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Latin America Plastic Bottles/Containers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026)

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  • 120 Pages
  • October 2021
  • Region: Latin America
  • Mordor Intelligence
  • ID: 5459049

Latin America Plastic Bottles/Containers Market is expected to grow at a CAGR of 5.3% over the forecast period (2021-2026). As COVID-19 has stepped into the market, many countries in Latin America seems to have been shifting towards single-use plastics. Supply chains, additionally, are being strained in order to meet a surge in demand for single-use plastic packaging and medical supplies.

Key Highlights

  • Plastic packaging (bottles & containers) has been witnessing an increasing inclination from consumers over other products, as plastic packages are lightweight and easier to handle. There is a huge variety of innovative, cost-effective, and sustainable packaging solutions emerging in the market, and plastic, as a product, is still widely accepted in the region. This has led to major players, like Amcor, introducing new products in the region. In Brazil, the leading dairy brand, Letti, and Amcor collaborated to introduce the transparent one-liter PET bottles for its milk products. Amcor recently launched PET for its Salzburg Craft Beer, in Brazil, in partnership with New Age.
  • The food and beverage industry has dominated the Latin America PET market, due to huge demand for PET resins for the manufacturing of bottles for soft drinks and other beverages. The Brazilian beer market is the third largest across the globe and produces 14 billion liters per year. The acquisition of Kirin by Heineken is further likely to drive the Latin America PET market.
  • In 2019, PepsiCo launched an initiative to promote recycling across Latin America and the Caribbean. PepsiCo Latin America partnered with ecoins, an initiative that was founded in Costa Rica that aims to increase the collection of PET materials.The company uses consumer incentives and a rewards program in the hopes of increasing recycling; the program, “Recycling with a Purpose,” will be expanded to 10 countries in Latin America by 2021. The program allows consumers to exchange their plastic materials for ecoins, a virtual currency, which they can then use to earn discounts on a variety of products and services.
  • As the usage of plastic and plastic products has potentially hazardous implications on the environment, many consumers in Latin America are starting to use eco-friendly products. This also led to many governments in these countries imposing very stringent rules and regulations in the industry, making it a relatively slower growing industry, compared to other materials. The plastic bottles/containers industry is expected to be further affected by the low recycling rates than most of the countries in the region have. According to a study commissioned by Fundação Instituto de Administração, a plastic association of Brazil, the recycling of plastics in Brazil was 25.8%.

Key Market Trends

PET Material Usage is Expected to Grow Significantly

  • Adoption of PET can lead to up to 90% weight reduction compared to glass, allowing a more economical transportation process. Currently, plastic bottles made from PET are widely replacing the heavy and fragile glass bottles, as they offer reusable packaging for mineral water and other beverages. Additionally, better mechanical qualities provide weight reduction, as compared to PE and PP bottles.
  • Globally the PET used in beverage bottles has a higher recycling rate than any other type of plastic, but almost 50% of these containers are not collected for recycling and only 7% is recycled in a closed loop of bottle-to-bottle; this represents a great opportunity for PET recycling.
  • Among all the types of plastic, it is believed that using PET will help in manufacturing the lightest bottle and container. According to the PETRA, PET is a clear, strong, and lightweight plastic that is widely used for packaging convenience-sized soft drinks, juices, and water. Virtually all single-serving and 2-liter bottles of carbonated soft drinks and water sold in the region are made from PET.​
  • There has been in a rise in the use of PET in the region, one of the primary reason in the shorter run, can be the falling prices of PET resins. Due to the US-China trade war, the prices of PET resins have been continually falling. With almost all major economies of Latin America, apart from Mexico, Argentina, and Brazil, being net importing countries, this is expected to bring down the prices of bottle-grade PET resins, thereby, greatly reducing the production costs.

Mexico is Expected to Hold a Significant Market Share

  • According to Mexico’s National Statistics and Geography Institute, the supply chain of Mexico’s recycling industry is composed of 2,800 companies, approximately 95% of which are considered SMEs. Mexico generates a considerable amount of plastic waste material, including polyethylene (PE), polyethylene terephthalate (PET), polypropylene (PP), polystyrene (PS), and polyvinyl chloride (PVC), among others. Despite being an exporter of plastic waste, Mexico still imports some plastic waste from the U.S. This has grown in importance since China banned 24 types of solid waste in January 2018. Mexican recyclers have expanded their recycling capacities to process other types of plastic waste as well.
  • PetStar, a Mexico City-based company that specialized in PET bottles recycling has designed and implemented a circular economy business model for PET bottles, so it can disengage the recycled bottle from virgin resources, avoiding the conversion of the packaging to waste, and operate a perennial cycle in the use of the packaging.
  • In Mexico, PetStar recently reached an annual production capacity of 50,000 metric ton. Also, Coca-Cola Mexico officially opened its largest food-grade PET bottle-to-bottle recycling facility in Mexico. These developments are indicative of the growth in the future use of recyclable plastic in the region.
  • Also, being part of NAFTA, Mexico has access to some of the cheapest plastic imports from countries, like the United States. Mexico has been ranked as the eighth largest plastics consumer in the world and most of its plastics are imported. The key growth driver for plastics in the country is packaging, especially that of food and appliances.
  • These factors had made the production of plastic containers for any end-user application, like beverages, extremely cheap. This, in turn, has led toward the establishment of one of the most vibrant bottling industries in the region, which is further supported by the high domestic consumption of beverages in countries, like Chile, Argentina, etc., that constantly rank among the top consumers of carbonated soft drinks in the world.

Competitive Landscape

The plastic bottles and containers market is fragmented in nature. Some of the major players are Amcor PLC, Graham Packaging Company, Plastipak Holdings Inc., ALPLA Group, among others. Factors, such as the increasing demand for food and beverages will provide considerable growth opportunities in the plastic bottles market. Therefore, many companies are seeing this market as an emerging market. Some of the recent developments are:

  • June 2021 - Slovenian mineral water company Donat partnered with ALPLA Group, for the replacement of its PET and glass packaging entirely with 100% green rPET bottles. This cuts its carbon emissions by up to 90 per cent. Under the motto of ‘green to green’, ALPLA initiated the use of 100 per cent green rPET bottles to replace the 100% virgin-material PET and glass bottles.
  • December 2020 - Amcor PLC, partnered with thirty-five leading companies in the consumer goods industry, in order to reduce plastic waste. Amcor and its partners in this coalition – which have a collective turnover of EUR 1 trillion are enforcing two new design rules to deliver packaging that is easier and more cost-effective to recycle. The first design rule is expected to improve the economic viability of PET bottle recycling by removing colouring pigments and labelling that impact recycling rates. The second design rule will remove materials that are problematic for recyclers from all forms of plastic packaging.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of Covid-19 on the Market
4.4 Market Drivers
4.4.1 Increasing Adoption of Lightweight Packaging Methods
4.5 Market Challenges
4.5.1 Environmental Concerns Regarding Use of Plastics
5.1 Raw Materials
5.1.1 PET
5.1.2 PP
5.1.3 LDPE
5.1.4 HDPE
5.1.5 Other Raw Materials
5.2 End-user Vertical
5.2.1 Beverages
5.2.2 Food
5.2.3 Cosmetics
5.2.4 Pharmaceuticals
5.2.5 Household Care
5.2.6 Other End-user Verticals
5.3 Geography
5.3.1 Brazil
5.3.2 Argentina
5.3.3 Mexico
5.3.4 Rest of Latin America
6.1 Company Profiles*
6.1.1 ALPLA Group
6.1.2 Amcor PLC
6.1.3 Plastipak Holdings Inc.
6.1.4 Graham Packaging Company
6.1.5 Berry Global Group Inc.
6.1.6 Altium Packaging LLC
6.1.7 Alpha Packaging
6.1.8 Gerresheimer AG
6.1.9 Container Corporation of Canada Ltd
6.1.10 Greiner Packaging GmbH
6.1.11 Comar LLC

Companies Mentioned

A selection of companies mentioned in this report includes:

  • ALPLA Group
  • Amcor PLC
  • Plastipak Holdings Inc.
  • Graham Packaging Company
  • Berry Global Group Inc.
  • Altium Packaging LLC
  • Alpha Packaging
  • Gerresheimer AG
  • Container Corporation of Canada Ltd
  • Greiner Packaging GmbH
  • Comar LLC