XXV NATIONAL CONGRESS -AMEE III … · The Packaging Industry in Latin America XXV NATIONAL CONGRESS -AMEE III INTERNATIONAL CONGRESS “Strengths and Weaknesses in the Packaging

The Packaging Industry in Latin America

XXV NATIONAL CONGRESS XXV NATIONAL CONGRESS -- AMEE AMEE III INTERNATIONAL CONGRESSIII INTERNATIONAL CONGRESS

““ Strengths and Weaknesses in the Packaging Industry Around the WoStrengths and Weaknesses in the Packaging Industry Around the Worldrld ””

Ernesto Silva

President ULADE

México

Colombia

Perú

Bolivia

Brasil

Argentina

Chile

Sede de ULADE

Union of Latin American Packaging Associations (ULADE)

Members of ULADE

ECONOMICECONOMICINDICATORSINDICATORS

2008 2009* EstimateGDP Nominal (US$bn) $ 3,938 $ 3,630GDP per capita (US$) $ 8,372 $ 7,625Unemployment Rate (%) 6.9 7.5

Source : Economic Outlook and Strategy - Citigroup Globa l Markets

Economic IndicatorsLatin America


Argentina

Ecuador México

PerúVenezuela

Uruguay

BrasilChileColombia

Bolivia

0

2

4

6

8

10

12

0 2000 4000 6000 8000 10000 12000

GD

P A

vg. G

row

th i

n 2

006-

2008

GDP per Capita 2008 (USD)

Source : Comisión Económica para América Latina y el Caribe (CEPAL)


GDP per Cápita and Average Growth by Country

-6

-4

-2

0

2

4

6

8

10

12

2006 2007 2008 2009*

ArgentinaBoliviaBrazilChileColombiaEcuadorMexicoPeruL A & C

GDP % by Country

% GDP



* Estimate

PACKAGING INDUSTRYPACKAGING INDUSTRY


020000400006000080000

100000120000140000160000

Wes

tern

Eur

ope

Nor

thA

mer

ica

Asi

a

Eas

tern

Eur

ope

Latin

Am

eric

a

Mid

dle

Eas

t

Afri

ca

Aus

trala

sia

Source : PIRA International, Ltd

Global Packaging Industry by Region (MM USD)2007


0

2000

4000

6000

8000

10000

12000

2002 2003 2004 2005 2006 2007

Carton BoardRigid PlasticFlexible PackMetalGlassOthers

(Flexible Plast, Foil, Paper)

Source : PIRA International Ltd

Growth by Type of Packaging Material


30%

24%16%

22%

8%

CartonboardPlasticMetalGlassWood

Packaging Consumption by type of Material

Source : AMEE, ABRE, CENEM, IAEMex, Bra, Chile y Arg. (2007)


0

2000

4000

6000

8000

10000

12000

14000

2002 2005 2006 2007

Food

Beverage

Personal Care

Cosmetics

Other ConsumerProductsIndustrial


Packaging Growth by Market Segments


Production ( M Tons)

0

2000

4000

6000

8000

10000

12000

14000

16000

2004 2005 2006 2007 2008 2009

BrazilMexicoArgentinaChile

Source : AMEE, ABRE, CENEM, IAE


Argentina

Brazil

Chile

Mexico

-5

0

5

10

15

20

25

30

35

40

0 50 100 150 200


Vo

lum

e G

row

th in

200

4-20

08

Packaging per Capita 2007 (USD)

Packaging per Cápita and Volume Growth in Selected Countries


-2

-1

0

1

2

3

4

5

6

7

2006 2007 2008 2009*

GDP %Pack Volume %

Comparison of LA GDP with PackagingIndustry (%)

%

Source : Comisión Económica para América Latina y el Caribe (CEPAL)AMME, ABRE, CENEM, IAE

(Arg., Bra, Chile, Mex.)

**

* Estimate

Impact of the Economic Situation in thePackaging Industry

Survey to see changes in consumer behaviour

76

24

74

26

88

12

0

20

40

60

80

100

Brand Size Point ofPurchase

No Change Change

Source : Procuraduría Federal del Consumidor, Abril 2009, México

• Migration to less prestigious brands

• Change to less expensive presentations

(refillable packs)

• Move to Institutional Packages

• Buy smaller sizes

• Buy more individual packages

• Switch to concentrated products

• Migration to less sophisticated stores

• Migration to non packaged products

Impact of the Economic Situation in thePackaging Industry

POPULATION IN POPULATION IN LATIN AMERICALATIN AMERICA

0

100

200

300

400

500

1960 1970 1980 1990 2000 2008

EcuadorChileVenezuelaPerúArgentinaColombiaMéxicoBrasil

Total Population in 2008: 580 MM


Population in Latin America

Why the continuous decrease in population growth rates ?– People getting married at

older age– Increased number of

divorces– Increased number of

persons living alone– Increased number of working

women– Increased migration of young

adults to other countries

Growth Rate in 2007 : 1.9%

Population in Latina America

Fecundity Rate 1950 - 2000 Life Expectancy 1950 - 2000


Number of Persons of more than 60 and 80 years old in LA(in millions)

0

20

40

60

80

100

120

140

160

180

200

1950 1975 2000 2025 2050

<5 años>60 años>80 años

Fuente: Naciones Unidas Proyecciones de Población, 2006


Personas de 60 años o más años de edad en América Latina y el Caribe, por sexo (en millones)

0

20

40

60

80

100

120

1950 1975 2000 2025 2050

Mujeres 60+Hombres 60+

Source : Naciones Unidas Proyecciones de Población, 2006


Number of Persons of more than 60 and 80 years old by Sex(in millions)

Women 60 +Men 60 +

Argentina

Ecuador

MéxicoBrasil

Chile

Colombia Perú

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

5 7 9 11 13 15

An

nu

al A

vg. G

r ow

th R

ate

in 2

004-

2008

% of 60 year old persons in 2008



Average Growth Rate and % of 60 year old persons by Country

%

The increased number of elderpeople implies a growth andspecialization of Packages forPharmaceutical products

• More packages designed for elderpeople, and specially for elder women

• Growth for Pharmaceutical products• Growth of local production• Growth of generic products• Growth and diversification of sales

channels for pharmaceutical products

0

100

200

300

400

500

600

Chile Argentina Mexico Brazil

200120062011

Growth of Packages for the Pharmaceutical Industry

MM USD

Source : Global Pharmaceutical Market, May. 2008

Effect of Socioeconomic Changes in thePackaging Industry

Growth of Pharmaceutical Industry in LA

Increased number of people living in urban areas implies changes in consumers lifestyles

• Growth of packaged products

• Growth of ready to eat products

• Growth of easy to cook and pre

cooked products

• Longer shelf life products

• Growth of convenience products (on

the go, easy to open…)

• Growth of retailers


Population Growth in Urban Areas

The growth of Retailers imply an

increased growth, diversity and quality

of packages

• Growth of retail chains vs. traditional markets,

mom & pop stores and open markets

• Products that traditionally were not packaged, will

be packaged and commercialzed by retailers

• Increased power of retail chains in the value chain

• Increased influence in the packaging decisions

• Growth of retail brands

• Growth of regional and international retailers


Growth of Retailers in LA

13

28.3

9.5

28.4

24.2

15.2

41.6

9.5 %

CAGR2002 - 2007

México

México

México

Chile

Brasil

México

Chile

Brasil

Country ofOrigin

México6.0Soriana1373

Brasil5.4Casas Bahía1474

Arg, Chile, Col, Perú

5.2Falabella1545

Argentina, Brasil, Chile

7.1Cencosud1122

Countries ofoperation

Sales (Billions USD)

CompanyGlobal

RankingRanking

L A

México3.5El Puerto de Liverpool2138

México3.9FEMSA Comercio1967

México4.5Comercial Mexicana1686

Brasil$ 7.7CBD Grupo Pao de Acucar1061

Source : Global Powers of Retailing 2009, Deloitte


Growth of Local and Regional Retailers

LAUNCH OF NEW PRODUCTS & LAUNCH OF NEW PRODUCTS & INNOVATIONSINNOVATIONS

Launch of New Products in Latin America

category10planit_nb_10none0yplanityesgraphbaryesyesyesyesnoyesyesyesyesyesallallC/sinatra/gn/sinatra/gn

10850

7278

2559 2340 1858 15680

2000

4000

6000

8000

10000

12000

Bra

sil

Méx

ico

Arg

entin

a

Chi

le

Col

ombi

a

Ven

ezue

la

Source : Mintel

Launch of New Products by Country2008



0

2000

4000

6000

8000

10000

12000

14000

16000P

last

ic

Oth

er

Car

tonb

oard

Gla

ss

Met

al

Pap

er

Source : Mintel

15,594

2,661 2,621 2,016 1,495

495

Launch of New Products by Type of Packaging Material2008



0

1000

2000

3000

4000

5000

6000

7000

Fle

xibl

e

Bot

tle

Car

ton

Jar

Tub

e

Bag

Can

Buc

ket

Sac

het

Sta

nd U

p P

ouch

Source : Mintel

6,386 6,329

2,4141,697 1,622 1,435 1,036 981 884

466

Launch of New Products by Type of Package2008



0

500

1000

1500

2000

2500

3000

Bak

ery

Non

Alc

ohol

icB

ever

ages

Sau

ces

&C

ondi

men

ts

Cos

met

ics

Cap

ilar

Cos

met

ics

Dai

ry P

rodu

cts

Sna

cks

Col

ored

Cos

met

ics

Soa

ps &

Bat

hP

rodu

cts

Pro

cess

ed M

eat,

Fis

h, P

oultr

y &

Egg

s

Source : Mintel

2,510

2,115 1,959 1,953 1,949

1,410

1,118 1,104940 936


Launch of New Products by Market Segment2008

Gracias !

Obrigado !

Thank you !

Documents

XXV NATIONAL CONGRESS -AMEE III … · The Packaging Industry in Latin America XXV NATIONAL CONGRESS -AMEE III INTERNATIONAL CONGRESS “Strengths and Weaknesses in the Packaging