Petrochemicals – Brazil – Packaging industry revenues to reach US$22.6bn in 2010
Brazil’s packaging industry is expected to generate revenues of 40bn reais (US$22.6bn) in 2010, a 10.5% increase compared with 35.4bn reais last year, said economic analysis coordinator at IBRE-FGV, Salomao Quadros, during a conference held in Sao Paulo by national packaging association Abre.
IBRE-FGV is the economics institute of Brazilian think tank Fundaçao Getulio Vargas.
Plastic packaging currently accounts for approximately 37% of the packaging industry’s total revenues, which has risen over the years due to materials such as metals and glass being replaced with plastic, Quadros said.
Packaging industry production volumes grew 16.3% in H1 compared with the same period of 2009.
Production volumes in 2Q10 were up 6% compared to 2Q08, which shows not only a recovery from the slump in demand caused by the economic crisis, but also real growth in consumption this year, according to the economist. Compared to the second quarter 2009, volumes increased 15.9%.
In January-June, plastic packaging volumes rose 16.3% year-on-year. Food and beverage plastic packaging output was up 25.6% over the same comparison, while the production of bottles and containers climbed 8.14%. Plastic bags output, however, fell 4.98% over the period.
OUTLOOK
Quadros forecasts a positive outlook for the second half of the year; however, he expects the industry to grow at a slightly slower pace than seen in H1, as the base for comparison in 1H09 was very weak.
For the most part, a survey conducted by IBRE-FGV with medium and large packaging companies suggests domestic demand is strong, Quadros said.
The survey also revealed that stocks are currently low, and that raw material supply terms are longer as a result of the lower availability of products due to strong demand from other sectors.
For 2011, Quadros expects growth rates to normalize. “The industry will grow, but certainly below the double-digit figures that will be seen this year.”
The development of the packaging industry in 2011 will also be governed by macroeconomic factors, such as interest rates, inflation and GDP growth of 4% compared with the 7% expected for 2010.
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