Latin America Frozen Food Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Latin America Frozen Food Packaging Market is expected to register a CAGR of 5% over the forecast period 2021-2026. The major categories of packaged food are bakery products and frozen processed food. Some of the emerging categories in this sector are frozen ready to eat foods. Storage life can be extended notably by making storage temperatures colder.

Key Highlights

• Consumer’s expectations of food quality are rising. There is an increase in the frozen food packaging market with the consumer appreciation of the product quality. With the growth in the economy and changing lifestyles there is an increased demand for frozen food packaging in Europe and the market is expected to grow lucratively during the forecast period.
• New packaging technologies, such as active packaging, intelligent packaging, and engineering science, have evolved over the years, which enables flexible packaging of food products. Companies are adopting eco-friendly packaging by using biodegradable packaging material which can be recycled, renewed, and reused.
• Brazil is one of the leading countries in Latin America for economic growth and in terms of getting maximum FDI. They have a huge demand for food and industrial goods which are catered by imports. Frozen food packaging will be important for this area to store the products from getting damaged. With the middle income class percentage increasing, there will be more demand for packed food, and this will enable the frozen food packaging market to grow.
• With the recent outbreak of COVID 19, frozen food packaging manufacturers have been flooded with a pool of issues that are expected to be only for the short -term. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems, etc.

Key Market Trends

Increase in disposable income and changing consumer behavior

• Various factors, such as changing lifestyle, increasing disposable income, and rapid urbanization in developing countries, especially the growing middle-income population, are increasing the demand for bags for frozen food. The increase in population density has increased demand for packaged food in general with millenials contributing to the growth.
• After packaging, it takes time for packaged food to reach consumers across various parts of the world. The packaged food may not be fresh and might lose its aroma and taste before reaching the consumer. The threat of food being spoilt before reaching the consumer is increasing, as it would result in a loss of the capital invested in the packaging.
• To overcome this, food processing industries are investing in technologies and various new packaging techniques, such as intelligent packaging and engineering science, which help in increasing the shelf life of the product. This is reason for the increased demand of frozen food in the industry. Organizations are focusing on consumer satisfaction, apart from revenues, as it impacts the image and value in the market.
• Millennial customers generally drive the demand for frozen food packaging products, and millennials account for 30% of the total Latin American population. These people have an ardent preference for single-serving and on-the-go style food and beverage foodstuffs. As these products are usually designed to be durable, portable, and lightweight, flexible packaging is a famous option for packing such products
• The increase for frozen food is also due to increased convinience of retail stores in the region. The demand from retailers have increased significantly in the past few years.
• These products are generally designed to be portable, durable, and lightweight; frozen food packaging stands to be a famous option to pack such products. The increasing demand for snack foods, both in terms of processed foods and fresh items, is expected to govern the demand.

Glass Packaging to Drive the Market

• Glass is preferred packaging materials for consumers who are concerned about their health and the environment. It is made from all-natural sustainable raw materials. Glass packaging preserves the product's taste or flavor and maintains the integrity or healthiness of frozen food.
• Glass is one of the most preferred materials for packaging of frozen food. Properties like excellent barrier properties, sterility, and reusability make it a superior packaging material. The other major advantage of glass packaging is that it can be molded into various shapes and sizes, facilitating its use across different industry verticals.
• Even though glass remains the preferred packaging material for a variety of products, the growing usage of plastics as a replacement for glass will hamper the market growth. Advancements in the field of plastics for safe usage in different applications will restrict glass as a material for packaging.
• Due to Covid-19. some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems, etc.

Competitive Landscape

The Latin America Frozen Food packaging market is moderately fragmented and consists of several major players. The major players with a prominent share in the market are focusing on expanding their customer base across foreign countries.

• June 2021 - Coveris Holdings SA developed a new cereal liner solution. The Cereal+ liner has been created to deliver packer performance, shelf life and consumer functionality using a newly developed formulation. Coveris’ Cereal+ liner is made from fully recyclable polyethylene and provides product protection, freshness and shelf life for cereals and dry foods packed in bag-in-box films.
• April 2021 - Amcor Ltd announced is pleased a strategic investment in ePac Flexible Packaging, a leader in the high quality, short run length digital printing segment for flexible packaging. The investment will range between approximately $10 to $15 million, including a minority ownership interest in ePac Holdings LLC and funding for one or more ePac franchise site.

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