Packaging Industry in Argentina

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Packaging Industry in Argentina

  1. 1. Packaging Industry in ArgentinaReport Details:Published:August 2012No. of Pages:Price: Single User License – US$1900Discover the latest market trends and uncover sources of future market growth for the Packagingindustry in Argentina with research from Euromonitors team of in-country analysts.EXECUTIVE SUMMARYAgro Andina SA introduces Tetra Recart in ArgentinaIn 2011, Tetra Recart entered the Argentine market to compete with the metal food can.Specifically, in January the company Agro Andina SA, which focuses on the production of cannedpreserved food, started using the Tetra Recart packaging system of Tetra Pak SRL, the only liquidcarton company present in Argentina. This packaging, designed for food products and to mainlyreplace metal food cans, was due to become available in the market at the end of 2011. TetraRecart has the advantage of being a completely innovative packaging that allows Agro Andean todifferentiate itself completely from the competition.Loss of purchasing power promotes the use of returnable packagingAccording to economic consultants, in 2010 and 2011 rates of inflation were seen that depreciatedthe purchasing power of consumers. In order not to lose custom companies carried out importantcampaigns and launches to encourage the use of returnable containers. In 2010, Coca-ColaArgentina SA launched the brand Sprite in returnable PET bottles of two litres. The company alsolaunched a major campaign on radio and TV under the name "Ama de Casa" to encourage thepurchase of returnable bottles. In 2011, Cerveceria y Maltería Quilmes SAICAyG announced aninvestment plan to modernise its fleet of manufacture of returnable glass bottles.Bottlenecks in the packaging industry impact on pricesIn 2010 and 2011 the packaging industry experienced serious problems of supply in both domesticand imported production. Packaging companies are working at the limit of their capacity forproduction and imports are practically paralysed by the Secretary of the Trades to improve thebalance of payments. Limitations on the offer have the impact of a sharp increase in prices. Forexample, in glass bottles prices rose 30% in 2010 and a further 10% in the first quarter 2011. Inthe paper and carton industry, in 2010 the increase in prices of this packaging was 25% and in2011 it was expected to be around 30%.High inflation drives demand and innovation in family pack sizesIn 2010 and 2011 inflation was estimated by private consultants to have been higher than 20%annually. Consequently, consumers demanded family packaging, given the lower relative price.This increased demand resulted in major launches and innovations. In terms of launches, in 2011
  2. 2. Coca-Cola de Argentina SA stood out with the brands Coca-Cola and Sprite with PET bottles ofthree litres and Zumo Natural in 100% juice with PET bottles of two litres. In terms of innovations,RPB SA, leader in nectars, introduced the first brick liquid carton of 1.5 litres in Argentina – thelargest pack size was previously one litre – under its brand Baggio Light in October 2010.New anti-tobacco law significantly impacts packagingIn 2011, a new anti-tobacco law was approved that had a great impact on the packaging ofcigarettes. The new law is similar to the ones already implemented in countries like Brazil. Eachpack of cigarettes must display a smoking prevention legend. This text must be approved by theMinistry of Health and must be changed every six months. On the other side of the packagingthere will be a picture showing the consequences of smoking and must cover at least 50% of thesurface. Although these changes were due to be implemented by the end of 2012, as a result ofthe stock of packaging that companies were holding and the messages that were still to bedeveloped by the Ministry of Health there were some delays to the implementation.Get your copy of this report @http://www.reportsnreports.com/reports/190574-packaging-industry-in-argentina.htmlMajor points covered in Table of Contents of this report includeTable of ContentsPackaging in Argentina - Industry OverviewEXECUTIVE SUMMARYAgro Andina SA introduces Tetra Recart in ArgentinaLoss of purchasing power promotes the use of returnable packagingBottlenecks in the packaging industry impact on pricesHigh inflation drives demand and innovation in family pack sizesNew anti-tobacco law significantly impacts packagingKEY TRENDS AND DEVELOPMENTSSupply problems in the packaging industry impact on pricesHigh inflation boosts consumption of and investment in returnable bottlesCompanies that follow environmental practices reduce costs and improve its imageCompanies introduce new packaging to attract customersPACKAGING LEGISLATIONNo changes to the current legislation in 2010National Packaging Legislation under consideration since 2005Buenos Aires new packaging legislation under consideration: chapter IBuenos Aires new packaging legislation under consideration: chapter IIThe current packaging legislationSUSTAINABILITY, RECYCLING, GREEN ISSUES AND THE ENVIRONMENTA very early stage of developmentThe municipality of Tigre launches a recycling programme along with CabelmaGrowth of recycling experiences in Greater Buenos AiresTetra Pak a pioneer in recycling and care of the environmentCerveceria y Malteria Quilmes launches a new recycling programme
  3. 3. Quilmes implements a new and modern system of waste collectionTable 1 Overview of Packaging Recycling and Recovery in the Argentina 2009/2010 and Targetsfor 2011CATEGORY DATATable 2 FMCG Packaging by Pack Type: Retail Unit Volume 2005-2010Table 3 FMCG Packaging by Pack Type: % Retail Unit Volume Growth 2005-2010Table 4 Total Packaging by Industry: Retail Unit Volume 2005-2010Table 5 Total Packaging by Industry: % Retail Unit Volume Growth 2005-2010Table 6 FMCG Closures by Type: Retail Unit Volume 2005-2010Table 7 FMCG Closures by Type: % Retail Unit Volume Growth 2005-2010Table 8 Total Closures by Industry: Retail Unit Volume 2005-2010Table 9 Total Closures by Industry: % Retail Unit Volume Growth 2005-2010Table 10 Forecast FMCG Packaging by Pack Type: Retail Unit Volume 2010-2015Table 11 Forecast FMCG Packaging by Pack Type: % Retail Unit Volume Growth 2010-2015Table 12 Forecast Total Packaging by Industry: Retail Unit Volume 2010-2015Table 13 Forecast Total Packaging by Industry: % Retail Unit Volume Growth 2010-2015Table 14 Forecast FMCG Closures by Type: Retail Unit Volume 2010-2015Table 15 Forecast FMCG Closures by Type: % Retail Unit Volume Growth 2010-2015Table 16 Forecast Total Closures by Industry: Retail Unit Volume 2010-2015Table 17 Forecast Total Closures by Industry: % Retail Unit Volume Growth 2010-2015Packaging in Argentina - Company ProfilesAmerican Plast SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 3 Major End-use Markets for American Plast SA by Pack Type 2010COMPETITIVE POSITIONINGBolsaflex SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 6 Major End-use Markets for Bolsaflex SA by Pack Type 2010COMPETITIVE POSITIONINGCartocor SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 9 Major End-use Markets for Cartocor SA by Pack Type 2010COMPETITIVE POSITIONING
  4. 4. Corandes SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 12 Major End-use Markets for Corandes SA by Pack Type 2010COMPETITIVE POSITIONINGCristalerías Rosario SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 15 Major End-use Markets for Cristalerías Rosario SA by Pack Type 2010COMPETITIVE POSITIONINGEx Rayen Cura SAIC in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 18 Major End-use Markets for Verallia Argentina by Pack Type 2010COMPETITIVE POSITIONINGRexam Argentina SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 21 Major End-use Markets for Rexam Argentina SA by Pack Type 2010COMPETITIVE POSITIONINGRigolleau SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 24 Major End-use Markets for Rigolleau SA by Pack Type 2010COMPETITIVE POSITIONINGTetra Pak SRL in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 27 Major End-use Markets for Tetra Pak SRL by Pack Type 2010COMPETITIVE POSITIONING
  5. 5. Zucamor SA in Packaging Industry (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 30 Major End-use Markets for Zucamor SA by Pack Type 2010COMPETITIVE POSITIONINGClosures in Argentina - Category AnalysisHEADLINESTRENDSIn 2011 sales of total closures grew by 3% in volume terms to reach 16.5 billion units. Plasticscrew closures remained the main closure type with 7.4 billion units or a 45% volume share.Plastic screw closures benefited as companies, particularly in soft drinks, replaced glass bottleswith rigid plastic. This trend is being driven by nectars, with the appearance of PET bottles in2010, and carbonates, with the recent launch of returnable PET bottles by Coca-Cola Argentina.COMPETITIVE LANDSCAPEIn Argentina, the competitive environment in closures is highly fragmented and it is very difficult toidentify a leading company. A large number of companies, from small local businesses tomultinationals, produce different closures for the packaging industry.Table 18 Ranking of Major Closure Companies 2010PROSPECTSOver the forecast period, sales of total closures are predicted to grow by a 3% volume CAGR toreach 18.3 billion units in 2015. Plastic screw closures is expected to accounted for a 45% shareof growth, driven by soft drinks packaging.CATEGORY DATATable 19 FMCG Closures by Type: Retail Unit Volume 2005-2010Table 20 FMCG Closures by Type: % Retail Unit Volume Growth 2005-2010Table 21 Total Closures by Industry: Retail Unit Volume 2005-2010Table 22 Total Closures by Industry: % Retail Unit Volume Growth 2005-2010Table 23 Forecast FMCG Closures by Type: Retail Unit Volume 2010-2015Table 24 Forecast FMCG Closures by Type: % Retail Unit Volume Growth 2010-2015Table 25 Forecast Total Closures by Industry: Retail Unit Volume 2010-2015Table 26 Forecast Total Closures by Industry: % Retail Unit Volume Growth 2010-2015Flexible Packaging in Argentina - Category AnalysisHEADLINESTRENDSIn 2011 flexible packaging registered volume sales growth of 3% to reach 25.4 billion units.Flexible packaging is the most widely used pack type in Argentina, accounting for a 53% share ofpackaging volume sales in 2011. This share increased only marginally between 2005 and 2011.High utilisation is explained by the low cost of this pack type compared to potential substitutes andthe large number of companies that produce flexible packaging in Argentina.
  6. 6. COMPETITIVE LANDSCAPEFlexible packaging is produced by a very large number of companies and it has, along with rigidplastic, one of the most fragmented competitive landscapes. Bolsaflex is one of the leadingpackagers in the country, accounting for around a 20% unit volume share of flexible plastic sales.Overall, the company’s annual production is 6,000 tonnes of product, with chocolate confectionery,kitchen towels, pet food and ice cream among the most important.Table 27 Ranking of Major Flexible Packaging Companies 2010PROSPECTSOver the forecast period, flexible packaging sales are expected to grow by a 3% volume CAGR toreach 28.2 billion units in 2015. Flexible packaging’s share of FMCG packaging unit volume salesis predicted to remain stable up to 2015. This is because the packaging industry is set to grow at asimilar rate to flexible packaging.CATEGORY DATATable 28 FMCG Packaging by Flexible Pack Type: Retail Unit Volume 2005-2010Table 29 FMCG Packaging by Flexible Pack Type: % Retail Unit Volume Growth 2005-2010Table 30 Flexible Packaging by Industry: Retail Unit Volume 2005-2010Table 31 Flexible Packaging by Industry: % Retail Unit Volume Growth 2005-2010Table 32 Forecast FMCG Packaging by Flexible Pack Type: Retail Unit Volume 2010-2015Table 33 Forecast FMCG Packaging by Flexible Pack Type: % Retail Unit Volume Growth 2010-2015Table 34 Forecast Flexible Packaging by Industry: Retail Unit Volume 2010-2015Table 35 Forecast Flexible Packaging by Industry: % Retail Unit Volume Growth 2010-2015Glass Packaging in Argentina - Category AnalysisHEADLINESTRENDSIn 2011 there was a strong limitation on the supply of glass bottles and a significant price increase.The strong growth in demand, particularly in wine, encouraged manufacturers of glass packagingto produce at full capacity. Also, imports of glass bottles were limited, as the Secretary ofCommerce imposed certain constraints in order to control the trade balance. Consequently, theprice of glass bottles rose by 30% in 2010 and by 10% in Q1 2011.RETURNABLESCOMPETITIVE LANDSCAPECattorini Hnos is the most important producer of glass packaging, accounting for around one halfof unit volume sales in 2010. Cattorini sells to leading companies in the country, especially glassbottles to alcoholic drinks manufacturers. Its main clients include Cervecería y Maltería Quilmes,Grupo Peñaflor SA and FeCoVitA Coop Ltda.Table 36 Ranking of Major Glass Packaging Companies 2010PROSPECTSOver 2010-2015, glass packaging sales are expected to grow by a 2% volume CAGR; an increaseof 427 million units. Glass packaging is predicted to provide one of the slowest unit volume growthperformances in the forecast period. This is mainly because companies continue to replacingglass containers in key industries such as soft drinks, where glass packaging is projected to grow
  7. 7. by only a 1% unit volume CAGR.CATEGORY DATATable 37 FMCG Packaging by Glass Pack Type: Retail Unit Volume 2005-2010Table 38 FMCG Packaging by Glass Pack Type: % Retail Unit Volume Growth 2005-2010Table 39 Glass Packaging by Industry: Retail Unit Volume 2005-2010Table 40 Glass Packaging by Industry: % Retail Unit Volume Growth 2005-2010Table 41 Forecast FMCG Packaging by Glass Pack Type: Retail Unit Volume 2010-2015Table 42 Forecast FMCG Packaging by Glass Pack Type: % Retail Unit Volume Growth 2010-2015Table 43 Forecast Glass Packaging by Industry: Retail Unit Volume 2010-2015Table 44 Forecast Glass Packaging by Industry: % Retail Unit Volume Growth 2010-2015Liquid Cartons in Argentina - Category AnalysisHEADLINESTRENDSOne of the most important developments in 2011 was the launch of Tetra Recart to compete withmetal food can. In January, Agro Andina, which focuses on the production of canned/preservedfood, purchased the Tetra Recart system from Tetra Pak. This packaging is designed to replacemetal food can due to its lighter and easier to open advantages. Tetra Recart is a completelyinnovative packaging system, which allows Agro Andina to differentiate from its products from thecompetition. This packaging will be available in supermarkets by the end of 2011.COMPETITIVE LANDSCAPETetra Pak is the only liquid carton-producing company in Argentina; therefore its role is essential infood and beverage packaging. The new company announced investments in 2011-2013 in orderto incorporate new technology and create a third production line at the only plant in Argentina, inthe province of La Rioja. In 2010, the packager’s sales reached ARS1.3 billion.Table 45 Ranking of Major Liquid Carton Companies 2010PROSPECTSIn the forecast period, it is anticipated that 1.5 litre liquid cartons, recently launched by the RPB SAin nectars, will be developed in 100% juice and/or wine. Consumers continue to demand familypack sizes to ensure the lowest unit price per litre; therefore, liquid cartons must compete with 2-3litre HDPE and PET bottles. It is feasible that Tetra Pak, the only liquid carton company inArgentina, will develop a pack size bigger than 1.5 litres to compete with rigid plastic, which hasthe benefit of higher capacity.CATEGORY DATATable 46 FMCG Packaging by Liquid Carton Type: Retail Unit Volume 2005-2010Table 47 FMCG Packaging by Liquid Carton Type: % Retail Unit Volume Growth 2005-2010Table 48 Liquid Cartons by Industry: Retail Unit Volume 2005-2010Table 49 Liquid Cartons by Industry: % Retail Unit Volume Growth 2005-2010Table 50 Forecast FMCG Packaging by Liquid Carton Type: Retail Unit Volume 2010-2015Table 51 Forecast FMCG Packaging by Liquid Carton Type: % Retail Unit Volume Growth 2010-2015Table 52 Forecast Liquid Cartons by Industry: Retail Unit Volume 2010-2015
  8. 8. Table 53 Forecast Liquid Cartons by Industry: % Retail Unit Volume Growth 2010-2015Metal Packaging in Argentina - Category AnalysisHEADLINESTRENDSIn 2011, metal packaging sales reached 1.5 billion units, an increase of 4% or 53 million units on2010. The pack type’s share of total FMCG packaging volume sales remains insignificant andbelow the level of the 1990s. Reduced participation is exclusively explained by the higher cost ofmetal packaging compared to other materials such as PET and even glass. As a result,companies replaced metal packaging with cheaper alternatives during the review period.COMPETITIVE LANDSCAPEIn Argentina, Envases del Plata is the leading company in metal packaging. Envases del Plata isthe leading producer of metal aerosol can, aluminium bottles, aluminium foil, aluminium trays andblisters. The packager has a plant in the province of Buenos Aires and one in San Luis. Its mainclients are multinational companies, such as: Unilever Argentina SA; Avon Argentina; Colgate-Palmolive Argentina SA; Massalin Particulares SA; British American Tobacco Group; and NestléArgentina SA.Table 54 Ranking of Major Metal Packaging Companies 2010PROSPECTSTetra Pak SRL launched Tetra Recart in Argentina in 2011. Tetra Recart, developed to replacemetal food can, was introduced in Argentina by Agro Andina SA. In the forecast period, it isanticipated that other companies will begin to use Tetra Recart, which will impact negatively on theuse of metal food can. Tetra Pak’s new packaging has the advantage of being very innovative andit can clearly differentiate products.CATEGORY DATATable 55 FMCG Packaging by Metal Pack Type: Retail Unit Volume 2005-2010Table 56 FMCG Packaging by Metal Pack Type: % Retail Unit Volume Growth 2005-2010Table 57 Metal Packaging by Industry: Retail Unit Volume 2005-2010Table 58 Metal Packaging by Industry: % Retail Unit Volume Growth 2005-2010Table 59 Forecast FMCG Packaging by Metal Pack Type: Retail Unit Volume 2010-2015Table 60 Forecast FMCG Packaging by Metal Pack Type: % Retail Unit Volume Growth 2010-2015Table 61 Forecast Metal Packaging by Industry: Retail Unit Volume 2010-2015Table 62 Forecast Metal Packaging by Industry: % Retail Unit Volume Growth 2010-2015Paper-based Containers in Argentina - Category AnalysisHEADLINESTRENDSIn 2011, paper-based containers grew by 4% in volume sales terms to reach 3.9 billion units.Folding cartons remains the main pack type, accounting for almost a 100% unit volume share inpaper-based containers. Composite containers and bag in box account for tiny unit volume shares.COMPETITIVE LANDSCAPECartocor is the leading manufacturer of paper-based containers in Argentina, with a 30% share ofunit volume sales in 2011. The company is dedicated to the production of corrugated carton as
  9. 9. well as the manufacture of paper, which is the basic raw material. Cartocor, which belongs toGrupo Arcor, had an annual production capacity of 300,000 tonnes in 2010. Of its total production,10% meets the needs of Grupo Arcor, while 90% is for other customers, divided into fresh producemarkets (fruit and vegetables), industrial (dairy, meat, sweets, etc) and special products.Table 63 Ranking of Major Paper-based Container Companies 2010PROSPECTSPaper-based containers is set to record a 3% volume CAGR over the forecast period to reach 4.3billion units in 2015. This expansion is mainly due to food and tobacco packaging, which areexpected to account for a 72% share of unit volume sales growth.CATEGORY DATATable 64 FMCG Packaging by Paper-Based Container Type: Retail Unit Volume 2005-2010Table 65 FMCG Packaging by Paper-Based Container Type: % Retail Unit Volume Growth 2005-2010Table 66 Paper-Based Containers by Industry: Retail Unit Volume 2005-2010Table 67 Paper-Based Containers by Industry: % Retail Unit Volume Growth 2005-2010Table 68 Forecast FMCG Packaging by Paper-Based Container Type: Retail Unit Volume 2010-2015Table 69 Forecast FMCG Packaging by Paper-Based Container Type: % Retail Unit VolumeGrowth 2010-2015Table 70 Forecast Paper-Based Containers by Industry: Retail Unit Volume 2010-2015Table 71 Forecast Paper-Based Containers by Industry: % Retail Unit Volume Growth 2010-2015Rigid Plastic Packaging in Argentina - Category AnalysisHEADLINESTRENDSAt the end of 2010 rigid plastic ended the monopoly of liquid cartons in nectars, one of the mostimportant product types in soft drinks. Coca-Cola Argentina SA launched Cepita in 300ml and 1.5litre PET bottles. The companys strategy is to increase the demand from adults, as nectars inliquid cartons is strongly linked to children. Coca-Cola Argentina made a large investment toproduce PET containers for the Cepita brand.RETURNABLESCOMPETITIVE LANDSCAPEIn Argentina, American Plast is the leading producer of rigid plastic and flexible plastic in 2011.Annual production reaches over one billion units of rigid plastic containers. The company exportsto major countries in the region. Its production of thin wall plastic containers for yoghurt andmargarine stands out.Table 72 Ranking of Major Rigid Plastic Packaging Companies 2010PROSPECTSOver the forecast period, rigid plastic packaging is expected to grow by a 3% volume CAGR toreach 12.3 billion units. Only glass packaging is predicted to record slower growth. Rigid plastic isan established and stable pack type in soft drinks and food and non-food industries. It will continueto replace glass bottles in some soft drinks categories in the forecast period.
  10. 10. CATEGORY DATATable 73 FMCG Packaging by Rigid Plastic Pack Type: Retail Unit Volume 2005-2010Table 74 FMCG Packaging by Rigid Plastic Pack Type: % Retail Unit Volume Growth 2005-2010Table 75 Rigid Plastic Packaging by Industry: Retail Unit Volume 2005-2010Table 76 Rigid Plastic Packaging by Industry: % Retail Unit Volume Growth 2005-2010Table 77 Forecast FMCG Packaging by Rigid Plastic Pack Type: Retail Unit Volume 2010-2015Table 78 Forecast FMCG Packaging by Rigid Plastic Pack Type: % Retail Unit Volume Growth2010-2015Table 79 Forecast Rigid Plastic Packaging by Industry: Retail Unit Volume 2010-2015Table 80 Forecast Rigid Plastic Packaging by Industry: % Retail Unit Volume Growth 2010-2015Contact: sales@reportsandreports.com for more information.

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