Latin America Soft Drinks Packaging Market Size

Latin America Soft Drinks Packaging Market Analysis

The Latin America Soft Drinks Packaging Market is expected to register a CAGR of 8.5% over the forecast period. Although carbonated soft drink (CSD) consumption is high in the Latin America region, consumer-led health and wellness trends could take a toll on continued growth.

• The demand for soft drinks in Latin America is attributed to GDP growth and increasing consumer purchasing power. Ready-to-drink teas and bottled water will be key opportunity areas, as soft drink consumption in Latin America has been the bright spot for soft drink brand owners and bottlers.
• Soft drinks are the second most consumed drink after water, with plastic being the most used material for soft drink packaging. The increasing population and rising disposable income have led to an increase in demand for soft drink products across the region. However, government regulations for the use of non-biodegradable packaging solutions are restraining the growth of soft drink packaging.
• Efficient packaging solutions offer benefits like ease of use, disposal, and enhanced user experience. These advantages have resulted in an increase in demand for soft drink packaging solutions.The other trend augmenting demand is the introduction of new and alternative products, which helps manufacturers enhance their brand visibility while offering product differentiation. For instance, in April 2022, Honest Tea expanded its testing bottled beverage portfolio with a new caffeinated ready-to-drink, Honest Yerba Mate.
• According to a survey conducted by the Brazilian Ministry of Health, more than half of the adult population in Brazil is overweight. Brazilian consumers blame alcohol consumption for the problem, so they limit their alcohol consumption as part of personal health management.This gives soft drink companies more chances to sell alcohol alternatives to people who care about their health.

The COVID-19 pandemic impacted the soft drink packaging market negatively. The pandemic situation disrupted the supply chain and reduced customers' disposable income, resulting in less consumption during the COVID-19 pandemic period. Sharp recessionary effects, as well as post-pandemic wellness and health priorities, would have a negative impact on the industry. In addition, the pandemic has shifted the focus of soft drink companies from range rationalization to investment in larger formats and working around direct-to-consumer marketing. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.