Packaging production closes year below expected

Packaging production in Brazil should close 2014 with fall about 1 percent, said the Brazilian Packaging Association (Abre) on Wednesday, a result worse than the worst-case scenario outlined for the sector in the middle of this year.
The Ibre/FGV study, in partnership with the Open and disclosed in August, estimated that the physical production would have stability this year in 2013, with production resuming in the second half, offsetting the fall of 0.73 percent suffered in the first six months of the year.
The improvement did not occur as expected and production should be below the forecast pointed to the study's worst-case scenario, of a fall of 0.7 percent in 2014.
"After the World Cup, we felt that the market was very stocked and demand expected didn't happen", told Reuters the Executive Director of Open, Luciana Pellegrino, citing lack of consumer confidence and caution of entrepreneurs as main reasons for the demand underwhelming. "In September, there was some resumption, but still very light. The market was very withdrawn, "he added.
Nevertheless, Pellegrino hopes an increase in turnover of packaging industry this year, influenced by the fluctuation of raw material prices and companies focus on higher value-added products and cost containment. The expectation in August was 8.1 percent high revenues this year to 56 billion reais, up from 2013.
For 2015, despite the expectation be macroeconomic adjustments and the weakness in the economy, Pellegrino see companies in the industry more prepared, seeking to increase efficiency and release differentiated products. "The Brazilian market is no longer a market volume and just happens to be a customization market," said Pellegrino.
In the food industry, for example, that have occurred with the use of new materials and offering packages of ready meals in individual portions, given more specific consumer demand.
Another measure taken by the companies has been the greater efficiency of the distribution system, with changes in the dimensions of the packaging to carry more products in a single trip, said Pellegrino.