Packaging Industry in Brazil
Euromonitor International's Packaging Industry in Brazil Euromonitor International's World Market for Glass Packaging report offers insight into key trends and developments in global and regional consumer glass packaging. It provides analysis of the major growth markets and end-use applications, together with analysis of the corporate strategies of the leading companies.
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Chapters: 6 | Tables: 60 | Publication date: Apr 2007
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Executive summary
Packaging experiences good growth
The packaging industry saw strong value growth as both prices and demand showed increases in early 2006. Packaging follows the evolution of the economy. The improvement of the employment rate and the increasing purchasing power of low and middle-income consumers are boosting sales in retail commerce, which reflects positively in the packaging market.
World leader in recycling aluminium cans
Brazil, for the fifth consecutive year, was the world leader in aluminium can recycling, achieving almost double the level of aluminium can recycling in the US in 2005. Recycling aluminium cans in Brazil is a big business. The catadores alone (people scavenging from the streets for waste materials to sell) moved hundreds of millions of reais selling their used cans to the industry. Brazilian Associations like Cempre (Corporation Commitment for Recycling) encouraged recycling and organised catadores to get more and more used aluminium beverage cans. The high aluminium can recycling rate is also reflected in energy savings: recycling provides an equivalent economy of 95% of the electric power supply utilised in the production of the metal from the bauxite (raw material where the aluminium was extracted).
CSN announced its intention to purchase Metalúrgica Prada
CSN (Cia Siderúrgica Nacional), unique supplier of metallic sheet plates in Brazil necessary to produce metal tins, announced the purchase of Cia Metalúrgica Prada in April 2006. Prada has in CSN its main supplier and a high debt. Concurrent companies represented by Siemesp (Metallurgical Syndicate) entered, in September 2006, with an appeal to the Economic secretary Office against this acquisition, since CSN has participation in CBL (Cia Brasileira de Latas) and together with Prada, the company will dominate the steel metal packaging – with around 40% of the value share. As CSN is the only supplier for metal packaging, the company could potentially practice price reductions or subsidies for both companies, creating a possible monopoly against other competitors like Brasilata.
Aluminium beverage cans makers invested US$100 million in 2006
Rexam, Crown Cork and Latapack-Ball invested a total of US$100 million to expand their operations in Brazil, in function of the growth of the consumption of aluminium beverage cans in the Brazilian market. Rexam plans to build a plant in Cuiabá (state of Mato Grosso) with an investment of US$30 million, meanwhile, Latapack-Ball will invest another US$30 million in factories in São Paulo and Bahia states. Crown is going to inaugurate a factory of for closures in Manaus (state of Amazonas).
Competitiveness in packaging in Brazil
In the last few years of the review period, Brazilian packaging companies also started selling not only the final product (the package) but also a whole packaging solution, including design. This is driven partly because packaging has become more competitive, and selling a whole solution not only adds value, but also helps keep the customer loyal. Companies often send teams to their customers’ factories to analyse the packaging process to identify problems or create solutions. Examples of this include collaboration between Nestlé and CSN/CBL to produce the metal packaging for the Moça and Nescau brands.
Table of contents
EXECUTIVE SUMMARY
Packaging experiences good growth
World leader in recycling aluminium cans
CSN announced its intention to purchase Metalúrgica Prada
Aluminium beverage cans makers invested US$100 million in 2006
Competitiveness in packaging in Brazil
MARKET BACKGROUND
PACKAGING LEGISLATION
Overview
Labelling
Food-specific regulation
Tobacco Labelling
Packaging’s role in the Brazilian pharmaceutical industry
RECYCLING AND THE ENVIRONMENT
Overview
Table 1 % Breakdown for Packaging Recycling 2006
Corrugated paper high rate of recycling
World leader in recycling aluminium cans
Explosive growth in recycling steel cans
Glass received effort from Brazilian association
PET is still popular
New technology to recycle liquid cartons
Community encouragement
Table 2 Overview of Packaging Recycling and Recovery in Brazil 2004/2005 and Proposals for 2007
CORPORATE ACTIVITY IN PACKAGING
Big merger in steel metal packaging
Beverage cans makers increased investments in expanding capacity
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
ALCOA ALUMíNIO SA
Summary 1 Alcoa Alumínio SA: Operational Indicators 2005
Summary 2 Major End-Use Markets for Alcoa Alumínio SA by Pack Type 2005
BRASILATA SA EMBALAGENS METáLICAS
Summary 3 Brasilata SA Embalagens Metálicas: Operational Indicators 2005
Summary 4 Major End-Use Markets for Brasilata SA Embalagens Metálicas by Pack Type 2005
CANGURU EMBALAGENS SA
Summary 5 Canguru Embalagens SA: Operational Indicators 2005
Summary 6 Major End-Use Markets for Canguru Embalagens SA by Pack Type 2005
CIA BRASILEIRA DE LATAS (CBL)
Summary 7 Cia Brasileira de Latas: Operational Indicators 2005
Summary 8 Major End-Use Markets for Cia Brasileira de Latas by Pack Type 2005
CIA METALúRGICA PRADA
Summary 9 Cia Metalúrgica Prada: Operational Indicators 2005
Summary 10 Major End-Use Markets for Cia Metalúrgica Prada by Pack Type 2005
PETROPAR EMBALAGENS SA
Summary 11 Petropar Embalagens SA: Operational Indicators 2005
Summary 12 Major End-Use Markets for Petropar Embalagens SA by Pack Type 2005
DIXIE TOGA SA
Summary 13 Dixie Toga SA Operational Indicators 2005
Summary 14 Major End-Use Markets for Dixie Toga SA by Pack Type 2005
ENGEPACK EMBALAGENS SA
Summary 15 Engepack Embalagens SA Operational Indicators 2005
Summary 16 Major End-Use Markets for Engepack Embalagens SA by Pack Type 2005
NADIR FIGUEIREDO INDúSTRIA E COMéRCIO SA
Summary 17 Nadir Figueiredo Indústria e Comércio SA: Operational Indicators 2005
Summary 18 Major End-Use Markets for Nadir Figueiredo Indústria e Comércio SA by Pack Type 2005
LATAPACK-BALL EMBALAGENS LTDA
Summary 19 Latapack-Ball Embalagens Ltda: Operational Indicators 2005
Summary 20 Major End-Use Markets for Latapack-Ball Embalagens Ltda by Pack Type 2005
CONVERPLAST EMBALAGENS LTDA
Summary 21 Major End-Use Markets for Converplast Embalagens Ltda by Pack Type 2005
OWENS-ILLINOIS DO BRASIL SA (CISPER)
Summary 22 Cisper Operational Indicators 2005
Summary 23 Major End-Use Markets for Cisper by Pack Type 2005
REXAM BEVERAGE CAN SOUTH AMERICA SA
Rexam and Latasa
Rexam Today
Summary 24 Rexam Beverage Can South America SA: Operational Indicators 2005
Summary 25 Major End-Use Markets for Rexam Beverage Can South America SA by Pack Type 2005
RIGESA CELULOSE, PAPEL E EMBALAGENS LTDA
Summary 26 Rigesa Celulose, Papel e Embalagens Ltda: Operational Indicators 2005
Summary 27 Major End-Use Markets for Rigesa Celulose, Papel e Embalagens Ltda by Pack Type 2005
SAINT-GOBAIN VIDROS SA
Summary 28 Saint-Gobain Vidros SA Operational Indicators 2005
Summary 29 Major End-Use Markets for Saint-Gobain Vidros SA by Pack Type 2005
SIG COMBIBLOC LTDA
Partnership
Summary 30 Major End-Use Markets for Sig Combibloc Ltda by Pack Type 2005
SINIMPLAST INDúSTRIA E COMéRCIO LTDA
Summary 31 Major End-Use Markets for Sinimplast Indústria e Comércio Ltda by Pack Type 2005
SONOCO FOR-PLAS LTDA
Summary 32 Major End-Use Markets for Sonoco For-Plas Ltda by Pack Type 2005
TETRA PAK LTDA
Innovative marketing for innovative packaging
Summary 33 Tetra Pak Ltda Operational Indicators 2005
Summary 34 Major End-Use Markets for Tetra Pak Ltda by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Bahia PET
Sinimplast invests in the environment
Amcor grows through acquisitions
Crown Cork
Dixie Toga to benefit from Bemis
Summary 35 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005
METAL
Rexam Beverage Can South America dominates Brazil
Spotlight on shaped steel cans
Metalic dominates in the northeast steel cans market
Prada eyes shaped steel cans
Brasilata launches new products
Main providers of aluminium plates
Summary 36 Major Metal Packaging Manufacturers by Pack Type 2005
Summary 37 Beverage cans Market Share by Volume
FLEXIBLE PACKAGING
Alcan
Dixie Toga has range in flexible plastic
Converplast Embalagens keeps it in the family
Canguru Embalagens
Summary 38 Ranking of Major Flexible Packaging Manufacturers 2005
GLASS
Glass packaging adds sophistication
Owens-Illinois bets big on glass
Nadir Figueiredo innovates
Wheaton
Summary 39 Ranking of Major Glass Packaging Manufacturers 2005
LIQUID CARTONS
Tetra Pak dominates Brazilian liquid carton market
SIG Combibloc tries to muscle in
Tetra Pak
Summary 40 Share of Major Liquid Carton Manufacturers 2005
PAPER-BASED PACKAGING
Rigesa behind Klabin
Summary 41 Major Paper-based Packaging Manufacturers 2005
Klabin dominates
Suzano follows Klabin in paper
Orsa Embalagens finds success in exports
Celulose Irani, well diversified
Trombini Industrial S/A invests in efficiency
Summary 42 Major Paper-based Packaging Providers by Pack Type 2005
Corrugated packages
CLOSURES
Leaders in the ranking
Safety first for Sonoco For-Plas
Alcoa presented new closure models
Rojek focuses on easy to open lids
Védat protecting pharmaceuticals
Incom partners with perfume producers
Summary 43 Ranking of Major Closure Manufacturers 2005
APPENDIX
Table 3 Production of Packaging in Brazil: % Growth 1999-2005
Table 4 Production Capacity Use: % Use 2000-2005
Table 5 Table 3lexible Plastic Revenue and Production 2001-2005
Table 6 Net Income of Packaging in Brazil by Pack Type 2005
Table 7 Exports of Packaging by Pack Type 2005
Table 8 Glass Packaging Revenue 1999-2005
Table 9 Exports of Glass Packaging in Brazil 1999-2005
Table 10 Installed Capacity for Glass Packaging in Brazil 1998-2005
Table 11 Production of Packaging Paper in Brazil: 2000-2005
Table 12 Consumption of Packaging Paper in Brazil: 2000-2005
Table 13 Imports and Exports of Packaging Paper in Brazil: 2000-2005
Table 14 Aluminium Production in Brazil 2002-2005
Table 15 Capacity and Production of Aluminium Cans in Brazil 1999-2005
Table 16 Flexible Laminated Packaging Industry November 2004
Table 17 Corrugated Paper Annual Production 2000-2005