Pöyry''s study shows that packaging sector will emerge from the crisis in the medium term

Packaging production chain in Brazil, even affected by the economic downturn, and without prospects for realization of new investments in capacity expansion, should benefit from the gradual resumption of industrial production and exports, with positive impacts on the entire chain of small producers so far strongly impacted by the crisis. This is one of the findings of the study "paper and Corrugated Packaging", conducted by multinational consulting Pöyry, Finland and engineering services.
"Despite having been one of the most disadvantaged by the economic crisis, the packaging sector will be the first to recover, because traditionally it is what reacts faster," says Manoel Neves, Manager of economic studies of Pöyry.
According to the study, gradual recovery of industrial activity in the country can make room in the market for small producers of corrugated paper packaging, this segment in which there are today many difficulties, due to the reduction of orders, increased costs, difficulty in cash flow Equalization and indebtedness in foreign currency.
According to the survey, there are about 1,000 small converters in the country, representing 23% of the national market, and whose performance is characterized by being more flexible, accept requests for lots of small volume and more aggressive prices, since production of smaller volume does not require such sophisticated and expensive equipment as required for high-volume production. "In the short term, we have some bad news, but, with the growth of the economy, there are reasons for optimism," economic studies Manager of Pöyry.
Brazilian industry profile
The study of Pöyry reveals that, in 2014, the brazilian packaging paper production reached 5,400,000 tons, of which 55% were for the personal consumption of packaging manufacturers for conversion of bags, such as corrugated cardboard production. Direct sales in the domestic market account for 33% of the total and others 12% are exported.
Of the total volume produced, 84% (or 3,400,000 tonnes) are used in the production of corrugated board, this being the main application. The manufacture of natural Kraft for multiwall paper sacks come in second place, with 8 percent, and the production of bags and packaging, in third place, with 7%. The study also shows that major producers seek to maximize conversion and thus ensure competitiveness to provide the finished product for consumers of great volumes and in formats of standardized boxes.
The survey also addressed the regional distribution of activities of this industry and showed that, although there is a tendency to installation of plants in the Northeast and Midwest, Southeast and South regions represent 78% of the volume consumed of cardboard boxes, accessories and plates.
Finally, the study of Pöyry shows that the national market of cartons, and corrugated sheets accessories have low concentration, since the top five manufacturers account for only 40% of the total volume, as compared to 80% holding to participate in many European countries and the USA.