End of year warms sales in the packaging sector

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End of year warms sales in the packaging sector

2017 was marked by a slow and difficult phase of economic recovery. With just over a month to the end of the year, the numbers of the most diverse sectors are still timid, but they indicate that, little by little, the country begins to return to the axes.

The proximity of the December festivities is positive for the packaging sector. The second half is historically the time when this industry niche stands out due to the greater physical production of packaging that meets the demand for consumer goods (food, beverages, cosmetics, etc.).

An ABRE / FGV study shows that the sector has a growing demand every quarter of the year, the last quarter being the most heated. For the chain as a whole, the reflection of Christmas already happens in the third quarter, since many of the categories of products are attended with an average of six months in advance of the moment they reach the market. This way, the end of the year attends to the last orders of the celebrations, deliveries of the summer and even Easter, not counting the supply as a whole, remembering that at this time the consumption power of the families is greater.

“The increase in sales at specific times is very important for the industry. The growing demand during the holiday season brings hope for the warming of the economy in the coming months, which leads to hiring and total capacity of our customers, directly impacting the volume produced, “explains Gabriela Nobre, Marketing Manager of COIM.

The packaging industry in times of crisis

In times of crisis there is a decrease in consumption in general, as well as non-durable goods (food, beverages, personal care products, etc.) that are the main industries that use packaging. There is also a lower demand and consequently reduced physical production of packaging, impacting the whole. The sector tends to exhibit variations – both in the increase and in the retraction of production – which are milder compared to the durable and semi-durable goods industry. This is because about 70% of the production goes to the supply sector, which is less dependent on credit.

Another impact is the demand for economical packaging (higher cost / benefit per quantity of product) and packaging of individual portions (lower cost per purchase). With less income, the consumer tends to look for options to economize (economical packaging) and / or reduce the quantity of products (packages of small portions) to maintain the pattern of consumption achieved in more favorable economic periods.

“The population does not stop consuming, but there is an exchange in relation to the product brand. We feel this effect, because we do not suffer a fall in the volume of adhesives, only a greater pressure on the prices. Our customers did not suffer with the volume, but with the revenue, since the less premium brands grew and the price war became more intense, “analyzes Gabriela.

Source: Thema Public Relations & Press, November 23, 2017.

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