Brazilian packaging industry was a winner in 2014. According to the research conducted by Fundação Getulio Vargas (FGV), exclusively to ABRE, the sector produced the equivalent to US$ 19.13 billion (R$ 55.1 billion), beside a decrease of 1.47% in the volume compared to 2013. “This fall is not so important when compared to the fall registered in the Brazilian industry in general in the same year: 3.23%”, explains Salomão Quadros, Chief Economist at FGV, who led the research.
The value of production represented a participation of 1.09% in GNP, better than the one of 2013 – 1.07%, but worse than 1.44% from 2004. “We can´t understand this as less industrialization. When we analyze the GNP there are a lot of factors involved and one of them is the increase in participation of services in the last years”, says Quadros.
The research results show that, with the exception of glass, which increased 1.86%, all other sectors registered a decrease. As a result, the industry ended 2014 with 227,321 jobs in December, 0.41% less compared to December 2013.
The trade balance was in deficit, what is not a surprise if we consider the sector has not a tradition as exporter. There were exported the equivalent of US$ 523.2 million, against US$ 860.2 million of imports. The main exported item was glass packaging and the main imported one was plastic packaging.
Beside macro-economic and political factors, the performance of Brazilian packaging industry in 2014 was affected by the performance of FMCG industries, as food and clothes that registered, respectively, a decrease of 1.42% and 3.19%. Beverages, pharmaceutical, perfumes, soaps, detergents and cleaning products, preserved food, sauces, oils and vegetal fat registered an increase in 2014. Some of them, like beverages, registered an increase of 0.80%, preserved food and sauces, registered an increase of 7.69%.
The main concern of Quadros is relative to the confidence of entrepreneurs that the demand will continue weak, according to another research accomplished with 103 companies of the sector responsible for US$ 4.7 billion (R$ 13.4 billion) in sales. For 2015, the Chief Economist predicts a value of production around US$ 20.2 billion (R$ 58.2 billion) and a fall in production of 0.5%. In a harder situation, production value will be US$ 19.2 billion (R$ 57.1 billion) and the fall in production can reach 1.5%.