The South America flexible packaging market was valued at US$8.076 billion in 2019 and is projected to grow at a CAGR of 4.95% during the forecast period to reach a total market size of US$10.791 billion by 2025. Due to the gradual and steady availability of disposable income, the growing middle-income group and their purchasing tendencies the flexible packaging market of South America is estimated to witness steady growth. Moreover, the rise in demand for packaged food and beverage is being driven by the growing urbanization and gentrification of neighborhoods. Additionally, the fast pace lives are promoting the rise of convenience food and beverages which the consumers are more inclined to take it on the go. Further, a lot of foreign direct investments are being increasingly made in the South American nations to establish and expand the sphere of operations of various retail food and beverage chains. Besides, the eCommerce segment is making a huge headway throughout the world and south America is no exception to this new means of consumerism. This has led to quite a few acquisitions in this region as well. For instance, Coexpan Chile (“Coexpan”) basd out of chile acquired thermoforming unit of BO packaging SA (“BO Packaging”), which is also Chile based. Flexible packaging and poly-paper operations are two such capabilities that are a part of the thermoforming unit of BO Packaging.As a result, benefits such as visual appeal, lower space footprint, and longer shelf life are the key contributing factors for the Flexi packaging market to register good growth in this region.
There’s a growing interest, thus investments and initiatives by the leadings Flexi packagingmanufacturing organization to come up with the carbon-neutral Flexi packaging materials that are going to further resonate with today’s consumers' preferences. While the aforesaid falls under the purview of supply-side attitude towards the Flexi packaging as a product. The demand side or the consumer side too are increasingly opting for Flexi packaging that is least harmful to the environment. Further, as consumers become increasingly aware of a probable ramification of anthropogenic activities, consumers of south America are inclined towards eco-friendly packaging materials. Further, the current rate of ambient pollution is also pushing the consumers to resort to Flexi packaging of their food and beverage products. The options for flexible packaging also allow various brands to make adjustments to various ingredients that go into the making of flexible packaging, thereby reducing the waste created by the process. Changes in government policies are also going to fuel the constant need for the research, development, and innovation that will, in turn, drive the Flexi packaging market in the south American region.
From the point of view of growing consumers of vegan diet, the food and beverage producers are increasingly adopting flexible packaging to ensure nutrient and flavor fortification. Thereis a growing inclination to utilize flexible packaging in beverages as well as to retain the freshness and keep it from gathering odor. Additionally, due to the growing shift towards plant-based alternatives of food and beverages, there is a growing number of new entrants who are also investing in flexible packaging that has the least carbon footprint. This is going to drive the growth of flexible packaging market, in this region as well. Plus, in light of above there have been investments in increasing production capacities and labeling capabilities. Further, the consumption trends are increasingly towards naturally and organically produced food. To this end flexi packaging are becoming the staple for grocers and retail chains that sells fresh produce. During the forecast period the combined inclination of consumers towards more clean purchasing experience and government initiative is going to catapult the flexi packaging market of the region to a healthy growth.