Music City plays host to converters attending the Flexographic Technical Assn.'s annual conference and exhibition.Read more
Folding carton and corrugated converters will find equipment displays and educational opportunities in die-cutting, foil stamping, embossing, and more.Read more
How well do you understand the relationship between your films and your corona treater?Read more
EVOH allows conversion from foil and metallized film laminations to co-extruded barrier films.Read more
News | New Products
VpCI-126 EM UV film provides high-tech corrosion protection from aggressive environments and UV exposure
With a number of co-located events and educational features, the show promises many offerings for those involved in processing and packaging
All operating units of the company are now branded under the Constantia Flexibles in an effort to present a consistent, clear image to the customer
Labels from around the world are honored in a competition the head judge calls “the Oscars of the global label industry”
The new survey points to confidence in?the foodservice packaging industry for 2015, and there is optimism despite economic and environmental challenges
The event, coming in September, will co-locate with Pharma EXPO, and organizers expect an improving economy will bolster both shows
OpenColor 2.0 multichannel profiling software comes with extensive color correction tools and a test chart generator, plus many other new features
Directories | Reports
PFFC brings you exclusive White Papers from our online sponsors.
Visit Kelly on Static from Static control expert Dr. Kelly Robinson, president of Electrostatic Answers; Kelly has 27+ years of experience in problem-solving and consulting.
Visit Tim's Web Lines to handle and wind your paper, film, foil, and similar products. Take advantage of Tim’s 25+ years just like over 100 converters have.
Visit Mark's Coating Matters from fluid coating expert Mark D. Miller; Process improvement and project management for precision roll-to-roll coating applications.
Visit Marketing Mojo for dynamic marketing insights from Stephanie Millman that inspire new ideas on how to stay on top of your customer’s mind.
Visit Yo’s Yarns to share the thoughts, impressions, experiences, and news that impact the converting industry. . . or anything else that happens to be on her mind!
Visit Tom's Poly Ploys, where Tom will be writing on various topics that the typical polymer processor would encounter on the job.
- May 01, 2013, Ann Hirst-Smith
New AWA report profiles one of the world's fastest-growing economies
A new report from AWA Alexander Watson Assoc., Labeling & Product Decoration Markets Brazilian Country Review 2013, documents the status quo of the label and product decoration market in one of the most dynamic countries in the BRICS group of emerging economies (Brazil, Russia, India, China, and South Africa). Published in English, Portuguese, and Spanish, the report provides an up-to-date reference for all concerned with, or interested in, Brazil’s label and product decoration value chain.
Brazil is the standard bearer for South America, which is, in itself, one of the world’s fastest-developing regions in terms of both its economies and social change and represents 5.7% of global population. Brazil is home to 50% of the region’s population and also represents some 48% of regional GDP. Its projected 2013 growth, at over 3%, is a reflection of two mirror images:
- An economy hungry for infrastructure and industrial development to feed the needs of the consumer society and its ramifications
- An opportunity for the country to take advantage of the low interest rates endemic around the world
This is what makes Brazil an attractive sales prospect for external manufacturers and suppliers. Today, Brazil ranks fourth in the world for Foreign Direct Investment.
Packaging and labels are central to the needs of FMCG (fast moving consumer goods) retailing, so it is not surprising that Brazil is the leading consumer of labels of all kinds in the region, with over half the total South American market. Brazil is also the world’s third-largest soft drinks market and beer market; the ninth-largest pharmaceutical market; and it accounts for about 10% of global sales of beauty products.
Beverages represent the highest percentage of Brazil’s label demand, followed by food. Most of the materials used for labeling are papers, with the balance of the market shared between films, synthetic papers, metallic foils, and cellulose acetates.
In terms of preferred label format, it is the glue-applied technologies—cold glue and wraparound hot melt glue-applied—that currently take Brazil’s largest market share, and the technology is forecast to continue to deliver healthy growth there in the medium term. Pressure-sensitive labels enjoy a very much smaller share of Brazil’s label market.
Opportunities in pressure-sensitive labels exist in particular in the area of added functionalities—especially security labels using anti-counterfeiting devices, clear-on-clear film labels for beverages, and peel-off on-pack promotional labels.
Sleeving technologies have so far achieved only a very small percentage of the market but are growing (particularly shrink sleeving)—driven by their inherent container barrier protection and tamper-evident properties, and the innovative and complex container geometries that they can accommodate. ROSO (roll-on-shrink-on) and the new reel-fed shrink sleeving—which grew dramatically in the last year—are expected to take further market share.
In-mold labeling—with its greater demands on machinery infrastructure—is still in its relative infancy in Brazil, but following strong investment in 2011, is forecast to grow significantly in the medium term.
Particularly in prime label applications, the broad current platform of label technologies is, of course, further challenged by the alternatives offered by direct-printed containers, cartons, and flexible packaging and pouches as decorated primary packages.
Retailing and FMCG
Whatever the packaging choice, shelf "stand out" is a major consideration in a growing consumer-focused environment with increased spending power. In Brazil, the world’s major retail chains—including Walmart, Costco, Home Depot, Walgreens, Carrefour, Tesco, and Metro—are now developing a presence.
A growing retail market also makes demands on a country’s logistics infrastructure. Today, more than 10% of Brazil’s label demand is answered by variable information print applications—a percentage that is likely to grow. Functional/security applications currently represent a very small percentage of the total Brazilian label market, but this segment represents much of the higher-value-added and innovative labeling, employing all the extant label technologies to a greater or lesser extent.
Unsurprisingly, promotional labels—nearly all pressure-sensitive—are playing a significant role in the Brazilian market. They are heavily used to make special offers, or to present discounts by direct attachment to the product, and are often targeted at specific events, such as the upcoming FIFA World Cup (2014) and Olympic Games (2016), both scheduled to take place in Brazil.
As well as these major opportunities for serving global, as well as regional and local markets, Brazil will see ongoing development in strong retail and distribution networks, promoting e-commerce and variable information printing (VIP) labeling as well as an increased use of "intelligent" label technologies such as VIP.
The major end-use consumer goods segments also will grow in line with a burgeoning middle-class population. Brazil will continue to attract inward investment across the label value chain, and together these factors will provide for growth rates—economic and business-related—above the global average, with resultant parallel positive movement in the label and product decoration markets.
AWA Alexander Watson has recently published Labeling & Product Decoration Markets Brazilian Country Review 2013, complementing the firm’s portfolio of expert regional market evaluations across the globe in the specialty paper, film, packaging, coating, and converting industries. The report may be ordered online in English, Portuguese, or Spanish via the AWA website at http://bit.ly/17hGdyO, where a full prospectus is also available at http://bit.ly/ZP3ra4.