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
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
Trade Events
Trade Events in Mexico
EXPO PACK 2008: June 24 - 27, 2008, Mexico City
More than 30,000 packaging and processing companies representing over 34 different companies attended the 20th edition of EXPO PACK Mexico last year. The show is one of the most important events in the industry in Latin America. To obtain the full text of this report please click here.
Further Information, Comments or Questions
Juan Herrera, Commercial Specialist
U.S. Commercial Service
U.S. Consulate Guadalajara