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Latin America Aseptic Packaging Market Analysis

The LA Aseptic Packaging Market size is estimated at USD 7.46 billion in 2024, and is expected to reach USD 12.49 billion by 2029, growing at a CAGR of 10.86% during the forecast period (2024-2029).

• Latin America offers excellent potential in the market studied as a region that produces a lot of raw resources and food products. Rapid industrialization in countries like Brazil, Argentina, Columbia, and Mexico is driving economic growth. As in other continents, the use of new, more environmentally friendly technology is paving the way for the provision of reactions and solutions along the whole food chain to the trend of rising responsible and conscious consumption. These developments are most apparent throughout the processing and preservation stages when they assure quality and safety and extend the food's shelf life. Aseptic packaging is becoming increasingly popular as a safer and more profitable food packaging option.
• Consumers' preference for healthier alternatives is leading to a surge in investment in aseptic packaging despite the potential technical and cost issues associated with the formats. As aseptic designs become increasingly popular due to consumer preference for healthier alternatives, manufacturers are investing in packaging and fill technologies to meet this demand. In Brazil, product development is being driven by consumer preference for functional and healthier options. Dairy companies are focusing on installing aseptic fill machines to cater to the increasing demand for dairy-based products.
• In line with this, Shefa and Líder Alimentos, two Brazilian dairy companies, selected SIG as their preferred partner for supplying and installing aseptic fillers and packaging solutions. SIG is the provider of advanced aseptic fill technology in Brazil. It installed nine aseptic fill machines at production sites in São Paulo and Paraná, where the systems have already started operating.
• Ball Corporation announced it was expanding its operations in South America, landing in Peru with a new manufacturing plant in Chilca. After expansion, the plant will have a production capacity of over 1 billion beverage cans annually. Premiumization has been a critical growth driver for players in the alcohol space due to consumers' continued desire for refreshing and newer tastes and premium packaging. The companies in the industry have been focused on investing in crafting a diverse portfolio of global and specialty premium brands.
• Additionally, the growing demand for soft drinks and other non-alcoholic beverages in Mexico is expected to support the need for aseptic packaging in the forecast timeframe. For instance, according to the National Institute of Statistics and Geography (INEGI), the production value of flavored soft drinks in Mexico amounted to over MXN 3474.71 million (USD 207.05 million) in April 2023, compared to MXN 2811.06 million (USD 167.51 million) in February 2023.
• However, it is difficult to remove this material from packaging due to the presence of aluminum and polyethylene components in aseptic cartooning. To achieve accurate recycling (where materials are recycled to a previous stage of the production cycle without loss of quality), all the layers of Tetra Pak would need to be separated and reused to produce more Tetra Pak. Additionally, the availability of such machines is limited to certain players. Recycling requires a lot of equipment and inputs, such as water and energy, and many recycling centers do not have these. Such factors might hinder market growth.

Latin America Aseptic Packaging Industry Segmentation

The study tracks consumer demand based on sales of aseptic packaging products offered by various vendors operating in the global market. The study factors in the impact of geopolitical scenarios on the overall supply chain of the market. The study factors the prevalent base scenarios, key themes, and end-user vertical-related demand cycles.

The Latin American aseptic packaging market is segmented by products (cartons, bags and pouches, cans, bottles, and other products), application (beverage [ready-to-drink, dairy-based beverages, others], food [processed food, fruits and vegetables, dairy food, and others], and pharmaceutical), and country (Brazil, Argentina, Mexico, and Rest of Latin America). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.