Latin America is facing a difficult external environment in 2016 with an expected decline of -0.5% Gross domestic product (GDP) percentage. Venezuela and Brazil are facing deep recessions while Peru and Mexico are showing positive growth results. Over the last decade, millions of people have been lifted out of poverty in Latin America. According to the World Bank, the poverty rate has declined from 41.6 percent in 2003 to 25.3 percent in 2012 and the middle class group has improved from 22% to 34% in the same period. The region’s economy is forecasted to grow again by 1.8% next year – 2017.
Aluminium foil packaging
The market for flexible packaging in Latin America is expected to grow from USD 5.13 billion in 2016 to USD 10.14 billion at the end of 2021 with a compound annual growth rate (CAGR) of 12.02%. Brazil is forecasted to have the highest market share followed by Argentina and Mexico. This expected strong growth is credited to the overall growth of packaging needs in the region caused by improving economic conditions. Aluminium foil packaging is part of the flexible packaging market and is formed using aluminium sheets. China is best positioned to meet the supply demand for this critical industry segment, as China is by far the largest producer of aluminium (and aluminium foil) in the world.
Users of aluminium foil packaging
The major users of aluminium foil packaging include pharmaceutical, cosmetic, food and beverage industries. Aluminium foil packaging applications include aerosols, tubes, cans, dishes/trays, lids and aluminium pouches.
Current opportunities in Latin America’s aluminium foil packaging market include:
- Creating convenience: developing easier opening, packaging to cook in and resealable packaging
- Eco-friendly and returnable packaging: consumers are prioritising brands that are environmentally friendly
- Lifestyle trends continue to evolve in Latin America: packaging should focus on catering for smaller households, more health conscious and busy individuals
Lodec Jinshu is well positioned to offer aluminium foil to the Latin American market. With offices in Shanghai, Singapore and Bremen we can meet all your supply needs. We stock a large range of foil ranging from 4,0 Micron up to 100 Microns for numerous applications including converter foil for packaging, blister foil for the pharmaceutical industry, container foil, capacitor foil, household foil, foil for cable wrap and much more. Please contact us now with your detailed inquiry.