Why Brazil could prove to be F1’s key untapped market

Brazil has a rich Formula 1 history, from both a fan and business perspective. Local and international brands have always been keen to leverage the sport for commercial success.

With Gabriel Bortoleto being part of the Audi Revolut F1 Team from next season, and F3 Champion and Ferrari Academy-driver Rafael Câmara joining Bortoleto’s previous F2 team Invicta Racing next year, together with the general boom in F1, corporate interest is higher than ever before.

When I first arrived in Sao Paulo to set up Racing United’s local presence, what struck me was the number of large companies that are relatively unknown outside of the country.

Brazil's untapped corporate sponsors

More than 80 companies in Brazil report over $500m per year, a level at which they should be able to afford a sponsorship in F1. Why have many of these not been active in the sport before?

Other than the country having not had an F1 driver after Felipe Massa’s departure, until now, many companies have a tendency to focus on the domestic market.

Expanding internationally is often seen as complicated due to rules and regulations; brands are often happy to stick to the local market, particularly as the fifth-largest country in the world offers plenty of room to grow.

Individual race or local driver deals are therefore often a preferred way to start an F1 partnership, which is sometimes complicated given the global nature of such deals. It’s a challenge I often discuss with the teams I work with.

A home hero reignites brand interest

However, Bortoleto’s rise has been picked up by local brands. The excitement of having a home hero in F1 again is trickling down into the business world.

The suitability of F1 as a platform to enter the local market also hasn’t gone unnoticed to companies outside of the country, most notably Revolut.

Brazil is a key expansion market for them, and a pivotal part in its plan to reach 70 markets. There are 30+ neobanks active in Brazil, which gives an idea of how interesting the market is for Revolut. With Audi F1, they have found the perfect platform to enter it.

F1's commercial presence in Brazil

When I was at the Sao Paulo Grand Prix last month, I also noticed the increasing number of existing and new F1 partners activating at the track. Bigger fan activations than many host cities see during a race week, and more B2B events up and down the paddock than ever before.

Walking around Avenida Paulista, a few minutes away from my local office, F1 was present everywhere in the city’s bustling hub. Billboards showed how many B2C F1 sponsors spent huge amounts of money on media activations, and it was hard to see a supermarket that didn’t have a Max Verstappen picture in the window.

The LEGO store had a massive brick-built Ayrton Senna helmet, honouring its most famous driver. McDonald’s forged a special one-off partnership, also with Red Bull, for the local market – transforming their main branch into an F1 experience centre, including a floor with simulators, and a show car hanging outside.

The future of Formula 1 in Brazil

About five years ago Brazil almost lost its Grand Prix. Mubadala, Abu Dhabi’s sovereign wealth fund, stepped in though. They have been an early spotter of F1’s growing business potential in Brazil – signing a deal with F1 to host the grand prix from 2020 onwards, through Brasil Motorsport, the promoter it controls.

Rio de Janeiro has also seen an increase in business and sports events, which is part of the city’s push to further its appeal. When I was at Blockchain RIO in August, many crypto exchanges were activating their F1 partnerships.

Next April, the first ever Brazilian SailGP will take place in Guanabara Bay, with the city skyline and Sugarloaf Mountain as a backdrop. SailGP has much commercial overlap with F1, and is growing fast. Mubadala has recognised this and acquired a team franchise in the sport – no doubt it is very happy the event is coming to Brazil.

While Rio ended its plans in 2021 to create an F1 circuit, global design firm Populous announced in September that they have been commissioned to develop the new Guaratiba Park Motorsports Circuit in Rio, creating a major business and entertainment hub. Could we see a second race in Brazil? F1’s commercial rise here would certainly justify it – and help the market grow even more.

How business gets done in Brazil

Finally, let’s talk about the way of doing business in Brazil. The reason we expanded Racing United from the UK into Brazil is not just because having boots on the ground is key, since deals are done through connections and knowledge of the local market is imperative, it is also because I love the way Brazilians operate.

Whether you are a small business owner or the CEO of a major company, nationals tend to have a “making friends” attitude first, and a “now let’s find a way to work together” approach after.

Many of my local clients I’ve met through my existing network here, and often exchanging Instagram comes before exchanging LinkedIn.

With personal F1 interest growing across the board, partnership conversations often start off chatting as fans, turning into major F1 business conversations after.

In other words, it is a fascinating market which will offer brands and rightsholders huge opportunities to grow, for a long time to come.

Frequently asked questions

Why is Brazil an untapped market for Formula 1?

Brazil has a deep F1 heritage and more than 80 companies reporting over $500 million in annual revenue, yet many have never sponsored in the sport. Historically they focused on the domestic market, and until Gabriel Bortoleto the country had no full-time F1 driver since Felipe Massa. That mix of corporate scale and low participation is what makes it such an opportunity.

Who is Gabriel Bortoleto?

Gabriel Bortoleto is the Brazilian driver racing for the Audi Revolut F1 Team, the country's first full-time Formula 1 driver since Felipe Massa. His arrival has reignited local interest in the sport, and that excitement is beginning to trickle into the business world as Brazilian brands look again at F1 partnerships.

Why did Revolut choose Formula 1 to enter Brazil?

Brazil is a key expansion market for Revolut as it works toward a presence in 70 markets, and the country already has more than 30 active neobanks. By partnering with the Audi Revolut F1 Team, Revolut gains a high-visibility platform to build awareness in one of the world's largest and most competitive fintech markets.

Could Brazil host a second Formula 1 race?

It is possible. Design firm Populous has been commissioned to develop a new motorsports circuit in Rio de Janeiro, and the commercial momentum around the sport keeps building. Whether a second race materialises depends on demand and infrastructure, but the growing scale of Formula 1 in Brazil would help justify it.