Frost & Sullivan: High Regional Economic Growth and Consumption Rates Pep Up the Argentinean Market for Plastic Packaging for Food and Beverages

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• Publié par: frost-sullivan
• Nombre de lectures: 17
• Langue: English

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Frost & Sullivan: High Regional Economic

Growth and Consumption Rates Pep Up the

Argentinean Market for Plastic Packaging for

Food and Beverages

PR Newswire

BUENOS AIRES, Argentina, July 12, 2012

- Plastics outperforms traditional materials and gains favor among

food retailers

BUENOS AIRES, Argentina

,

July 12, 2012

/PRNewswire/ -- A favorable economic

climate and a rising middle class, fostered by government policies to reduce

poverty, have increased disposable incomes, food and beverage consumption

and thereby, plastic packaging uptake.

Argentina

's economy was reasonably

insulated from the economic downturn, lending some stability to its gross

domestic product (GDP) growth rate, which is expected to grow at 6 percent in

the next few years and stabilize at 3.5 percent by 2017.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com),

Commodity Plastics Market for Food and Beverages Packaging in

Argentina

, finds that the market earned revenues of

$1.25 billion

in 2010 and

estimates this to reach

$1.91 billion

in 2017. In this research, Frost & Sullivan's

expert analysts thoroughly examine the following markets: polypropylene (PP),

linear-low-/low-density polyethylene (LL/LDPE), high-density polyethylene

(HDPE), polystyrene (PS), polyvinyl chloride (PVC), and polyethylene

terephthalate (PET).

If you are interested in more information on this research, please send an

email to Francesca Valente, Corporate Communications, at

[e-mail], with your full name, company name, job title,

telephone number, company email address, company website, city, state and

country.

Growth in GDP rates directly influence commodity plastics consumption, where

for every GDP point, the PP segment grows by 1.2 percent, and PE by 1

percent. The demand for food and beverages is growing at 4 percent and is

expected to mirror the growth rates of the GDP. The requirement for food, and

hence plastic food packaging, is non-cyclical and 'income inelastic.'

Consequent to the economic stability, supermarkets are thriving in

Argentina

and retailers hold a lot of sway over the type of packaging used in the food and

beverage industry. Food retailers require packaging that extends shelf life, as it

allows them to better manage their logistics and therefore, several plastics

manufacturers are investing in R&D to improve this quality.

"Moreover, the lightness of plastics does not add extra weight to the product

and hence, makes it easier for distributors to carry plastic packaging than

glass, board, paper, or metal," says Frost & Sullivan Industry Analyst Hernan

Cavarra. "Retailers are pressuring food and beverage manufacturers to use

plastic packaging as they are shatterproof and have lesser volume, making

them easier to stock."

Plastic packaging has widened the gap with other materials through further