The South America Aseptic liquid packaging market value was USD 2.27 billion in 2019 and is expected to reach USD 3.59 billion by 2027 with a CAGR of 6.00% during the forecast period 2020 to 2027.
The presence of economies such as Brazil, and Argentina in these regions will ensure that the growth of the market. The demand in these regions is low compared to the global standards and is mainly for standard containers such as plastic bottles and glass containers for most of the F&B, alcoholic beverages and healthcare products.
Brazil is one of the world's largest beer markets and the per capita consumption of pure alcohol for the population above the age of 15, was 7.8 liters in 2016. However, there is a considerable decline in the consumption of alcohol in the country over the last decade as the same value was 8.8 liters in 2010, abiding by the same parameters.
In 2018, Brazilians consumed 10.4 billion liters of beer which corresponds to around 49 liters per person. However, the consumers are prioritizing quality over quantity which has raised red flags for big brewers.
An increase in the prevalence of chronic diseases in South America fuels the market for prefilled syringes packaging in the region. Also, an increase in diseases such as cervical cancer was noticed in less-developed countries such as Haiti, Bolivia, and Honduras. In 2012, more than one million people were detected with cancer in Latin America, out of which 603,400 people died. These factors contribute to a high demand for efficient drug delivery systems (especially injectable drug delivery systems).
South America has great development opportunities for the global pharmaceutical and healthcare industries especially Brazil. The growth in pharmaceutical industry is expected to drive the aseptic liquid packaging market in this region.
Brazil was among the leading pharmaceutical markets worldwide in 2018, with a market share of nearly 3%. The market is mostly dominated by sales of new medicines and biologicals, which comprise more than 40% of the revenue. Generic drugs, in comparison, accounted for only 13% of it.
According DataM report, the market is set to grow from USD 29.4 billion in 2014 to USD XX billion by 2020, which represents a compound annual growth rate of 8.5%. The key drivers of this growth will be Brazil’s aging population which brings along with it chronic diseases and recent investments in health care.
The Brazilian company Aché Laboratórios Farmacêuticos S.A. was the leading pharmaceutical company in Brazil in 2018, with a revenue of 4.15 billion Brazilian reals. Brazilian EMS Pharma S.A. ranked second with a revenue of 3.54 billion reals. The total revenue of the pharmaceutical market in Brazil reached more than 76 billion reals in 2018, a value that has been constantly increasing since 2008.
Also, growing consumption of alcoholic and non alcoholic beverages in this region especially in Brazil is one of the key drivers of the South America aseptic liquid packaging market.
According to a recent report by Statista, the annual consumption of alcoholic beverages in Brazil was expected to reach approximately 11.58 billion liters in 2020. This figure is expected to increase continuously until 2024, adding up to more than 12.6 billion liters by that year.
Moreover, the demand for non-alcoholic beverages is recorded to have a significant increase in recent years. The booming demand for functional beverages such as energy drinks, in order to supplement health without altering the taste, is propelling the non-alcoholic beverage market.
According to the study by Banco do Noreste, the annual consumption of non-alcoholic beverages in Brazil was 19.6 billion liters in 2019 and is expected to reach 21.45 billion liters by 2023.
Thus, the increase in the consumption of beverages in Brazil leads the growth of aseptic liquid packaging in the country.
Argentina is also a major contributor to South America's aseptic liquid packaging market. Healthy pharma industry and growing food and beverage industry are the major drivers of the market in the country.
- Argentina is the fourth-largest pharmaceutical market in Latin America, behind Brazil, Mexico and Venezuela. Following years of strong expansion, pharmaceutical sales growth has slowed; a result of sharp economic deceleration, erosion of real incomes, and persistent inflation.
- Argentina’s 2013 pharmaceutical sales were estimated at USD 6.6 billion and the market is exhibit slow growth rate during 2013 to 2018 to reach around USD 6.9 billion in 2018.
- Argentina’s national pharmaceutical industry (NFI) is highly competitive and technologically modern, which meets the strategic goal of ensuring an adequate supply of medicines at affordable prices, manufactured according to international standards. Within this context, Argentina is –altogether with countries such as US, Japan, Germany and Switzerland- one of the few countries in the world where the locally-owned laboratories’ presence and share in the domestic market are higher than the multinational laboratories.
- Also, the pharmaceutical industry in Argentina is the third industrial sector in terms of the industrial added-value that it generates, only behind the oil refinery and the iron and steel sectors.
- Roemmers was the leading pharmaceutical company in Argentina in 2019, based on sales revenue. That year, the Argentinian laboratory reached 459 million U.S. dollars worth of revenue. Elea Phoenix ranked second, with sales amounting to 334 million dollars.
Venezuela is one of the emerging markets for the pharmaceutical industry which is creating the greater demand for aseptic liquid packaging in the country.
- The country majorly depends upon imports of pharma products. However, economic and political turmoil along with inefficient patent laws and drug pricing policies are major barriers according to GlobalData.
- According to the GlobalData report, the country's total pharmaceutical market value was $12.6 billion in 2015, increasing from $5.7 billion in 2009, at a Compound Annual Growth Rate (CAGR) of 14.1%.
- Based on the report by Statista, in 2016, Venezuela's pharma industry generated a revenue of nearly USD 22.3 billion, same value registered a year earlier, but up from about USD 12.7 billion in 2015.
- In spite of the economic conditions in the country, the pharmaceutical packaging market especially aseptic liquid packaging has huge opportunities in the country since the country is majorly dependent on imports.
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