Market Overview

According to reports from the Packaging Machinery Manufacturers Institute (PMMI), Mexico is the second largest buyer of equipment from the U.S. in the packaging industry, preceded only by Canada.  In 2007 alone, the importation market reached an average of US $460 million. Spare parts contributed another US $65 million, bringing the total value of the industry to over a half billion dollars.  According to the Mexican Association of Packaging (AMEE), sales during the first semester of 2007 increased 2.6% when compared to 2006 data, reaching a total value of US $7.8.

In 2007, Mexico manufactured 8.3 million tons of containers, with a production value of US $6.9 billion. The total market value for packaging machinery in Mexico reached US$462 million in 2007.  The sales of supplies for pre-finished packaging brought the total value to US $525 million.  

The Mexican packaging market is very dynamic. The breakdown in sub-sectors is as follows:

The cardboard packaging sector represents 34.9% of total sales in the industry for 2007.  During the first semester of 2007, there was an increase of 7.4%, which translates into US $1.9 billion, according to AMEE’s records.

The paper-packaging sector represents 3.8% of all industry sales.  During the first semester of 2006 it showed an increase of 7.8%, with total sales of US $132 million (no new figures are available).

The metal packaging sector registered 10% growth in this period, representing over US $535 million.

The glass-packaging sector represents 19.4% of all sales in the industry and is one of the most important sub-sectors for the packaging industry in Mexico.  According to AMEE, the glass-packaging sector grew by 12% in the first semester of 2007, reaching US $671 million. This is one of the most prosperous sub-sectors, especially considering that Mexico is the world’s third largest beer producer and second largest soda consumer.  The soda equipment market is roughly 12% of all the packaging equipment market (around US $2 billion).

The Flexible Packaging Sector (bags, films) represents 18.4% of all sales in the industry, and grew by 8.7% in the first semester of 2006, reaching US $634 million (no new figures are available).  

The Rigid Plastic Packaging Sector (boxes, bottles, containers) represents 9.7% of all sales and grew by 7.3% for a total of US $336 million.  

Wood Packaging Sector represents 0.7% of all sales in the industry and grew by 2.4%, reaching US $24 million, which is due in large part to the increase of exports in the agribusiness sector.

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.

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. 

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. 

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.
 

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. 

Further Information, Comments or Questions

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