Markets to be explored - Cile

In the packaging sector, investments have been oriented primarily toward increasing productivity and improving product quality in order to satisfy growing domestic demand and access foreign markets (its South American neighbors and Asian countries).

Today the Chilean “envases y embalajes” industry comprises more than 600 manufacturers and employs approximately 22,000 employees.
Local packaging production breaks down as follows: 34.2% paper and board (primarily corrugated cardboard), glass (27.4%), plastic (20.6%), wood (10.3%) and metal (7.5%).
According to the latest report presented by the Centro de Envases y Embalajes (CENEM), 2010 saw +15% growth for the sector compared to 2009, with a production of 1,910,988 t and a turnover of 2,561 million USD. The plastic sector accounted for a share of 41.4%, followed by paper and board (31.1%), metal (11.1%), glass (10.6%) and wood (5.8%).
As for the exports market, the trend is for Chilean manufacturers to consolidate their presence in Asia with the help of government policies supporting exports diversification; the most competitive sectors are, and should continue for a long time to be, wine, fruit, vegetables and processed foods. Consequently, packaging demand should grow as much in qualitative as in quantitative terms.  

Imports and exports: trends Chile’s concerns operate using machinery that originates primarily in Europe (Germany, Italy and Spain), with some also coming from the United States and Argentina. In 2011, the country’s total imports of packaging machinery reached 145.7 million dollars (+51.9% over 2010), and the main supplier countries were Italy (30.47%), Germany (24.59%), the USA (8.69%), Argentina (8.14%) and Spain (4.28%). An important issue, in part because this is common to other countries in the region, has to do with environmental protection and, specifically, the question of packaging recycling. Faced with the problems surrounding processing garbage from the cities, the government is working on regulations governing the production of recyclable packaging, which will soon go into effect.

Furthermore, Decree of Law 201416 on clean production agreements (APLs), signed in 2003 by representatives of government and industry (including the packaging industry), provides for “reduce, re-use and recycle” (3 Rs) policies and optimized packaging reduction. Concerns in the sector have thus been compelled to bring their production operations in line with the regulations, making it necessary to acquire new installations or upgrade existing ones.

The opportunities for the sector are clear, if one keeps in mind the fact that the increase in Chilean exports directly affects the production of packaging destined for export products. The agreements signed by the country will also have a very positive effect on the industry, since it will be necessary to improve technologies in order to adapt packaging to the quality required by international markets and convert Chilean packaging into a competitive product in foreign markets.As a matter of fact, packaging is fundamental to effectively marketing a good, in terms of both presentation and preservation, and this is all the more true for the export of fresh produce and fish products (one of the factors in the progress of exports of this product type is the condition in which products arrive at their destination).

In conclusion The opportunities presented by the Chilean market are to be taken advantage of while they are still ripe for the picking, especially considering how Italy’s competitors are always informed, and often better organized. In order for it to take root in Chile, it is necessary that the excellence of Italian technology be promoted constantly, for example by setting up regular times for updates and training, in collaboration with the trade associations of both countries, involving local enterprises both in order to present them with the latest sector developments and in order to understand the particular production requirements of this far away but promising market.
Source: Cenem/Chilean Customs Statistics, calculations by ICE Santiago
ICE’s Santiago office is available and willing to support and assist concerns in their initiatives. For more information: [email protected]