David Savastano, Ink World Editor
In spite of shaky economic conditions, the Brazilian print- ing market is robust. With a gross domestic product (GDP) of $1.775 trillion in 2015 and more than 200 million people, Brazil’s packaging industry has plenty of room to grow.
According to ABRE – Brazilian Packaging Association, the total
packaging market sales totaled 64. 3 billion reals ($19.46 billion) in 2016, up 6.6% from 2015. Plastic packaging was the
largest segment at 39.4%, with corrugated second at 19% and
metalic at 17.55%, accordingto ABRE.
Not surprisingly, all of the leading packaging companies have
set up shop in the country, and many are adding new operations.
For example, in 2016, CCL Industries Inc. acquired the assets
of Powerpress Rotulos & Etiquetas Adesivas LTDA, Brazil’s
leading producer of expanded content labels for agricultural
chemical and pharmaceutical customers, and Smurfit Kappa
purchased two integrated paper-based packaging businesses,
Industria de Embalagens Santana and Paema Embalagens.
In 2015, Sonoco acquired a majority interest in Graffo
Paranaense de Embalagens S/A, a flexible packaging manufacturer in Pinhais, Curitiba, Brazil, and Amcor entered into an
agreement to acquire Souza Cruz’s internal tobacco packaging
operations located in Cachoeirinha, Rio Grande do Sul, Brazil.
The opportunity to expand into this potentially lucrative market drove the recent acquisition of Creative Industria
e Comercio Ltda., Sao Paulo, a leading flexo and gravure ink
manufacturer, by INX International Ink Co. One key to this acquisition and cooperation is the need to supply multinational
brands globally.
“Our multinational customers are in Brazil,” Rick Clendenning,
INX International Ink Co.’s president and CEO, said. “We had to
add resources in Brazil to grow into the packaging market in the
country, and Creative was a great answer for that.”
“We continually look for companies that fit with our style
and approach to the ink business,” said Jonathan Ellaby, VP in-
ternational operations for INX International Ink Co. “Creative
is a great example of a family company that had a similar vision
of the market and has similar values to INX International. It
was a natural fit for us.”
“In the last five to seven years, the multinationals are growing a
lot in Brazil,” said Jose Carlos Ribeiro Jr., commercial director for
Creative. “The per capita consumption of packaging is developing
in Brazil. There’s a lot of space to grow when the country grows. It
is tougher to compete due to technology and raw material supply.
We had to decide whether to expand or join a larger group.”
The Brazilian Packaging
Ink Industry is on the Rise
The packaging market continues to expand, and converters and ink companies see
more opportunities ahead.
Toyo Ink Brasil’s production facility in Junidiai, Brazil.
