Brazil Flexible Packaging Market - Forecasts from 2022 to 2027

The Brazil flexible packaging market is projected to witness a compounded annual growth rate of 4.71% to grow to US$4.258 billion by 2027, from US$3.085 billion in 2020. Rising disposable income, growing middle-income group and their purchasing power are expected to drive the market growth during the forecast period. Moreover, the growing consumer market across the country is anticipated to significantly support the growth of the food industry in the country which is expected to increase the demand for flexible packaging. The consumers of the country are very specific about health aspects associated with packaged food products such as meat and vegetables, cereal and flour, sugar, dairy and others.

Due to the budget and health-conscious nature of Brazilians, the market for flexible packaging is projected to create immense opportunities for the key market players in the market. There has been a growing demand for healthy food and balanced meals in the region by women's and senior population. Simultaneously, ready to eat meals consumption trend is increasing in every retail sector while convenience stores are continuously developing and launching new products throughout the year which require good packaging owing to the demand for flexible packaging in the country.

Growing penetration of food services in brazil

One of the prime reasons supporting the growth of the market is the growing penetration of food services in the country which demands for flexible packaging solutions. Growing older population with high disposable income demanding processed food, snacks, pasta that requires excellent packaging is creating a high demand for BOPP film as it provides consistent and excellent seal integrity. Also, the busy lifestyle of the workforce population in the country is giving rise to takeaways and on-the-go food service, along with home delivery trends, which is leading to innovations in the food packaging industry. Additionally, the ongoing trend of consumers frequently purchasing from online channels, owing to time-pressed schedules and the availability of different cuisines online has led to the popularity of the packaged food products which is projected to drive the market growth in the coming years. For instance, Domino's Brazil opened its new pasta factory in Itapecerica da Serra, in Sao Paulo which is expected to have a positive impact on the market growth. Moreover, the latest innovations and developments by key market players are significantly contributing to the overall market growth. For instance, ProAmpac has announced the introduction of QUADFLEX Recyclable in its ProActive Sustainability platform.

Brazil's flexible packaging market has been classified into paper, aluminium foil, BOPP film, polyethene, PET, and others.

The segment's growth can be attributable to the rising demand for polyethene packaging across a variety of applications in the food, beverage, pharmaceuticals, and personal care, as well as the increasing penetration of organized and e-retail. The surge in demand for cost-effective, lightweight, and convenient packaging solutions can be ascribed to the rise in demand for polyethylene packaging. Due to its adaptability, High-density polyethylene is the most extensively used plastic. Milk and fresh juice products, personal care goods like shampoo, and household products are among the common uses for HDPE. Manufacturers are increasingly turning to recycled plastic resins to create sustainable flexible packaging solutions in response to rising demand. The demand for polyethene (PE) is increasing in Brazil, primarily due to a growing middle class. The region's present and anticipated PE capacity, on the other hand, will continue to fall short of demand, forcing it to import roughly. According to data from Braskem, Brazil boosted its imports of polyethylene, polypropylene, and PVC in relative terms over the last two years. In 2020, imported polyethylene, polypropylene, and PVC resins accounted for 32% of Brazilian polyethylene, polypropylene, and PVC resins, an increase of 11% over the previous year.

COVID-19 SCENARIO

The COVID-19 impact on the Brazilian flexible packaging market was slightly positive as demand from online channels for food and beverages surged in Brazil amid the pandemic, which led to an increased demand for flexible packaging. Also, the demand from the pharmaceutical sector remained resilient, as the pharma products were counted as "essentials". Furthermore, increased investments were seen in the flexible packaging industry in Brazil since the pandemic. For instance, in October 2020, Comexi, a supplier of solutions for the flexible packaging printing and converting sector, announced its expansion in CTec Brasil. Overall, the projection for Brazil flexible packaging market in the COVID-19 scenario is revised upwards.

Market Segmentation:

• BY PACKAGING MATERIAL

Paper

Aluminium Foil

BOPP Film

Polyethylene

PET

Others

• BY APPLICATION

Food Packaging

• Processed food products
• Bakery Products
• Pet Food Products
• Fruits & Vegetables
• Others

Beverage Packaging

• Bottles
• Pouches
• Others

Cosmetics & Toiletries

Pharmaceutical & Healthcare

Others