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Engineering Plastics Gradually Substitute Traditional Materials in Diverse Applications in Brazil, Finds Frost & Sullivan


News provided by

Frost & Sullivan

30 Oct, 2012, 17:05 GMT

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End-user sectors' growth ripples into the engineering plastics market

SAO PAULO, Oct. 30, 2012 /PRNewswire/ -- Traditional materials such as commodity plastics, metal, and glass are slowly giving way to engineering plastics, as consumers demand more sophisticated products. The growth of the middle class has considerably aided the development of this market and made Brazil one of the most attractive consumer markets in Latin America.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Analysis of the Brazilian Engineering Plastics Market, finds that the market earned revenue of $1.0 billion in 2011 and estimates this to reach $1.6 billion in 2017.

The engineering plastics market has gained considerably from the expansion of various end-user sectors such as automotive, building and construction, and electrical and electronics. These sectors have higher growth rates than the country's Gross Domestic Product (GDP), which translates to significant potential for engineering plastics.

"Engineering plastics, like many other markets, was affected by the global economic downturn, but it bounced back quickly to post high growth rates," said Frost & Sullivan Research Analyst Mariana Guercia. "Nevertheless, it is vulnerable to competition from low-cost Asian products, as domestic manufacturers cannot compete against Asian companies with large-scale production units."

Tariff barriers to imported products do not inhibit Asian engineering plastics sales in the Brazilian market because the prices of imported plastics are still lower than those of locally made products. The competition is likely to be more intense in the short term because the economic downturn discourages global consumption.

To survive in this environment, domestic manufacturers have to make the most of the government ordinance that favors vehicles that have higher amounts of local content. Besides, the offer of local technical support to customers also makes domestically produced engineering plastics more competitive than imports.

"However, it is important not to depend exclusively on government incentives," noted Guercia. "Manufacturers should invest substantially in research and development to find more applications for engineering plastics; this way, they do not have to compete head on against traditional plastics and instead, can cater to niche markets that require more innovative products."

If you are interested in more information on this research, please send an email to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state, and country.

Analysis of the Brazilian Engineering Plastics Market is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: North American Flexible Packaging Market, North American Wire and Cable Materials Market, Central and Eastern European Industrial Sludge Treatment Chemicals Market, and Biofertilizers Market in North America. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Brazilian Engineering Plastics Market
NB56-39

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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