Brasil Pack Trends 2020

BrasilPackTrends2020 29 packaging market: world and Brazi l Table 1.47 Beverages industry: principal products by sales (2008-2011) Principal products by sales (R$ Billion) 2008 2009 2010 Average growth (2008-2011) Beer 44 46 52 4.1% Soft drinks 27 28 27 0.7% Milk 24 27 26 1.8% Spirits 10 10 11 2.9% Fruit juices 10 11 12 7.6% Coffee & Tea 10 11 11 1.4% Other beverages* 5 6 6 6.6% Tonic drinks** 2 3 3 14.1% TOTAL 132.7 141.2 149.8 3.3% *It includes mineral water and RTD tea **It includes isotonics, fermented milk, energy drinks and nutritional supplements. Source: DATAMARK Higher purchasing power allows the Brazilian consumer to try new products, a trend that leads to important changes in consumer habits. The premium beer segment has, nowadays, 7% of the beer market. In the last 5 years,, that segment has grown at a 10% average rate a year, a higher rate than the 4.1% for the total beer market. The sales of Stella Artois beer, Ambev’s premium brand, for example, had a 215% increase in sales in 2011 (FACCHINI, 2012). There is a growing demand for products with a new offering in the juice market as well. Many companies, such as Juxx, Danone (with the brand Activia) and Globalbev (with the brand Amazoo), among others, have launched juices with unusual flavors, like cranberry, with functional ingredients and no preservatives. The Federal government readjusted IPI, PIS and Cofins tax rate table in June 2012 for the cold beverage market – water, soft drinks, beer, isotonics and energy drinks, increasing the tax burden for the sector by 19% on average. However, in September the Federal Tax Authority delayed the tax increase, which should have come into force in October, through to April 2013. In exchange for the delay, the beverage producers promised to keep up investments and employment. However, the sector will pay more taxes due to increases over the last 12 months. That is because beverages are taxed a fixed value per unit instead of a percentage of the price. That fixed value is updated every year and this year, the likely increase to the final consumer may be up to 2.15%. Thus just as in 2011, it is possible that the increase in the shelf prices might reduce consumption (FERNANDES; VERÍSSIMO, 2012). The higher purchasing power of the emerging middle class has directly contributed for a higher demand for aluminum canned beverages, mainly beer. Between 2007 and 2011, the volume of aluminum cans used to package beer increased 56%, from 7.8 million to 12.2 million of units, increasing their share of the market from 28% to 34% in the period (DATAMARK, s.d.). The increase of the Brazilian consumer’s discretionary income has enabled a change in their purchasing behavior that encouraged beer consumption at home, an occasion where aluminum cans are more appropriate compared to returnable glass bottles. Other markets that have pushed up the demand for aluminum cans are juices, energy drinks and RTD tea. The advancement in the ecofriendly packaging accompanies the endless search for cost reduction of PET bottles by brand owners. Since they started to be used in the soft drinks market, PET packages have had cost reductions between 8% and 26%, depending on size through light-weighting both in the neck and bottle cap. Besides reduced consumption of raw material, another important trend in the PET bottle transformation process, influenced by sustainability issues, is the use of resin from renewable sources that accounts for up to 30% in bottles used in the soft drinks and mineral water markets (PACHIONE, 2010). The huge dependency on PET bottles in the soft drinks market (approximately 60%) has forced the material converters to seek new opportunities to replicate the success of PET bottles in other promising markets. The Portuguese company Logoplaste, along with the brand Shefa, for example, seems to have started a migration from the aseptic cartons to PET bottles with light barrier in the UHT milk market. In only 6 months, Shefa has packed 30% of their production in