Market Overview

According to reports from the Packaging Machinery Manufacturers Institute (PMMI), Mexico is the second largest buyer of equipment from the US in the packaging industry, only preceded by Canada. In 2007 alone, the market reached an average of US$ 460 million. Spare parts contributed another US$ 65 million, making the total value of the industry over a half billion dollars. In 2006 the Mexican economy grew over 4.5%, boosted by external demand as well as the local market, and the industrial sector also kept growing. Last June, national industrial production increased 6.9%. Exports, manufacturing production, and construction made an important impact in the expansion of the industry as a whole.

According to the Mexican Association of Packaging (AMEE), sales during the first semester of 2006 increased 9% when compared to the first semester of 2005, reaching a total value of US$3.4 billion and 8,506,853 tons. In 2005, Mexico manufactured 8.3 million tons of containers, with a production value of US$6.8 billion. The total market value for packaging machinery in Mexico reached US$442 million in 2005. The sales of supplies for pre-finished packaging brought the total value to US$502 million. The Mexican packaging market is very dynamic.

Best Products/Services

Food processing not only accounts for 19% of manufacturing GDP, but also for 40% of sales from the packaging industry, making it the biggest buyer sector for the packaging industry and accounting for a total industry value of over US$ 60 billion (excluding beer, tobacco and coffee). The food-processing sector has also demonstrated continuous annual growth for the last 3 years with an average year on year growth of 3.7%. The pharmaceutical industry is also one of the major correlated industries, representing almost 10% of the total demand. They are also one of the largest buyers for packaging equipment, with an annual average growth rate of 7% in the last 3 years.

Cosmetics and Personal Care Products is the third most relevant sector /client for the packaging industry, with 10% of the overall demand for packaging equipment.

Opportunities

Mexico strives to provide excellent quality in the packaging sector. The glass packaging industry has become the main focus for companies, because of its competitive prices as compared to plastic containers, and its environmentally friendly manufacturing process. With this boom in the packaging sector, machinery is more in demand, and the US is definitely the first option for Mexican companies when acquiring new technologies. There is also a strong tendency to purchase new equipment in the sector and 85% of the equipment is imported, which represents an enormous opportunity for U.S. firms.

Resources

Packaging Machinery Manufacturers Institute (PMMI)

Packaging Expo in Mexico

Mexican Packaging Association 

Institute of Packaging Professionals

Mexican Institute of Packaging Professionals

TRADE EVENTS

Upcoming Mexican Buyer Delegations to the U.S.

PACK EXPO International 2008; November 9 - 13, 2008; Chicago, IL

This event will focus on the latest developments in packaging technology and will showcase the exhibitors' state-of-the-art advances in packaging machinery, converting machinery, materials packages and containers, and components. PACK EXPO International is scoped to accommodate all size exhibits and product introductions by the most ominent companies in the industry. PACK EXPO International is a biennial event ? ideally timed for important industry updates and new product technology.

Emphasis is placed upon having machinery operational during the show, using materials supplied by the exhibitors. Qualified technical personnel are on hand to assist visitors in exhibitors' booths.

Because of the size and scope of the show, PACK EXPO International has been the place for packaging professionals to network, compare products and technology, keep on top of industry trends, complete business transactions and gather information.

International Poultry Expo and International Feed Expo; January 1 - 30; Atlanta, GA

With nearly 900 exhibitors, the International Poultry Expo and the International Feed Expo are the world's largest trade shows for the poultry and feed sectors of the industry. Every segment of the poultry industry is represented: live production, hatchery, processing, further processing, packaging, commercial egg, marketing, and all support activities. The feed expo attracts manufactures, ingredient suppliers, animal health companies, equipment manufactures,large integrated livestock and poultry producers and firms that provide other goods and services to the commercial animal food industry. The shows encompass two exhibit halls: one hall houses suppliers who deal with processing, further processing, packaging, and marketing poultry meat products; the other hall houses exhibitors who focus on feed manufacturing, egg production and processing, poultry breeding and incubation, poultry health and poultry housing.

Market Research

Glass Packaging, An Expanding Industry

It was not long ago that Mexico realized that its packaging industry had to be consolidated. Currently, there is greater demand for the glass packaging industry, because of its competitive prices compared to plastic packaging. This represents an interesting opportunity for those exporters looking for a new export alternative. To obtain the full text of this report please contact us 

Taking the Lead in Pharmaceutical Packaging

Mexico is one of the largest pharmaceutical markets in the world, representing 80% of sales in Latin America in 2005. Multinational manufacturers have a strong role to play in pharmaceutical packaging, an essential branch of this attractive and growing market. To obtain the full text of this report please contact us

Packaging Makes all the Difference

During the last couple of years, Mexican companies have made substantial investments in machinery and equipment for food processing and product packaging. Due to the ever-increasing demand of consumers, these companies seek to invest in new technologies to keep up with their competitors.
To obtain the full text of this report please contact us

Packaging: A Competitive Advantage

Big companies are now placing increased emphasis on packaging. Not only what they have added, but what they have taken out… and its impact on the environment. To obtain the full text of this report please contact us

Further Information, Comments or Questions

Juan Herrera, Commercial Specialist
U.S. Commercial Service
U.S. Consulate Guadalajara