The packaging industry in Brazil is expected to register a CAGR of 3.2%, during the forecast period (2021 - 2026). The packaging sector provides opportunities for the application of new technologies, as well as new types of materials that can improve the product's lifespan.
- High growth rates across the region are expected due to the rising personal incomes, resulting in higher demand for a broad range of products, which, in turn, creates growth for the producers of such packaging products.
- Advantages of paper packaging, such as lightweight, biodegradable, and recyclable, along with a versatile and cost-efficient method to protect, preserve, and transport a wide array of products, are making them an essential component in fueling the growth of packaging industries across the region.
- Factors, such as frequently changing social security reform that allow for greater growth, elections, political uncertainties, international geopolitics, can influence negatively, which may impact the overall economy, thereby reducing the projected growth.
Key Market Trends
Food Sector is Expected to Hold Significant Market Share
- The growing consumer market is expected to contribute strongly to the growth of the food industry in the country. The local manufacturers have expanded their footprint in foreign nations, with the acquisition of a few international brands.
- The country is one of the major exporters of exotic fruits found in the Amazon. A few companies have also come up with new techniques to export frozen fruits in various innovative packaging, thereby driving the market for packaging across the countryâ€™s food sector.
- Folding cardboard cartons are used to cater to a wide range of food production across the markets, such as bakery, dairy, confectionery, fruits and vegetables, meat, poultry, and fish, among others, which help in protecting the product to facilitate transportation and marketing of thousands of consumer products.
- Consumers in the country are also very specific about the health aspects associated with packaged food products. Some of the major products in the food category include meat and vegetables, cereal and flour, sugar and chocolate, and dairy and fats. Owing to the budget-conscious nature of the Brazilians, coupled with the concern for health and wellness, the market for packaging is expected to find many opportunities.
The packaging industry in Brazil is moderately competitive and consists of several players. With the rising demand for packaging applications, along with technological advancements across the country's economy, many companies are increasing their market presence by expanding their business footprint across the various end-user sectors.
- March 2019 - WestRock Company expanded its portfolio of automated packaging system offerings with the acquisition of Linkx Packaging Systems, which offers automated packaging machinery, ranging from single-order dispatch systems to fully integrated automation.
- February 2019 - Nefab Americas acquired Pacific Coast Packaging, a company that specializes in the design and manufacturing of custom wood, foam, and corrugated packaging products. The acquisition may help strengthen its product offering, as well as boost its presence in the Southern Californian market.
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