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Packaging Industry in Brazil - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 105 Pages
  • April 2023
  • Region: Brazil
  • Mordor Intelligence
  • ID: 4775037
UP TO OFF until Jun 30th 2023
The packaging industry in Brazil is expected to register a CAGR of 3.2% during the forecast period. The packaging sector provides opportunities for the application of new technologies and new types of materials that can improve the product's lifespan.

Key Highlights

  • Brazil is one of the leading countries in Latin America in economic growth and FDI, which was USD 50 billion in 2021, according to UCTAD. They have a massive demand for food and industrial goods, catered by imports. Packaging will be necessary to store products.
  • With the growth of the middle-income population, the demand for packed food will increase, enabling the packaging market growth. The growing trend of consumer products, such as food, beverages, and pharmaceuticals, is expected to spearhead the demand for packaging. The ever-increasing demand is attributed to the rising need for packaging solutions that are convenient and portable.
  • The advantages of paper packaging, such as lightweight, biodegradable, and recyclable, along with a versatile and cost-efficient method to protect, preserve, and transport a wide array of products, make them an essential component in fueling the growth of packaging industries across the region.
  • The Brazilian cosmetics industry rises from an untapped demographic dividend, with people progressively using more cosmetic products. According to KOTRA, a state-funded trade, and investment promotion organization operated by the government of South Korea, there is a continuous increase in the number of male consumers buying cosmetic products in Brazil.
  • According to a survey conducted on Brazilian Plastic Packaging in June 2022 by Biointerface Research in Applied Chemistry, plastics account for around 40% of Brazil's most significant packaging production. Looking at the physical production volume of packaging materials by grade, plastic increased by 6.8%, and paper/cardboard increased by 1.0%.
  • Factors such as frequently changing social security reform that allow for more remarkable growth, elections, political uncertainties, and international geopolitics can influence negatively. It may impact the overall economy, thereby reducing the projected growth.
  • The impact of COVID-19 on the Brazilian flexible packaging market was positive due to the surge in demand from Brazil's online food and beverage channels during the lockdown. Thus, increasing the demand for packaging. The COVID-19 pandemic slowly led to the ban on plastic packaging and promoted reusable packaging.

Brazil Packaging Market Trends

Food Sector is Expected to Hold Significant Market Share

  • The growing consumer market is expected to contribute strongly to the country's food industry growth. The local manufacturers have expanded their footprint in foreign nations by acquiring a few international brands.
  • The country is one of the major exporters of exotic fruits found in the Amazon. A few companies have also developed new techniques to export frozen fruits in various innovative packaging, thereby driving the market for packaging across the country's food sector.
  • Folding cardboard cartons cater to a wide range of food production across the markets, such as bakery, dairy, confectionery, fruits and vegetables, meat, poultry, and fish. It helps protect the product by facilitating transportation and marketing thousands of consumer products.
  • Consumers in the country are also particular about the health aspects of packaged food products. Some of the significant products in the food category include meat and vegetables, cereal and flour, sugar and chocolate, and dairy and fats. Due to Brazilians' budget-conscious nature and concern for health and wellness, the market for packaging is expected to find many opportunities.
  • Further, in October 2021, GualapackSpa announced expansion plans in Brazil as part of the Group's continued commitment to sustainable growth through vertical integration. Ready-made Spouts Gualapackattempts international development to support its position in the global market.

Plastic Packaging to hold majority of market share

  • According to a survey by Russell Publishing in March 2022, a new edible, biodegradable, and antibacterial material were developed in Brazil to stem the proliferation of single-use plastic waste. Growing concerns about plastic waste motivate research to develop environment-friendly packaging, including edible, biodegradable, and antimicrobial plastics.
  • Recently, a team of Brazilian scientists developed a biodegradable plastic with the application of ozone gas (O3) to cassava starch (a root vegetable). Scientists state that bioplastic created with the application of ozone (O3) gas changed the molecular properties of starch to produce a 30% tougher material than biodegradable plastic made of starch from potato, rice, or maize. This plastic is ideal for food packaging or carrier bags.
  • Further, in February 2022, pallets made from UBQ, a material from unsorted municipal waste, were found to replace traditional pallets currently used by PepsiCo Brazil. Developed by Israeli start-up UBQ, UBQ Materials are bio-based thermoplastics made from 100% unsorted municipal solid waste, including mixed plastics, paper, cardboard, and organic matter. They are available in a wide range of durability and can replace conventional polymers in some applications.
  • PepsiCo Brazil is investigating the use of this material in producing eco-pallets. Ecoboxes Embalgens Plasticas developed Pallets, a PepsiCo partner company specializing in sustainability and circular economy solutions.
  • The COVID-19 pandemic caused the consumption of take-out food to skyrocket - that of plastics for packaging and straws, cups, plates, and cutlery. Plastic consumption in the delivery sector jumped 46% from 2019 to 2021. It means a rise to 25,000 tonnes from 17,000 tonnes of single-use plastic products: 68 tonnes per day and 2.8 tonnes per hour.

Brazil Packaging Market Competitor Analysis

The packaging industry in Brazil is moderately competitive and consists of several players. With the rising demand for packaging applications and technological advancements across the country's economy, many companies are increasing their market presence by expanding their business footprint across various end-user sectors.
  • July 2022 - To keep plastic out of the environment and the economy, a new partnership aims to unlock USD 300 million of investment in a recycling plant for which Amcor joined forces with the Minderoo Foundation for the Sea the Future project. It plans to build a worldwide network of sorting and recycling plants. The first three plants will be in Indonesia, Netherlands, and Brazil. Once operational, they will produce 150,000 tons of recycled plastic a year.
  • April 2022 - Sonoco acquired the remaining one-third stake in its Brazilian flexible packaging joint venture and a two-thirds stake in JV from Brazil-based packaging company Graffo Paranaensede Embalagens a few years back. The joint venture will provide packaging solutions to a multinational consumer packaged goods company serving the Brazilian confectionery, dairy, pharmaceutical, and industrial markets.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Demand for Longer-lasting Packaging Products
4.3.2 Rising Demand for Sustainable and Innovative Food Packaging Products
4.4 Market Restraints
4.4.1 Stringent Environmental Regulations
4.5 Industry Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Technology Snapshot
4.7.1 Pimary
4.7.2 Secondary
4.7.3 Tertiary
5.1 By Material Types
5.1.1 Paper and Paperboard
5.1.2 Plastic
5.1.3 Metal
5.1.4 Glass
5.2 By End-user Industry
5.2.1 Food
5.2.2 Beverage
5.2.3 Pharmaceutical
5.2.4 Consumer Electronics
5.2.5 Personal/Homecare
5.2.6 Other End-user Industries
6.1 Company Profiles
6.1.1 NEFAB Embalagens LTDA
6.1.2 Klabin SA
6.1.3 WestRock Company
6.1.4 SSI Schaefer LTDA
6.1.5 ORBIS Corporation
6.1.6 Signode Brasileira LTDA
6.1.7 Tetra Pak International SA
6.1.8 Clearwater Paper Corporation
6.1.9 Sonoco Products Company
6.1.10 Graphic Packaging International LLC

Companies Mentioned

A selection of companies mentioned in this report includes:

  • NEFAB Embalagens LTDA
  • Klabin SA
  • WestRock Company
  • SSI Schaefer LTDA
  • ORBIS Corporation
  • Signode Brasileira LTDA
  • Tetra Pak International SA
  • Clearwater Paper Corporation
  • Sonoco Products Company
  • Graphic Packaging International LLC