Packaging Industry in Brazil
Euromonitor International's Packaging Industry in Brazil report offers a comprehensive guide to the size and shape of the market at a national level. It provides historic market size data by industry, allowing you to identify the most popular pack types. It identifies the leading companies, and offers strategic analysis of key factors influencing the market- be they new product developments, recycling or legislation issues. Forecasts illustrate how the market is set to change.
Chapters: 6 | Tables: 61 | Publication date: Jan 2009
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Executive summary
Booming economy supports packaging companies
Packaging companies in Brazil in general saw excellent sales growth, as the country continued an excellent run in economic terms through the first half of 2008. The country was labelled investment grade in the first half of 2008, and the economy and internal consumption continued the strong growth seen in 2007. Growth was especially significant in the underdeveloped northeast region of the country, where food and beverage manufacturers stimulated consumption with low priced goods in small packaging, to the benefit of companies which are strong in that region.
New use for recycled PET
At the end of 2007, after a long period of discussion, the government approved recycled PET to be used in food and beverage packaging. In 2008 there were already two companies which could produce new PET bottles from recycled raw materials, but Coca-Cola Company announced its intention to build a factory in Brazil with this technology, due to be operational in 2009, which will make the company the first to use recycled PET in food and beverages. Previously, recycled PET could only be used in other industries, such as textiles or building. It is expected that this new use will push the PET recycling rate, which increased to 53% in 2007.
Higher prices pose limited threat
Although prices of packaging inputs and raw materials increased, packaging companies in Brazil largely avoided the impact of this type of movement. One factor which was instrumental in maintaining low prices for packaging companies was the valuation of the real, which made products such as resins and metals cheaper for packaging companies. That said, in many packaging materials, especially flexible packaging, companies voiced the need to renegotiate their deals with product manufacturers in order to remain competitive.
Packaging industry invests to increase capacity
A strong performance in 2007 prompted companies to invest and increase production capacity. In metal beverage cans, Crown Cork Embalagens and Latapack-Ball Embalagens Ltda announced investments in new factories. Crown Cork is investing US$50 million in a factory in Sergipe state to supply the northeast of Brazil, while the new plants of Latapack-Ball will be located in Rio de Janeiro. One of the leading companies in paper packaging, Rigesa Celulose, Papel E Embalagens Ltda, announced the building of a new factory located in the countryside of São Paulo state to supply the south and southeast regions of Brazil. Also, Tetra Pak Ltda announced investment in its factory located in Mont-Mor to increase production capacity by 25%.
Sig Combibloc gains share in Brazil
Sig Combibloc Ltda gathered strength in milk in 2007 and 2008, which is the most important consumer application for liquid cartons in Brazil. The company won two big clients in this market, Cemil in Minas Gerais (2007) and Piá in the south (2008), which established partnerships with Sig Combibloc and led to investment in new filling lines. Until the company starts to produce locally (this is expected to happen in 2009), Sig Combibloc supplies clients using imported cartons from Germany. Sig Combibloc also entered tomato paste/purée with Brasfigo, which contributed to doubling the market share of Sig Combibloc in Brazil.
Table of contents
EXECUTIVE SUMMARY
BOOMING ECONOMY SUPPORTS PACKAGING COMPANIES
NEW USE FOR RECYCLED PET
HIGHER PRICES POSE LIMITED THREAT
PACKAGING INDUSTRY INVESTS TO INCREASE CAPACITY
SIG COMBIBLOC GAINS SHARE IN BRAZIL
MARKET BACKGROUND
PACKAGING LEGISLATION
Overview
Labelling
New regulations for bottled water in returnable bottles
RECYCLING AND THE ENVIRONMENT
Overview
Table 1 % Breakdown for Packaging Recycling 2008
Reigning champion in can recycling
Glass association promotes recycling
PET recycling on the rise
Recycled PET receives approval to be used in packaging
The constant quest to recycle liquid cartons
Table 2 Overview of Packaging Recycling and Recovery in Brazil 2004-2006
CORPORATE ACTIVITY IN PACKAGING
LIMITED IMPACT OF INCREASING PRICES
ENVIRONMENTAL POSITIONING REMAINS IMPORTANT FOR PACKAGING COMPANIES
BEVERAGE CAN MANUFACTURERS CONTINUE EXPANDING
MAJOR MARKET PLAYERS
WHEATON DO BRASIL INDúSTRIA E COMéRCIO
Summary 1 Major End-Use Markets for Wheaton do Brasil Indústria E Comércio by Pack Type 2007
BRASILATA SA EMBALAGENS METáLICAS
Summary 2 Brasilata SA Embalagens Metálicas: Operational Indicators 2007
Summary 3 Major End-Use Markets for Brasilata SA Embalagens Metálicas by Pack Type 2008
CANGURU EMBALAGENS SA
Summary 4 Canguru Embalagens SA: Operational Indicators 2007
Summary 5 Major End-Use Markets for Canguru Embalagens SA by Pack Type 2008
COMPANHIA BRASILEIRA DE LATAS
Summary 6 Major End-Use Markets for Companhia Brasileira de Latas by Pack Type 2008
COMPANHIA METALúRGICA PRADA
Summary 7 Major End-Use Markets for Companhia Metalúrgica Prada by Pack Type 2008
PETROPAR EMBALAGENS SA
Impressive expansion
Summary 8 Petropar Embalagens SA: Operational Indicators 2007
Summary 9 Crown Embalagens SA Metálicas da Amazônia SA: Operational Indicators 2007
Summary 10 Crown Tampas SA: Operational Indicators 2007
Summary 11 Major End-Use Markets for Petropar SA by Pack Type 2008
DIXIE TOGA SA
Summary 12 Dixie Toga SA: Operational Indicators 2007
Summary 13 Major End-Use Markets for Dixie Toga SA by Pack Type 2008
ENGEPACK EMBALAGENS SA
Summary 14 Engepack Embalagens SA Operational Indicators 2007
Summary 15 Major End-Use Markets for Engepack Embalagens SA by Pack Type 2008
NADIR FIGUEIREDO INDúSTRIA E COMéRCIO SA
Summary 16 Nadir Figueiredo Indústria e Comércio SA: Operational Indicators 2007
Summary 17 Major End-Use Markets for Nadir Figueiredo Indústria e Comércio SA by Pack Type 2008
LATAPACK-BALL EMBALAGENS LTDA
Summary 18 Latapack-Ball Embalagens Ltda: Operational Indicators 2007
Summary 19 Major End-Use Markets for Latapack-Ball Embalagens Ltda by Pack Type 2008
CONVERPLAST EMBALAGENS LTDA
Accused of price fixing
Summary 20 Major End-Use Markets for Converplast Embalagens Ltda by Pack Type 2008
O-I DO BRASIL SA
Well-timed price increases
Summary 21 O-I do Brasil SA: Operational Indicators 2007
Summary 22 Major End-Use Markets for O-I do Brasil SA by Pack Type 2008
REXAM BEVERAGE CAN SOUTH AMERICA SA
Targeting trendy young consumers
Summary 23 Rexam Beverage Can South America SA: Operational Indicators 2007
Summary 24 Major End-Use Markets for Rexam Beverage Can South America SA by Pack Type 2008
RIGESA CELULOSE, PAPEL E EMBALAGENS LTDA
New launches concentrated in beauty products
Summary 25 Rigesa Celulose, Papel e Embalagens Ltda: Operational Indicators 2007
Summary 26 Major End-Use Markets for Rigesa Celulose, Papel e Embalagens Ltda by Pack Type 2008
SAINT-GOBAIN VIDROS SA
Recycling maintains image
Summary 27 Major End-Use Markets for Saint-Gobain Vidros SA by Pack Type 2008
SIG COMBIBLOC LTDA
Clients signing on
Summary 28 Major End-Use Markets for SIG Combibloc Ltda by Pack Type 2008
SINIMPLAST INDúSTRIA E COMéRCIO LTDA
Summary 29 Sinimplast Indústria e Comércio Ltda: Operational Indicators 2007
Summary 30 Major End-Use Markets for Sinimplast Indústria e Comércio Ltda by Pack Type 2008
SONOCO FOR-PLAS LTDA
Summary 31 Major End-Use Markets for Sonoco For-Plas Ltda by Pack Type 2008
TETRA PAK LTDA
Splashy launches
Summary 32 Tetra Pak Ltda Operational Indicators 2007
Summary 33 Major End-Use Markets for Tetra Pak Ltda by Pack Type 2008
ALCAN EMBALAGENS DO BRASIL LTDA
A bumpy ride
Summary 34 Alcan Embalagens do Brasil Ltda.: Operational Indicators 2007
Summary 35 Major End-Use Markets for Alcan Embalagens do Brasil Ltda by Pack Type 2008
MAJOR PLAYERS BY PACK TYPE
MAJOR PLAYERS – RIGID PLASTIC
Many smaller players
New formats and segmentation evident in PET
Bahia PET uses environmental responsibility to grow
Dixie Toga establishes a new factory
Summary 36 Major Rigid Plastic Packaging Players 2007
Summary 37 Major Rigid Plastic Packaging Companies by Pack Type 2008
MAJOR PLAYERS – METAL
Rexam Beverage Can South America SA continues to lead
Companies look to youth for growth
New developments at Brasilata shift to closures
Summary 38 Major Metal Packaging Players 2007
Summary 39 Major Metal Packaging Companies by Pack Type 2008
MAJOR PLAYERS – FLEXIBLE PACKAGING
Price fixing
Most hit by rising prices
Summary 40 Major Flexible Packaging Companies 2007
Summary 41 Major Flexible Packaging Companies by Pack Type 2008
MAJOR PLAYERS - GLASS
Glass stays strong
Great year for investment
Summary 42 Share of Major Glass Packaging Companies 2007
MAJOR PLAYERS – LIQUID CARTONS
Fading monopoly
Summary 43 Major Liquid Carton Companies 2007
MAJOR PLAYERS – PAPER-BASED CONTAINERS
Klabin continues expanding
Rigesa stays strong
Orsa moves to new business
Summary 44 Major Paper-based Container Companies by Pack Type 2008
MAJOR PLAYERS - CLOSURES
Closure innovation
Easy open can ends continue to gain strength
Summary 45 Major Closure Companies 2008
APPENDIX
Table 3 Production of Packaging in Brazil: % Growth 2002-2007
Table 4 Production Capacity Use: % Use 2000-2005
Table 5 Table Flexible Plastic Revenue and Production 2001-2005
Table 6 Net Income of Packaging in Brazil by Pack Type 2007
Table 7 Exports of Packaging by Pack Type 2007
Table 8 Glass Packaging Revenue 2002-2007
Table 9 Exports of Glass Packaging in Brazil 2002-2007
Table 10 Installed Capacity for Glass Packaging in Brazil 2002-2007
Table 11 Production of Packaging Paper in Brazil: 2002-2006
Table 12 Consumption of Packaging Paper in Brazil: 2002-2006
Table 13 Imports and Exports of Packaging Paper in Brazil: 2002-2006
Table 14 Aluminium Production in Brazil 2002-2007
Table 15 Capacity and Production of Aluminium Cans in Brazil 2002-2007
Table 16 Corrugated Paper Annual Production 2002-2007