The Future of Active, Smart, and Sustainable Packaging Industry in Brazil: Market Profile by BRICdata

VIEWS: 71 PAGES: 49

In 2011, the Brazilian active, smart, and sustainable packaging industry valued US$XX billion. The industry’s recent growth has been driven by increased demand for active, smart, and sustainable packaging products from the food and beverage, personal care and cosmetics, and pharmaceutical industries. Over the forecast period, the value of the active, smart, and sustainable packaging industry is expected to record a CAGR of XX% to reach a projected value of US$XX billion in 2016. This growth is expected to be driven by factors including increased consumer awareness of the benefits of active, smart, and sustainable packaging, demand for increased shelf life, product differentiation, waste reduction, and corporate commitment towards CSR initiatives.

More Info
									                            The Future of Active, Smart, and
                            Sustainable Packaging Industry
                            in Brazil: Market Profile
BRICdata
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
                            Reference Code: PK1000MP
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
                            Published: April 2012


www.bricdata.com




                                                       www.bricdata.com
EXECUTIVE SUMMARY



1 Executive Summary
Brazil
Market size and growth potential

          The Brazilian active, smart, and sustainable packaging industry valued US$3.9 billion in 2011. Recently,
          consumer demand for active, smart, and sustainable packaging products has increased, especially in the areas
          of food and beverages, personal care and cosmetics, and pharmaceuticals. The industry is expected to record a
          CAGR of 8.80% over the forecast period, to reach a projected value of US$5.9 billion in 2016.
Trends

          The expansion of the Brazilian food and beverage industry has stimulated the growth of active, smart, and
          sustainable packaging in Brazil. Moreover, a large number of domestic and international companies, including
          Nestlé, PepsiCo, and Coca-Cola recently strengthened their presence in the Brazilian food and beverage
          industry. This resulted in an overall increase in demand for packaging, including active, smart, and sustainable
          packaging.
          Sustainable packaging has emerged as a key priority for Brazilian personal care and cosmetic companies, with
          these companies currently investing heavily in order to offer sustainable and environmentally-friendly products to
          their customers. Notably, these companies are becoming increasingly cognizant of the damaging environmental
          impacts of conventional packaging production methods and are increasingly keen to develop packaging that is
          both biodegradable and easily recyclable.
          Brazil’s increasingly stringent packaging regulations have also played a key role in encouraging companies to
          explore alternative packaging solutions. For example, the Brazilian Government recently introduced regulations
          that compel food and beverage companies to maintain the safety and quality of their food products by
          electronically enumerating and tracking information related to the production and consumption of their products.
          This encouraged many companies to invest in active, smart, and sustainable packaging for their products.
Drivers

          As increasing the shelf life of products remains a primary objective for food and beverage companies, the use of
          active and smart packaging is increasing, as it allows companies to preserve the quality of their products for an
          extended period of time. In the food and beverages industry, active and smart packaging is primarily used for
          dairy products, meat products, fruits and vegetables, and beverages. Some of the technologies that are
          commonly used in active and smart packaging include oxygen scavengers, carbon dioxide scavengers, ethylene
          scavengers, moisture control, antioxidants, and temperature-control packaging.
          The growth of active, smart and sustainable packaging has also been driven by growing awareness of the
          benefits of such packaging among consumers. This growing awareness, which is primarily concentrated among
          urban areas, has increased consumer demand for active, smart and sustainable packaging.
Challenges

          The high cost of smart packaging technology remains a primary concern for many companies, as it is a key factor
          that limits widespread acceptance. Currently, smart, active and sustainable packaging represents a considerable
          proportion of the product price and the deployment of such packaging provides additional costs for the
          manufacturer and reduces its profit margin. If however, these increased costs are passed on the consumer in the
          form of an increased selling price, then sales may fall and market share could be lost.
Regulations

          The Brazilian Association of Technical Norms (ABNT) is responsible for the elaboration of technical rules,
          standards and specifications for the Brazilian packaging and container industries. According to the country’s
          regulations, packaging companies are responsible for the recycling, disposal, and removal of packages that are
          likely to degrade the environment.




The Future of Active, Smart, and Sustainable Packaging Industry in Brazil: Market Profile                             Page 2

© BRICdata. This product is licensed and is not to be photocopied                                        Published: April 2012
TABLE OF CONTENTS



TABLE OF CONTENTS

1      Executive Summary.................................................................................................................................... 2
2      Comparison of BRIC Countries ................................................................................................................. 6
2.1       Market Environment .................................................................................................................................. 6
2.2       Market Attractiveness ................................................................................................................................ 8
2.3       Penetration Level of Active, Smart, and Sustainable Packaging .............................................................. 9
3      Brazil .......................................................................................................................................................... 10
3.1       Market Environment ................................................................................................................................ 10
3.1.1 Macroeconomic fundamentals ................................................................................................................ 10
3.1.2 Packaging industry overview ................................................................................................................... 15
3.1.3 End-user markets dynamics .................................................................................................................... 17
3.2       Market Size and Growth Potential – Active, Smart, and Sustainable Packaging Industry ..................... 20
3.2.1 Overview ................................................................................................................................................. 20
3.2.2 Market size by end-user markets ............................................................................................................ 21
3.3       Key Trends .............................................................................................................................................. 27
3.3.1 Food and beverage industry ................................................................................................................... 27
3.3.2 Personal care industry ............................................................................................................................ 33
3.3.3 Pharmaceutical industry .......................................................................................................................... 36
3.4       Key Growth Drivers ................................................................................................................................. 38
3.4.1 Consumer drivers .................................................................................................................................... 38
3.4.2 Business drivers ...................................................................................................................................... 39
3.4.3 Technological drivers .............................................................................................................................. 39
3.5       Challenges .............................................................................................................................................. 40
3.6       Regulations ............................................................................................................................................. 41
3.7       Company Profiles .................................................................................................................................... 42
3.7.1 SIG Combibloc Group ............................................................................................................................. 42
3.7.2 Braskem S.A. .......................................................................................................................................... 44
3.7.3 Rexam PLC ............................................................................................................................................. 45
3.7.4 Tetra Pak International SA ...................................................................................................................... 46
4      Appendix ................................................................................................................................................... 47
4.1       About BRICdata ...................................................................................................................................... 47
4.1.1 Areas of expertise ................................................................................................................................... 47
4.2       Methodology ............................................................................................................................................ 48
4.3       Definitions ................................................................................................................................................ 49
4.4       Disclaimer................................................................................................................................................ 49




The Future of Active, Smart, and Sustainable Packaging Industry in Brazil: Market Profile                                                                         Page 3

© BRICdata. This product is licensed and is not to be photocopied                                                                               Published: April 2012
TABLE OF CONTENTS



LIST OF FIGURES
Figure 1: BRIC Countries’ Active, Smart, and Sustainable Packaging Industry, 2011–2016......................................................................... 8
Figure 2: Brazil GDP at Constant Prices (US$ Billion), 2007–2016 ............................................................................................................ 10
Figure 3: Brazilian Annual Disposable Income (US$ Billion), 2007–2016 ................................................................................................... 11
Figure 4: Brazilian Consumer Expenditure on Food (US$ Billion), 2007–2016 ........................................................................................... 12
Figure 5: Brazilian Inflation Rate (%), 2007–2016 ...................................................................................................................................... 13
Figure 6: Brazilian Urban and Rural Population (%), 2007–2016 ............................................................................................................... 14
Figure 7: Brazilian Packaging Market Size (US$ Billion), 2007–2016 ......................................................................................................... 16
Figure 8: Brazilian Food and Beverages Packaging – Market Size Trend (US$ Billion), 2007–2016 .......................................................... 17
Figure 9: Brazilian Personal Care Packaging – Market Size Trend (US$ Billion), 2007–2016 .................................................................... 18
Figure 10: Brazilian Pharmaceutical Packaging – Market Size Trend (US$ Billion), 2007–2016................................................................. 19
Figure 11: Brazilian Active, Smart, and Sustainable Packaging Industry – Market Size Trend (US$ Billion), 2011–2016 ........................... 20
Figure 12:Brazilian Food and Beverage Active and Smart Packaging – Market Size Trend (US$ Million), 2011–2016............................... 21
Figure 13: Brazilian Food and Beverage Sustainable Packaging – Market Size Trend (US$ Million), 2011–2016 ...................................... 22
Figure 14: Brazilian Personal Care Active and Smart Packaging – Market Size Trend (US$ Million), 2011–2016 ...................................... 23
Figure 15: Brazilian Personal Care Sustainable Packaging – Market Size Trend (US$ Million), 2011–2016 .............................................. 24
Figure 16: Brazilian Pharmaceutical Active and Smart Packaging – Market Size Trend (US$ Million), 2011–2016 .................................... 25
Figure 17: Brazilian Pharmaceutical Sustainable Packaging – Market Size Trend (US$ Million), 2011–2016............................................. 26
Figure 18: SIG Combibloc Active Packaging Solution ................................................................................................................................ 27
Figure 19: Tetra Pak’s Use of Sustainable Packaging................................................................................................................................ 28
Figure 20: Bioplastics Cap for Ninho Brand ............................................................................................................................................... 29
Figure 21: Coca-Cola Brasil’s Matte Leão Orgânico Tea ........................................................................................................................... 29
								
To top