Category Intelligence on Aluminium Foils LATAM covers the following
Industry Insights: Growing beverage end-use is expected to increase demand for aluminum foil laminates. Though economic conditions are expected to rise, consumer preference towards cost-effective and sustainable materials might introduce plastic laminates and films as an alternative to aluminum foil
Aluminum foil sleeves are being replaced by plastic laminates that offer more printing and design features.Unsupported aluminum foil currently holds the largest share and is expected to grow by 5 percent until 2022, owing to rising demand from flexible packaging.
Recovering economies within COPEC and growing consumer consumption for beverages in this region, positions food and beverage buyers in a fairly strong position among regional suppliers.Although demand for beverages is expected to grow by 4–5% by 2022, economic condition of major beverage consuming countries are facing difficulties, which is expected to hinder growth of aluminum foils in this market.
With China dumping majority of aluminum foils in Mexico and other Latin American countries, results of NAFTA agreement will have a major impact on the supply and prices of aluminum foils internally.
Positive economic conditions promote a healthy spend on packaged goods. Supply base in Peru is almost inexistent for aluminum foils with only few global players having production locations.
COPEC Aluminum Foils Growth Prospects
Positive trend amid, failing economies COPEC countries – Colombia, Peru, and Chile all maintained and are expected to maintain positive GDP growth among countries in economic distress. This provides a positive impact on the purchasing power among consumers.
Rise in spend on flexible packaging and beverages is expected to introduce plastic alternatives to aluminum foil. Though, this will not completely replace aluminum foils in beverages, it may reduce the market share within this region
Complimentary 12-month access to Beroe LiVE
LiVE Event: Category Management For Procurement Professionals