The growth in domestic demand from the retail and food processing industries and demand for exports in global markets is expected to stimulate growth in the packaging industry in Argentina between 2012 and 2016. During the review period (2006 to 2010), the Argentinean packaging industry continued to record growth, despite the global economic recession.
The Argentine packaging industry has evolved in accordance with developments in the country’s agriculture, food processing and retail sectors. In addition, the above average growth rate in the Argentine retail industry and a growing export market have attracted foreign companies into the country’s packaging industry. In 2011, the Argentine packaging industry accounted for 1.1% of the country’s GDP. During the review period (2006- 2010), the key packaging end markets for the Argentine packaging industry such as retail and processed food and drinks industries, have recorded growth which can be attributed to domestic demand and exports to global markets.Argentine packaging industry supported by domestic demand and proximity to Brazil and the US
Argentina is the second largest country in South America and is the eighth largest country in the world. Argentina is known for its availability of arable land and developed agro-industrial capacity, and is also 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 export opportunities for Argentine products. Between 2007 and 2011, the Argentine packaging industry increased at a compound annual growth rate (CAGR) of around 6% and is expected to at a similar rate during the forecast period (2011–15).
Growth in organized retail such as supermarkets and hypermarkets expected to drive Argentine packaging industry growth
In 2009, organized retail stores such as hypermarkets, supermarkets and warehouse stores, accounted for 31% of the country’s food and drinks market. Many leading international retail companies such as Wal-Mart, Carrefour, Casino and Jumbo operate in Argentina, and Coto and La Anonima are the only large retailers which are domestically owned. Hypermarkets and supermarkets are expanding 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, 70% are sold through large retail outlets, and the increased penetration of large retail outlets coupled with higher sales volumes is expected to support demand in the Argentine packaging industry during the forecast period (2011–15).
Growth in packaging machinery demand is largely driven by agriculture and food processing industry growth
The Argentine packaging industry has evolved in accordance with the development of the country’s agriculture, food processing and retail sectors and investment in technology. Moreover, the growth strategy adopted by the large retail companies is expected to further stimulate the Argentine packaging machinery market between 2012 and 2016.
The implementation of recycling law in Argentina remains unapproved by government
In Argentina, waste management and recycling law has not been approved or implemented by the country’s government. Although the National Packaging Law, a bill on the environment and recycling initiatives was drafted in 2005, it has not been debated in Congress. The bill was drafted with the participation of the Argentine government and industry representatives and focuses on the reduction of solid waste and toxins in the environment. Any further delay in the implementation of waste management and recycling law will have a detrimental impact on the growth of the Argentine packaging industry.
Growth in organized retail and food processing industries expected to enhance the penetration of packaging materials
In Argentina the growth in the retail and food processing industries will increase the market size and penetration of the Argentine packaging industry, as a result of the increased demand for packaging materials and products. With the rise of supermarkets and hypermarkets, the country’s retail sector has demonstrated growth. Moreover, the growth in the food processing sector in addition to the retail growth is forecast to increase the penetration of the packaging industry in Argentina to 2016.
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The Indian packaging industry is growing by leaps and bounds as reported by a recent study which indicated that the industry is growing at a fast pace of 11% annually and is estimated to cross the 95,000 crore mark by 2015. This is the way the industry is growing and thanks to players like Uflex Ltd that are contributing to this growth with their outstanding initiatives and product portfolios.
ReplyDeleteDuring the financial year ended March 31, 2012, Uflex Ltd completed the 2nd phase of expansion of its facility in Mexico
ReplyDeleteaggregating a total capacity of 60000 MT of PET film and commissioned an AL-OX coater, CPP plant of 12000 MTs and PET
film of 30,000 MTs in Egypt. Earlier, Uflex had initiated the setting up of a new plant for manufacturing of 30,000 MTs of
polyester film in Poland. The project is now commissioned successfully. The Company also announced plans to set up
polyester film plant in Kentucky, US. The 1st phase will be commissioned by December 2012 having annual capacity of
30000 MTs.