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. This increase in middle-class population and the growth in the economy mean higher income for the people and also increase in urbanization. This increase in the retail market compounded with the growth of the economy of this region, the packaging market will grow rapidly. With this high increase and demand for packaging in the area, the package testing market will also grow at a rapid pace to keep the international standards in packaging.
The Latin America package testing market is estimated to grow from USD 0.98 billion in 2016 to USD 2.20 billion by the end of 2021 at a CAGR of 14.41%. This growth is attributed to the overall growth in the packaging industry in this region.
Plastic is the most widely used packaging material with more than half of the current market share followed by paper. Metal and glass are also widely used and tests are designed to check the packages durability, integrity, strength, shelf life and resistance to environmental factors. The integrity of a package is tested by performing various tests on it, drop, vibration and shock tests are the major ones which are mandated by the standards institutions like ASTM and ISTA. These standards are universally followed and are quite stringent in nature.
Package testing companies test different packaging products by doing several tests on products like drop test, shock test, vibration test, shelf life testing to name a few. Only when a package passes through these tests, it is allowed to be shipped or used for commercial use.
The major problem with the Latin American 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.
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 major companies in package testing are DDL, Intertek, SGS, CSZ Testing Services Laboratories, CRYOPAK, Advance Packaging, Nefab, National Technical Systems, Turner Packaging and Caskadetek.
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