Latin America Personal Care Packaging Market - Growth, Trends, COVID-19 Impact, Forecasts (2023-2028)

Latin America Cosmetic Packaging Market is estimated to grow at a CAGR of about 5.35% over the forecast period. The demand for efficient packaging increased significantly due to robust sales of various customized beauty products. Furthermore, the rising consumer awareness regarding personal grooming drives cosmetic products and the Latin American personal care packaging market.

Key Highlights

• Independent packaging-free stores are expected to be one of the driving factors in the retail market across the industry. Brands are expected to create simple branded and engaging refill opportunities in the store. This enhances the brand image and attracts consumers increasingly leaning toward brands that offer sustainable product packaging solutions.
• A significant industry trend anticipated to support market expansion is the expanding usage of paper-based tubes for the packaging of personal care goods. For instance, in October last year, L'Oréal and the cosmetic packaging business Albéa announced the introduction of the first paper-based cosmetic tube. Over the anticipated period, market growth will be aided by the impending launch of such a cutting-edge packaging solution.
• Market Vendors are attempting to make a difference by developing a strategy to combat climate change and reduce packaging's environmental impact. Since the last decade, awareness among the population regarding the harmful effects of plastic usage has been growing drastically. Many public campaigns and initiatives by the Latin American governments have increased awareness among the public.
• The outbreak of COVID-19 has further influenced the vendors to make drastic changes to their brand identity, and the push towards offering sustainable packaging solutions further increases their investments in R&D and manufacturing. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.

Latin America Personal Care Packaging Market Trends

Skin Care Expected to Witness Significant Growth in the Market

• Suppliers of different skincare products in the market offer stylish bottles for lotions, jars with luxe details for creams, and tubes equipped with applicators for packaging. More advanced airless dispensing systems, dropper applicators, and dispensing caps provide solutions for specific products. For instance, Albea packaging, one of the largest cosmetic packaging wholesalers, makes soft-shaped screw caps for tubes. This cosmetic cap is the ideal solution for all skincare products and communicates the softness of the formula due to the rounded edges of the cap.
• Furthermore, technological encroachments, such as airless skincare packaging and 3-D printing technology, are driving skincare packaging sales. Advanced and trending printing technologies, such as hot-stamp foil printing and flexo-offset printing, enable manufacturers to offer innovative and eye-catching skincare packaging for cosmetic brands, further growing the personal care packaging market.
• L'Oréal increased its market share significantly in FY 2021, performing remarkably well in Chile, Mexico, and Brazil. E-commerce and offline sales both contributed to growth. The Group's brands welcomed customers back to their stores with targeted activation while maintaining their digital engagement and online activation, utilizing important online events like Buen Fin and Black Friday.

Brazil Expected to Witness Significant Growth in the Market

• Brazil exports perfumery, cosmetics, and bath products to Argentina, Colombia, and Chile and imports cosmetics from France, Argentina, and the United States. The country remains dependent on imports for finished products. This has led the Brazilian government to introduce import taxes to localize production, and Companies like Albea are focusing on localizing their cosmetic packaging activities.
• Further, SEBRAE for Micro and Small Enterprises stated that Brazil's men's cosmetics market has tripled in the past five years. This is expected to facilitate further growth of packaging modules designed exclusively for men.
• There are multiple investments in environmental policies. Millions of Reals are invested in natural resource management, nature conservation, and the R&D of environmentally friendly products and processes, such as using green plastic in the packaging and developing supplier partner communities of natural ingredients and assets.
• Moreover, the market is also witnessing manufacturing investment activities. For instance, early last year, the French group of fragrances and aromas, Robertet, invested USD 9.16 million in constructing a unit in São Paulo. With its operation, the company is looking to triple its production and storage capacity in the country. The team allowed the company to increase its productivity and further drive demand for packaging.

Latin America Personal Care Packaging Market Competitor Analysis

The Latin America Personal Care Market is moderately competitive, with many regional players. Innovation drives the market in product offerings, and each vendor invests in innovation. Key players include Amcor Ltd, Mondi Group, Aptar Group, and Sonoco.

September 2022 - Smurfit Kappa announced Latin American expansion with the PaperBox acquisition in Brazil. This acquisition will strengthen their footprint in the nation, increase manufacturing capacity, and enable them to seize new possibilities and build new relationships with clients.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.