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Glass packaging trends in Brazil

Although U.S. packaging manufacturers struggle with the challenges given the current state of the economy, international opportunities are present in certain countries where disposable incomes are actually on the rise. Brazil is experiencing a rising GDP as employment levels, household wealth, and stability in inflation contribute favourably to their economy. With the greater purchasing power of Brazilian consumers, there is increasing demand for premium products.

Glass manufacturers in particular should take note of trends such as those in Brazil. According to Euromonitor International's data, unit volumes of glass packaging in the United States have steadily decreased year-over-year, largely due to its perceived disadvantages (e.g. greater weight, fragility, etc.). Meanwhile, plastic manufacturers have continued to improve the quality of the plastic resins to provide greater barrier protection and structural integrity while also maintaining its main advantages as lighter-weight, for easier consumer portability and for lower shipping costs, as well as being shatterproof.

However, one distinct advantage glass has over plastic is in the perception of premium in products that use glass packaging. While a commoditization of premium has occurred in the United States, emerging markets provide greater growth potential. In Brazil, imported olive oils had a volume growth of 13% in 2007. Although packaging volumes of glass bottles in the United States are forecasted to have a compound annual growth rate (CAGR) of -1.8% from 2007 to 2012, conversely in Brazil, the CAGR is forecasted to be 3.5%. In addition, specifically for olive oil, glass bottles are expected to grow by 34.2% from 2007 to 2012, which therefore translates to a CAGR of 6.1%.

Even when local trends and economic conditions undergo periods of difficulty, new opportunities in different markets may arise, and therefore it is always wise to stay aware of the happenings outside of your native market.