News

The South American forest, paper and packaging industry is witnessing a massive boom, with Brazil leading the way, according to a new PricewaterhouseCoopers (PwC) report.

The 'Risks and Rewards: Forest, paper & packaging in South America' report has claimed economic growth and stability across the continent continues to translate into rising real incomes, leading to increased consumption of forest, paper and packaging products.

Opportunities for companies to invest into this growth are on the rise, predicts PwC.

According to the document, the growth is especially apparent in the pulp sector.

Recent studies have confirmed that typical Brazilian plantation pulpwood costs are the lowest of any leading producer country, and, for example, range 30-40% lower than southern China.

Over the coming years, the growth will mean some regions can invest in new paper machines to meet burgeoning domestic demand and to substitute for exports, added PwC.

It does warn that there are "obviously some question marks in certain countries in the region regarding political stability. However, most of the major countries in South America have recorded a considerable level of democratic and stable political development."

There are some serious challenges still to be resolved, especially in the areas of infrastructure improvements and land availability, said PwC. But "South America occupies a very attractive position for both continued domestic and foreign investment".