Market Size of Latin America Protective Packaging Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Protective Packaging Market Analysis
The Latin America protective packaging market is expected to register a CAGR of 6.2% during the forecast period 2020 - 2025. Protective packaging is one of the emerging packaging styles used for packaging of various ends user industry products, such as consumer electronics, pharmaceutical, and automotive, among others that safeguard and shield core product from damages during transportation or storage.
- Latin America is one of the growing regions, which is expected to witness a significant share of the e-commerce market during the forecast periods. According to mobile payments today, in 2019, 155.5 million people in the region are expected to buy goods and services online, which is a dramatic increase from 126.8 million in 2016.
- Also, according to fintech times, the region's e-commerce sales are predicted to rise to USD 79.7 billion in 2019 from USD 49.8 billion in 2016. The local growth of consumer preferences, rise in internet and smartphone usage, and the entrance of many MNC e-commerce players such as Amazon and Alibaba have disrupted the traditional market and leveraged e-commerce to access small and medium-sized clients. Such factors cater to the major demand for protective packaging in the region.
- Furthermore, Smurfit Kappa has used its eSmart service to enable the leading Latin American egg provider to enter the eCommerce channel successfully. The fragile nature of eggs was a key factor in this project. They took a data-driven approach and used their eSmart service tools to design a fit-for-purpose and attractive packaging solution. It is expected that the demand for molded pulp might increase significantly with such addition in online sales.
- Foam is used as protective packaging due to its unique shock absorbing abilities, and players such as Sonoco Protective Solutions and Nefab Group in Mexico provide various molded foam as a protective packaging material.
- During the COVID-19 crisis, the supply chains are under unprecedented pressure, but sealed air has enabled its protective packaging products to be transported quickly and safely to end-users such as food, medicine, and other critical products that need the items most with quality and safety. Moreover, due to the outbreak of COVID-19, the market for protective packaging is witnessing significant growth owing to a rise in demand from e-commerce, pharmaceutical, and other end-user industries.
