Market Trends of Latin America Glass Packaging Industry
Increasing Demand from the Beverages Segment is Expected to Drive the Market
- In Latin America, beverage launches and sales have risen over the past few years. The increasing demand for glass packaging from alcoholic and non-alcoholic beverages has drawn players to establish their manufacturing units in Brazil.
- The increase in the percentage of adults and young adults in Brazil consuming soft drinks five or more days per week, as reported by Ministério daSaúde, indicates an increasing demand for soft drinks in the country. This rise in consumption is likely to positively impact the demand for glass bottles in the soft drink industry.
- According to the Brazilian Institute of Geography and Statistics, the revenue from the manufacturing of spirits and other beverages in 2019 was USD 902.11 and reached USD 949.32 million in 2023. Therefore, as the consumption of soft drinks increases, there will likely be a corresponding increase in the demand for glass bottles as packaging options to meet consumer preferences and market demand.
- According to Glanbia Nutritionals, in Latin America, there is a rising demand for beverages that boost natural energy. A significant 69% of Mexican consumers express interest in products that sustain their energy throughout the day, underscoring the demand for prolonged vitality.
- Moreover, the ongoing shift toward healthier, clean-label choices is set to shape the functional beverage landscape in Latin America. Key growth areas on the horizon include "protein +" beverages, which encompass protein-infused energy drinks that can integrate a variety of healthy ingredients without sugar or calories. Partnering with a beverage ingredient supplier that is well-versed in beverage innovation and regional nuances is paramount for manufacturers eyeing the Latin American market.
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Mexico is Expected to Witness Robust Expansion in the Market
- Rapid technological growth in packaging equipment and changing busy lifestyles in the country are anticipated to drive the market's growth during the forecast period. Mexico attracted foreign glass packaging makers and other companies owing to abundant natural resources, low-cost labor, and increasing consumer expenditure.
- The growing production of cola drinks in Mexico, as reported by the National Institute of Statistics and Geography (INEGI), is driving the demand for glass packaging. In April 2023, the sales volume of cola drinks totaled nearly 1.11 billion liters, marking an increase from the previous month. This surge in sales highlights the need for glass packaging to accommodate the rising production levels in the beverage industry.
- Additionally, integrating small-scale producers into larger cooperatives or companies, like LaLa and Alpura, enhances efficiency and economies of scale. This growth in fluid milk production is expected to support the demand for glass packaging in the dairy segment. With increased production levels, there will be a greater need for packaging materials, including glass bottles, to accommodate the expanded output of fluid milk. According to the FAO and the US Department of Agriculture, as dairy operations become more efficient, the demand for packaging solutions like glass bottles is expected to rise in the dairy industry.
- According to Consejo Regulador del Tequila, the production volume of tequila in 2019 was 351.7 liters. In Mexico, the average per capita consumption of pure alcohol stands at 4.9 liters, with men outpacing women in consumption. Notably, the 18–29 age group leads with a per capita consumption of 7.6 liters.
- Further, in October 2023, Coca-Cola's investment of USD 133 million to expand dairy and juice production at Jugosdel Valle-Santa Clara's plant in Jalisco, Mexico, is expected to support the demand for glass packaging. As production increases, there will likely be a corresponding need for packaging materials, including glass bottles, to accommodate the expanded output of dairy and juice products. This investment signals growth in the beverage sector, particularly in Mexico, which can stimulate demand for glass packaging.
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