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Latin America Soft Drinks Packaging Market Size (2024 - 2029)

The Latin America Soft Drinks Packaging Market is experiencing growth driven by factors such as GDP expansion and increased consumer purchasing power, despite challenges posed by health and wellness trends. The market's expansion is supported by the demand for ready-to-drink teas and bottled water, alongside traditional soft drinks. However, regulatory constraints on non-biodegradable packaging materials are hindering growth. The pandemic's impact on supply chains and consumer spending, along with shifting marketing strategies, has also affected the market. Additionally, geopolitical events like the Russia-Ukraine war have influenced the packaging ecosystem, further shaping the market landscape.

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Market Size of Latin America Soft Drinks Packaging Industry

Latin America Soft Drinks Packaging Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 8.50 %
Market Concentration Low

Major Players

Latin America Soft Drinks Packaging Market Major Players

*Disclaimer: Major Players sorted in no particular order

Latin America Soft Drinks Packaging Market Analysis

The Latin America Soft Drinks Packaging Market is expected to register a CAGR of 8.5% over the forecast period. Although carbonated soft drink (CSD) consumption is high in the Latin America region, consumer-led health and wellness trends could take a toll on continued growth.

  • The demand for soft drinks in Latin America is attributed to GDP growth and increasing consumer purchasing power. Ready-to-drink teas and bottled water will be key opportunity areas, as soft drink consumption in Latin America has been the bright spot for soft drink brand owners and bottlers.
  • Soft drinks are the second most consumed drink after water, with plastic being the most used material for soft drink packaging. The increasing population and rising disposable income have led to an increase in demand for soft drink products across the region. However, government regulations for the use of non-biodegradable packaging solutions are restraining the growth of soft drink packaging.
  • Efficient packaging solutions offer benefits like ease of use, disposal, and enhanced user experience. These advantages have resulted in an increase in demand for soft drink packaging solutions.The other trend augmenting demand is the introduction of new and alternative products, which helps manufacturers enhance their brand visibility while offering product differentiation. For instance, in April 2022, Honest Tea expanded its testing bottled beverage portfolio with a new caffeinated ready-to-drink, Honest Yerba Mate.
  • According to a survey conducted by the Brazilian Ministry of Health, more than half of the adult population in Brazil is overweight. Brazilian consumers blame alcohol consumption for the problem, so they limit their alcohol consumption as part of personal health management.This gives soft drink companies more chances to sell alcohol alternatives to people who care about their health.

The COVID-19 pandemic impacted the soft drink packaging market negatively. The pandemic situation disrupted the supply chain and reduced customers' disposable income, resulting in less consumption during the COVID-19 pandemic period. Sharp recessionary effects, as well as post-pandemic wellness and health priorities, would have a negative impact on the industry. In addition, the pandemic has shifted the focus of soft drink companies from range rationalization to investment in larger formats and working around direct-to-consumer marketing. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.

Latin America Soft Drinks Packaging Industry Segmentation

The Latin America Soft Drinks Packaging Market is tracked by the consumption of soft drinks and revenue accrued from the sales of soft drinks packaging products provided by different vendors having a presence in the region. The study also encompasses the assessment of the impact of COVID-19 on the market with the current market estimates and future projections during the forecast period, considering the impact of the same on the market. The Latin America Soft Drinks Packaging Market is segmented by Material (Plastic, Metal, Glass, Paper, and Paperboard), Product Type ( Bottles, Cans, Boxes, Cartons), Type (Bottled Water, Carbonated Drinks, Juices, RTD Beverages, Sports Drinks) and Country (Brazil, Mexico, Argentina, Rest of Latin America).

The market sizes and forecasts are provided in terms of value (in USD million) for all the above segments.

By Material
Plastic
Metal
Glass
Paper and Paperboard
By Product Type
Bottles
Cans
Boxes
Cartons
By Type
Bottled Water
Carbonated Drinks
Juices
RTD Beverages
Sport Drinks
By Country
Brazil
Mexico
Argentina
Rest of Latin America
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Latin America Soft Drinks Packaging Market Size Summary

The Latin America Soft Drinks Packaging Market is poised for significant growth, driven by increasing consumer purchasing power and GDP growth in the region. Soft drinks, being the second most consumed beverage after water, have seen a rise in demand, particularly for ready-to-drink teas and bottled water. The market is characterized by a strong preference for plastic packaging due to its cost-effectiveness, ease of transport, and safety. The adoption of PET plastic bottles is particularly notable, as they offer advantages such as weight reduction and better mechanical qualities compared to other materials. However, environmental concerns regarding plastic use are prompting a shift towards more sustainable packaging solutions. The market is also witnessing a trend towards product innovation and differentiation, with companies introducing new products to enhance brand visibility and cater to health-conscious consumers.

Despite the positive growth trajectory, the market faces challenges such as government regulations on non-biodegradable packaging and the lingering effects of the COVID-19 pandemic, which disrupted supply chains and impacted consumer spending. The market is fragmented, with numerous domestic and international players competing on price, product design, and innovation. Major companies like Amcor Ltd, Sealed Air Corporation, and Tetra Pak International are actively investing in the region to expand their capabilities and meet the growing demand for beverage packaging. Additionally, the market is seeing investments in new manufacturing facilities and technologies aimed at increasing production capacity and promoting sustainability. The focus on recycling and the use of alternative materials, such as plant-based plastics, is also gaining traction as companies strive to meet environmental goals and consumer expectations.

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Latin America Soft Drinks Packaging Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of the Impact of COVID-19 on the Market

    5. 1.5 Overview of the Global Soft Drinks Packaging Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Material

      1. 2.1.1 Plastic

      2. 2.1.2 Metal

      3. 2.1.3 Glass

      4. 2.1.4 Paper and Paperboard

    2. 2.2 By Product Type

      1. 2.2.1 Bottles

      2. 2.2.2 Cans

      3. 2.2.3 Boxes

      4. 2.2.4 Cartons

    3. 2.3 By Type

      1. 2.3.1 Bottled Water

      2. 2.3.2 Carbonated Drinks

      3. 2.3.3 Juices

      4. 2.3.4 RTD Beverages

      5. 2.3.5 Sport Drinks

    4. 2.4 By Country

      1. 2.4.1 Brazil

      2. 2.4.2 Mexico

      3. 2.4.3 Argentina

      4. 2.4.4 Rest of Latin America

Latin America Soft Drinks Packaging Market Size FAQs

The Latin America Soft Drinks Packaging Market is projected to register a CAGR of 8.5% during the forecast period (2024-2029)

Amcor Ltd, Tetra Pak International, Graham Packaging Company, Ball Corporation and Crown Holdings Incorporated are the major companies operating in the Latin America Soft Drinks Packaging Market.

Latin America Soft Drinks Packaging Report Snapshots

Latin America Soft Drinks Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)