Brazil's hosting of the Fifa World Cup soccer tournament in 2014 and the summer Olympic Games in 2016 will help drive growth in its flexible packaging market in the next five years, according to a new study.
“The Central and South American Flexible Packaging Market to 2015” also describes the Brazilian food industry as “modern” in relation to international standards, with 40 percent of food bought by the population of 200 million sold through supermarkets.
Since 2005, the flexible packaging market in Central and South America has grown 5.3 percent a year on average to $4.3 billion, driven by growing economies and a burgeoning middle class, states the report by PCI Films Consulting Ltd. of Guilsborough, England.
PCI expects flexible packaging output by regional converters to rise 4.6 percent a year on average and reach $5.34 billion by 2015.
Demographic growth and more single-person households, working women and young consumers will contribute to a spike in sales.
Brazil represents about 48 percent of regional flexible packaging demand; Brazil, Colombia and Argentina together, two-thirds.
PCI consultant Paul Gaster said the Latin American flexible packaging market is so well-served by local firms that multinational converters with plans for the region might want to forge alliances with or acquire local converters.
Most of the flexible packaging demand is satisfied by internal producers, with only 1 percent imported and 2 percent exported outside the region, PCI said.
With only one regional PET film maker, that material is sometimes imported from China or India, while biaxially oriented polypropylene and polyethylene film production is “substantial,” PCI said.
Local converters have made investments to replace volumes previously imported, as demand has developed for higher-barrier, higher-specification packaging.
“There are prospects for further consolidation among producers, while environmental considerations will tend to benefit flexible packaging as pressure is applied to manufacturers to reduce packaging volumes and post-packaging waste,” the report adds.
A spokesman for PCI Films said Mexico is not included in the study. “It will however be featured in the forthcoming North American report, due to be published next month,” he said.
“The Central and South American Flexible Packaging Market to 2015” is available from PCI Films Consulting for 3,500 euros (about $4,680).