Market Definition
The packaging of alcoholic beverages plays an important role in the success of the products in the market, as the logo, topography, branded colors, etc., of the packaging, help the brands to communicate with their customers that further create an impact on the mind of the consumers. Therefore, influencing them to buy alcohol of a particular packaging & brand. Furthermore, the increasing popularity of alcoholic drinks like beer, wine, etc., among adults has led to the demand for these drinks in the region.
Additionally, the easy availability of a variety of alcoholic beverages & their unique & impactful packaging designs has also attracted the customers to try these products. As a result, the packaging is crucial to alcoholic beer brand recognition & marketing, thereby attracting consumers. Thus, these factors increase the sales of alcoholic beverages, which further drives the packaging demand for alcoholic beverages in Latin America.
Market Insights
The Latin America Alcoholic Drinks Packaging Market is projected to grow at a CAGR of around 4.7% during the forecast period, i.e., 2022-27. The Latin American Alcoholic Drink Packaging market held considerable growth during the historical period, owing to the growing number of alcohol consumers in the region. This is due to the launch of new products by the brands attracting the customers to try out the latest products coinciding with the growing number of tourists in the region who spends money to taste the famous alcoholic beverages in the region.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 4.7% |
| Country Covered | Brazil, Argentina, Colombia, Mexico, Peru, Chile, Ecuador, Rest of South America |
| Key Companies Profiled | Cristalerias de Chile, Owens-Illinois Inc., Crown Holdings Inc., Amcor plc, Ball Corporation, United Bottles & Packaging, Envases Venezolanos, Ambev., Others |
| Unit Denominations | USD Million/Billion |
The primary function of the packaging of alcoholic beverages is to protect the product from leakage or contamination during the storage, logistics, and handling of the product. Additionally, these drinks require protection from direct sunlight exposure, carbonation loss, oxygen ingress, and dissolution of the package material components as these factors could adversely affect the taste & quality of the drinks and cause health-related issues for consumers, negatively impacting the brand image. Hence, the packaging of alcoholic beverages is the utmost priority for the alcohol manufacturing companies to enhance their brand image & attract customers to buy their products.
Furthermore, alcohol consumption has risen significantly in the Latin American market in recent years, owing to the growing number of tourists visiting the Latin American region, as these tourists prefer to spend money on trying a variety of alcoholic drinks that are popular in the area. Moreover, the growing consumption of alcoholic drinks in the region due to the increasing popularity has further contributed to the growth of the alcohol drinks packaging in Latin America.
Besides, the sales of alcoholic drinks reduced during the COVID-19 pandemic as the imposed lockdown led to the shutdown of public places like nightclubs, bars, etc., where the individuals preferred to have alcoholic drinks. However, the introduction of online platforms that offer alcoholic beverage delivery services to doorsteps also assisted in boosting alcoholic beverage sales throughout the pandemic period.
Key Trends in the Market
The increasing inclination of the beverage companies toward sustainable packaging to reduce carbon emissions & provide compliant to-go packaging is helping the companies to attract the customers & enhance their brand value. The most used packaging material for alcoholic drinks is glass bottles. However, the production of glass bottles causes a lot of heat, which contributes to producing carbon footprints. Hence, the companies have come up with numerous packaging materials like Cellulose Fiber Solutions, New Wave Plastic, etc., and methods such as Returnable Glass Bottles, Shrinking the Product, etc., helping the companies to shift toward sustainable growth.
Impact of COVID-19 on the Latin America Alcoholic Drinks Packaging Market
The COVID-19 pandemic reduced the sales of alcoholic beverages significantly, due to the shutdown of the retail shop & the preferred drinking public areas such as nightclubs, bars, etc., in the region. However, the disruption in the supply chain of the raw material also impacted the packaging industry adversely, leading to fluctuating prices of the packaging material. However, the lockdown encouraged the customers to consume alcoholic drinks at home, which was further facilitated by the availability of the online alcohol drink delivery apps launched in the Latin American market. Furthermore, the bars, clubs, and restaurants that offer alcoholic drinks are reopening due to the relaxation of the COVID-19 protocols, further enhancing the sales of alcoholic drinks in the market. Hence, this helped the packaging industry in Latin America to flourish again.
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