Label Market Growth in Latin American
While Latin America essentially has the same markets as anywhere else in the world, there are a few where label industry suppliers are reporting significant growth in particular. The growth can be attributed to the globalization of the region as a whole, with greater numbers of people gaining more wealth, thus becoming consumers with spending power.
Kocher + Beck's Frank Hasselberg notes that the demands of the region's consumers have changed. "The Latin American label market is growing significantly as people are enjoying higher disposable incomes. They want to consume more and they also seem to be very aware of brands. That helps the large consumable corporations to grow in these emerging markets, which, in turn, requires high quality labels produced locally. We see a lot of high end printing presses moving into Latin America to fill this need. The most growth will be seen in Mexico and Brazil, simply because these two countries have by far the largest populations."
Mark Andy's John Cavey sees growth in the specialty markets. He says, "We are seeing more converters who find opportunities in specialty applications such as pharmaceuticals, promotional cards, and lottery tickets, for example, and are interested in investing with the potential of a large profit."
Ruben Wilmers focuses on the massive Brazilian market for Nilpeter, and he talks about how the economic growth of the country is affecting the marketplace. "Brazil's population is about 200 million, and around half the people are just starting to become part of those who can spend 'superfluous' money. This trend has been experiencing double digit growth year after year. And most of these new consumers are not exactly looking to buy a luxury car – they are buying things that their budget before didn't allow them to buy, things like chocolate, cookies, cosmetics, shampoos, gadgets, etc. Most of these products do have a self-adhesive label combined with plastic bottles as their main packaging. Self-adhesive labels are also taking, little by little, the room previously serviced by other decoration technologies such as wet glue labels, with shelf appeal being the justification," he says.
Worldwide, the market for sparkling wines is recognized as a great potential of growth for pressure sensitive labels. Heloisa Cassone, marketing communications manager in Brazil for Avery Dennison, notes that in Brazil, from January to April of 2009, the internal sparkling wines market grew by 12.7 percent over the same period the previous year, and imports presented sales growth of only 3 percent. "According to a new study in the Brazilian market about sparkling wines ordered by the Brazilian Institute of Wine and conducted by the Santa Catarina Market Analysis Institute, supported by the government, innovations in packaging and labeling and the increase in the supply of the product at retail are two other factors that reinforce the strength of Brazilian wines to consumers," she says.
The wine market has always been strong in Chile and Argentina, and Ruben Wilmers says that it's now a major growth market in Brazil. "Brazil is not exactly a Chile or Argentina when we talk about the wine industry but it's an industry that's growing a lot here as the Brazilian people are becoming wine consumers and the Brazilian brands are very cost effective. We also have a huge potential for spirits and premium beers which are just starting to use all the self-adhesive potential to add value to their brands and products," he says.
From Internet
27 April, 2012
