Brazil's packaging market is the fifth largest in the world, having realized US $ 35 billion (1.5% of GDP) in sales by 2014, with Brazil being the seventh largest economy in the world with nominal GDP. Packaging markets include the manufacture of packing materials from raw materials, distribution of packaging materials to manufacturers, packaging designs, and recycling processes. The packaging sector has strong ties with environmental organizations and tries to adapt to the demands of environmentally friendly production. As a result of these developments, Sustainable packaging emerged as a promising future market for innovation.
Video Brazilian packaging market
Market development
For the period between 2011 and 2016, Brazil showed a median growth forecast of 6.2%, realizing a sales value of US $ 34 billion by 2016, leaving Canada and parallel to France. The constant growth of the Brazilian packaging market is not a unique phenomenon. The global packaging market is on the rise, due to a combination of factors such as increased urbanization, investment in the construction sector and the expansion of the health sector. The demand for this type of eco-friendly packaging has also been steadily increasing since the 2000s and the growth resulting from innovation contributed to this trend. In addition, the rapid growth of what BRIC says during the 2000s and early post-crisis periods plays a major role in the growth trend of the global packaging market. Despite the economic slowdown of 2015 - especially in China and Brazil - the highest growth rates for the 2011-2016 period can be observed in these countries, with China, India, Brazil and Russia showing a growth rate of 7.9% , 7.7%, 6.2% and 4.9%, respectively. The high growth rates in these countries can be explained by the increase in personal income, resulting in higher demand for a wide range of products, which in turn creates growth for the packaging manufacturers of those products. Although the CAGR is good, it is projected that due to the Brazilian recession, 2014 sales equivalent to US $ 35 billion will fall 2.9% in 2016, reaching US $ 34 billion.
Compared to 2005, in 2013 Brazil showed a total growth of 42% with respect to packaging exports. Especially aluminum and steel showed a very high overall increase in the nine-year period. In 2013 plastic and steel packaging was the most exported type with sales of US $ 268 million and US $ 183 million, respectively, while both combined accounted for 70 percent of total exports. The only packaging that was exported less in 2013 than in 2005 was wood, showing a 32% decrease from US $ 21 million to US $ 15 million. In total, packaging worth US $ 645 million was exported in 2013.
In general, all packaging imports have increased between 2005 and 2013. The most imported items are glass and steel packaging, showing an overall increase of 560% and 384%, respectively. Timber imports, which have increased by 30%, are the only materials showing an increase of less than 200%. Altogether, Brazil imported packaging worth US $ 1.2 billion in 2013.
Maps Brazilian packaging market
Raw materials
The raw materials used to make the packaging vary greatly. However, the most common materials are corrugated and plastic boards, representing more than 50% market share in volume and over 40% market share in value when added. Although representing 15% volume, glass accounts for only 4% of the total production value. On the other hand, flexibles are a very valuable material, representing 22% of the total value while only realizing 3% of the size of the production.
By 2014, two-thirds of Brazil's raw material consumption occurs in the digestive sector and one-third in the non-alimentary sector. Steel, Kraft and duplex/triplex are the only materials used for larger levels for non-food packaging than vice versa. Lightweight materials such as flexibles and aluminum are very popular packaging materials for food products. 90% of glass packaging is designed for food products, more precisely, for beer and other beverages. Flexibles and aluminum are the most valuable materials, having the highest value/volume ratio among list materials. In addition, the ratio of total values ​​/volumes is higher for food than for non-food packaging, which shows a higher turnover than non-food packaging as a whole.
The largest end use market for raw material packaging is the beverage industry. While plastics and flexibles represent the bulk of the materials used for non-alcoholic beverages, alcoholic beverages are heavily dependent on metals (primary aluminum) and glass. Meat and vegetables also strongly support packaging made of plastic or flexibles. The chemical and agricultural sectors mainly use plastics and metals because their products require high-end packaging. Low production costs are an important factor in explaining the popularity of plastics and flexibility in the Brazilian packaging sector.
Packaging trends
A Brazilian packaging market analysis introduces a series of products, an ever-increasing popularity since the late 2000s. In addition, there are some general trends that control the market.
General trends
In its study "Brazil PackTrends 2020" (2012), the Brazilian Institute of Food Technology (ITAL) identified five general trends in the packaging industry: 1) convenience and simplicity, 2) aesthetics and identity, 3) new quality and technology, 4) sustainability and ethics , and 5) safety and regulatory issues. Despite providing examples from the Brazilian market, these five trends are not made taylor for Brazil, as they - to a large extent - also apply to the whole packaging industry.
Convenience and simplicity
Consumers today value products that facilitate their lives, which are easy to use and time efficient. In terms of packaging, this means that successful packaging should be easy to open, easy to use, can be closed, and easily disposed of. With regard to food, the popularity of packaging that allows quick and simple preparation (eg in microwaves) is also increasing. Packaging should refrain from not causing unnecessary obstacles at all, it also includes the design of the language, that is, the packaging should use easy language and simple graphics while not burdening consumers with information. In addition, packaging must adapt to socio-economic changes. As urbanization is increasing and households with one person become more common, producers must provide food packaging with a separate portion or packing which, for example, enables quick and easy preparation of food in the microwave.
Aesthetics and identity
When going to a product, consumers (in) directly seek objective and subjective satisfaction. Sufficient packaging can enhance the sense of consumer identification with a product by, for example, promoting a particular lifestyle or by delivering high quality, enhancing the product's ability to serve as a status symbol. Another important consumer type is one that values ​​health and high quality of life above all else. The proportion of packaging that promotes the health benefits of the product and that conveys to customers a certain feeling of doing something good for their health continues to increase. Another trend involves packaging that turns the product into a collection and makes the packaging more valuable to the customer than the product itself. A good example of this trend is Coca-Cola's Coke Sharing marketing campaign, launched in Brazil in 2015, four years after the first campaign launched in Australia. The colors radiate aesthetics, but post 2010 developments in the Brazilian packaging market indicates an increasingly simple style preferences by customers.
New quality and technology
The packaging sector provides opportunities for new technologies as well as new types of materials that improve product lifespan and microbiological safety. Active and intelligent packaging can, for example, absorb oxygen and CO2, or even heat itself. Others provide consumers with indicators of temperature, freshness or maturity level. Progress has also been made at the nano level. Packaging that utilizes nanotechnology can create barriers to gas, moisture or UV radiation. New technology also helps make the product weigh less. Increasingly, biopolymers are used as the basis for packaging materials, replacing fossil-based polymers. However, new packaging types tend to face problems such as higher prices and hence, the difficulty in competition with cheaper fossil-based materials.
Sustainability and ethics
With environmental issues such as climate change increasingly becoming a priority challenge, packaging markets have adapted to new consumer demands such as implementing sustainable packaging and keeping carbon footprints low. Life cycle assessment and life cycle thinking are generally regarded as the best instruments for calculating the environmental costs of a product or service. Sustainability is not only achieved by using 100% renewable materials, but also by, for example, making the packaging smaller so that more unit products can be delivered at a time, which in turn reduces the collective carbon footprint. Making the transition to sustainable packaging also creates incentives for customers to identify with the product, because the product will convey environmental awareness. In this regard, it is important to mention the increasing use of recycled materials for packaging. Given the increasing amount of recyclable materials, a functioning waste management and reverse logistics is indispensable and promises to be a lucrative market for innovative products and services. To avoid clear Greenwashing, manufacturers are eager to get quality certification from renowned environmental certification agencies such as the Carbon Trust and Forest Stewardship Council.
Security and regulatory issues
Packaging is essential to ensure product safety, quality, and reliability. Packaging carries all the information that consumers consider important, for example, the preparation instructions, the nutritional value, the date of manufacture and the expiration date as well as the manufacturer's information. Transfer of chemical contaminants from food-to-food contact materials is considered a major problem in health studies. Therefore, mathematical modeling and in-depth analysis is used to make an estimate of the extent of so-called migration of contaminants. Packing materials should conform to the broad regulatory framework that has been made by MPs. In 2000, four years after adopting Mercosur regulations governing the use of food contact materials, Brazil exempted all FCM from the Mercosur registration requirement except for FCM made from recycled materials. Though exempt from Mercosur's registration policy, FCM imported into the Brazilian market still has to comply with all Brazilian technical and legislative resolutions incorporating the Mercsosur resolution. In addition, Brazil's National Health Supervisory Agency (ANVISA) should be notified of any FCM imports. Laws are continually revised to fit newly acquired scientific and technological insights and ever-evolving products. Together with Mercosur, the United States Food and Drug Administration (FDA) and the European Union - passed the law aligned with FCM in 2004 - ANVISA promotes globally aligned policies and regimes for FCM arrangements.
Products
Stand Up Bag
Perhaps the most successful innovation of the 2010s so far is the Stand Up Pouch, which is a special kind of retort pouch that has the lower part of the gusset, making it able to stand upright. Stand Up Pouch is mostly used for human alimentation products, but also for pet food and beauty care products. In the Brazilian market, Stand Up Pouches continues to be managed to enter new niche markets. Despite showing enormous growth (CAGR 6.1% in volume and 5.8% in value between 2011 and 2014), the distribution of Stand Up Pouches in Brazil has not lagged behind the Chilean and US markets, due to the lack of supply of such critical component scales zippers that can be re-closed and nylon, causing prices for Stand Up Pouch production to be higher than in a comparable market. Among the ten fastest growing flexibles, Stand Up Pouches ranks third in terms of CAGR in volume and fourth in terms of CAGR value.
There are two types of common process of charging a Stand Up Pouch, namely a vertical fill filling seal (VFFS) and fill-seal (FS). While the first uses film rolls of packing materials and complex machines that form bags in their distinctive form before filling and ultimately closing, the final process uses pre-shaped pockets and two separate machines to fill and seal the pockets, respectively. Because the trade-off has a high initial investment but low operating costs, VFFS is more a long-term option than a short-term and useful for large quantities of production. However, since the FS process is more decentralized than the VFFS process and does not depend on a single machine, the chances of suffering from long stoppage time for maintenance are significantly lower with FS, since failure in a single production process can be improved more easily.
Typical products available in Stand Up Pouch packaging are nuts, cereals, dog food and cats, liquid soap, and laundry detergents in smaller quantities.
Bio-based packaging
The development of bio-based packaging has become an important destination for packaging manufacturers. On June 3, 2015, Coca-Cola presented their version of a 100% recyclable PET bottle, called PlantBottle (TM) which is actually the first of its kind. Unlike ordinary PET, PlantBottle (TM) does not rely on fossil-based materials. For its production of bottles, Coca-Cola is supplied by Brazilian petrochemical and biopolymer company, Braskem, which produces polyethylene which is based entirely on cane ethanol. Furthermore, Tetra Pak announced the launch of 100% renewable packages for their dairy products. This innovative packaging concept won the Tetra Pak prize of "Best Cartoon or Pouch" and "Best Manufacturing or Processing Innovation" at the 2015 World Beverage Innovation Awards as well as a Gold Award at the Pro2Pac Excellence Awards in the UK to "become the world's first carton made entirely of packaging materials renewable plant-based ". For the production of Tetra Pak sustainable packaging solutions also use sugarcane bioplastic provided by Braskem.
Brazil's sugar cane industry is a promising market as well as a very important part of the future of the country's packaging market. Cane ethanol is produced in areas located at at least 2,000 km distance from the Amazon rainforest, ie, in the coastal areas of the Northeast as well as in the Southeast, with 60% of the production occurring in the State of SÃÆ' â € <â € < Paulo.
Recycling in Brazil
Compared with the advanced OECD countries, Brazil has a relatively low total recycling rate of 2% of the waste made. As of 2012, only 14% of municipalities provide selective waste collection - with 86% of these municipalities located in the South or Southeast - the country is heavily dependent on scavengers. In addition, only 64% of the population has access to routine waste collection. However, the situation is improving because the absolute number of cities offering selective collections rose from 443 in 2010 to 766 in 2012.
Although the overall recycling rate is low, Brazil is the world leader in aluminum recycling. After setting a record recycling rate of 98.4% aluminum, the country was able to reach a record high 97.1% from 2013 by 1.3%. The main reason for the extreme aluminum recycling rate is the rising energy costs - which will continue to rise given the rising price of hydroelectric power generated by the drought of 2015 - and consequently, the high costs associated with new aluminum production. As between March 2014 and March 2015, energy costs increased by 60% and since aluminum recycling requires 95% less energy than producing new materials, the recycling rate keeps increasing while the smelter has stopped production. PET is the second recycled packaging material in Brazil with 54% PET recycled in 2014. However, due to lower production costs, this rate is still much smaller than the percentage of recycled aluminum. Given the very low manufacturing costs as well as the more expensive processes needed to recycle the material, plastics show the lowest recycling rates among the most common packaging materials. Brazilian beauty and cosmetic care, Sejaa, serves as an example for products that use recycled packaging. Sejaa, launched by the Brazilian fashion model, Gisele BÃÆ'¼ndchen, uses fiber that consists of 100% consumer waste paper waste and Forest Stewardship certified. Another example is the Brazilian pulp and paper manufacturer, Suzano, which since 2012 produces paperboard made from Post consumer resin (PCR) by extracting fibers from long packs such as milk cartons.
In 2012, more than one third of PET recycling is used as a polyester for the textile industry. About a quarter of recycled PET is processed for alkyds, which is synthetic resin mostly used as varnish, while packaging accounts for 18% of recycled PET.
See also
- Cemper (in Portuguese)
- Brazilian Economy
- Environmental certification
- Packaging and labeling
- The packaging machine
- Polyethylene
- Continuous packaging
References
External links
- Brazil PackTrends 2020 online version of English
- Datamark Ltda
- Works from the vertical fill filling machine
- Brazilian Institute of Food Technology (ITAL) (Portuguese only)
- CEMPRE publications, i.a. Reviews of CEMPRE 2013
- A list of plastic packaging materials, including their composition and use
Source of the article : Wikipedia
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