In Brazil, small and mid-sized businesses operate at just 54% of the productivity seen in large corporations. But this isn’t just an internal issue —it reveals a deeper, structural imbalance in access to resources, infrastructure, and favorable business conditions.
In the CPG world, this disparity is even more pronounced. While large manufacturers negotiate raw materials at highly competitive prices, smaller players face higher unit costs, stricter payment terms, and limited leverage with strategic suppliers.
A tough (and uneven) playing field
Margins have been shrinking across the CPG industry. Volatile raw material prices, dollar-sensitive packaging costs, and inefficient logistics all create an uphill battle for smaller brands. Meanwhile, industry giants benefit from scale, global supplier networks, and long-term contracts with better terms.
The result? A smaller CPG brand might pay up to 30% more for the same input compared to a large competitor—with far less time to pay for it.
But what if smaller companies could negotiate like the big players—without needing to become one?
That’s exactly where consortium buying comes in. It’s a model that turns collective volume into individual competitive advantage.
What is consortium buying, exactly?
Unlike consumer consortia for buying real estate or vehicles, consortium buying in the B2B space works dynamically. Companies with similar needs come together to buy as a group. This combined demand creates volume—and with volume comes negotiation power.
Typically, companies align on key needs like raw materials, packaging, or logistics services. Then, a centralized bidding process is run, negotiating with suppliers as if they were one large buyer.
The result? More competitive prices, longer payment terms, and better logistics conditions — accessible to all participants.
This isn’t a theory — it’s already in motion
Though still underused in Brazil’s CPG sector, collaborative buying is gaining momentum. According to ABAC (Brazilian Association of Consortium Administrators), B2B consortia grew by 13.2% in the first half of 2024 alone, reaching R$201 billion in credit volume.
More interestingly, sectors closely tied to CPG—like equipment for food, beverage, and cosmetics manufacturing—are already adopting it. The message is clear: better access and lower costs aren’t exclusive to big players anymore.
Why it works so well for CPG
CPG operates with high-frequency items and large volumes, which makes the model highly effective. Mid-sized companies often share similar bottlenecks—same suppliers, inputs, and logistics infrastructure. In other words, there’s real synergy to tap into.
One example: a group of small natural juice brands in Southern Brazil joined forces to buy custom PET bottles. Together, they reduced unit costs by 18%, secured better payment terms, and arranged direct delivery to multiple locations. Alone, none of them had enough volume to even enter the negotiation.
Beyond cost: multiple levers for efficiency
Consortium buying can also help companies:
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Unlock volume-based discounts (between 5% and 20%, according to Level Group);
Share logistics services and regional distribution centers;
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Lower indirect costs with shared order-tracking systems and procurement software;
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Improve cash flow with extended payment terms driven by stronger group bargaining power.
In more advanced consortia, even access to tech solutions becomes possible. Group-buying platforms, automated tracking systems, and enterprise-grade ERPs can be made affordable through collective contracts.
Yes, there are challenges — but they’re manageable
Like any collaborative effort, consortium buying requires governance. Companies must align on supplier preferences, define partner selection criteria, and maintain open communication.
Trust is essential. Differences in scale, order frequency, or technical specs can create tension if not addressed upfront.
The good news? There are proven ways to manage these risks—like using neutral platforms (such as GrowinCo.), rotating decision-making committees, and starting with a narrow purchase scope (like packaging only).
From cost-cutting to strategic growth
Today, reducing costs isn’t just an operational target — it’s a strategic edge. In a margin-sensitive, fast-moving sector like CPG, every percentage point counts.
Consortium buying is more than a tactic — it’s a smarter, more collaborative way to approach sourcing. One that’s built for the future of consumer goods.
Maybe your company’s next competitive advantage won’t come from scaling alone — but from scaling together.
Interested in consortium buying and want to know how it could work for you?
GrowinCo. helps CPG companies connect with the right partners and suppliers to form efficient, scalable consortia. We’re also launching new strategies for consortium buying across select ingredients. You can learn more on our Consortium Buying page.
Let’s talk about how collaboration can transform your sourcing strategy.
