Market Trends of Latin America Flexible Packaging Industry
The Pouches Segment is Expected to Grow Significantly
- Pouches, widely utilized across Europe, can be categorized into stand-up and flat types. Stand-up pouches encompass a range of varieties, including retort, bottom gusset, flat bottom, side gusset, spouted, and shaped pouches. Flat pouches are divided into pillow, four-side seal, three-side seal, and vacuum pouches.
- The demand for pouches in the market is fueled by their durability and logistical convenience. Their cost-effectiveness is prompting manufacturers to increasingly adopt pouch packaging, further propelling the growth of this flexible format. Additionally, pouches' lightweight nature makes them a preferred choice over traditional packaging formats like PET bottles.
- Kraft paper is in high demand for applications like wrapping, pouches, and sacks. The rising trend of eco-friendly packaging has spurred interest in kraft papers, especially since their pulping process facilitates easy waste recovery and recycling. In line with this trend, in 2020, TC Transcontinental, a Montreal-based packaging manufacturer with operations in the United States and Latin America, unveiled plans to boost post-consumer recycled content in its flexible offerings, including pouches. The company has also invested in equipment to convert flexible plastics sourced from sorting facilities and other avenues.
- In February 2023, ProAmpac, a frontrunner in flexible packaging and material science, introduced new additions to its ProActive Sustainability Portfolio: ProActive Recyclable R-2050 and ProActive Post Industrial Recycled Content (PIR).
- Pouches emerged as a dominant choice for packaging e-commerce products. They are increasingly favored in the food, beverage, personal care, and pharmaceutical sectors, especially for products targeting the e-commerce market. E-commerce players are gravitating toward pouch packaging due to its efficiency and cost-effectiveness.
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Brazil is Expected to Hold a Significant Share in the Market
- Brazil is a frontrunner in Latin America, showcasing robust economic growth and attracting significant foreign direct investment (FDI). The nation, with its substantial appetite for food and industrial goods, heavily relies on imports. The region is increasingly turning to flexible packaging solutions to safeguard these products from damage. As the middle class expands, so does the appetite for packaged foods, paving the way for the expanding flexible packaging market.
- In 2023, Brazil achieved a trade surplus in beauty and personal care products, as per a report by Beautycare Brazil (ABIHPEC & ApexBrasil). The South American powerhouse exported cosmetics and hygiene products worth over USD 911 million to global markets.
- In March 2024, SIG, a leading supplier of aseptic cartons, partnered with DPA Brasil, a prominent dairy company, to roll out innovative spouted pouch packaging for the Chamyto yogurt brand. This new packaging, featuring the SIG CloverCap 85RO closure and SIG Prime 120 filling equipment, has a lightweight yet robust design, making it especially user-friendly for children. The strawberry-flavored Chamyto yogurt marks DPA Brasil's inaugural product to adopt this cutting-edge packaging format. DPA Brasil also plans to expand this packaging innovation to other offerings, including Chamyto fruit vitamin yogurts, Chambinho Recreio, and Ninho Lancheirinha.
- Additionally, the market is witnessing a trend towards premiumization. While Brazilians are generally price-sensitive but increasingly willing to invest in cosmetics. This shift is driving the demand for flexible packaging. Flexible plastic materials like polyamine and polypropylene enhance package visibility and appeal and incorporate essential safety features.
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