Latin America Flexible Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Latin American Flexible Packaging Market is segmented by Material Type (Plastics, Paper, Aluminum Foil), Product Type (Pouches, Bags, Films, and Wraps), End-user Industry (Food, Beverage, Pharmaceutical and Medical, Household and Personal care), and Country.

Market Snapshot

Latin America Flexible Packaging Market Size
Study Period: 2019-2027
Base Year: 2021
CAGR: 3.89 %
Latin America Flexible Packaging Market Key Players

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Market Overview

The Latin American flexible packaging market is expected to register a CAGR of 3.89% during the forecast period (2022-2027).​ With the recent outbreak of COVID-19, flexible packaging manufacturers have been flooded with a pool of issues that are expected to be only for the short term. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems, etc.​

  • According to the Brazilian government, in 2021, the retail sales in the packaged food market in Brazil reached USD 116.6 billion, a growth rate of 32.2% since 2016. The high growth rates include ready meals, breakfast cereals, baby food, sauces, dressings and condiments, processed meat, and seafood and soup.
  • Several market players are establishing collaborations and partnerships to drive better additional revenues due to the increasing demand. For instance, in 2020, Amcor announced its partnership with Moda vacuum packaging systems in North America and Latin America. This partnership combines Amcor's shrink bag and roll stock film for meat barrier films, and its polyvinyl chloride ("PVC") films include a broad array of PVC meat films used primarily to wrap fresh meats, especially poultry.
  • Argentina's packaging industry faced a difficult phase during the economic crisis that escalated with the pandemic. The purchasing power of low-income and middle-income social groups reduced drastically, curbing any innovation and premium packaging opportunities. Argentina witnessed a sharp fall in wages, rising unemployment, and a decline in consumption habits, affecting packaging types and sizes across different categories.
  • Since the last decade, awareness among the population regarding the harmful effects of plastic usage has been growing drastically. Many public campaigns and initiatives by the Latin American governments have increased awareness among the public. Thus, plastic packaging consumption witnessed a significant impact in the past few years. ​

Scope of the Report

Flexible packaging is lightweight bags or pouches sealed using heat or pressure. In most cases, flexible packaging is designed to help extend the shelf-life of food products or to fulfill other marketing trends, such as high-quality graphics. The Latin American flexible packaging market is segmented by material type (plastics, paper, and aluminum foil), product type (pouches, bags, films, and wraps), end-user industry (food, beverage, pharmaceutical and medical, and household and personal care), and country.

Material Type
Plastics
Polyethene (PE)
Bi-orientated Polypropylene (BOPP)
Cast Polypropylene (CPP)
Polyvinyl Chloride (PVC)
Ethylene Vinyl Alcohol (EVOH)
Paper
Aluminum Foil
Product Type
Pouches
Bags
Films and Wraps
Other Product Types
End-user Industry
Food
Frozen Food
Dairy Products
Fruits and Vegetables
Meat, Poultry, and Seafood
Baked Goods and Snack Foods
Candy and Confections
Other Food Products
Beverage
Pharmaceutical and Medical
Household and Personal Care
Other End-user Industries
Geography
Brazil
Argentina
Mexico
Rest of Latin America (Colombia, Venezuela, etc.)

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Key Market Trends

Pouches are Expected to Grow Significantly

  • Pouches can be broadly classified into stand-up and flat pouches and are extensively used across Europe. Stand-up pouches include various types of retort pouches, bottom gusset pouches, flat bottom pouches, side gusset pouches, spouted pouches, and shaped pouches. Flat pouches can be further classified into pillow pouches, four side seal pouches, three side seal pouches, and vacuum pouches.​
  • The durability and convenience of logistics for products packaged in pouches drive the studied market's demand. The pouches' cost-effectiveness is helping manufacturers opt for pouch packaging, driving the growth of this flexible packaging format. The lightweight nature of the structure drives the adoption of pouches compared to other traditional packaging formats like PET bottles.​
  • There is also an extensive demand for kraft paper in wrapping, pouches, and sacks. The increasing trend for eco-friendly packaging is creating a demand for kraft papers that can be easily recycled, as their pulping process allows easy waste recovery.​Similarly, in 2020, TC transcontinental, Montreal-based packaging manufacturer, with a presence in the United States and Latin America, announced plans on increasing post-consumer, recycled content in flexible packaging offerings such as pouches. It has also begun investments in allied equipment to convert flexible plastics from sorting facilities and other sources.​
  • In May 2021, Amcor introduced recycled plastic packaging for powdered chocolate in Latin America, a more sustainable packaging than the previous packaging. This new solution reduces the package's carbon footprint by 53% and water consumption by 84% when recycled. The new sachet has a high-barrier feature to protect against humidity and will be available to consumers in Colombia's 25g sachet format this month.
  • Pouches are one of the most significantly used materials for packaging e-commerce products. Pouches are becoming the most common format of flexible packaging in the food, beverage, personal care, and pharmaceutical industries that cater to most products in the e-commerce markets. Players operating in the e-commerce sector opt for pouch packaging, as it is one of the most efficient and economical packaging solutions. Latin America e-commerce retail sales grew at 19.4% (approximately) in 2020.
Latin America Flexible Packaging Market Trends

Brazil is Expected to Hold Significant Market Share

  • Brazil is one of the leading countries in Latin America in terms of economic growth and high FDI. It has a huge demand for food and industrial goods, which are catered by imports. Flexible packaging will be necessary for this area to protect the products from getting damaged. With the middle-income class percentage increasing, demand for packed food is likely to increase, enabling the flexible packaging market to grow.
  • Despite the pandemic and related uncertainties, the Brazilian personal hygiene, perfume, and cosmetics sector closed in 2020 with a 5.8% growth, according to the index of the Brazilian Association of the personal hygiene, perfumery, and cosmetics industry (ABIHPEC). The personal care category revenue reached USD 12.77 billion (approximately), and it was further expected to grow by 7.5% in 2021.
  • In 2020, Brazilian converter of flexible packaging Pamplastic Industria de Embalagens Plásticas increased its business by purchasing a Comexi F2 MB flexographic press. The company currently serves the monolayer packaging market, including technical films, bakery packaging, line refrigeration, and textile packaging.
  • In October 2021, Gualapack SpA was expanding in Brazil as part of the group's ongoing efforts to achieve sustainable, worldwide growth through vertical integration. With the acquisition of Teruel Embalagens – Papeis Amalia Ltda, Gualapack continues to make significant investments in this part of the world. Teruel is a classic family firm with 50 years of experience, having two plants in Brazil specializing in flexographic printing on flexible film.
  • There is a trend supporting premiumization in this market. Despite being price-sensitive, Brazilians are willing to spend on cosmetics. This caters to the demand for flexible packaging, as flexible plastic materials, such as polyamine and polypropylene, provide packages with outstanding visibility and appealing structure, along with safety features.
Latin America Flexible Packaging Market Analysis

Competitive Landscape

The Latin American flexible packaging market comprises several global and regional players and is moderately consolidated. As the market poses low barriers to entry for the new players, several new entrants have been able to gain traction. This market is characterized by low product differentiation, growing levels of product penetration, and high levels of competition. Sustainable competitive advantage can be gained through design, technology, and application innovation.

  • September 2021: EMSUR launched EM-Full RFlex, its new PE and PP-based flexible packaging range. This solution aims to improve recyclability and improve food preservation, thanks to its barrier properties. The different structures in this type of laminate aim to respond to the needs of FMCG customers who require packaging solutions for bags or Doypacks with mono-material compositions and barrier properties for a range of product categories, including snacks, confectionery, etc.
  • September 2021: Constantia Flexibles achieved up to 80% recycled content in a PE film using EcoLam laminates' waste in an industrial recycling trial of EcoLam laminates. Further examinations showed that the type of adhesive and the type of printing inks used significantly influence the quality of recyclable material. It is under further investigation whether printed laminates can also be reused in food applications with suitable adhesives and inks.

Recent Developments

  • June 2021 - Coveris Holdings SA developed a new cereal liner solution. The Cereal+ liner was created to deliver packer performance, shelf life, and consumer functionality using a newly developed formulation. Coveris’ Cereal+ liner is made from fully recyclable polyethylene and provides product protection, freshness, and shelf life for cereals and dry foods packed in bag-in-box films.
  • June 2021 - Mondi PLC expanded its paper-based MailerBAG range to further replace plastic packaging in e-commerce with a recyclable solution made of responsibly sourced renewable materials. The innovative MailerBAG is available in three designs. The flat bottom version complements the existing range of pinch and folded bottom bags, as each one offers consumers user-friendly packaging with multiple advantages.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of the Impact of COVID -19 on the Industry

    5. 4.5 Market Drivers

      1. 4.5.1 Increased Demand for Convenient Packaging

    6. 4.6 Market Challenges

      1. 4.6.1 Concerns Regarding the Environment and Recycling

  5. 5. SUSTAINABLE PACKAGING AND TECHNOLOGICAL ADVANCEMENTS IN THE LATIN AMERICAN FLEXIBLE PACKAGING INDUSTRY

    1. 5.1 Light Weighting

    2. 5.2 Recycled and Recyclable Polymers

    3. 5.3 Sustainable Coatings for Pouch Packaging

    4. 5.4 Barrier Developments

    5. 5.5 Active Packaging

  6. 6. MARKET SEGMENTATION

    1. 6.1 Material Type

      1. 6.1.1 Plastics

        1. 6.1.1.1 Polyethene (PE)

        2. 6.1.1.2 Bi-orientated Polypropylene (BOPP)

        3. 6.1.1.3 Cast Polypropylene (CPP)

        4. 6.1.1.4 Polyvinyl Chloride (PVC)

        5. 6.1.1.5 Ethylene Vinyl Alcohol (EVOH)

      2. 6.1.2 Paper

      3. 6.1.3 Aluminum Foil

    2. 6.2 Product Type

      1. 6.2.1 Pouches

      2. 6.2.2 Bags

      3. 6.2.3 Films and Wraps

      4. 6.2.4 Other Product Types

    3. 6.3 End-user Industry

      1. 6.3.1 Food

        1. 6.3.1.1 Frozen Food

        2. 6.3.1.2 Dairy Products

        3. 6.3.1.3 Fruits and Vegetables

        4. 6.3.1.4 Meat, Poultry, and Seafood

        5. 6.3.1.5 Baked Goods and Snack Foods

        6. 6.3.1.6 Candy and Confections

        7. 6.3.1.7 Other Food Products

      2. 6.3.2 Beverage

      3. 6.3.3 Pharmaceutical and Medical

      4. 6.3.4 Household and Personal Care

      5. 6.3.5 Other End-user Industries

    4. 6.4 Geography

      1. 6.4.1 Brazil

      2. 6.4.2 Argentina

      3. 6.4.3 Mexico

      4. 6.4.4 Rest of Latin America (Colombia, Venezuela, etc.)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Amcor PLC

      2. 7.1.2 Berry Global Inc.

      3. 7.1.3 Mondi Group

      4. 7.1.4 Sealed Air Corporation

      5. 7.1.5 Coveris Holdings SA

      6. 7.1.6 Tetra Pak International SA

      7. 7.1.7 Cascades Flexible Packaging

      8. 7.1.8 Novolex Holdings Inc.

      9. 7.1.9 WIPF Doypack (Wipf AG)

      10. 7.1.10 FlexPak Services LLC

      11. 7.1.11 Transcontinental Inc.

      12. 7.1.12 American Packaging Corporation

      13. 7.1.13 Sonoco Products Company

      14. 7.1.14 Inteplast Group

      15. 7.1.15 Oben Holding Group

      16. 7.1.16 Toray Plastics (America) Inc.

      17. 7.1.17 Sigma Plastic Group

      18. 7.1.18 Clifton Packaging SA De CV

      19. 7.1.19 PO Empaques Flexibles SA De CV

      20. 7.1.20 ProAmpac LLC

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The Latin America Flexible Packaging Market market is studied from 2019 - 2027.

The Latin America Flexible Packaging Market is growing at a CAGR of 3.89% over the next 5 years.

Amcor PLC, Berry Global Inc., Mondi Group, Sealed Air Corporation, Coveris Holdings SA are the major companies operating in Latin America Flexible Packaging Market.

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