Latin America Paper Packaging Market Size

Latin America Paper Packaging Market Analysis

The Latin America paper packaging market is expected to register a CAGR of 3.9% over the forecast period.

• Consumers in Latin America are becoming more conscious of the environmental hazards of packaging and moving their purchasing habits to more environmentally friendly options. Consumers, the government, and the media are putting pressure on manufacturers to make their products, packaging, and processes more environmentally friendly. People are willing to pay more for environmentally friendly packaging. The Latin America paper packaging market will grow due to these trends.
• The demand for paper packaging from the food and beverage sector is growing due to the rapid growth of food delivery and ready-to-eat food and the number of customers purchasing supermarket products such as frozen and chilled meals. Furthermore, packaging materials aid in preserving food and nutritional value, all of which contribute to the growth of the paper packaging materials market.
• The overall packaging market in the region is growing, and the paper and cardboard segments play a significant role. Although plastic still dominates the market, due to increasing environmental sustainability concerns, the market is expected to shift to sustainable packaging such as paper. Also, the increasing adoption of lightweight packaging material such as paper in secondary packaging among electronics and personal care products is expected to support the market's growth.
• In the electrical sector, Iron boxes, switches, sockets, and electrical equipment meant for consumer markets prefer corrugated packaging products. Moreover, these packaging products only cover substantial storage space when empty and can be folded. These products are cheaper and cost-effective from a logistics point of view while offering a similar level of protection. Additionally, increasing sales of gaming consoles and video game machines since the COVID-19 pandemic supported the growth of paper packaging in the region. For instance, according to International Trade Centre (ITC), Mexico's exported gaming consoles amounted to more than USD 347 million in 2021, nearly 72% compared to the previous year.
• The COVID-19 outbreak increased hygiene awareness among consumers in the region and motivated consumers to increase their spending on home care and the hygiene sector to prevent COVID-19 infection. Additionally, during the early spread of the virus, the demand for essential packed food and beverage products surged. Companies struggled to fulfill the rapidly changing demand landscape and faced supply chain disruptions. Furthermore, the rapid rise in e-commerce promoted the growth of paper and paperboard packaging in food, beverage, and online pharmacy and drug store sales, contributing to market growth. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.
• The COVID-19 pandemic's consequences on consumer behavior across Latin America led to explosive expansion in the packaging industry. Demand and costs for corrugated boxes rose as consumer preference turned toward e-commerce. Brazilian corrugated cardboard rose 13.5% in April 2021 over April 2020, demonstrating the expansion in this market's demand.