Market Trends of Latin America Flexible Plastic Packaging Industry
The Food End-Use Industry to Account for Highest Market Share
- The food industry in Latin American countries, notably Brazil, Mexico, and Argentina, is on the rise. This growth is fueled by a burgeoning domestic market and robust export volumes. A key driver is the expanding working population, which is increasingly turning to packaged and frozen foods due to time constraints, further boosting market demand.
- The trend toward stand-up pouches in food and confectionery packaging is gaining traction. These pouches, suitable for solids, liquids, or powders, are favored for their lightweight nature, flexibility, and superior protection against moisture and oxygen. A recent example of this trend is the partnership between Swiss multinational SIG Group and DPA Brazil, where they introduced spout packaging for the Chamyto brand of yogurt in March 2024.
- Many companies are ramping up their manufacturing capabilities for flexible packaging, further driving market growth. For instance, in November 2023, PAC Worldwide Corporation, based in the United States, expanded its Mexico operations into an 83,000 sq. ft plant. This move positioned PAC to produce a range of packaging products, from pouches to films and wraps, with a focus on enhancing its food-grade packaging offerings.
- In Brazil, the demand for food processing products is surging, buoyed by a growing population and escalating export figures for food ingredients. Data from the Brazilian Food Processors Association (ABIA) revealed that the country's food processing industry witnessed a 7.2% growth in 2023 compared to the previous year.
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Mexico is Expected to have the Largest Market Share
- Mexico's flexible plastic packaging industry is witnessing robust growth, offering innovative solutions to diverse packaging challenges. The surge in end-user industries like food and beverage, healthcare, cosmetics, and personal care is fueling the demand for flexible plastic packaging in the nation.
- Urbanization and hectic work schedules are steering consumers toward ready-to-eat meals packaged in flexible pouches. Moreover, the increasing appetite for on-the-go snacks is driving the necessity for re-closable stand-up pouches, enhancing consumer convenience. Evolving consumer lifestyles, food preferences, and advancements in food technology are further propelling the demand for the market.
- According to the United States Department of Agriculture (USDA), Mexico is the tenth largest food producer globally. The expanding food processing industry in Mexico, encompassing processed meats, dairy, and confectionaries, is not only meeting domestic demands but also setting the stage for significant export opportunities, thereby bolstering market growth.
- Mexico stands as the 15th largest pharmaceutical market worldwide and the second in Latin America. Pouches and blister packs, predominantly crafted from bi-oriented polypropylene (BOPP), are gaining traction in pharmaceutical packaging. Data from Mexico's Secretariat of Economy indicates a projected 7.02% growth in pharmaceutical sales for 2023 compared to the previous year.
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