Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile
Industry Forecast Report BRICdata John Carpenter House 7 Carmelite Street London EC4Y 0BS
Reference Code: PK1004MP Published Date: Jun 2012
United Kingdom Tel: +44 (0)20 7936 6400 Fax: +44 (0)20 7336 6813
www.bricdata.com
www.bricdata.com
TABLE OF CONTENTS
TABLE OF CONTENTS 1
BRIC Benchmarking ............................................................................................................................... 5
1.1
BRIC Countries Overall Packaging Industry Comparison ......................................................................... 5
1.2
BRIC Countries Flexible Packaging Comparison...................................................................................... 6
1.3
BRIC Countries Flexible Packaging Trends .............................................................................................. 7
1.4
BRIC Countries Flexible Packaging Segmentation by Packaging Material .............................................. 8
1.5
BRIC Countries Flexible Packaging Segmentation by End-User Market ................................................. 9
2
Brazil ....................................................................................................................................................... 10
2.1
Market Environment ................................................................................................................................ 10
2.1.1 Macroeconomic environment .................................................................................................................. 10 2.1.2 Regulatory framework ............................................................................................................................. 14 2.1.3 Brazilian packaging industry overview .................................................................................................... 15 2.2
Market Size and Future Growth Potential of Flexible Packaging in Brazil .............................................. 18
2.2.1 Brazilian flexible packaging sector overview ........................................................................................... 18 2.2.2 Brazilian flexible packaging sector future outlook ................................................................................... 19 2.2.3 Brazilian flexible packaging market size by sub-category....................................................................... 20 2.2.4 Brazilian flexible packaging market size by end-user markets ............................................................... 29 2.3
Trends, Drivers and Challenges .............................................................................................................. 40
2.3.1 Trends ..................................................................................................................................................... 40 2.3.2 Drivers ..................................................................................................................................................... 43 2.3.3 Challenges .............................................................................................................................................. 46 2.4
Brazilian Flexible Packaging Import and Export Trade Dynamics .......................................................... 47
2.5
Industry Structure and Competitive Landscape ...................................................................................... 49
2.5.1 Competitive landscape ............................................................................................................................ 49 2.5.2 Company profiles .................................................................................................................................... 51 2.5.3 Industry dynamics: Porter’s five forces ................................................................................................... 52 3
Appendix ................................................................................................................................................ 54
3.1
About BRICdata ...................................................................................................................................... 54
3.1.1 Areas of expertise ................................................................................................................................... 54 3.2
Methodology ............................................................................................................................................ 55
3.3
Definitions ................................................................................................................................................ 56
3.4
Disclaimer ................................................................................................................................................ 56
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 2 Published: Jun 2012
TABLE OF CONTENTS
LIST OF FIGURES Figure 1: BRIC Countries Overall Packaging Industry Comparison, 2011 .................................................................................................... 5 Figure 2: BRIC Countries Flexible Packaging Comparison, 2011................................................................................................................. 6 Figure 3: BRIC Countries Flexible Packaging Trends, 2007–2016 ............................................................................................................... 7 Figure 4: BRIC Countries Flexible Packaging Segmentation By Packaging Material, 2011 .......................................................................... 8 Figure 5: BRIC Countries Flexible Packaging Segmentation By End-User Market, 2011 ............................................................................. 9 Figure 6: Brazilian GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000) ................................................................. 10 Figure 7: Brazilian Annual Disposable Income (US$ Billion), 2007–2016 ................................................................................................... 11 Figure 8: Brazilian Annual Consumer Food Expenditure (US$ Billion), 2007–2016 .................................................................................... 12 Figure 9: Brazilian Inflation Rate (%), 2007–2016 ...................................................................................................................................... 13 Figure 10: Brazilian Packaging Market Size (US$ Billion), 2007–2011 ....................................................................................................... 15 Figure 11: Brazilian Packaging Market Size (US$ Billion), 2012–2016 ....................................................................................................... 16 Figure 12: Brazilian Packaging Market Size by Category (%), 2011 ........................................................................................................... 17 Figure 13: Brazilian Flexible Packaging Market Size (US$ Million), 2007–2011 ......................................................................................... 18 Figure 14: Brazilian Flexible Packaging Market Size (US$ Million), 2012–2016 ......................................................................................... 19 Figure 15: Brazilian Flexible Packaging Market Size by Sub-Category (%), 2011 and 2016....................................................................... 20 Figure 16: Brazilian Flexible Packaging Market Size by Sub-Category (%), 2007–2011 ............................................................................ 21 Figure 17: Brazilian Flexible Packaging Market Size by Sub-Category (%), 2012–2016 ............................................................................ 22 Figure 18: Brazilian Flexible Plastic Packaging Market Size (US$ Million), 2007–2011 .............................................................................. 23 Figure 19: Brazilian Flexible Plastic Packaging Market Size (US$ Million), 2012–2016 .............................................................................. 24 Figure 20: Brazilian Paper Packaging Market Size (US$ Million), 2007–2011 ............................................................................................ 25 Figure 21: Brazilian Paper Packaging Market Size (US$ Million), 2012–2016 ............................................................................................ 26 Figure 22: Brazilian Aluminum Foil Packaging Market Size (US$ Million), 2007–2011 ............................................................................... 27 Figure 23: Brazilian Aluminum Foil Packaging Market Size (US$ Million), 2012–2016 ............................................................................... 28 Figure 24: Brazilian Flexible Packaging Market Size by End-User Market (%), 2011 and 2016 .................................................................. 29 Figure 25: Brazilian Flexible Packaging Market Size by End-User Market (%), 2007–2011........................................................................ 30 Figure 26: Brazilian Flexible Packaging Market Size by End-User Market (%), 2012–2016........................................................................ 31 Figure 27: Brazilian Flexible Packaging Market Size in Food and Beverages (US$ Million), 2007–2011 .................................................... 32 Figure 28: Brazilian Flexible Packaging Market Size in Food and Beverages (US$ Million), 2012–2016 .................................................... 33 Figure 29: Brazilian Flexible Packaging Market Size in Pharmaceuticals (US$ Million), 2007–2011........................................................... 34 Figure 30: Brazilian Flexible Packaging Market Size in Pharmaceuticals (US$ Million), 2012–2016........................................................... 35 Figure 31: Brazilian Flexible Packaging Market Size in Personal Care (US$ Million), 2007–2011 .............................................................. 36 Figure 32: Brazilian Flexible Packaging Market Size in Personal Care (US$ Million), 2012–2016 .............................................................. 37 Figure 33: Brazilian Flexible Packaging Market Size in Other End-User Markets (US$ Million), 2007–2011 .............................................. 38 Figure 34: Brazilian Flexible Packaging Market Size in Other End-User Markets (US$ Million), 2012–2016 .............................................. 39 Figure 35: Paper Pouch – An Innovative Packaging Product Released in Brazil ....................................................................................... 40 Figure 36: Drivers of Flexible Packaging Sector in Brazil ........................................................................................................................... 43 Figure 37: Brazil – Urban And Rural Population (%), 2007–2016 ............................................................................................................... 44 Figure 38: Brazilian Paper and Board Packaging: Exports and Imports (US$ Million), 2006–2010 ............................................................. 47 Figure 39: Brazilian Aluminum Foil Packaging: Exports and Imports (US$ Million), 2006–2010 ................................................................. 48 Figure 40: Brazilian Flexible Packaging Industry Dynamics ....................................................................................................................... 52
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 3 Published: Jun 2012
TABLE OF CONTENTS
LIST OF TABLES Table 1: Brazilian GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000) .................................................................. 10 Table 2: Brazilian Annual Disposable Income (US$ Billion), 2007–2016 .................................................................................................... 11 Table 3: Brazilian Annual Consumer Food Expenditure (US$ Billion), 2007–2016 ..................................................................................... 12 Table 4: Brazilian Inflation Rate (%), 2007–2016 ....................................................................................................................................... 13 Table 5: Brazilian Packaging Market Size (US$ Billion), 2007–2011 .......................................................................................................... 15 Table 6: Brazilian Packaging Market Size (US$ Billion), 2012–2016 .......................................................................................................... 16 Table 7: Brazilian Flexible Packaging Market Size (US$ Million), 2007–2011 ............................................................................................ 18 Table 8: Brazilian Flexible Packaging Market Size (US$ Million), 2012–2016 ............................................................................................ 19 Table 9: Brazilian Flexible Packaging Market Size by Sub-Category (US$ Million), 2011 and 2016 ........................................................... 20 Table 10: Brazilian Flexible Packaging Market Size by Sub-Category (US$ Million), 2007–2011 ............................................................... 21 Table 11: Brazilian Flexible Packaging Market Size by Sub-Category (US$ Million), 2012–2016 ............................................................... 22 Table 12: Brazilian Flexible Plastic Packaging Market Size (US$ Billion), 2007–2011................................................................................ 23 Table 13: Brazilian Flexible Plastic Packaging Market Size (US$ Billion), 2012–2016................................................................................ 24 Table 14: Brazilian Paper Packaging Market Size (US$ Million), 2007–2011 ............................................................................................. 25 Table 15: Brazilian Paper Packaging Market Size (US$ Million), 2012–2016 ............................................................................................. 26 Table 16: Brazilian Aluminum Foil Packaging Market Size (US$ Million), 2007–2011 ................................................................................ 27 Table 17: Brazilian Aluminum Foil Packaging Market Size (US$ Million), 2012–2016 ................................................................................ 28 Table 18: Brazilian Flexible Packaging Market Size by End-User Market (US$ Million), 2011 and 2016 .................................................... 29 Table 19: Brazilian Flexible Packaging Market Size by End-User Market (US$ Million), 2007–2011 .......................................................... 30 Table 20: Brazilian Flexible Packaging Market Size by End-User Market (US$ Million), 2012–2016 .......................................................... 31 Table 21: Brazilian Flexible Packaging Market Size in Food and Beverages (US$ Million), 2007–2011 ..................................................... 32 Table 22: Brazilian Flexible Packaging Market Size in Food and Beverages (US$ Billion), 2012–2016...................................................... 33 Table 23: Brazilian Flexible Packaging Market Size in Pharmaceuticals (US$ Million), 2007–2011 ............................................................ 34 Table 24: Brazilian Flexible Packaging Market Size in Pharmaceuticals (US$ Million), 2012–2016 ............................................................ 35 Table 25: Brazilian Flexible Packaging Market Size in Personal Care (US$ Million), 2007–2011 ............................................................... 36 Table 26: Brazilian Flexible Packaging Market Size in Personal Care (US$ Million), 2012–2016 ............................................................... 37 Table 27: Brazilian Flexible Packaging Market Size in Other End-User Markets (US$ Million), 2007–2011................................................ 38 Table 28: Brazilian Flexible Packaging Market Size in Other End-User Markets (US$ Million), 2012–2016................................................ 39 Table 29: Brazilian Paper and Board Packaging: Exports and Imports (US$ Million), 2006–2010 .............................................................. 47 Table 30: Brazilian Aluminum Foil Packaging: Exports and Imports (US$ Million), 2006–2010 .................................................................. 48 Table 31: Competitive Landscape of the Brazilian Packaging Industry ....................................................................................................... 49
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 4 Published: Jun 2012
BRIC BENCHMARKING
1 BRIC Benchmarking 1.1 BRIC Countries Flexible Packaging Comparison Just as in the overall BRIC packaging industry, China leads the BRIC flexible packaging sector, with a 54.7% share of total value in 2011. The Chinese flexible packaging sector also recorded the highest review-period CAGR of 19.17%; followed by the Indian flexible packaging sector, which recorded a review-period CAGR of 10.47%. Over the forecast period, the Chinese flexible packaging sector is expected to register the highest CAGR of 16.52%, with the Indian flexible packaging sector expected to record the second-highest CAGR of 12.00%.
Figure 2: BRIC Countries Flexible Packaging Comparison, 2011 20% 18%
CAGR (2012-2016)
16% 14% 12% 10% 8% 6% 4% 2% 0% 0%
5%
10%
15%
20%
25%
CAGR (2007-2011) Note: Bubble size represents 2011 market size Source: BRICdata analysis
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
© BRICdata
Page 5 Published: Jun 2012
APPENDIX
2 Brazil 2.1 Market Environment This section covers three main areas, firstly discussing Brazil’s macroeconomic environment and its effect on the country’s packaging industry, before elaborating on the country’s regulatory framework and its impact on the country’s packaging companies, and then giving an overview of the Brazilian packaging industry.
2.1.1
Macroeconomic environment
GDP Brazil’s GDP at constant prices increased from US$815.7 billion in 2007 to US$950.7 billion in 2011, recording a CAGR of 3.9% during the review period. Over the forecast period, the country’s GDP is expected to increase from US$985.1 billion in 2012 to US$1.16 trillion in 2016 and record a CAGR of 4.16% over the forecast period. This strong economic growth is expected to benefit the country’s flexible packaging sector.
Table 1: Brazilian GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000) 2007
2008
2009
2010
2011
GDP
815.7
857.8
852.3
916.1
950.7
2012
2013
2014
2015
2016
GDP
985.1
1,026.0
1,068.7
1,113.2
1,159.5
Source: BRICdata analysis
© BRICdata
Figure 6: Brazilian GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000)
Source: BRICdata analysis
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
© BRICdata
Page 6 Published: Jun 2012
APPENDIX
Annual disposable income Brazil’s total annual disposable income increased from US$772.2 billion in 2007 to US$1.56 trillion in 2011, recording a CAGR of 19.14% during the review period. By 2012, the country’s disposable income is expected to have reached US$1.64 trillion, with a projected value of US$1.98 trillion in 2016. Overall, the country’s total annual disposable income is expected to record a CAGR of 4.89% over the forecast period. This increase in annual disposable income is anticipated to have a positive impact on the flexible packaging sector, with consumers expected to increase their expenditure on packaged goods and, in particular, food and personal care products.
Table 2: Brazilian Annual Disposable Income (US$ Billion), 2007–2016 Annual disposable income
Annual disposable income
2007
2008
2009
2010
2011
772.2
1,006.4
1,024.6
1,324.7
1,555.9
2012
2013
2014
2015
2016
1,636.5
1,716.4
1,800.4
1,888.4
Source: BRICdata analysis
1,980.8 © BRICdata
Figure 7: Brazilian Annual Disposable Income (US$ Billion), 2007–2016
Source: BRICdata analysis
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
© BRICdata
Page 7 Published: Jun 2012
APPENDIX
Flexible plastic packaging Flexible plastic was the largest sub-category within the overall flexible packaging sector during the review period, a leading position it is expected to retain over the forecast period. Recording a CAGR of 5.44% during the review period, the value of the flexible plastic packaging sub-category increased from US$1.7 billion in 2007 to US$2.1 billion in 2011. By 2012, this value is expected to have reached US$2.3 billion, and it is expected to record a CAGR of 7.76% over the forecast period to reach a projected value of US$3.1 billion in 2016. Flexible plastic is used extensively by packaged foods manufacturers, the largest−end user market for the Brazilian packaging industry. In 2009, the consumption of flexible plastic declined due to a fall in food and beverage sales following the global financial crisis. Moreover, the consumption of flexible plastic in supermarkets and retail outlets is expected to fall over the forecast period due to the growing environmental awareness of the Brazilian population.
Table 12: Brazilian Flexible Plastic Packaging Market Size (US$ Billion), 2007–2011 Year 2007 2008 2009 2010 2011 Source: BRICdata analysis
Market Size (US$ Billion) 1.7 1.9 1.9 2.0 2.1 © BRICdata
Figure 18: Brazilian Flexible Plastic Packaging Market Size (US$ Million), 2007–2011
Source: BRICdata analysis
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
© BRICdata
Page 8 Published: Jun 2012
APPENDIX
2.2 Trends, Drivers and Challenges 2.2.1
Trends
Flexible packaging is widely used in the Brazilian ambient food segment Flexible packaging accounts for the highest share of the global ambient food segment, a trend echoed in Brazil. Consequently, flexible packaging is the primary competitor for rigid plastic in Brazil, with flexible packaging favored for a wide variety of ambient food categories. The only exceptions to this widespread use in ambient food packaging are prepared baby food and soup, as flexible packaging is not suitable for either of these product categories. Flexible packaging is also generally preferred for the packaging of meat and meat products, and pasta and noodles.
Figure 35: Paper Pouch – An Innovative Packaging Product Released in Brazil
Source: BRICdata analysis
© BRICdata
Growing demand for stand-up pouches During the review period, the use of stand-up pouches in Brazil increased significantly, with cat and dog food being the most significant product category for this packaging type. Other products for which stand-up pouches are increasingly being used include noodles, pasta, sauces, dressings and condiments. The stand-up pouch is, however, most used in pet food, where its convenience, simplicity, flexible shape, lack of weight and suitability for printing and decoration, are rapidly making it an attractive alternative to the traditional metal can. Stand-up pouches are, however, less easy to recycle than traditional metal cans and metal cans are significantly stronger. The “slug” type of flexible packaging is being widely used for cookies and biscuits packaging The “slug” type of flexible packaging is widely used in Brazil for the packaging of cookies, biscuits, and snacks. A slug package is an upended stack of biscuits or cookies that are grouped and overwrapped. In North America, multiple “slug packages” are commonly sold, with two, three, or four product items sold in a carton; whereas, in Brazil, slug packages are often sold as individuals, i.e. containing only one product item. The popularity of this kind of packaging is primarily driven by Brazil’s economic environment, as the single “slug” package offers consumers the option of an inexpensive treat. However, Brazilians often do not just buy a single package but a bundle of single packages, with a common purchasing strategy being buying one slug package for each member of the family. In order to attract customers, these packages look attractive and feature dynamic, brightly colored illustrations on printed polypropylene film. These packages are then marketed as singles, offering a wide choice for consumers.
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 9 Published: Jun 2012
APPENDIX
Increasing use of flexible packaging for the packaging of bar soap Within the global packaging industry, Brazil has become renowned for introducing various innovative flexible packaging formats. For example, cartons are increasingly being replaced with special laminated bag designs for laundry detergents and other household products, and stand-up pouches with and without spouts are being used for the packaging of household products. Finally, film wrap packaging has almost completely replaced typical paper die fold style wraps or classic paperboard cartons in the packaging of bar soaps. As a result of this final innovation however, bar soap packaging is now hermetically sealed, presenting a problem for the majority of Brazilian consumers who select soap by smelling the package. As the hermetically sealed package limits this sensory selection process, the fragrance of the soap is now being added to the flexible packaging material at the converting or packaging level. Efforts to reduce plastic bag consumption São Paulo, Brazil’s largest city, is leading the country in a national campaign to ban the distribution of plastic bags in supermarkets. Initially, this ban was introduced as a law that made it illegal for supermarkets to distribute plastic bags, although this law was quickly overturned by Brazil’s Plastic Industry Association. However, undeterred by the overturning of the legislation, Brazilian environmental groups initiated a popular campaign to stop the use of plastic bags in supermarkets and supermarket chains in the São Paulo region quickly joined them. As a result, as of January 25th, 2012, no free plastic bags could be found in any supermarket in the region’s 150 municipalities. This initiative is expected to reduce the consumption of plastic bags in the São Paulo region by 90%, with supermarkets selling reusable bags made of corn starch instead of distributing free plastic bags. Global packaging companies considering expanding through inorganic growth Brazil has quickly become a key business center in both Latin America and the BRIC region. Moreover, the country’s sound macroeconomic fundamentals and rapid economic recovery offer attractive opportunities for international companies in key Brazilian markets, such as food and beverages and pharmaceuticals. Recognizing this significant growth potential, many packaging companies have entered the Brazilian market during the past three decades, with these market entries either being conducted through joint ventures or the acquisition of manufacturing units in the country. Key foreign companies currently operating in Brazil include Alcan Packaging, Owens-Illinois, Rexam, Amcor and Bemis. For example, Ball Corporation entered the Brazilian packaging industry in 1995 through a 50:50 joint venture with Latapack SA. Bemis Inc. Similarly, Latapack entered the Brazilian market in 1998 by acquiring a one-third stake in Dixie Toga, a stake Latapack increased to 99% in July 2011 by completing a tender offer of approximately 38 million shares of Dixie Toga through Dendron Participações Ltda, Latapack’s wholly owned Brazilian subsidiary. This purchase is expected to strengthen Latapack’s presence in the Brazilian market, as the company primarily supplies flexible packaging to leading food, consumer products and healthcare companies. Furthermore, Gerresheimer AG, a global supplier to pharmaceutical and healthcare companies, acquired Vedat, a Brazilian manufacturer of pharmaceutical plastic packaging products and closures, PET bottles and other plastic containers, in early 2011. This takeover is expected to strengthen Gerresheimer’s competitive position in South America. Over the forecast period, Brazil is expected to continue to be one of the most attractive destinations worldwide for packaging companies due to factors such as strong economic growth expectations, rising consumer confidence, increased demand from numerous industries, and increased consumption as a result of Brazil’s hosting of the 2014 FIFA World Cup and the 2016 Olympic Games. New investments by food and beverages retailers expected to generate growth During the review period, several international companies made significant investments in the Brazilian food and beverages market, with Walmart investing US$756 million in the Brazilian economy in 2011 and opening 80 new stores. This expansion followed significant growth in 2010, when the company opened 45 new Brazilian stores. Furthermore, further store openings from international retail companies such as Walmart are planned over the forecast period, and this is expected to drive the drive the growth of Brazilian food and beverages market over the forecast period. This is, in turn, expected to generate significant demand for packaging products and support the growth of the Brazilian flexible packaging sector.
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 10 Published: Jun 2012
APPENDIX
Packaging companies increasing their focus on sustainable packaging Packaging companies operating in Brazil are increasingly focusing on introducing packaging products which help manufacturers to decrease waste and reduce their environmental impact. For example, Dow Brazil, the Brazilian subsidiary of the international chemical manufacturer, The Dow Chemical Company, introduced sustainable plastic packaging into the Brazilian market in May 2011. The production of the new plastic packaging products, which are branded 100% Polyethylene Stand Up Pouches (100% PE SUP) requires 10% less raw material than multi-material SUPs, and the new pouches also have greenhouse gases emissions that are 5-15% lower than those of multi-material SUPs. Finally, the new products also reduce waste by 50%, a significant reduction from the point of view of environmental sustainability. Robust growth of food and drinks companies propels sector growth The continuing expansion of Brazil’s FMCG industry is another key factor encouraging packaging companies to either enter the Brazilian market or strengthen their presence in the country. With sales increasing rapidly, Brazil has become a focus country for FMCG businesses such as Procter & Gamble and Unilever, both of which have established research and development (R&D) centers in the country. Moreover, during the review period, the number of global and local companies in Brazil’s FMCG industry increased significantly, with Reckitt Benckiser, Hypermarcas and Ype being among the leading foreign operators in this market. Brazil is also host to three of the world’s leading retail companies, Wal-Mart, Carrefour and Casino, with all three attempting to increase their market shares by adopting strategies such as the acquisition of local retail companies, additional store openings, and private-label brand launches. The continuous growth in the number of food and beverages companies operating in Brazil is expected to create significant demand for flexible packaging. National packaging policy expected to encourage innovation in packaging materials In 2011, Brazil introduced a national policy on solid waste that places the responsibility for the collection and reuse of waste onto the entity that produces the waste. As a result, to succeed in the Brazilian market, companies must now adhere to sustainability requirements throughout the supply chain, from manufacturer to end consumer. Due to increasingly stringent government regulations, and the growing environmental awareness and rising consumer incomes of the Brazilian population, companies operating in the country are increasingly launching packaging products which are either biodegradable or recyclable. The key challenge for packaging companies operating in Brazil is now to launch products that match local environmental safety standards and increase product shelf life, but are still competitively priced.
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 11 Published: Jun 2012
APPENDIX
2.2.2
Drivers
Multiple factors have been identified that encourage Brazil’s food and beverages, personal care and cosmetics, and pharmaceutical companies to use flexible packaging for the marketing and distribution of their products. The following section discusses the drivers and factors responsible for the growth and adoption of flexible packaging in the Brazilian packaging industry.
Figure 36: Drivers of Flexible Packaging Sector in Brazil
Source: BRICdata analysis
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
© BRICdata
Page 12 Published: Jun 2012
APPENDIX
3 Appendix 3.1 About BRICdata BRICdata publishes in-depth strategic intelligence reports that help its customers better understand opportunities in emerging markets and industry sectors. Its reports provide an independent, expert view supported by primary research and access to leading data and intelligence sources. BRICdata is a comprehensive source of insights and analysis, and publishes a broad range of reports across a number of different industry sectors, including consumer, retail, financial services, technology, telecoms and construction. BRICdata is headquartered in London with research, analysis and account management teams based across Europe, the US and Asia-Pacific. Its global research footprint is supported by a network of external associates, data partners and industry experts to give the clearest possible perspective on emerging markets.
3.1.1
Areas of expertise
BRICdata operates a dedicated, multilingual team of in-house industry analysts with significant experience of global and country-level research. BRICdata also maintains data and research partnerships with other research companies, industry experts and trade associations, along with a network of independent industry consultants and former industry participants contributing research and reports to bring additional insight and expertise in more specialist areas. BRICdata’s research offering spans the following industry areas: Construction BRICdata publishes reports covering the entire construction value chain: construction materials, equipment, construction services, architectural services and interior design. It also covers the main value sectors of construction activity: commercial, infrastructure, industrial, institutional and residential. This comprehensive view of the market enables BRICdata to detail key growth sectors and countries and identify the most attractive industry opportunities. Consumer goods Covering a broad range of areas across the consumer goods market, from interior products to fast-moving consumer goods (FMCG), ingredients, and packaging, BRICdata offers a comprehensive insight into key consumer sectors across fast-growing markets, identifying key trends, future innovations and growth opportunities. Comprehensive data sets including unique primary survey-driven research creates accurate market forecasts and understanding of the factors driving consumption behavior. Financial services Providing detailed insights into insurance and banking markets, BRICdata’s financial services reports identify key market opportunities, emerging technologies and channel strategies. The reports provide unique data combined with local examples of best practice and expert insights into the market. Retail BRICdata maintains a comprehensive database of forecasts of retail spending, along with a series of unique indicators enabling a forward view of retailers’ prospects in emerging markets. The reports identify emerging concepts in retail, including the nascent online and mobile retail sectors in the BRIC countries and other emerging markets. Technology BRICdata tracks key trends and innovations, emerging technologies and markets, and the key operators in both emerging markets and technologies. Covering a range of emerging and disruptive technologies including telecoms, social media, online and mobile retailing, and telemedicine, BRICdata examines strategies for success, the state of the competitive landscape and the inherent threats and opportunities in the emerging technological economy.
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 13 Published: Jun 2012
APPENDIX
3.2 Methodology All BRICdata reports are rigorously sourced and created according to a comprehensive, two-stage methodology. This includes internal audit and primary research.
A)
Internal audit Review of in-house databases to gather existing data: o o o
B)
Historic market databases and reports Company database projects database
Primary research Review of the latest company strategy and asset management trends
1)
Research A. Sources Collection of the latest market-specific data from a wide variety of industry sources: o Government statistics o Industry associations o Company filings o Broker reports o International organizations
B.
Expert opinion Collation of opinion taken from leading industry experts Analysis of third-party opinion and forecasts: o Broker reports o Industry associations o Official government sources
C.
Data consolidation and verification Consolidation of data and opinion to create historical datasets Creation of models to benchmark data across sectors and geographies
2)
Research Analysis Market forecasts Feed of forecast data into market models: o Macroeconomic indicators o Industry-specific drivers Analysis of Market Databases to identify trends by sector: o Latest trends o Key drivers of the market
3)
Report Writing Analysis of market data Discussion of company and industry trends and issues Integration of survey results Annual review of trends Standardization of market definitions using recognized industry classifications
4)
Quality Control A. Templates Detailed process manuals Standardized report templates and accompanying style guides Complex forecasting tool used to ensure forecast methodologies are consistently applied QC checklists
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 14 Published: Jun 2012
APPENDIX
B.
QC process Peer review Senior-level QC Random spot checks on data integrity Benchmark checks across databases Market data cross-checked for consistency with accumulated data from company filings
3.3 Definitions For the purposes of this report, the following timeframes apply: Review period: 2007–2011 Forecast period: 2012–2016 All data is collected in local currency. To avoid distortions due to currency fluctuations, all conversions into US dollars of current, historical and forecast data are made with a yearly average exchange rate. All values in tables, with the exception of compound annual growth rates (CAGR) are displayed to one decimal place. Growth rates may, therefore, appear inconsistent with absolute values due to this rounding method.
3.4 Disclaimer All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, BRICdata. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that BRICdata delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BRICdata can, therefore, accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.
Strategic Insights and Future Growth Potential of Flexible Packaging in Brazil: Market Profile © BRICdata. This product is licensed and is not to be photocopied
Page 15 Published: Jun 2012
