Enterprises open Argentine market through high-quality cosmetic container

Cosmetics and containers mainly rely on imports. Through environmental protection and differentiated products, cosmetics and containers are easy to enter the market. Almost 100% of cosmetics produced in Argentina are purely self-produced. Most raw materials and other materials are imported, especially cosmetics containers. Due to the low quality of products, the import volume is increasing year by year. Therefore, it is suggested that cosmetics container enterprises should pay attention to the container market in Argentina. According to the Buenos Aires trade hall of Argentina, the Korean trade and investment promotion commune, most of Argentina's cosmetics containers are imported products, imported from China with low price, or from Brazil with price competitiveness due to geographical advantages to save logistics, but buyers who attach great importance to product quality are interested in Korean products. Argentina's cosmetics market continues to grow under the condition of economic instability, and it is the country in South America that has continued to increase the use of cosmetics after Brazil and Chile.

By 2017, the growth rate has been kept at 3-5% continuously. In the second half of 2018, due to economic stagnation, there was a decreasing trend, but it was very small. After economic stability, the market grew rapidly again. In Argentina, there are few plastic and glass containers for cosmetics, so the price is relatively high. The market share of packaging materials in Argentina is 32% for glass, 28% for paperboard, 25% for plastic and 11% for wood. Although the low-cost plastic containers have a high import volume, with the emphasis on quality and the popularity of environmental protection products, the demand for high-quality products has increased, and the tendency of consumers has changed. It is expected that the preferences of local buyers will also change. In 2018, Argentina's plastic container imports increased by 11% compared with the previous year, but this was mainly affected by the nearly 40% increase in imports from Brazil and China. Brazil has the highest import share, accounting for about 30%, followed by China, accounting for 18%, Chile and Uruguay each accounting for 7%. The export growth of Brazil and Uruguay takes advantage of the favorable tariffs of the South American common market, with price competitiveness as the focus. Although Argentina's production is not large, the market share of countries with high price competitiveness, such as China and Brazil, is relatively high.

Especially Brazil, as a member of the common market of South America, does not collect tariffs and statistical taxes, so it still has a gap of about 30% with import taxes. In addition, buyers' understanding of China's export products is basically cheaper, so their loyalty to the country is relatively high. Change consumer awareness, environmental competitiveness however, it is understood that consumer awareness is changing, and it is expected that high-quality products or environmental protection, zero cruelty products will be more competitive in the market. According to the analysis, it is more important to attract enterprises that attach importance to quality or product identity than ordinary buyers who like low price. In Argentina, the wholesalers of imported cosmetic raw materials and materials are mainly responsible for imported cosmetic containers. The advantage is that the customers who use raw materials and containers are the same, they can supply together, and from the standpoint of exporters, they can achieve faster performance. In addition, although there is a more flexible tendency to trade with general traders, most of them rely on price imports. Jorge Acevedo, President of the Instituto Argentino del enves IAE -, said in an interview with KOTRA that "local packaging companies have a strong interest in environmental protection products. Not only Argentina, but also the world is promoting environmental protection packaging materials."

According to Diego de Leone, Argentina's head of natura, one of the main South American companies, he also said in an interview that "natura mainly produces environmentally friendly packaging materials. It is expected that 50% of the plastic packaging sold in Argentina will be recycled by 2050, reflecting the change of environmental protection trend." According to the analysis of Buenos Aires Trade Center, Argentina, South Korea trade and investment promotion commune, "with the gradual increase of Argentina's intelligent consumption, the demand for environmental protection products and packaging will increase. At present, the influence of Argentina's price factor is more important. Compared with general products, differentiated products and high value-added products are easier to open the market."