PackSourcing- Global packaging & food industry trade B2B marketplace, provide suppliers, products and related news information.

The growth in the packaging industry in Brazil is mainly driven by the food and beverage packaging sectors. For machinery equipment, metal machine tools and equipments are in high ranking of importing to Brazil. Plastic and paperboard are of a large amount for demand for packaging materials. According to the study conducted by the Brazilian Packaging Association [ABRE], the Brazilian packaging industry presented a net revenue of sales of R$31,338 billion in 2005, R$2,492 billion more than in 2004. In 2005 the Brazilian packaging industry registered less 1.26% in the physical production.

Glass bottles are dominant in the beverage packaging market. Metal packaging grows increasingly for demand. Usage of rigid plastics continues to rise as well. Aluminum and plastic flexible packaging are also significant. The polyethylene terephthalate [PET] consumption increases rapidly because of the change of lifestyles and FIFA World Cup. Signs of Middle East unrest influence the cost of plastic materials. Opportunities for investments in aluminum cans seem to be optimistic. To import packaging equipment for manufacturing aluminum beverage cans is a good market potential. Innovation and movement in glass packaging draws the attraction to the wine consumption. Fruit and vegetable juice is the major end-use application for liquid cartons.

Flexible retains its dominant position in the food packaging. Rigid plastic is popular used for food containers. Liquid cartons follow close behind rigid plastic packaging. The cost of raw materials also impacts on the food packaging trends. Packaged food companies turn to smaller packaging sizes to boost demand. Increasing popularity of folding cartons boosts development of paper-based containers. Brick liquid cartons expand into new areas within packaged food. Metal packaging players wage war on plastic bottles with scientific studies.

Brazil is South America’s largest economy and accounts for nearly half of the continent’s GDP. Exporters should be aware that Brazilian lending rates range from 25% to 50% per year [as of January 2005]. Brazilian buyers normally demand payment either by Confirmed Letter of Credit or Cash In Advance. This should identify the main financing and payment mechanisms for exporters and let them understand the costs, and advantages and disadvantages of selling to Brazil.