South America Hazmat Packaging Market Outlook, 2030

Hazmat packaging in South America evolved slowly during the early 2000s, mainly due to limited international trade and fragmented regulatory frameworks across the region. Over the past two decades, however, the packaging of hazardous materials has shifted toward standardized UN-certified solutions, driven by the growing exports of chemicals and agro-inputs from countries like Brazil, Argentina, and Colombia. Earlier, drums and fiberboard boxes were locally manufactured with basic containment capabilities and minimal labeling compliance. Now, the market sees a higher adoption of Intermediate Bulk Containers (IBCs), multilayer polymer drums, and spill-proof cartons that meet global norms.

Brazil’s adoption of the National Transport Agency’s (ANTT) Resolution 5,232 aligned the domestic regulations closer to international transport standards like ADR and IMDG, while countries like Chile and Colombia have gradually updated their hazmat packaging laws under their Ministries of Transport. Technology integration is still nascent but growing-local players are testing smart seal tracking, barcode scanning, and temperature-sensitive labels for pharmaceuticals and flammable goods. Certified vendors in São Paulo and Santa Catarina now produce and recondition UN-approved drums with corrosion-resistant linings and flame-retardant coatings. Materials have shifted from low-grade recycled plastics to high-density polyethylene (HDPE) and composite metal barrels that withstand chemical reactions. Environmental concerns have started influencing packaging formats in Brazil and Chile, with growing demand for returnable, refillable drums in industrial estates and reconditioning units in hubs like Porto Alegre. The region still lacks a harmonized certification system, but localized approvals and transport documentation rules have been developed by port authorities to reduce export rejections. South American vendors now increasingly partner with multinational chemical suppliers to meet the required safety and labeling protocols for dangerous goods, especially Class 3 which is flammable liquids, Class 6 is toxic substances, and Class 8 corrosives.

According to the research report, "South America Hazmat Packaging Market Outlook, 2030,", the South America Hazmat Packaging market is anticipated to add to more than USD 260 Million by 2025-30. The South American hazmat packaging market offers growing opportunities due to expanding chemical and agrochemical exports from Brazil and Argentina, lithium and mining sector development in Chile and Bolivia, and pharmaceutical distribution growth in Colombia and Peru. Demand is increasing from companies transporting pesticides, paints, industrial solvents, medical waste, and lab reagents across borders.

The rise of lithium-ion battery shipments from Chile and Argentina has triggered demand for flame-retardant, shock-absorbing containers, especially with UN 3480 compliance. Brazilian companies like Embalagens Flexíveis Diadema and Mauser’s local facilities have invested in plastic drums with higher stacking strength and leak-proof liners. International vendors such as Schütz and Greif operate regional manufacturing or reconditioning units for IBCs and steel drums. In 2023, Greif expanded its reconditioning operations in Brazil, enabling closed-loop packaging for petrochemical companies and reducing dependency on imports. The growth of e-commerce B2B platforms has allowed agrochemical manufacturers to directly source certified packaging from local distributors. Additionally, Colombia's health sector started using specialty hazmat kits for COVID-19 vaccine cold chain returns, accelerating interest in tamper-proof cartons. South America is seeing improvement in port-to-port compliance checks, which has reduced the number of rejections due to mislabeling or non-compliant closures. Companies are also exploring biodegradable cushioning inside hazmat boxes to meet sustainability goals for air and sea transport. The expansion of export hubs like Port of Santos (Brazil) and Port of Callao (Peru) creates logistical advantages for bulk chemical packaging, especially for corrosives and flammable goods.

Market Drivers

• Expansion of Chemical and Agrochemical Exports from Brazil and Argentina:Brazil is one of the largest exporters of pesticides and fertilizers in Latin America. Agrochemical giants like UPL, Bayer, and Syngenta operate bulk operations requiring compliant hazmat packaging. Export routes to Europe and Asia follow IMDG and ADR codes, pushing demand for certified drums, IBCs, and anti-leak packaging.
• Growing Oil, Gas, and Mining Operations in Brazil, Colombia, and Peru:With Petrobras expanding offshore production and Chile and Peru leading in mining of lithium and copper, the need for safe packaging of corrosive and flammable chemicals has risen. Hazmat packaging for acids, fuels, and byproducts is key for cross-border logistics, especially to comply with MERCOSUR and UN GHS standards.

Market Challenges

• Inconsistent Regulatory Enforcement Across Countries:While Brazil enforces ANTT regulations for hazmat transport, neighboring countries like Bolivia and Paraguay lack strict monitoring. This uneven compliance across South American borders creates issues in maintaining packaging standards, particularly for long-haul or multimodal transport of hazardous goods.
• Poor Infrastructure and Risky Transit Routes:South America faces weak rural road infrastructure and long distances between industrial zones and ports. Hazmat packaging must endure heat, vibration, and rough handling. Leakage risks increase due to poor warehousing and lack of trained handlers, especially in remote mining or agro zones in Ecuador and Colombia.

Market Trends

• Adoption of Rigid IBCs and Composite Drums for Agro Exports:Agribusinesses in Argentina and Brazil are moving toward reconditioned IBCs and UN-rated composite drums to handle large-scale pesticide exports. Reusable packaging lowers cost per shipment and meets EU traceability standards, especially for fungicides, herbicides, and bio-stimulants.
• Local Manufacturing of UN-Certified Packaging by Regional Players:Companies in Brazil and Chile have started localized production of hazmat packaging like HDPE drums and multi-layer bags. Firms like Plasnew and Embalagens Flexíveis invest in in-region UN testing to reduce dependence on imports from the U.S. and Europe and to meet local regulatory updates faster.

Flexi tanks are gaining momentum in South America due to their ability to reduce transport costs and improve efficiency for bulk liquid exports.

Flexi tanks are increasingly used across Brazil, Argentina, and Chile as a more practical alternative to drums or IBCs for shipping non-regulated hazardous liquids and semi-hazardous industrial fluids. These single-use, multilayered flexible containers fit inside 20-foot containers and can carry up to 24,000 liters of liquid, allowing businesses to move large volumes without using returnable packaging. South America's export-driven chemical and agro-based industries prefer flexi tanks because they are lighter, faster to load, and eliminate cleaning costs, which is important when shipping products like edible oils, non-hazardous chemicals, additives, and some Class 3 and 9 substances under regulated conditions.

The region’s growing biofuel and vegetable oil exports also support flexi tank demand as these require bulk, safe, and cost-efficient shipment. Ports like Santos (Brazil), Callao (Peru), and Buenos Aires (Argentina) report rising use of flexi tanks for outbound shipments, often supported by local freight forwarders who promote the format as a low-maintenance option. The demand also gets a push from small and mid-size exporters who avoid higher compliance burdens linked with multi-use packaging and benefit from the tanks’ one-way use model. Moreover, increasing rail and multimodal logistics across countries like Brazil and Colombia encourage adoption of flexi tanks as they adapt well to containerized transport. Several logistics firms such as Trans Ocean and Braid Logistics have expanded their presence in South America by supplying flexi tank services to exporters of chemicals, concentrates, lubricants, and even fermentation liquids. Their availability, minimal setup requirements, and compatibility with ISO containers make flexi tanks a time-saving and labor-saving solution. Rising demand from non-hazardous chemical exporters, cost-conscious bulk liquid suppliers, and intermodal freight operators together makes flexi tanks the fastest-growing product type in South America’s hazmat and related packaging segments.

Chemical and petrochemical sectors dominate hazmat packaging demand in South America because they form the region’s largest export and industrial production base involving regulated and hazardous materials.

South America has several high-output chemical hubs including Brazil’s São Paulo and Bahia states, Argentina’s Buenos Aires region, and Colombia’s Valle del Cauca, which produce a wide range of industrial chemicals, agrochemicals, solvents, additives, and petrochemical derivatives. These products require packaging solutions that comply with UN packaging codes for hazardous goods to enable both domestic distribution and international shipping under IMDG, IATA, and ADR regulations. The chemicals industry in Brazil alone accounts for over USD 120 billion in turnover, with a significant share involving transport and handling of substances in Classes 3, 6, 8, and 9, including corrosives, flammable liquids, and toxic compounds.

Such materials need drums, IBCs, and jerrycans that meet UN performance test standards. State-run and private petrochemical plants in countries like Venezuela and Brazil supply base chemicals, lubricants, fuel additives, and intermediates for export, which adds to the demand for durable, leak-proof, and certified hazmat packaging. The presence of transnational chemical companies like BASF, Braskem, Dow, and YPF in South America also enforces compliance with international safety norms, reinforcing the need for certified hazmat packaging across supply chains. Moreover, increasing domestic consumption of cleaning agents, industrial acids, fertilizers, and chemical inputs for textiles, plastics, and rubber sectors further drives hazmat packaging volumes. Ports such as Santos, Cartagena, and Rosario handle bulk and containerized chemical exports to North America, Europe, and Asia, where packaging compliance plays a critical role in shipment approvals. The chemicals and petrochemicals segment consistently leads due to high production volumes, continuous transportation needs, and stricter controls on safe storage and movement of hazardous inputs.

Plastic materials dominate the South American hazmat packaging market because they offer durability, cost-effectiveness, and regulatory compliance across a wide range of hazardous product applications.

South America’s growing chemicals, agrochemicals, pharmaceuticals, and cleaning solutions industries prefer plastics such as HDPE, PP, and composite resins for packaging hazardous and semi-hazardous liquids and powders. Plastic drums, jerrycans, and intermediate bulk containers are favored because they resist corrosion, can be UN-certified, and meet regional transport norms across Brazil, Argentina, and Colombia. Local packaging manufacturers like Greif Latin America, Total Pack, and Embalajes Flexibles produce UN-certified plastic containers in compliance with RID/ADR and Mercosur regulations, meeting export requirements for both hazardous and regulated goods.

In agricultural export hubs like Mato Grosso (Brazil) and Santa Fe (Argentina), agrochemical producers ship fertilizers, insecticides, and fungicides in stackable plastic containers that support safe transport and storage. Plastic also provides weight advantages over metal or composite drums, helping reduce logistics costs on long-haul shipments to North America and Europe. The use of plastics surged during the pandemic due to rising production of disinfectants and medical fluids, and that demand trend continued into 2023 with regional output of healthcare and sanitation chemicals remaining high. Flexible plastic hazmat pouches and liners also grew in demand for lower-hazard liquids transported in bulk using flexi tanks or drums. Moreover, plastics support customization, color coding, and easier label integration, helping manufacturers meet country-specific shipping norms without altering production lines. Chile and Peru’s mining sectors also use chemical additives in plastic-packaged forms, and waste management firms rely on sealed plastic drums for handling biohazards and toxic residues. Environmental concerns over recyclability are being addressed with multi-use HDPE designs, helping plastics maintain dominance.

Brazil leads due to its dominant chemical and agrochemical industries, growing industrial exports, and national transport safety reforms.

Brazil plays a central role in South America's hazmat packaging sector thanks to its wide industrial footprint that spans petrochemicals, mining, fertilizers, paints, and pesticides. The country produces and consumes a broad range of hazardous materials that must be moved between domestic production zones and global markets. Major hubs like São Paulo, Rio de Janeiro, and Bahia house chemical clusters where flammable, toxic, and reactive substances are made for agriculture, manufacturing, and oil refining. Brazil also ranks among the largest users of agrochemicals in the world, especially in soybean and sugarcane farming, making it a large user of hazardous packaging drums, barrels, and jerrycans.

The National Land Transport Agency (ANTT) regulates the transportation of dangerous goods across Brazil’s road and rail systems, enforcing proper labeling, cushioning, and temperature-sensitive packaging. In recent years, Brazil has adopted UN model standards for hazardous packaging to align with global practices, especially for companies exporting goods to Europe and North America. The country’s port infrastructure, such as in Santos and Paranaguá, has also seen investment in container safety, spill control, and packaging segregation areas. Domestic packaging producers supply large volumes of certified plastic and metal containers to meet demand from agriculture, mining, and fuel sectors. Brazil’s growing pharmaceutical and energy sectors also contribute to the packaging need, especially for corrosive liquids and industrial gases. Moreover, industrial zones have integrated logistics and warehousing systems, where trained handlers and GPS-monitored vehicles transport hazmat goods with strict adherence to package integrity. Government efforts to digitize transport permits and track high-risk cargo in real time have strengthened enforcement.