Central and South America's Flexible Packaging Market Accelerates: 4.6% Average Growth, USD 5.3 Billion Value Eyed for 2015
Flexible packaging is gaining momentum across Central and South America at a notable pace, with an average growth rate of 4.6% and a total market value expected to reach USD 5.3 billion by 2015. Three forces are behind the climb: supermarket retailing that keeps widening its footprint, a steadily rising population, and younger consumers' fondness for flexible packaging formats.
At present, the Central and South American flexible packaging market is valued at USD 4.3 billion and is expanding by about 5.3% annually. Breaking that down, Brazil's demand for flexible packaging rose 48%, while Colombia and Argentina together added 67%. Brazil deserves special attention: analysts expect flexible-packaged food and beverages to grow sharply during the 2014 World Cup and the 2016 Summer Olympic Games, pulling the entire flexible packaging market forward. Meanwhile, the country's food industry already meets 'modern' international standards, and large volumes of flexible-packaged foods have entered its domestic market — a further push for the flexible packaging sector.
On the supply side, Brazil covers nearly all of its flexible packaging needs at home: imports make up only 1%, while 2% of output goes to other Central and South American countries. The country is home to a large number of BOPP and PE film manufacturers, which secures production materials for flexible packaging; PET film, however, is produced in only one region, leaving a shortfall that must be imported. Some Brazilian companies with diversified operations are still expanding through the local market, including alliances with or acquisitions of other domestic firms. Taken as a whole, the Central and South American flexible packaging market still offers considerable room to grow and strong long-term potential.
This article is republished from China Packaging Network (news.pack.cn). Original link: http://news.pack.cn/show-371774.html. Copyright remains with the original author; it is shared here for industry exchange and learning purposes only.
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