Spotlight: Mexico, Brazil, China and India

Reston, VA - PRIMIR, PRIMIR, the Print Industries Market Information and Research Organization, the research unit of NPES, announces availability of the recently published "Packaging in Emerging Markets (Latin America and Asia-Pacific)" study.

As these markets grow and change, the new PRIMIR study notes that today more than 40% of the world's economy lies in emerging markets. More importantly, economists predict that more than 70% of global GDP will come from emerging markets over the next 10 years. As these markets grow and change, the PRIMIR study identifies numerous opportunities for print, particularly in Mexico, Brazil, China and India, which had total packaging sales revenues of $66.7 billion in 2012.

With a focus on tag and label, flexible packaging, folding cartons and corrugated packaging, LPC Inc. conducted the research surveys and interviews involving more than 240 package printing companies across Asia and Latin America. Vendors and brand owners in both emerging markets and the U.S. provided additional perspectives about packaging trends and trade flows.

Printing/converting firms in 'emerging' regions have the ability to deliver quality levels on par with their counterparts in Western Europe and the U.S. However, there are notable differences such as the logistics for importing raw materials from developed markets and consumable goods inventory levels typically averaging 120-180 days. There is also a lack of trained technical personnel, particularly in flexo, and management teams are challenged with handling a company's revenue strategy in markets that are growing significantly, at five-to-six times the rate of developed countries.

Trade between emerging countries is outpacing "developed-to-developed" and "developed-to-emerging" market trade flows. While some emerging markets are more export-oriented than others, brand owners and packaging buyers both stress the importance of securing regional printed packaging supply channels for domestic consumption.

There are profitable opportunities for suppliers of capital equipment and consumables. Emerging markets are projected to deliver annual packaging growth rates at two-to-four times those of developed markets. Furthermore, through 2017 the overall global packaging growth rate is projected to be 3.9%, while China is projected to be 7.68% and Mexico projected at 5.95%.

The PRIMIR study examined print processes in each packaging application and emerging market. Across Asia and Latin America, flexo is a growth market in the tag and label, and flexible packaging sectors. However, while Mexico and Brazil are well-educated flexo markets, both China and India are nascent markets for flexo; they perceive other print processes to be superior and/or cheaper. The report also indicates an increasing need and opportunity in emerging markets for digital printing solutions in packaging sectors (beyond labels)—average runs in packaging are much lower than those in developed markets.

The full 241-page study "Packaging in Emerging Markets (Latin America and Asia-Pacific)" is now available for purchase by firms outside of the PRIMIR and NPES memberships for $4,500. The 41-page Executive Summary is available for $995.

For more information about this PRIMIR report and purchasing information, contact Rekha Ratnam, Assistant Director, Market Data/Research, at phone: 703/264-7200, e-mail: [email protected], or visit: www.primir.org.