Market Trends of Latin America BOPP Films Industry
This section covers the major market trends shaping the Latin America BOPP Films Market according to our research experts:
Rising Demand for Packaged Food is Driving the Market Growth
The growing demand for packaged food in the region is augmenting the demand for BOPP packaging in the industry. Brazil and Mexico are among the major contributors to the demand growth in the region. For instance, according to ABIA, the net revenue of the food and beverage industry in Brazil during 2018 was valued at BRL 656 billion and growing steadily.
Growth in the packaged food markets is driving the growth of the market studied, due to changing lifestyles, convenience of consumption, and rising health awareness. BOPP film is among the most recommended packaging material across the industrial spectrum, and this film is generally a co-extruded and heat sealable. Co-extruded, heat-sealable films are used as a single web for packaging of products unlike polyester films, which cannot be heat sealed on their own.
Owing to the growing food industry in the region, the demand for packaging is significantly driven by the industry, and food enterprises across the region are adopting BOPP solutions as a part of their packaging needs. With the growing demand, manufacturers in the region are expanding their production capabilities.
For instance, in July 2018, Oben Holding Group increased its BOPP film capacity in Latin America. The company incorporated a 10.4m high-speed line for its Columbian manufacturing facility. The production line is a part of the company's plant in Barranquilla, Colombia, which started production in 2019, the addition to their production capacity is expected to strengthen the company's position in the local market.
Flexible Packaging is Expected to Witness Greater Market Share
In February 2018, a survey was conducted by the Flexible Packaging Association (FPA), the US association of the manufacturers of flexible packaging, to understand the impact of switching from non-flexible packaging to flexible packaging. In the survey, the primary reason cited was the reduction in production by 49% and transportation cost by 45%. Interestingly, for brand owners, about 57% of the owners were able to mitigate the production cost by 55%, along with sales improvement.
Such improvements in the operational cost and its impact on transportation and logistics cost, even when marginal changes drive the potential of emerging as a game changer, are expected to be differentiators between a competition and wrapped business. Such factors are expected to drive the market's growth, and they are expected to prompt others to adopt flexible packaging in the region. Thus, the market studied is expected to witness growth over the forecast period.
- Latin America is expected to have GDP rise during the forecast period, disposable income is expected to increase, thus supporting the growth of the market in the future.The country's growth in the economy and changing lifestyles has led to an increased demand for various flexible packaging products and the market is expected to grow lucratively over the next few years.
- This increase in middle-class population and the growth in the economy mean higher income for the people and also increase in urbanization.With this increase, the e-commerce market spurred by the growth of companies like Mercado Libre, the need for packaging especially flexible packaging has been on the rise.
