Aluminum Industry Analysis in Brazil

Growing demand for aluminum in Brazil is powered by the packaging, transportation and construction industries. Aluminum foil is used in flexible packaging and many consumer products are making the transition in packaging material, leading to greater demand across the world.  Increases in demand for transportation and construction needs are powered by the 2014 World Cup and the Rio 2016 Summer Olympics, where extrusion-related programs include stadiums and airports. The Brazilian Aluminum Association (ABAL) technical director Arton Filletti says “We also see great potential for extrusions in other modes of people transport, such as railways, urban surface trains and subways.” He also sees potential in the shipping and offshore industry.

Four industries account for three quarters of aluminum consumption in Brazil.

 

Aluminum is on the rise in the auto industry and has plenty of room for growth in Brazil. In 2013, vehicles produced domestically have average aluminum content per vehicle at around 110 pounds. In leading markets such as the U.S. and Europe, average aluminum content per vehicle exceeds 300 pounds. Inovar Auto is a government program established to boost vehicle technology innovation should raise demand by the industry as well as tax breaks for cars that reach a set level of energy efficiency. Demand should increase for aluminum since it is known to make cars lighter and run more efficiently.

Rio de Janeiro’s Olympic Park will be located next to the water’s edge in the Barra area of the the city and is set to be used in the 2016 Summer Olympics.

Brazil dropped to 8^th from 6^th largest producer globally as production of primary aluminum fell 9.2%. The main barrier is poor competitiveness in the cost of electricity. Last year, Brazil dropped to 8^th from 6^th largest producer globally.  The loss of competitiveness will mean that Brazil will have to become a net importer of aluminum. The People’s Republic of China remains at the top of the list and Shanghai Metal Corporations is a leading manufacturer in Aluminum sheets and plates committed to providing value-added quality products with competitive pricing and prompt delivery. Our group of competent engineers develops and improves our products using specially design and advanced equipment to meet the special needs to our clients. To find out more about our wide variety of products check out our website here.

Sources: The Brazilian Aluminum Association (ABAL), Bain & Company

Crafty Beer Labels for Craft Beers: A Creative Marketing Strategy

Many firms are entering the market in hopes of reaching fast growing revenue since customers are now more accepting toward the product. Craft Brewers are relying on marketing strategies to enhance brand recognition to survive.

The Brewer’s Association in Boulder, Colorado defines craft beer as beer made by a brewer that is small, independent, and traditional. The association includes microbreweries in this category as well even though they produce a smaller quantity of beer. Craft beer has increased in popularities among US beer drinkers as the country slowing transitions out from recession. Americans are now able and willing to spend more money on specialty beers because they possess higher levels of disposable income.

But the market for craft beers has high barriers to entry making it tough for new companies to enter. Mega-breweries such as Miller Coors and Anheuser-Busch have the ability to negotiate large supply and distribution contracts and therefore can offer a lower price to consumers. Craft Brewers, on the other hand, must charge a higher price to cover input prices. Such breweries across the United States are turning to unique marketing strategies to generate sales.

Breweries around the world are using the same artistic labeling strategy to attract consumers as well. Brazil-based Tarantino Brewery’s hand drawn labels have been proven effective.

The Big Picture, a UK-based market research agency that specialize in digital research at a global level, believes that a shift toward artistic labels will be a huge in beer packaging for years to follow. Creative labels allow companies to add individuality and character to the product. Craft beers in particular are applying this approach and are able to possess a charge that bigger brands struggle to match.  In an industry that is fighting over shelf space visibility, unique labels are an effective way to stand out among the rest.

Citation: IBISWorld Industry Report: Craft Beer Production in the US. Creative Bloq

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