Latin America Packaging Automation Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 7.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Latin America Packaging Automation Market Analysis
Latin America Packaging Automation Market is et to register a CAGR of 7.20% during the forecast period 2021-2026. Local demand and export markets have a high demand for packaging. This growing demand for packaging is being met with packaging automation that helps speed up the packaging process. As the demand for packaging increases, so makes the demand for automatic packaging.
- Before packaging automation made an impact in the region, packaging was a completely manual process. As competition increased, manufacturers took steps to reduce packaging costs and took measures to reduce costs by automating a variety of manual processes and raising the level of semi-automated processes.
- In Latin America today, consumers and governments are increasingly concerned about the environment and are increasingly interested in lighter, recyclable and reusable packaging. New labeling rules must be followed, especially in the food and beverage, bakery, and medical markets.
- In Mexico, companies are focusing on innovations in packaging products. For instance, in November 2021, Festo and Hybernya Industrial developed an automated packaging solution for multi-packs for Danone and Danup yogurts.
- Prior to the creation of the yogurt packaging industry in Mexico, it was a milestone for the Mexican yogurt packaging industry, given that there was no equipment in the country capable of processing this type of multi-sort packaging. This type of process was done manually by operators who took the product from each line and delivered it to the packaging machine.
- Brazil, Mexico, and Argentina are the main drivers for the region, with automated processes such as filling, labeling, bag egging, palletizing, and capping. Various businesses in food, pharmaceutical, cosmetic, personal care, beverage, and even warehouse are increasingly using these automation solutions to optimize business processes and reduce operating costs.
Latin America Packaging Automation Market Trends
This section covers the major market trends shaping the Latin America Packaging Automation Market according to our research experts:
Food and Beverage segment to hold biggest operating expense
As technology advances to become more flexible and configurable, companies are improving logistics and quality. Automation will continue to transform food and beverage manufacturing companies throughout the supply chain and to their customer’s doors.
Consumer packaged goods companies need accurate and repeatable packaging processes. Individual packaging at high-cycle rates can be challenging, so companies that use robotics in their packaging lines can improve their throughput, efficiency, and quality. From raw product handling to primary packaging, secondary packaging, and palletizing, robotics has proven a high return on investment.
Packaging automation also involves greener solutions like recyclable, biodegradable, and refillable methods in the region. According to research conducted, Latin America has a low penetration for dishwashers, and hand washing is dominant where the plastic PET bottle is a dominant product pack and has increased its growth in terms of volume in this region.
Further, Coca-Cola company in Brazil invested in expanding the reuse infrastructure as part of its ambition to incorporate the design of reusable PET bottles and significantly expand reusable packaging by 2030. Universal bottle design for all brands significantly reduces cleaning, filling, and return logistics costs.
The meat industry and its by-products are an important sector on the continent. Companies are facing new challenges as more and more consumers are concerned about the origin and processing of meat. HPP technology allows obtaining high-quality raw or cooked products with a longer shelf life, opening up export possibilities to other countries.
Latin American consumers take on new horizons for cleaner additives, more sustainable, and easy to consume. In other markets, consumers are looking for more secure, sustainable, and safe packaging for the products purchased, and for that reason, companies are innovating new products with new technological innovations.
Mexico to grow significantly in the industry
Technological innovation, sustainability concerns, and attractive economies are some of the reasons packaging automation has grown significantly over the last few years in this region and the way consumers view and interact with packages is also changing.
- Mexico is moving towards modernization for its packaging technologies; considering the stability of the current economic, commercial and political situation and the expected growth of the country; it can be expected that packaging equipment imports will continue to grow in the near future.
- Growth is expected to be driven by key factors such as strong domestic and international demand and the interest of many companies to modernize their operations to improve efficiency and competitiveness.
- Several multinational companies and business groups using packaging machines have indicated that they will continue to invest in Mexico, understanding the impact of political decisions on their operations. Businesses are adapting to the country's realities, and for now, demand prospects and growth in Mexico are stable.
- The food, beverage, personal care, and pharmaceutical industries account for the majority of packaging machinery demand. A high proportion of young people and a growing middle class are driving food demand. The beverage sector performs particularly well in products such as soft drinks, bottled water, beer, and spirits, respectively.
- Further, in the pharmaceutical industry, despite the intensifying competition from generic drugs and low levels of new investments, the pharmaceutical sector continues to keep its sector competitive and in demand for packaging machinery.
Latin America Packaging Automation Industry Overview
Latin America automation packaging is moderately fragmented with the presence of major players in the industry such as Amcor Flexibles MX, Avery Dennison Corporation, Berry Global Inc., Sonoco Products Company, and more. These companies are investing in R&D for product innovations and adapting to new technological innovations for growth.
- September 2020 - Avery Dennison Corporation launched biodegradable apparel tag fasteners made of material that degrades within one year of exposure to soil organisms, replacing the plastic. This new Ecotach bio-PP Fastener degrades without leaving behind microplastics, which are harmful substances for the environment.
- October 2021 - Amcor offered cooking oil bottles made entirely from recycled content in Colombia. Amcor worked with Alianza Team to launch the first bottle in Colombia for cooking oil made with all recycled content. Amcor Rigid Packaging (ARP) refined its bottles to ensure it is safe, causes no change in taste, and is transparent - while maintaining Gourmet's visual branding.
Latin America Packaging Automation Market Leaders
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Amcor PLC
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Berry Global Inc
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Sonoco Products Company
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Sealed Air Corporation
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Avery Dennison Corporation
*Disclaimer: Major Players sorted in no particular order
Latin America Packaging Automation Market News
- October 2020 - Sealed Air Corporation invests in Gastromotiva to improve food security worldwide. It announced a three-year partnership with the company, and this collaboration achieved food security goals for education, workforce development; and Gastromotiva will standardize its educational methodology and develop an integrated educational platform for expansion to strategic locations in Brazil and Mexico.
- September 2021 - Sonoco Products Company has partnered with AMP Robotics; the partnership will result in increased recycling rates for the spiral wound paper canister with steel bottom produced by Sonoco and other manufacturers. This partnership represents another step forward in the growing portfolio of sustainable packaging solutions.
Latin America Packaging Automation Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Introduction to Market Drivers and Restraints
5.2 Market Drivers
5.2.1 Increasing Pressure on Manufacturers to Cut Down Operating Costs
5.2.2 Reduces Machine Downtime and Product Waste
5.2.3 Emerging Markets are Emerging as Low Cost Labor and Increased Competition
5.3 Market Restraints
5.3.1 High Initial Investment
6. MARKET SEGMENTATION
6.1 Businesses Type
6.1.1 B2B e-commerce retailers
6.1.2 B2C e-commerce retailers
6.1.3 Omni Channel Retailers
6.1.4 Wholesale Distributors
6.1.5 Manufacturers
6.1.6 Personal Document Shippers
6.1.7 Others
6.2 End-User Vertical
6.2.1 Food
6.2.2 Pharmaceuticals
6.2.3 Cosmetics
6.2.4 Household
6.2.5 Beverages
6.2.6 Chemical
6.2.7 Confectionery
6.2.8 Warehouse
6.2.9 Others
6.3 Product Type
6.3.1 Filling
6.3.2 Labelling
6.3.3 Horizontal/Vertical Pillow
6.3.4 Case Packaging
6.3.5 Bagging
6.3.6 Palletizing
6.3.7 Capping
6.3.8 Wrapping
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Amcor PLC
7.1.2 Klabin SA
7.1.3 Printpack Inc.
7.1.4 Berry Global Inc.
7.1.5 Westrock Company
7.1.6 Constantia Flexibles
7.1.7 Sealed Air Corporation
7.1.8 Transcontinental Mexico
7.1.9 Sonoco Products Company
7.1.10 Avery Dennison Corporation
7.1.11 Clifton Packaging Packaging SA de CV
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Latin America Packaging Automation Industry Segmentation
Packaging Automation refers to the procedure of packaging a product without the need for human assistance. They can be as simple as automatically forming and sealing cartons to fully automated packaging lines that seal, stack, and unitize entire pallets of goods. Automated packaging machines enable intelligent workflows and eliminate duplication of work so they can do more for less. The superiority of automated packaging offers advantages over traditional methods when combined with real-time diagnostics and performance. The study offers overall findings of the Latin American market, including financial, innovations, and market segments.
Latin America Packaging Automation Market Research FAQs
What is the current LA Packaging Automation Market size?
The LA Packaging Automation Market is projected to register a CAGR of 7.20% during the forecast period (2024-2029)
Who are the key players in LA Packaging Automation Market?
Amcor PLC, Berry Global Inc, Sonoco Products Company, Sealed Air Corporation and Avery Dennison Corporation are the major companies operating in the LA Packaging Automation Market.
What years does this LA Packaging Automation Market cover?
The report covers the LA Packaging Automation Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the LA Packaging Automation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
LA Packaging Automation Industry Report
Statistics for the 2024 LA Packaging Automation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. LA Packaging Automation analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
