Consumer Packaging Industry Analysis in Brazil

Brazil Consumer Packaging Industry Outlook from 2023 to 2033

Recording a y-o-y growth of 2.5%, sales of consumer packaging products in Brazil totaled US$ 11.1 billion in 2023. Over the forecast period, the Brazil consumer packaging industry size is poised to expand with a compound annual growth rate (CAGR) of 2.8%, reaching US$ 14.7 billion by 2033.

Consumer packaging consumption is projected to remain high in the food sector during the forecast period. Currently, the target segment accounts for a considerable value share of around 55%.

Plastic is set to continue to remain a preferred material for making consumer packaging solutions, accounting for a share of 50% in the Brazil consumer packaging industry. Further, it is expected to rise at a CAGR of 2.9% over the forecast period.

Consumer packaging has become an essential part of the modern economy globally, and Brazil is no exception. It plays a crucial role in storing and protecting products and marketing them to consumers. High adoption of consumer packaging across diverse sectors, including food & beverages, cosmetics, pharmaceuticals, and consumer electronics, is expected to boost growth.

Other Factors Fueling Growth of the Consumer Packaging Industry in Brazil

• Surging demand for consumer packaged goods (CPG) in Brazil
• Growing need for protecting perishable and fragile products during storage and transportation
• Rising demand for personalized and interactive packaging
• Increasing usage of consumer packaging for marketing purposes
• Escalating need for effective and protective packaging for delivery amid e-commerce boom
• Growing demand for cosmetic packaging in Brazil
• Rapid urbanization, coupled with rising demand for processed and packaged food items
• Growing usage of sustainable materials in packaging
• Surging demand for single-serve and on-the-go packaging options
• Expanding trade activities across Brazil

Attributes	Key Insights
Base Value (2023)	US$ 11.1 billion
Projected Brazil Consumer Packaging Industry Value (2033)	US$ 14.7 billion
Value CAGR (2023 to 2033)	2.8%

Brazil Consumer Packaging Industry Trends

Sustainable Packaging Innovations Transforming Brazil’s Landscape

• Growing popularity of smart packaging with features like embedded sensors, QR codes, and interactive elements
• Ongoing innovations in the field of sustainable packaging
• Shifting preference toward eco-friendly and sustainable packaging in Brazil, including biodegradable options, recyclable materials, and reusable packaging
• Development and adoption of bioplastic and plant-based packaging

Historical Performance Vs. Brazil Consumer Packaging Demand Outlook

Demand for consumer packaging products in Brazil increased at a CAGR of 1.2% during the historical period. Total revenue in the country reached around US$ 10.9 billion in 2022. This was due to factors like:

• Increasing demand for consumer electronics like smartphones and TVs
• Supportive government policies promoting local packaging production and exports also played a role in the industry's growth.
• The rise of e-commerce further enhanced the accessibility and convenience of purchasing products online, which consequently helped the packaging industry grow.
• High sales of pharmaceutical packaging in Brazil during the COVID-19 Pandemic.

In the forecast period, sales of consumer packaging products in Brazil are projected to soar at 2.8% CAGR, totaling US$ 14.7 billion by 2033. This can be attributed to factors like rising demand for packaged food products, shifting preference toward sustainable packaging in Brazil, and advancements in packaging technology.

Packaging solutions with convenient features like easy-open tabs, resealable zippers, and portion control are becoming popular. Similarly, simplicity and minimalism in consumer packaging are gaining traction across Brazil.

Succeeding in the packaging industry is an enormous task, especially due to the implementation of stringent regulations. As a result, leading consumer packaging manufacturers are embracing innovation to counter environmental regulations and stay ahead of the competition. For instance, they use sustainable materials in their packaging.

Semi-annual Update

Particular	Value CAGR
H1	2.8% (2022 to 2032)
H2	3.0% (2022 to 2032)
H1	2.3.% (2023 to 2033)
H2	2.7% (2023 to 2033)

Insight into Factors Impacting Consumer Packaging Sales in Brazil

• Booming Food and Beverage and Personal Care Industries

Brazil’s food & beverage industry is witnessing steady growth, driven by rapid urbanization and the growing popularity of packaged food items. This will likely uplift demand for food packaging in Brazil throughout the forecast period.

The beverage segment is forecasted to be the fastest-growing segment, expanding at a CAGR of 4.8% during the forecast period. This growth is mainly influenced by the growing consumption of alcoholic and sports drinks across the country.

According to the World Health Organization (WHO), Brazil's alcohol consumption per capita is poised to increase by over 8% per year till 2025. Driven by this, sales of consumer packaging products or beverage packaging in Brazil, like bottles, cans, etc., are expected to rise steadily.

The personal care industry is also witnessing steady growth in Canada owing to increasing health awareness among consumers and the rising export of personal care products. This will likely create demand for aesthetic packaging, thereby fostering revenue growth.

According to the Brazilian Association of the Toiletries, Perfumery, and Cosmetics Industry (ABIHPEC), the country’s personal care exports grew by over 17% QOQ in the first quarter of 2023. This rising export of personal care products is expected to create growth opportunities for consumer packaging manufacturers through 2033.

Outline of Important Trends Shaping Industry Expansion

• Growing Usage of Sustainable Packaging in Brazil

The trend of incorporating paper-based packaging is gaining immense popularity in Brazil owing to the increasing pressure from retail. This, in turn, is expected to open new growth windows for the industry.

Several retailers in Brazil are actively advocating for and embracing paper packaging solutions as a means to meet regulatory standards, maintain a positive brand image, and cater to a discerning consumer base.

According to data from ABRE (Brazilian Packaging Association), the country's overall share of paper-based packaging increased by almost 6% year over year in 2022. This transition toward sustainable packaging solutions will likely foster industry expansion through 2033.

Several consumers in Brazil are also opting for on-the-go food products, consequently putting easy-to-use packaging in the limelight. A study conducted by UFRGS (Universidad Federal de Río Grande del Sur) in 2022 revealed that over 55% of consumers in Brazil prioritize packaging that makes it easy to consume or transport food products.

Comparative View of Adjacent Brazil Consumer Packaging Industry

The consumer packaging industry in Brazil is set to be impacted by the peer or tangential industries in the packaging division. These include the consumer electronics packaging industry and the retail e-commerce packaging business.

The consumer electronics packaging industry is projected to expand rapidly during the assessment period. This is due to the increasing demand for consumer electronics and the rising need for protecting fragile electronic items during storage and transportation.

Sales of retail e-commerce packaging products will likely rise steadily amid the growing popularity of online shopping and increasing penetration of the internet. On the other hand, the Brazil consumer packaging industry is expected to witness slow growth compared to other two related businesses.

Brazil Consumer Packaging Industry Analysis:

Attributes	Brazil Consumer Packaging Demand Outlook
CAGR (2023 to 2033)	2.8%
Growth Factor	Growing demand for packaging from the food & beverage, pharmaceutical, and electronics sectors is expected to boost the growth of the consumer packaging industry in Brazil.
Key Trend	The rising popularity of paper-based consumer packaging solutions is emerging as a key industry-shaping trend.

Global Retail E-commerce Packaging Industry Analysis:

Attributes	Retail E-commerce Packaging Industry Outlook
CAGR (2023 to 2033)	5.0%
Growth Factor	The increasing popularity of online shopping is expected to uplift the demand for retail e-commerce packaging products.
Key Trend	Innovations in e-commerce packaging products, such as the incorporation of digital technologies, will likely boost the e-commerce packaging industry.

Global Consumer Electronics Packaging Industry Analysis:

Attributes	Consumer Electronics Packaging Sales Forecast
CAGR (2023 to 2033)	9.8%
Growth Factor	Rising demand for consumer electronics such as mobile phones, TVs, and computers is expected to boost the growth of the consumer electronics packaging industry.
Key Trend	A notable trend observed in the industry is the shifting preference toward eco-friendly and sustainable consumer electronics packaging solutions.

Category-wise Insights

The section below shows the plastics segment dominating Brazil’s industry. It is projected to advance at 2.9% CAGR between 2023 and 2033. Based on the packaging format, the rigid packaging segment is poised to exhibit a higher CAGR of 3.7% during the forecast period.

Material Type	Value CAGR (2023 to 2033)
Plastics	2.9%
Paper	2.3%

Plastics Remain Widely Used Material for Making Consumer Packaging in Brazil

Based on material, the plastic segment holds a prominent value share of about 50%, despite the environmental impact of plastic and the stringent regulations and policies against it. Over the forecast period, demand for plastic packaging is poised to increase at 2.9% CAGR. This can be attributed to several advantages of plastic packaging, including:

• Lightweight nature
• Versatility
• Better convenience
• Low cost

Packaging giants across Brazil are increasingly using plastics to produce consumer packaging products like films, bottles, and trays, owing to its attractive advantages. This will likely improve the share of the target segment during the forecast period.

Consumers are also using plastic packaging to reduce packaging and transportation costs. Similarly, initiatives and support from the country’s government regarding plastic recyclability and the hike in polymer import tariffs are pushing the integration of materials such as rPET and Bio-Pet into product packaging. This is expected to boost the segment further across the country.

The widespread usage of plastic packaging, however, has raised environmental concerns. As a result, manufacturers are shifting their focus to sustainable plastic alternatives like bioplastics, including polylactic acid (PLA) and starch-based plastics. They are also improving their recycling infrastructure.

Although plastics remain dominant, paper packaging is slowly gaining traction in Brazil. Packaging products such as plastic food trays and sacks are gradually being replaced by paper.

The growing food delivery industry in the country is also driving demand for paper packaging. For instance, a leading Brazil-based food delivery platform named iFood reported a y-o-y growth of 20% in paper bags.

While the competition between plastics and paper is getting closer, the emerging statistics predict the plastic segment will hold a slight edge throughout the forecast period. This will likely be due to the growing usage of bioplastics across the packaging industry in Brazil.

Rigid Packaging Gaining Immense Popularity in Brazil

Packaging Format	Value CAGR
Flexible Packaging	2.3%
Rigid Packaging	3.7%

The clash between rigid and flexible packaging has been raging for decades, with each format offering unique advantages. Currently, the flexible packaging segment dominates the Brazil industry, holding a share of 60.0%. This is due to its features like lightweight and compact nature.

Emerging trends, however, reveal rigid packaging to gain immense traction across Brazil. This can be attributed to durability, barrier properties, reusability, and the premium look and feel of rigid packaging. As per the latest report, demand for rigid packaging is set to increase at 3.7% CAGR through 2033.

• Food safety features, such as tamper-evident seals and airtight packaging, are gaining prominence driven by regulations pertaining to consumer wellbeing. This will boost the expansion of the rigid packaging segment.
• Consumers are also willing to pay extra to ensure the integrity and freshness of the contents inside. Consequently, this is driving the demand for rigid packaging in Brazil, which is poised to grow at a higher CAGR during the forecast period.
• Rigid packaging offers superior protection for products that are fragile or require consistent shape, like beverages and cosmetics. It has the ability to enhance the perceived value of products, making it ideal for luxury or high-end items. The growing usage of rigid packaging products in luxury beverages and cosmetics will likely boost their sales through 2033.

Competitive Landscape

Brazil’s consumer packaging industry is highly competitive, with several key players operating. Top consumer packaging companies listed in the report include WestRock Company, Amcor PLC, Klabin SA, Tetra Pak International SA, Sonoco Products Company, Smurfit Kappa Group, NEFAB Embalagens LTDA, Graphic Packaging International LLC, SSI Schaefer LTDA, and Trivium Packaging.

Leading manufacturers of consumer packaging products in Brazil are innovating to introduce new eco-friendly packaging solutions with novel designs. This not only helps them to woo eco-conscious consumers but also counter environmental regulations. They are continuously increasing their product portfolios to cater to the growing demand from urban households.

Several companies also employ tactics like distribution agreements, partnerships, facility expansions, acquisitions, and mergers to strengthen their presence in Brazil and other regions. This is resulting in a highly competitive and innovative industry that is driving growth and delivering more advanced and sustainable packaging solutions for consumers worldwide.

Recent Developments in the Brazil Consumer Packaging Industry

• In December 2023, Sonoco Products acquired Inapel Embalagens Ltda. in Brazil to expand its flexible packaging service capabilities.
• In August 2022, Canpack announced an investment of around US$ 150 million in a new production facility in Poços de Caldas, Brazil, to increase its manufacturing capabilities of aluminum beverage cans.

Scope of the Report

Attribute	Details
Base Value (2023)	US$ 11.1 billion
Projected Industry Value (2033)	US$ 14.7 billion
Expected Growth Rate (2023 to 2033)	2.8% CAGR
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in US$ billion, Volume in tons, and CAGR from 2023 to 2033
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered	Packaging Format Material End-use Level of Packaging Technology Distribution Channel
Key Companies Profiled	WestRock Company Amcor PLC Klabin SA Tetra Pak International SA Sonoco Products Company Smurfit Kappa Group NEFAB Embalagens LTDA Graphic Packaging International LLC SSI Schaefer LTDA Trivium Packaging

Brazil Consumer Packaging Industry Analysis by Category

By Packaging Format:

• Flexible Packaging
  • Pouches
  • Bags & Sacks
  • Films & Wraps
  • Sachets
  • Stick Packs
  • Cups
  • Tubes
  • Labels
  • Clamshell
• Rigid Packaging
  • Trays
  • Blisters
  • Tubs and Lids
  • Caps & Closures
  • Pump & Dispensers
  • Boxes
  • Cartons
  • Bottles and Jars
  • Cans
  • Cores & Tubes

By Material:

• Plastics
  • Polyethylene
    • HDPE
    • LDPE
    • LLDPE
  • Polypropylene
  • PET
  • PVC
  • Nylon
  • EVOH
  • Polystyrene
  • Post-consumer Recycled (PCR)
  • Bioplastics
    • PLA
    • Starch-based Plastics
    • Bio-PET
    • Bio-PE
    • Others
• Paper
• Aluminum Foil
• Wood
• Metal
  • Aluminum
  • Tin
  • Steel

By Technology:

• Injection Molding
• Thermoforming
• Blow Molding
• Other Technologies
• Extrusion

By Level of Packaging:

• Primary
• Secondary
• Tertiary

By End-use:

• Food
  • Bakery & Confectionary
  • Dairy Products
  • Baby food
  • Edible Oil
  • Meat, Poultry, and seafood
  • Snacks
  • Spices & Condiments
  • Fruits and Vegetables
  • Pet Food
  • RTE Food
  • Pulses and Cereals
• Beverage
  • Alcoholic
    • Beer
    • Wine
    • Spirits
    • Other Alcoholic Beverages
  • Non-alcoholic
    • Fruit Juices
    • Carbonated Drinks
    • RTD Beverages
    • Bottled Water
    • Tea & Coffee
    • Milk Products
• Personal care & Hygiene
  • Skincare
  • Haircare
  • Makeup
  • Fragrance
  • Nail Care
• Homecare & Toiletries
  • Toiletries
  • Laundry Care products
  • Personal Hygiene
  • Air Fresheners
• Pharmaceuticals
• Consumer Electronics
• Medical Devices

By Distribution Channel:

• Online
• Offline

Frequently Asked Questions

How big is the consumer packaging industry in Brazil?

The consumer packaging revenue in Brazil reached US$ 11.1 billion in 2023.

What is the outlook for the consumer packaging industry in Brazil?

The Brazil industry is expected to grow at 2.8% CAGR through 2033.

What is the growth projection for the industry?

The Brazil consumer packaging industry size is set to reach US$ 14.7 billion in 2033.

What are the packaging regulations in Brazil?

Manufacturers must follow customer protection codes and other packaging regulations in Brazil.

Who are the top 3 consumer packaging manufacturers in Brazil?

The Westrock Company, Amcor PLC, and Klabin SA are top players in Brazil.