Market Trends of LA Alcoholic Drinks Packaging Industry
This section covers the major market trends shaping the Latin America Alcoholic Drinks Packaging Market according to our research experts:
Beer Expected to Dominate the Market
- Latin America is the third biggest beer consumer by volume in the world. Pilsner is the most popular beer globally, but consumer habits are changing, and craft & premium beer consumption is increasing fast. Similarly, beer manufacturers are also transitioning from traditional glass bottle packaging to metal cans and PET bottles.
- Recognizing the growing popularity of outdoor activities and events throughout Latin America, the metal can format will help beer consumers easily enjoy their favorite brews in diverse, active environments without compromising product taste or quality. Beverage cans are infinitely recyclable and can be transformed into new cans in as little as 60 days, attributes that contribute to a circular economy.
- The increasing disposable incomes of consumers and rapid urbanization ( 87% urban population in Brazil) are a few significant factors driving the popularity of beer in the market studied. In addition, the introduction of non-alcoholic beer is expected to boost the demand for this category in the region.
- Brazil is the biggest consumer of beer in Latin America. Domestic brands primarily supply its beer market. Most sold beers are considered entry-price, which makes them accessible to a large audience. However, many Brazilian consumers have adopted the trend "drink less but drink better." Consumers in the beer market have become more 'experimental,' resulting in more people looking for new beer styles. This trend opens up a variety of opportunities for premium and craft beers. Also, modern consumers (primarily Millennials and Gen-Z) seem to be less brand loyal, creating opportunities for introducing new types of beers in the market.
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Brazil is Expected to Hold Significant Market Share
- Brazil may not be inherently associated with wine, but it has a wide variety of distinctive wine production characteristics because of its subtropical climate. Brazil is the third-largest producer, with 1.9 million hectoliters of wine in 2020. Paraguay, China, and the United States are the three major export markets, as they constitute more than 70% of total Brazilian wine exports. Manufacturers mainly export sparkling wine bottles instead of exporting in bulk, promoting the local wine packaging industry.
- Brazil's one of the largest brewer Ambev SA has set a target to eliminate plastic pollution in its packaging by 2025. The company estimated that this move could generate USD 239.09 million (approx.) in business. It is partnering with stakeholders, including suppliers, manufacturers, recycling cooperatives, startups, and universities, to have all its beverages either in returnable packaging or made of 100% recycled material.
- In 2020, Brazil-based craft beer brand Bierland decided to pack 100% of its product portfolio into metal cans instead of glass. For this packaging transition, the company collaborated with Crown Embalagens Metálicas da Amazônia S.A., a Crown Holdings, Inc subsidiary unit. The craft brewer aims to expand its regional reach and appeal to local consumers, increase its brand presence, enhance its accessibility and respond to changing market demands. Bierland chose beverage cans due to their many inherent benefits.
- Amcor plc designed a custom 600 mL bottle for beverage maker New Age Bebidas of Leme, São Paulo, that features a glass-like, champagne-style base combined with the convenience of lightweight and shatter-resistant PET. Amcor used its one-step blow molding process to make the bottles for the brewery. The bottles feature a crown metal cap, replicating the standard glass bottle. The PET bottle will replace the glass and go through the same cold-filling, capping, and pasteurizing processes.
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