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Packaging & design

Packaging industry shrinks by 1.47% in 2014 but exports expand by 6.18%

Glass was the only category to register an increase, with a rise of 1.86% in volume.

Figures from the Brazilian Packaging Association (ABRE) show that the industry’s production fell by 1.47% in 2014, with a turnover of R$ 55.1 billion. The fourth quarter alone saw a decline of 1.73% over 2013. The figures were released in the ABRE/FGV Macroeconomic Packaging Study carried out by the ABRE association in partnership with the Brazilian Economics Institute of the Fundação Getúlio Vargas business school (FGV/IBRE).

FGV/IBRE economics research coordinator, Salomão Quadros, says the sector’s performance reflected the overall state of the Brazilian industry, which registered a fall of 3.23% last year. "Production of packaging material is targeted more at non-durable consumer goods. It mirrors the state of the economy but in a smoother way, without so many ups and downs,” he says.

When classified by material, glass was the only category to show growth, rising by 1.86% over 2013. The other segments retreated: wood (-18.25%), plastic (-2.9%), metal (-1.04%) and paper/cardboard (-0.70%).

Imports recorded US$ 860.1 million and rose in the following categories: glass (0.27%), plastic (1.84%) and wood (1.41%), whereas metal declined (-2.34%), as did paper/cardboard (-20.88%). Exports added US$ 523.2 million to Brazil’s trade balance, with higher shipments of glass (28.55%), metal (16.75%), paper/cardboard (3.24%), wood (2.77%), and only plastic recording a decline (1.59%).

The expectations for 2015 indicate that the retraction will continue, with production volume declining by 0.5% to 1.5%. Quadros believes the strengthening of the domestic and global economies could give the packaging industry a boost and lead to a resumption of growth from 2016.

© 2015 - Brazil Beauty News - www.brazilbeautynews.com

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