NEIL FARMER
NEIL SAYS... Neil Farmer, fellow of the Institute of Packaging, and all-round packaging know-all, gives us his view on the latest happenings in the industry
At the start of this new year, having just returned froman extensive visit to Chile, where I was able to see a substantial part of the country and its consumer economy, I would like to reflect on the potential for the UK in its aimof achieving greater international business as we attempt to stimulate growth and recover fromthe economic downturn.
I
believe there are greater opportunities in South America for companies with
UK operations than are perhaps realised. For example, in Chile, it was good to see that groups like M&H Plastics had alreadymade theirmark in the plastic containermarket. As you would expect, several Spanish packaging companies were also noticeable in the country. Taking into account the whole
of South America, it is noticeable that there has been solid growth in the consumption of carbonated soft drinks, assisted by rising consumer incomes. Glass bottles are still very popular for beer, withmuch of the remainder in cans, whilst beverage cans are also growing in demand. Indeed Rexamhas recently announced plans to build a new can plant in Brazil, a country which is at the forefront ofmuch of South America’s expansion.When operational in mid 2012, the plant will have a 1.2 billion cans per year capacity and bring the company’s full capacity in Brazil to 14 billion cans per year. This is not to say thatmetals and glass packaging have it all their own way in South America, because in soft drinks in all their forms, plastics dominate and growth will continue despite the threat from cans. And then of course there is the Chilean wine industry, which
in recent years has experienced a golden age and a huge expansion, where glass packaging proliferates. Many are familiar with the
acronymBRIC when describing the rapidly expanding countries of Brazil, Russia, India and China. However the so called MERCOSUR countries of Argentina, Brazil, Paraguay and Uruguay, along with associate members Bolivia, Chile, Colombia, Ecuador and Peru, also represent an economic and political region of great potential. In the fourMERCOSUR full member countries alone there is a population of 267million, with growing consumer incomes. Some of these countriesmay
seema long way away fromthe UK and Europe and there is no doubting that logistics can be an issue for some of the farther flung parts of countries such as Chile. However, in the future,
These intriguing-looking glass bottles were just one example of the innovation Neil saw whilst on his travels in South America
“Metals and glass packagingwon’t have it all their ownway in South America, because in soft drinks in all their forms, plastics dominate and growthwill continue”
consumers will be prepared to spendmore on better quality products and these, in turn, will need to be packaged in better quality packaging. Of course, as elsewhere in the
world, the growth of PET packaging has been a driving force in SouthAmerica,withmuch investment bymany of the leading
players.Developments in recycling technologies are alsomoving on
apace.Major events such as Brasilplast, the international plastics industry trade fair in Sao Paulo, are a showcase formany innovations in plastics technology. In 2011 therewere 1390 exhibitors from36 countries. Globalisation has, in some
people’s eyes, become aword synonymouswith bad practices, excessive costs and inferior quality.However,we ignore the internationalmarket at our peril. The global packagingmarket is worth $430 billion and rising. Much of the growth in theworld is coming fromemergingmarkets and SouthAmerica is one of those. Technology and infrastructure businesses or thosewith truly innovative products should take a look and see for themselveswhat opportunitiesmight exist. One finalword of advice,
however. If you do plan to visit, it helps to learn the language, even if it is only a little bit, andwhether it’s Spanish or Portugese!
14 | Packaging Gazette |
PackagingGazette.co.uk
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