Image: Sonoco
In a strategic move in the packaging industry, Sonoco (NYSE: SON) has announced the acquisition of Inapel Embalagens Ltda. in Brazil, significantly expanding its presence in the flexible packaging services market in Latin America.
Inapel, with more than half a century of experience, has established itself as a prominent manufacturer in the flexible packaging sector. The company operates two major facilities in São Paulo: one in Jundiaí and another in Guarulhos. With approximately 500 employees, Inapel has demonstrated remarkable production capacity, including rotogravure printing, adhesive and extrusion laminations, special coatings, cold sealing, bagging, and cylindrical engraving, thus offering a wide range of packaging solutions.
Integrating Inapel into Sonoco’s structure is a strategic step toward strengthening the company’s flexible packaging operations in Brazil. Sonoco already has a plant in Pinhais, known as Sonoco Graffo, renowned for its high-quality rotogravure printing and sophisticated lamination processes.
Russell Grissett, president of Sonoco Global Flexibles, highlighted the importance of this acquisition:
“The technical capability, experience, shared values, and customer focus of Inapel align perfectly with our business, supporting our ambition to grow and expand our portfolio of sustainable packaging.”
He also emphasized the ongoing role of Rodrigo Álvarez and Mónica Saniotto, former owners of Inapel, who will continue to contribute as strategic members of Sonoco’s leadership. Eduardo Nunes, managing director of Sonoco Flexibles, will take on an expanded role, leading the regional operations of both Sonoco and Inapel in São Paulo.
The merger of Inapel and Graffo, both recognized for their innovation, quality, and superior customer service, promises to maintain and raise the standards in the flexible packaging market. The alignment of values and corporate culture between these two companies is a crucial factor in meeting the growing demands of consumers and supporting the growth plans of current and future clients.
With a history dating back to 1899, Sonoco is a global provider of industrial and consumer packaging products, with net sales of approximately USD 7.3 billion in 2022. The company has around 22,000 employees, operating in over 310 facilities worldwide and serving some of the world’s most recognized brands.
The Packaging Industry in LatAm
According to information provided by Mordor Intelligence, the packaging automation sector in Latin America is experiencing significant growth, with a compound annual growth rate (CAGR) forecast of 7.20% for 2021-2026.
The local and export markets are experiencing strong demand for packaging solutions. This growing demand is being met through the automation of the packaging process, which facilitates and accelerates packaging production.
Currently, in Latin America, consumers and governments are showing increasing concern for the environment, reflected in a growing interest in lighter, recyclable, and reusable packaging. In addition, new labeling regulations are being implemented, especially in sectors such as food and beverages, bakery, and pharmaceuticals.
In Mexico, for example, innovations in packaging have been developed, such as the automated packaging solution for multiple containers of Danone and Danup yogurts, created by Festo and Hybernya Industrial in November 2021.
Brazil, Mexico, and Argentina are leaders in the region in the implementation of automated processes such as filling, labeling, packaging, palletizing, and capping. Sectors such as food, pharmaceuticals, cosmetics, personal care, and beverages, and even warehouses, are increasingly adopting these automation solutions to optimize their business processes and reduce operating costs.
Indeed, the market value for beverage packaging in LatAm maintains an upward trend. In 2022 it reached USD $21.34 million with an increase to USD $22.23 million projected for 2023. The sector is expected to reach a value of USD $24.13 million by 2025, as forecasted by Market Data Forecast.
