The Latin America protective packaging market size is projected to expand at a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the rising stringent regulation on usage of packaging material in the country.
Protective packaging will undergo a lot of modifications as a result of environmental concerns, mainly for items delivered directly to consumers. Also need for on-the-go items has increased as people spend less time cooking, resulting in increased demand for plastic protective packaging.
E-commerce sales in the area are also expected to increase to USD 79.7 billion in 2019 from USD 49.8 billion in 2016, according to fintech times. The expansion in internet and smartphone usage, as well as the entry of several multinational e-commerce firms such as Amazon and Alibaba, have disrupted the conventional market and used e-commerce to reach small and medium-sized clients. These elements help meet the region's high need for protective packaging.
Rising industrial operations in a variety of industries have spurred the production, sales, and demand for protective packaging solutions. Foam, plastic, and paper-based protective packaging solutions are in high demand from industry participants to satisfy the demands of a diverse variety of products and extended supply chains.
The mobile penetration rate in Latin America is expected to exceed 73 percent in 2025, up from around 68 percent in 2019. The number of unique mobile customers in the area is predicted to rise from 429 million to 486 million during the same time period.
Colombian on-demand delivery business receives a one-billion-dollar investment from SoftBank Group Corp. in 2019. Rappi has become the most well-funded online meal delivery platform in Latin America. Rappi's growth has shook up the delivery business in the region, causing competitors to discover new methods to stay competitive.
Mercado Libre, the region's largest e-commerce firm, revealed that its number of unique active users increased by 84% in 2020, from 61.1 million in January-September 2019 to 112.5 million in January-September 2020. To take advantage of consumers' constant connectivity and unwillingness to visit physical stores, a number of packaged food firms have developed their own direct-to-consumer e-commerce websites.
Market Trends, Drivers, Restraints, and Opportunities
- Urbanization, and favorable new regulations & standards are expected to boost the market during the forecast period.
- Increased demand for antimicrobial packaging with longer shelf-life leads to is expected to fuel the market during the forecast period.
- Increased concern for environment and rising demand eco-friendly packaging material is expected to drive the market in coming years.
- Growing industrialization and rising demand for medicine are anticipated to surge the market growth.
- Rising demand for packed food is key factors pushing the market growth in the coming years.
- Rapid growth electronic and e-commerce industries are major factors boosting the market in the coming years
- Increase cost of packaging due high cost of advance technology is expected to hinder the market growth.
- Customer dissatisfaction due to over packaging is anticipated to restrict the market.
- Rising funding for the development of innovative packaging technologies to replace older ones is estimated to create lucrative opportunities for the market players.
Scope of Latin America Protective Packaging Market Report
The report on the Latin America protective packaging market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Latin America Protective Packaging market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
Material Types? (Paper, Plastics, and Paperboard?), End-user Vertical?s (Pharmaceutical?, Consumer Electronics?, Food and Beverage?, Beauty & Homecare?) Product Types? (Flexible [Mailers, Paper Full, and Bubble Wraps Air Pillows], Rigid [Molded Pulp, Insulated Shipping Containers, Paperboard-based Protectors], and Foam Based?)
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Intertape Polymer Group Inc.; Sealed Air Corporation; Crown Holdings Inc; Sonoco Products Company; Smurfit Kappa Group plc
Latin America Protective Packaging Market Segment Insights
In terms of material types, the Latin America protective packaging market is segmented into paper, plastics, and paperboard. The paperboard segment is expected to represent a key share of the market in the coming years due to widely use in non-industrial and industrial packaging and are 100% recyclable and eco-friendly.
In terms of end-user Verticals, the Latin America protective packaging market is divided into pharmaceutical, consumer electronics, food & beverage, and beauty & homecare. The food & beverage segment is expected to hold a key share of the market during the forecast period owing to increase consumption of beverages and high demand for meat & sea food products which are majorly exported by the country.
On the basis of product types, the Latin America protective packaging market is segmented into flexible, rigid, and foam based. The flexible segment is further divided into mailers, paper full, and bubble wraps air pillows. The bubble wraps air pillows segment is expected to constitute a key share of the market during the forecast period owing majorly demand e-commerce companies this use to protect fragile product from damaging.
The Latin America protective packaging market has been segmented on the basis of
- Consumer Electronics
- Food & Beverage
- Beauty & Homecare
- Paper Full
- Bubble Wraps Air Pillows
- Molded Pulp
- Insulated Shipping Containers
- Paperboard-based Protectors
- Foam Based
Key players competing in the Latin America protective packaging market include Intertape Polymer Group Inc.; Sealed Air Corporation; Crown Holdings Inc; Sonoco Products Company; Smurfit Kappa Group plc.Some of these players are coming up with several market strategies including mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares. For instance
In June 2021, Redi-Bag Inc., a prominent maker of plastic and polyethylene film packaging for seafood and vegetable packaging applications, was acquired by Soteria Flexibles
In January 2020, Sealed Air announced launch of a new generation of BUBBLE WRAP brand packaging material that contains maximum amount of recycled content i.e. around 90%. It provides the same amount of protection and air retention as the original design while also allowing for cyclic plastics economy.