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

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

Latin America Soft Drinks Baby Food Packaging Market is expected to grow at a CAGR of 14.5% over the forecast period (2021 - 2026). The Covid-19 pandemic had a negative effect on the soft drinks packaging market. The pandemic situation lead to disruptions in supply chain and shrink the desposable income of the customers which lead to less comsumption. Sharp recessionary effect and wellness and health priorities in post pandemic era will have an negative effect on the industry.

The growth of soft drinks in Latin America will remain tied to GDP growth and increasing consumer purchasing power. RTD teas and bottled waters will be key opportunity areas. As soft drinks consumption in Latin America has been the global bright spot for soft drinks brand owners and bottlers over the recent review period.

Although Carbonated Soft Drinks (CSD) consumption is high in Latin American regions, consumer-led health and wellness trends could take their toll on continued growth. Stevia and alternative sweeteners offer a natural way for consumers to enjoy indulgence soft drinks, with RTD tea a possible alternative. The Latin American region overtook the United States in terms of volume sales of soft drinks.

Soft drinks are the second most consumed drink after water, with plastic being the most used material for soft drinks packaging. Increasing population and rising disposable income has led to the increasing demand for soft drinks products across the world. Packaging plays an important role in the soft drinks market.

Efficient packaging solutions offer benefits like ease of use, disposability and enhanced user experience. These benefits have led to the growth in demand for packaging solutions for the soft drinks segment. The other trend that is augmenting the demand is the new and innovative products, which helps manufacturers enhance their brand visibility while offering product differentiation.

Key Market TrendsPlastic is Expected to Hold the Largest Market Share

• Plastics are more efficient material for soft drinks packaging than other alternatives, because plastics are energy efficient to manufacture and they are also lighter than the alternative materials.
• For instance, just two pounds of plastic can deliver 10 gallons of a Liquid i.e. milk, whereas, three pounds of aluminum, eight pounds of steel, or over 40 pounds of glass is needed to deliver the same amount of Liquid.
• In the soft drinks segment, the busy life of working people has led to the launch of single-serve plastic sachets by various brands. Thus, this increases the importance toward ready-to-comsume drinks and further boosts the market growth.
• HDPE is the most widely used type of plastic packaging material. It is used to make many types of bottles and containers. Unpigmented bottles are translucent and sturdy, have good barrier properties, and are well suited for packaging of products with a shorter shelf life, such as Juices, Energy Drinks.
• With the expanding soft drinks market, it is evident that nutritional product demand, such as Juices, Energy drinks, sports drinks, is increasing and it is directly driving the soft drinks packaging market. It is also durable and people can carry them without hassle. Moreover plastics are airtight so the chances og leakage and getting stale is unlikely.

Carbonated Beverages to hold the Largest Market Share

• The carbonated beverages market is one of the matured industries across the globe. In the last few years, thesegment has undergone major changes regarding product innovations and offerings. To face the growing market challenges, companies are bringing new flavors keeping in mind the health and wellness concerns of consumers.
• Increased government scrutiny would further act as a market obstacle in the forecast period. Owing to consumer health awareness, companies are now more focused on product innovations using natural ingredients, like stevia sweeteners.
• Owing to busy lifestyles, ready-to-drink (RTD) carbonated beverages have become popular amongst consumers. The growing demand for clean-label, gluten-free, low-calorie and low-carb products, has led to the elevation of the low-calorie RTD carbonated beverages market in the food industry.
• The growth in the overall functional beverage market and increasing health consciousness amongst consumers has fuelled the growth of the low-calorie RTD carbonated beverages market.
• For instance,Diageo launched a low-calorie Seltzer under its brand Smirnoff. The company also offers these low-calorie RTD beverages which have also have low carbohydrates, zero-sugar and artificial sweeteners.

Competitive Landscape

The Soft Drinks Packaging market is highly fragmented, owing to the presence of many domestic and international players. The market is fragmented with the players competing in terms of price, product design, product innovation, etc. Some of the major players in the market are Amcor Ltd, Sealed Air Corporation, Tetra Pak International, Graham Packaging Company, Crown Holdings Incorporated among others.

July 2021 - Sealed Air Corporation has dedicated more than $30 million in capital to expand global production capacity and invest in new equipment systems to meet the accelerating demand for Automated Packaging Systems brand solutions. The investment is for capacity expansion, “touchless” automation, and proprietary digital printing technologies primarily in facilities in Streetsboro and Bedford Heights, Ohio and Keyser, West Virginia, and will be completed in 2021. The company will also expand capacity and install new equipment at APS sites in Malvern, UK; Cavite, Philippines; and Qingpu, China.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Amcor PLC
Toyo Seikan Group Holdings Ltd
Graham Packaging Company
Ball Corporation
Owens
Illinois Inc.
Pacific Can China Holdings Limited
Crown Holdings Incorporated
CAN
PACK SA
CKS Packaging Inc.
Refresco Group NV
Tetra Pak Inc.
Ardagh Group SA

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