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 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.
The Latin America flexible packaging market is expected to grow from USD 5.13 billion in 2016 to USD 10.14 billion by the end of 2021 at a CAGR of 12.02%. Brazil is set to have the highest market share followed by Argentina. This robust growth is attributed to the overall growth of packaging need in the Latin American region caused by developing economic conditions.
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.
Brazil, Argentina and Mexico are the leading countries in this region for economy growth and in terms of getting maximum FDI in this region. They have a huge demand for food and industrial goods which are catered by imports and many of the regions are self-sustaining. Flexible packaging will be important for this area 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 flexible packaging market to grow.
Demand for products with increased shelf life is expected to increase in the next decade. With markets expanding, companies are also looking at new packages with longer shelf life in order to ensure that products are shipped across long distances. New environment regulations have also necessitated companies to invest more in the innovation of flexible packaging products. Flexible packaging has its applications primarily centered in the food and medical industry. Factors such as stringent regulations, growing need to retain medical properties of products, and rising standards of hygiene contribute to the need for innovative new products in the medical industry.
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 force 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.
The report provides a comprehensive analysis of the market segmented on the basis of packaging material used and the end-user industry. Detailed estimates for the next five years are included along with the analysis of the major players and their strategies. Some of the key vendors mentioned in the report are Amcor, Mondi Group, SIT Group, Wipak Group and Automated Packaging Systems. Some other companies which are serving the market in their own innovative way, mentioned in the report are Rollprint Packaging Products, Paharpur 3P and PERUPLAST S.A.
Reasons to buy this report
Who is this report useful to?