Latin America Canned Food Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Latin America Canned Food Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Latin America Canned Food Packaging Market will register a CAGR of 4.8% during the forecast period. Because of an expansion in the disposable income and change in food inclinations, numerous consumers are leaning toward canned nourishments, which will play a role in expanding their interest, thus enlarging canned food market development, along with Increasing consumption of pre-packaged food is expected to drive the growth of the market.

Key Highlights

• As one of the Major reasons which are leading to the surge in popularity of canned food is the rising trend of a busy, eventful life, especially among the millennium population, which has prompted the market to a significant level. Increasing workload and time constraints have led to the adoption of ready-to-eat packed and canned food consumption to save time and energy.
• Packaging for canned food shields the product from the elements and outside stimuli like heat and pollution, preventing spoilage. This packaging provides greater security and a longer product shelf life. Perishable food items can be inexpensive and preserved with slight flavor alteration via canning. Consequently, the expanding horticultural and seafood processing industries significantly demand this packaging.
• Food products in cans are also simple to travel and consume. Additionally, the market for canned food packaging has grown during observation due to the simple accessibility and rising supply of canned items.
• There was a shift in consumption patterns in the past decade, such as from a carbohydrate-rich diet to a protein-rich diet for better strength and stamina. Surging awareness regarding health & fitness and the availability of cheap fitness alternatives such as Zumba, Aerobics, and Yoga requires a balanced diet rich in nutrients like fibers, proteins, vitamins, minerals, and others. Canned food can store and provide these nutrients to consumers, making their meals healthier and safe.
• The COVID-19 pandemic has had a two-sided impact on the canned food market. While the nationwide lockdown resulted in stock-piling by retail households, the shutdown of the HoReCa industry decreased the market demand. The disturbed supply chain will likely hamper productivity and income suffrage across the region. It is probably expected to act as a restraint on the growth of the market studied.

Key Market TrendsUse of Steel Cans is Expected to Grow Significantly

• The steel can perform well in situations where value is crucial because it is still a low-cost pack type with reliable basic functioning. The finished product is kept affordable by canned food businesses using three-piece welded cans, making it available to a broad consumer base.
• Steel cans are a type of metal used to package food. Fruits and vegetables are packed to keep their freshness for a very long time. The primary purpose of the container or can is to keep out external elements like air or moisture that could impair taste and flavor or even cause rotting. Steel cans are created from sheets of carbon steel that have undergone two stamping operations on each side in a hydraulic press machine before being rolled into cylindrical shapes.
• Steel food cans continue to perform well in the fish/seafood category; they remain the preferred pack type in preservation, presentation, and value. Healthy eating trends in Latin America drive the demand for fish/seafood.
• Canned food has always remained an accessible and affordable solution to people's need for safe, nutritious, quality produce and protein. Steel food is environmentally friendly, curbs food waste, and fuels the economy. These are 100% recyclable and made from a minimum of 25% recycled content.
• The Can Manufacturers Institute reports that more than 1,500 food items are packed into various shapes and sizes of steel cans. Some newer innovations include cans with twist-top, resealable lids, and the easy-open type with pull-tabs on the lids.

Brazil is Expected to Hold Significant Market Share

• The COVID-19 pandemic boosted canned food retail sales in Brazil, as consumers prioritized essential food items such as canned tomatoes, vegetables, meat, etc., for the initial purchase. Later on, people even stockpiled many food items, during the quarantine periods, due to fear of missing out.
• E-commerce became the most desired sales channel for canned food companies since the outbreak of COVID-19. For instance, Nestlé started selling its products directly through its website and created a marketplace so that small retailers could also sell their products through this platform, thus guaranteeing them a sales commission.
• One of the primary reasons for driving the growth in the market is the surging working population and fast pacing life. The employment rate reached an all-time high of 48.90% in December 2021. Expanding the market is greatly aided by the rising demand for prepared foods and rising disposable income. The cans now contain food that is nutrient-rich and safe to consume, thanks to technological advances.
• Moreover, surging fitness awareness and gym culture have resulted in consumption and attention to body protein requirements. Brazil has more than 34,000 gyms, and approximately 10 million people aged between 20 to 40 years go into these gyms. For the growth and strength of muscles, protein is essential. As a result, consumers, especially young people, gravitate toward eating meat and related items. Meat and fish can retain their nutritional value while saving time on preparation tasks like cutting and cleaning. Thus, it is anticipated that the canned food market will outperform canned meat and fish.

Competitive Landscape

The Latin America Canned Food Packaging Market is moderately consolidated competitive. The major players such as Ball Corporation and Crown Holdings In, Can-Pack S.A, Wells Can Company Ltd. and Allstate Can Corporation with a significant share in the market are expanding their customer base across various regions. In addition, many companies are forming strategic and collaborative initiatives with multiple companies to increase their market share and profitability.

• June 2022 - Ball Corporation, Based on the growing aluminum can demand worldwide, is expanding its operations in South America, landing in Peru with a new manufacturing plant in Chilca. The expansion will have a production capacity of over 1 billion food and beverage cans a year and will start up in 2023.

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