Latin America BOPP Films Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)


Posted May 4, 2021 by statzyreports

The Latin American BOPP films market (henceforth, referred to as the market studied) is expected to register a CAGR of 9.6% over the forecast period, 2021-2026.

 
 Bi-axially oriented polypropylene (BOPP) is a polypropylene film type that is biaxially oriented. The biaxial orientation enables the film to be stretched in both the machine direction (MD) and across machine direction (AMD). This results in increased toughness, increased stiffness, enhanced clarity, improved oil and grease resistance, and enhanced barrier properties to water vapor and oxygen, and modified impact resistance, low-temperature impact resistance, and flex crack resistance.

· BOPP films are increasingly adopted in the fields of applications, like packaging, labeling, and lamination. These films are preferred substrates for food packaging across the world, owing to their inherent moisture barrier properties, sealability, high clarity, graphic reproduction, and shelf appeal, with the best possibilities of the pack being a monolayer/homogeneous structure.

· The rising need to extend the shelf life of the products and maintenance of product quality, sustainability, aesthetics, and density are some of the significant factors that are propelling the vendors in the industry to adopt BOPP films. This is expected to fuel the market growth over the forecast period. Latin America is observing significant investment in BOPP manufacturing, as enterprise propensity toward local production is increasing.

· Coronavirus outbreak is expected to have positive an impact on the packaging industry over the forecast period. The demand for plastic packaging, including BOPP, which limits the risk of contamination by reducing the exposure is expected to be favoured. In addition, the packaged products can be easily cleaned with the packaging on in case of any surface contacts. ​

· The economic slowdown is expected to hit small businesses hard in the region, with the financial crisis in demand for their products and services in the region. Consumer products, retail, home appliances, shopping malls, car rentals, and auto parts are expected to witness major impact till the end of 2020.

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Key Market Trends

Rising Demand for Packaged Food is Driving the Market Growth

· The growing demand for packaged food in the region is augmenting the demand for BOPP packaging in the industry. Brazil and Mexico are among the major contributors to the demand growth in the region. For instance, according to ABIA, the net revenue of the food and beverage industry in Brazil during 2018 was valued at BRL 656 billion and growing steadily. ​

· Growth in the packaged food markets is driving the growth of the market studied, due to changing lifestyles, convenience of consumption, and rising health awareness. BOPP film is among the most recommended packaging material across the industrial spectrum, and this film is generally a co-extruded and heat sealable. Co-extruded, heat-sealable films are used as a single web for packaging of products unlike polyester films, which cannot be heat sealed on their own.

· Owing to the growing food industry in the region, the demand for packaging is significantly driven by the industry, and food enterprises across the region are adopting BOPP solutions as a part of their packaging needs. With the growing demand, manufacturers in the region are expanding their production capabilities. ​

· For instance, in July 2018, Oben Holding Group increased its BOPP film capacity in Latin America. The company incorporated a 10.4m high-speed line for its Columbian manufacturing facility. The production line is a part of the company's plant in Barranquilla, Colombia, which started production in 2019, the addition to their production capacity is expected to strengthen the company's position in the local market.

Flexible Packaging is Expected to Witness Greater Market Share

· In February 2018, a survey was conducted by the Flexible Packaging Association (FPA), the US association of the manufacturers of flexible packaging, to understand the impact of switching from non-flexible packaging to flexible packaging. In the survey, the primary reason cited was the reduction in production by 49% and transportation cost by 45%. Interestingly, for brand owners, about 57% of the owners were able to mitigate the production cost by 55%, along with sales improvement. ​

· Such improvements in the operational cost and its impact on transportation and logistics cost, even when marginal changes drive the potential of emerging as a game changer, are expected to be differentiators between a competition and wrapped business. Such factors are expected to drive the market’s growth, and they are expected to prompt others to adopt flexible packaging in the region. Thus, the market studied is expected to witness growth over the forecast period.

- Latin America is expected to have GDP rise during the forecast period, disposable income is expected to increase, thus supporting the growth of the market in the future.The country’s growth in the economy and changing lifestyles has led to an increased demand for various flexible packaging products and the market is expected to grow lucratively over the next few years.
- This increase in middle-class population and the growth in the economy mean higher income for the people and also increase in urbanization.With this increase, the e-commerce market spurred by the growth of companies like Mercado Libre, the need for packaging especially flexible packaging has been on the rise.

Competitive Landscape

The BOPP films market is moving toward fragmented market and its competitive rivalry is intensifying due to the presence of players, such as Biofilm (Taghleef Industries (Ti) and Opp Film (Oben Holding Group). Such companies are running their business in national and international boundaries. Some of the key developments in the market are:

· Oct 2019 - Innovia Films and the German snack manufacturer, Wildcorn, partnered to produce a fully recyclable and sustainable pack for its Wildcorn organic popcorn range. The joint project to establish a new sustainable packaging standard began soon after the launch of Innovia’s Propafilm Strata high barrier film, which quickly achieved the ‘Made for Recycling’ logo from Interseroh, an Independent German recycling and consulting company.

· Jan 2019 - Taghleef Industries completed the acquisition of Biofilm, to expand its presence in the region.mWith the acquisition, Taghleef secured a position as the prominent supplier of BOPP films in Latin America. The acquisition increased the production capacity of the company to over 500,000 metric ton. The company secured a strong position in the supply chain in Latin America by expanding its production sites in Cartagena, Colombia, and Altamira, Mexico. ​

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Issued By Statzy Market Research
Country India
Categories Miscellaneous
Tags latin america bopp films market , latin america bopp films market forecast , latin america bopp films market share , latin america bopp films market size
Last Updated May 4, 2021