retention
- Implement loyalty programs and promotions.
- Once established, consider expanding to additional locations.
For further advice, questions, or to connect with top Italian suppliers operating in Brazil, contact us at info@ilgelatoartigianale.info.