LA Aseptic Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The LA Aseptic Packaging Market size is estimated at USD 7.52 billion in 2024, and is expected to reach USD 12.52 billion by 2029, growing at a CAGR of 10.74% during the forecast period (2024-2029).

Brazil, Argentina, and Mexico are driving economic growth and in terms of getting maximum FDI in the region and have a massive demand for food which is catered to by imports and agricultural production. Thus aseptic packaging is gaining demand in the region to store products.

Key Highlights

• With the growing middle-income group population, changing lifestyle, and evolving consumer preferences, the consumption rates among the Latin American countries are also rising steadily. According to the World Bank, Brazil and Mexico's gross national income per capita accounted for USD 7580 and 8480, respectively.
• The region is also witnessing increased demand for various beverages that require aseptic packaging. For instance, in March 2020, Heineken planned to invest BRS 865 million to expand its presence in Ponta Grossa. This increases the demand for flash pasteurizing or sterile filtration prior to the bottling or canning of alcoholic beverages.
• Further, Owing to the spread of COVID-19, the market is expected to witness significant growth. Due to the pandemic, customers have shifted towards online retail as well as the panic stocking, which led to an increased demand for essential food items such as milk, baby food, and vegetables.
• Moreover, the concerns regarding food hygiene due to Covid-19 have been increasing the demand for aseptic packaging. In the coming years, the customers are expected to prefer better packaging to prevent themselves from such diseases, which would compel the vendors to think on the lines of sustainable aseptic packaging.
• The Brazilian cosmetics industry is gaining from an untapped demographic dividend, the men who are progressively using more cosmetic products. According to KOTRA, a state-funded trade and investment promotion organization operated by the government of South Korea, there has been a continuous increase in the number of male consumers buying cosmetic products in Brazil. SEBRAE, or Brazilian Support Service for Micro and Small Enterprises, stated that the men's cosmetics market has tripled in Brazil in the past five years. By 2021, it will become the most prominent men's cosmetics market in the world. This is expected to facilitate further growth of aseptic packaging modules designed exclusively for men's cosmetic products.

Latin America Aseptic Packaging Market Trends

Increasing Demand for Longer Shelf Life of Products

• Consumers have been demanding products with extended shelf life and easier usage. This has necessitated the companies to develop alternate packaging solutions. Shelf life has been an important aspect of the product. With companies looking to expand their product offerings with less dependency on sophisticated cold storage chains, producing packages that provide longer shelf life has become imperative.
• The shelf life can be increased by protecting the products from potential deteriorating agents, such as oxygen, moisture, and microbes. In order to protect their products, companies need a packaging solution that can achieve the same and is also cost-effective. Reducing wastage throughout the food supply chain is likely to become a crucial activity to reduce the environmental impact of agriculture and serve the increasing food demand. Therefore, investing in efficient, low-cost, and sustainable processing and packaging solutions to increase the shelf life of products (especially dairy, baby food, and nutraceuticals) is a viable solution, thus augmenting the requirement of aseptic packaging.
• Changing lifestyles and the consequent dependence of consumers on processed, packaged, and precooked food is increasing the demand for aseptic packaging solutions. The advent of the supermarket culture has also altered the shopping landscape and has increased the need for packaging, especially in food and beverage products. The altering lifestyle of people has resulted in the shift from home-cooked to ready-to-eat products. In addition to this ease of use, these products should also be packaged in such a way to ensure they are fresh and uncontaminated.
• Food packaging has no longer just a passive role in protecting and marketing a food product. The emphasis on the decrease of the use of preservatives is also a driving factor for the use of aseptic packaging as aseptic food preservation methods enable processed food to be kept for a longer period of time without preservatives as long as they are not opened.
• Moreover, with the growing population in the region, the production of milk is increasing as cow milk is a part of the daily diet. For instance, according to the Organisation for economic cooperation and development Production of milk in Mexico is estimated to reach 12.6 million tons by the end of 2021. Thus driving the market's demand.

Pharmaceutical sector is expected to higher witness growth during the forecast

• Prefillable syringes overcome disadvantages of parenteral drug delivery, such as lack of convenience, affordability, accuracy, sterility, and safety. These syringes enable easy management of chronic diseases, such as Diabetes and Rheumatoid Arthritis, which is expected to boost the use of auto-injectors and pen injectors over the forecast period. Thus, the growing prevalence of Diabetes and other chronic diseases in the Latin American region is expected to fuel the market demand over the forecast period.
• Prefilled syringes are emerging as one of the fastest-growing choices for unit dose medication as the pharmaceutical industry seeks new and more convenient drug delivery methods. Also, Pharmaceutical companies minimize drug waste and increase product life span, while patients can self-administer injectable drugs at their homes instead of the hospital.
• According to the International Diabetes Federation, Brazil in the Latin American region accounted for the highest number of Diabetes in adults among other countries like Argentina, Mexico, Colombia, and Peru. This increases the need for prefillable syringes and drives the demand for aseptic packaging.
• Further, Argentina has its own R&D capabilities. In January 2021, the country introduced a serum against COVID-19 called the hyperimmune serum, developed with antibodies from a horse. Furthermore, the Government of Argentina aimed to increase its production capacity to 60,000 vials per month. Also, according to clinical researchers, the number of doses depends on the weight of the patient, which may further drive the demand for aseptic packaging solutions.

Latin America Aseptic Packaging Industry Overview

The Latin America Aseptic Packaging Market is highly competitive as there are multiple vendors operating in the domestic and international markets. The market appears to be moderately concentrated, with the players adopting various strategies such as product innovation, mergers, and acquisitions, among others, primarily to expand their reach and stay competitive in the market. Some of the major players in the market are Schott AG, Tetra Pak International, among others.

• December 2020 - Nestle Brazil partnered with SIG to introduce the NESCAU beverage range in SIG combiblocMini carton packs. The packs were chosen in line with Nestle's aim to make all its packaging recyclable or reusable by the end of 2025.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support