Argentine Packaging Industry Forecast Until 2015

Despite competition from Italian, Canadian and Russian packaging markets, Argentina has maintained its top global market position as the 13th largest packaging industry in the world.

London – 10 November 2011 – The industry recently experienced a period of steady growth due to developments in the country’s agriculture, food processing and retail sectors, and factors such as an above average growth rate in the retail industry, and a growing export market have encouraged FDI (foreign direct investment) in the market. ICD Research anticipates that further growth in the country’s organized retail sector will continue to drive Argentine packaging industry growth, despite factors such as inadequate recycling law.

During the review period (2006–10), the Argentine packaging industry registered a steady CAGR (compound annual growth rate) and throughout the forecast period the industry’s CAGR is expected to improve, to reach approximately US$5 billion in 2015. Key packaging end markets, such as the retail and processed food and drinks industries, have steadily increased throughout the review period, focusing on both domestic demand and export to global markets.

Growth in organized retail to drive packaging industry growth
In 2009, organized retail stores, such as hypermarkets, supermarkets and warehouse stores, accounted for approximately 30% of the country’s food and drinks market. Hypermarkets and supermarkets have begun to expand their presence in the country’s retail market through the purchase of smaller chains and the opening of new stores. Of total imported food and drink products, more than two-thirds are sold through large retail outlets, and the increased penetration of such retail forms coupled with higher sales volumes has enhanced demand for packaging materials in the country.

Domestic demand and proximity to Brazil and the US
Argentina, the second largest country in South America and the eighth largest country in the world, is known for its vast resources of arable and developed agro-industrial capacity. As a result, the country is one of the largest producers of vegetable oil, including soybean oil, sunflower oil and peanut oil, in the world. In addition, Argentina’s proximity to countries such as the US and Brazil provides a key export opportunity for Argentine products.

Packaging machinery demand largely driven by growth in agriculture and food processing industry
The Argentine packaging industry has evolved in accordance with the expansion of the country’s agriculture, food processing and retail sectors, and investment in technology, combined with the growth strategy adopted by large retail companies, will further stimulate the packaging machinery market throughout the course of the forecast period (2010–15). Large food processing companies and food exporters are the major and largest consumers of Argentine packaging machinery, and primarily rely on the import of packaging equipment in order to ensure technologically advanced equipment to package their products. Other sectors such as household consumer goods and cosmetics continue to follow the trend set by food processing companies.

Argentine recycling law remains unapproved by government
The lack of implementation of waste management and recycling law remains a major challenge for the Argentine government. Despite the existence of the National Packaging Law since 2005, in 2009 the law, which consists of environmental legislation and recycling initiatives, was yet to be debated in Congress. The bill was drafted with the participation of the government and industry representatives and focuses on the reduction of solid waste and toxins in the environment.

Throughout the world countries are currently attempting to implement and improve waste management and recycling law, and any further delay in the implementation of such law in Argentina may have a negative impact on the growth of the country’s packaging industry.

Market concentration
Argentina’s packaging industry is diversified and competitive, and the landscape of the industry varies depending on the specific industry category. The paper and board and rigid plastic packaging categories are moderately consolidated with between five and ten companies commanding more than 50% of total market share. The flexible plastic category is less fragmented and is dominated a small number of large manufacturing companies, and glass packaging is highly concentrated, with only five large companies commanding of the majority of the market share.

To purchase the full version of ‘The Argentine Packaging Industry – Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015’, please click here.

About Industry Review:

Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.

We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.

The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.

With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.

For more information, please visit our website at www.industryreview.com

For more information on the article, please contact:

Press Contact:
Shelly Wills
Tel: +44 (0) 20 7936 6671
shelly.wills@industryreview.com