After a slow recovery period, Mexico’s packaging machinery marketplace is coming back strong, according to PMMI’s 2013 Mexico Packaging Machinery Market Study, published in April.
The study reviews current market data and interviews with companies to analyze packaging machinery demand and supply trends in Mexico.
“Current conditions in Mexico are favorable for capital investment projects,” said Enrique Guzman, director, PMMI Latin America office,
“Our researchers confirmed this through the interviews they conducted for the study, ambitious investment projects were identified, especially in the food, pharmaceutical and personal care industries.”
Demand in Mexico
Firms in Mexico spent $535 million on packaging machinery imports in 2012 — about 85% of their total packaging machinery expenditure — making their nation the world’s seventh-largest importer of packaging machinery.
“Industry experts predict 6-8% overall growth in Mexico’s packaging machinery market this year. But the specific companies interviewed for PMMI’s study anticipate spending an average 17% more on packaging machinery investments this year,” he said.
The majority of the packaging equipment imports in Mexico are purchased for the food market (29%); beverage (24%), personal care (20%) and pharmaceutical (11%).
Food is also the largest sector of Mexican manufacturing, generating 22% of the manufacturing gross domestic product
The largest packaging machinery importers within this industry include a mix of large international food manufacturers and large Mexican food companies that are investing in new technology and expanding their product offerings to meet increasing demand and serve the growing Hispanic market in the US.
This market has greater purchasing power than any other Hispanic market in the world, and manufacturers are expanding their reach further by reaching out to non-Hispanic American consumers as well.
The pharmaceutical market is also a key player in the packaging machinery market. Mexico and Brazil are the largest pharmaceutical producers in Latin America, and the Mexican pharmaceutical industry is growing significantly, averaging annual growth rates above 6% growth over the past three years.
Buying resources
The companies who took part in the survey stated that their first source for the machines is to go to a trade show.
EXPO PACK México came up first as a source for learning about packaging trends and meeting new potential suppliers for machinery or materials.
After EXPO PACK México, they turn to trade publications and direct visits by suppliers make decisions for sourcing new technology and material, Guzman said.
