Brazil, Argentina and Mexico being the leading countries in this region for economy growth and in terms of getting maximum FDI in this region have a huge demand for food which is catered to by imports and agricultural production. Aseptic packaging will be important for this region to store the products from getting damaged. With the middle-class percentage increasing, there will be more demand for packed food and this will enable aseptic packaging market to grow.
The Latin America aseptic packaging market is expected to grow from USD 4.33 billion in 2016 to USD 9.14 billion by the end of 2021 at a CAGR of 13.27%. Brazil is the biggest market in terms of revenue with more than 40% of the market share followed by Argentina.
The economy of Latin America has grown from 2.9% in 2014 to 3.7% in 2016. The steady growth in this region for some years and stable economic policies has improved the lives of millions. The poverty rate has also declined from 42% in 2000 to 25% in 2012 and the middle class has increased from 22% to 34% in the same time. The FDI in this region received USD 173.36 billion in 2012 which is 6.7% more than 2011. This accounts for 12% of the global flows.
This increase in middle-class population and the growth in the economy mean higher income for the people and also increase in urbanization. As urbanization is increasing, people are getting farther away from the producers of food. This is where aseptic packaging will help to retain the freshness of the products.
The increasing demand for longer shelf life products from consumers and retail outlets coupled with environmental concerns and laws are forcing manufacturers are the core drivers to aseptic packaging as it helps in addressing these concerns while maintaining the required established quality standards.
The major problem with this market is the striking socio-economic differences. The regions close to the urban areas have high GDP per capita which is very much different from the other regions. Also, Brazil, Mexico and Argentina are the major driving forces of the region and the other countries are still not the major drivers in terms of economy and FDI. With this region getting a lot of investment and support from countries like the USA, the economic situation will improve and create more economic hubs across the region.
Some the major vendors in aseptic packaging are Amcor, Bemis, Krones, Bosch, CFT and DuPont. Some other companies with innovative products mentioned in the report are Evergreen Packaging, Lamican, Wild Flavours GmbH and Graham Packaging Company.
Demand for longer product shelf life, expansion of large multinational companies to emerging markets and new innovative packaging technologies are the major drivers for the high growth of the aseptic packaging market.
Concern about the environmental effects of aseptic packages; increased government regulations regarding the recycling of these materials. Further, rising raw materials cost will be a major challenge for the market growth over the coming years.
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