Latin America Soft Drinks Packaging Market - Growth, Trends, Covid -19 Impact, and Forecasts (2023-2028)
The Latin America Soft Drinks Packaging Market is expected to register a CAGR of 8.5% over the forecast period. Although carbonated soft drink (CSD) consumption is high in the Latin America region, consumer-led health and wellness trends could take a toll on continued growth.
Key HighlightsThe COVID-19 pandemic impacted the soft drink packaging market negatively. The pandemic situation disrupted the supply chain and reduced customers' disposable income, resulting in less consumption during the COVID-19 pandemic period. Sharp recessionary effects, as well as post-pandemic wellness and health priorities, would have a negative impact on the industry. In addition, the pandemic has shifted the focus of soft drink companies from range rationalization to investment in larger formats and working around direct-to-consumer marketing. Further, the Russia-United Kingdomraine war has an impact on the overall packaging ecosystem.
Key Market TrendsPlastic is Expected to Hold the Significant ShareHowever, because of the growing environmental concern about the use of plastic for soft drink packaging, which is hazardous, manufacturers and consumers in Latin America are turning to environmentally friendly alternatives to plastic. For instance, in May 2022, SIG launched combistyle carton packaging with Frimesa, one of Brazil’s largest milk companies.
Brazil to Contribute Significant Market ShareThe Latin America Soft Drinks Packaging market is 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, and Crown Holdings Incorporated among others.
In October 2022, Sidel, a packaging solution provider, launched 1SKIN, a label-less recycled PET bottle to help Sidel’s customers achieve their sustainability goals and drive sales of high-end products. The one-liter bottle is destined for the booming market in sensitive juices, teas, and flavored drinks.
In February 2022, Heineken announced that it would invest BRL 320 million (USD 63.8 million) in the Brazilian state of Sao Paulo. Recycling glass packaging is also among the priorities of the company, which would present new initiatives for contributing to the goal of reaching 100% recycling of its packaging used in restaurants and bars by 2025.
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