Brazil Rubber and Plastic Equipment Market
Due to its large population, Brazil's annual consumption of plastic and rubber-related products ranks first in South America. If you fully grasp the characteristics of the Brazilian rubber and plastic market, overcome disadvantages, and master your advantages, you can successfully expand Brazil.
Brazil has a large population and high demand for plastic and rubber products that can be seen in daily life. According to recent survey data released by the Brazilian Association of Plastics Industry (ABIPLAST), the annual consumption of various plastic and rubber products in Brazil reached 6.5 million metric tons and approximately 410,000 metric tons, ranking first among South American countries.
Due to the high annual consumption of various plastic and rubber products in Brazil, there is also a relatively large demand for rubber and plastic manufacturing machinery and equipment. Moreover, the average age of plastic and rubber machinery currently used in Brazil is 17 years, which is higher than the average age of five in Germany. The average seven years in 2016 and the United States are much higher. Therefore, in the next few years, the Brazilian rubber and plastics manufacturing industry will continue to have demand for replacement of various rubber and plastic machines. Therefore, rubber and plastic machines have great business opportunities in Brazil.
Sales volume is constrained by price, sales are sluggish
According to the industry, due to the economic downturn, most manufacturers are reluctant to invest and general bank loan interest rates are high. From 2014 to 2016, the sales of rubber and plastic machines in Brazil were generally sluggish. In 2017, the Central Bank of Brazil provided general bank loans. With the continued downward trend of interest rates (Selic) and a 2.5% increase in industrial output over the previous year, sales of rubber and plastic machines in Brazil have recovered slightly, especially since the fourth quarter of the year, but whether the overall market boom can be booming, Still depends on the new president elected in October this year and the new policy issued by the new government. The industry also said that although Brazil’s steadily increasing electricity bills have caused the country’s rubber and plastic manufacturers to consider whether the machines can save energy when purchasing new machinery and equipment, and the Brazilian Association of Machinery Industry (ABIMAQ) is strengthening the industry 4.0 However, the price of the machine and the method of billing have always been the main factors that determine whether the industry really buys new machines and equipment.
Taiwan manufacturers go to Brazil to seize business opportunities in the rubber and plastics industry
In the global market, the only countries with a land area of more than 5 million square kilometers, a population of more than 100 million, and a gross domestic product of more than US$2 trillion are the United States, China, and Brazil. Among them, the United States and China are already world powers, and Brazil is regarded as the next rising star. As the middle class continues to grow, from durable kitchen goods to automobiles, Brazil's plastic consumption was already among the top 7 countries in the world in 2011, and the demand for rubber and plastic machinery derived from it is also growing. According to a report by the Brazil Taiwan Trade Center in April 2014, statistics released by the Brazil Plastics Industry Association (Abiplast) showed that the output value of the Brazil plastics industry in 2013 reached 64.7 billion bucks (approximately 21.5 billion US dollars), an increase of 6.74% from 2012. It accounted for 2.37% of the Brazilian manufacturing industry’s 272 billion baht (approximately US$9066 billion) output value that year. Among the main sources of imports of plastic products from Brazil in 2013, Asia accounted for the highest proportion, accounting for 33% of the total import value. European Union countries ranked second with 24%, while the United States ranked third with 16%.
Due to the strong growth in demand for the rubber and plastics industry in the Brazil market, many Taiwan manufacturers have continued to invest in the Brazil market, and they are deeply confident in the development and prospects of the Brazil market.