Venezuelan aerosol industry faces tough
challenges, sees production increase
The Venezuelan Aerosol Chamber (Cámara Venezolana Del
Aerosol or CAVEA) recently released statistics for aerosol
production in 2016. Venezuela produced 14,356,465
aerosol products in 2016, an increase of 11.67% over the almost
12.86 million produced in 2015. However, this is a sharp decline
(-67.35%) from the almost 44 million aerosol products produced
18 Spray January 2018
in that country during 2011.
According to CAVEA, economic
conditions in Venezuela
are affecting most industries, not
just the aerosol industry. With a
population of 32 million people,
53.1% are under 29 years old.
More than 80% of the population
live in urban areas. There is a very
high year-on-year rate of inflation
and very weak macroeconomic
conditions. Even with employment
regulations in place, there has been a reduction of formal
employment.
These conditions decrease the purchasing capacity of the
population and, along with a lack of raw materials, translates into
a contraction of consumption.
In response to U.S. economic sanctions in 2017, the Venezuelan
government made a decision to use the Yuan, Sucre (a regional
currency), Rublo, Yen, Rupee or Euro instead of the U.S. Dollar,
which CAVEA stated will cause more complications.
The aerosol industry in Venezuela
According to CAVEA, aerosol production is concentrated in the
insecticide, personal care, household, industrial and automotive
product categories. There are several manufacturers who supply
both their own brand as well as private label products.
Venezuela has local supplies of propellants, aluminum containers,
valves, etc. The production of tinplate packaging is at a minimum
because the Government Steel Co. stopped supplying tinplate
sheets in 2015. Currently, tinplate production is from imported raw
materials. High prices and low availability are the main reasons why
production has migrated from steel to aluminum containers.
Liquid petroleum gas (LPG) is virtually the only propellant
currently used, even with local production of hydrochlorofluorocarbons
(HCFCs).
CAVEA concluded that due to the drop in production, the idle
capacity of the aerosol industry is very high. With its abundance
of its resources, including human resources, Venezuela’s aerosol
industry should have a more competitive advantage. Spray
Aerosol Production in Venezuela