Market Trends of Latin America Protective Packaging Industry
This section covers the major market trends shaping the Latin America Protective Packaging Market according to our research experts:
Food and Beverage Industry to Drive the Market Growth
- Brand owners are increasingly looking to packaging converters to design secondary packaging solutions that will prevent shipping-related damage. Moreover, for beverages made of glass bottles (most fragile items), packaging airbags are used nowadays. If any of the multiple chambers loses air in airbags, the balance remains inflated to provide continued protection. Airpack provides this solution to various e-commerce companies.
- Demand for insulated shipping containers will be driven mostly by increased online sales of perishable foods and are widely used for shipping food such as candies, pies, cakes, seafood, steaks, and chocolate. The polystyrene foam containers majorly come in a corrugated cardboard box and offer maximum protection for perishable items.
- Thermal bubble mailers are another option for food in containers. These food bags are tough enough to take on long without risk of penetration. Insulated protective envelopes are an innovative design that protects against impact and sharp air temperature changes during transit.
- Players are majorly focused on a sustainable packaging solution for protection. Recently, in October 2020, Smurfit Kappa Group launched the BanaBag packaging solution made from cellulose. This product is largely used for banana cultivation, acting as a natural insulator against hostile temperatures. It is also used by banana producers to transport the fruit to markets.
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Brazil Holds Significant Market Share
- In countries such as Brazil, players are focused on the recycle activities, as in packaging company SIG is encouraging Brazilians to recycle packaging by offering food products in exchange for their recyclable waste. This also includes the bubble wraps, which are majorly being used in the e-commerce platform in the country.
- Further, Paper and packaging company WestRock is building a new plant in Sao Paulo, Brazil, to meet the growing regional demand for corrugated packaging. It will invest more than USD 125 million to build the facility and will serve all industry segments and markets in Sao Paulo and other areas in southeastern Brazil. Such instances signify the greater adoption and demand for corrugated packaging for the protection of goods.
- Further, the recycling companies in the region are putting significant efforts to minimize the use of plastic packaging in the sector. For instance, TriCiclos has set a target of 11,000 metric tons of plastic collection by 2025 in Chile, Peru, Colombia, and Brazil region.
- Alos, Boomera has more than 200 points of plastic waste collection around Brazil, and their commitment is to double this number in 2019, 2020, 2021. Such an initiative might lower the adoption of the plastic protective packaging and increase the usage of paper packaging.
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