Market Trends of Brazil Plastic Packaging Films Industry
Polyethylene Segment is Expected to Witness Significant Growth
- The high levels of plastic pollution create a strong impetus for developing and adopting more sustainable packaging solutions. This can drive innovation in the plastic packaging films market, with companies focusing on creating biodegradable, recyclable, and compostable films to reduce environmental impact.
- According to Oceana, a global organization focused on ocean conservation, Brazil, the largest plastic producer in Latin America and the fifth globally, discharges approximately 325,000 tonnes of plastic into the ocean annually.
- High revenue figures indicate a robust market, encouraging manufacturers to invest in expanding their production capacities. This is expected to include the production of polyethylene packaging films, leading to increased availability and lower costs due to economies of scale.
- According to the Brazilian Institute of Geography and Statistics, the revenue from manufacturing plastic packaging in Brazil amounted to approximately USD 6.9 billion by 2023. Increased revenue allows companies to invest in marketing and brand-building efforts. Manufacturers can attract more customers and drive market growth by promoting the benefits of polyethylene packaging films, such as their versatility, durability, and cost-effectiveness.
Understand The Key Trends Shaping This Market
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Food and Beverage Segment to Witness Growth
- Brazil’s food and beverage industry grew constantly, with over 94,706 hypermarkets across the country contributing to this growth in physical and digital formats, as per the US Department of Agriculture data.
- The sector in Brazil is well-integrated, dynamic, and sophisticated, which makes it an ideal center for Western companies to make strategic investments by increasing production capacity and innovating plastic packaging films to meet the needs of the Brazilian market.
- Brazil's rapidly growing e-commerce sector is likely to increase the demand for plastic packaging films for food and beverage packages. This presents several potential market opportunities for packaging films, such as innovation, sustainability, and increased competition.
- Sonoco, a provider of flexible packaging products for different end-user segments, has strategically strengthened its flexible packaging operations by acquiring the Brazilian company Inapel Embalagens Ltd in December 2023. This acquisition marks a significant expansion for Sonoco in Brazil, where Inapel is already established as a leading producer of flexible packaging to grab the demand from the food sector.
- Organic products often come with a consumer expectation of sustainability. This can lead to an increased demand for environmentally friendly plastic packaging films, such as biodegradable or recyclable options. The packaging industry may innovate to meet these demands, thus stimulating growth and development in this sector.
o According to the Organic Trade Association, in 2021, the consumption value of organic
packaged food and beverages in Brazil amounted to USD 81 million and was expected
to reach USD 105 million by 2025.
