The strong growth trend demonstrated by the Mexican packaging industry in the last five years is expected to continue, and the market is expected to reach a value of approximately US$11 billion by 2015.
London – July 11, 2011 – As a result of consistently strong growth, the Mexican packaging industry is one of the most attractive markets in the world and has encouraged many packaging manufacturers to establish operations in the region due to low the country’s low labor and energy costs and the proximity to the world’s largest packaging industry, the US. The key end-user sectors for the Mexican packaging industry are the food and drinks and pharmaceuticals industries, which combined account for more than 80% of the value of the packaging market.
Low cost structure and proximity to the US
During the review period (2006–10), the Mexican packaging industry recorded a strong CAGR and valued approximately US$9 billion in 2010. Such strong growth was largely a result of the country’s proximity to the US, which has the largest packaging industry in the world, and the ability of manufacturers operating in the region to manufacture and supply products at a lower cost than other regions. Factors such as these have encouraged substantial investment in the Mexican packaging industry, and as a result, in value terms, the country is ranked among the top 15 packaging markets in the world.
Mexican packaging industry growth stimulators
The food industry is one of the largest markets in Mexico, and consumer expenditure on food in the country is high. In addition, the country has one of the largest carbonated drinks markets and the third largest beer market in the world. Of total packaging consumption, the food and drinks sector accounted for approximately 75%, and growth in consumption in such key end-user sectors is expected to fuel Mexican packaging industry growth throughout the duration of the forecast period (2011–15).
Free Trade Agreement
In terms of imports and exports, Mexico is an attractive investment destination due to the multiple free trade agreements it holds with a number of countries worldwide. The country has close to 30 free trade agreements with countries such as the US, Canada, Japan, Israel and countries in the EU, which have reduced the import and export duty on trade from Mexico. This has encouraged many packaging companies from the US and Canada to establish manufacturing units in the country in order to gain access to the markets in free trade countries.
Packaging machinery
The Mexican packaging machinery market is import oriented, with more than 80% of packaging machinery demand currently met by imports. European machinery suppliers dominate imports, and the US is second largest exporter of packaging machinery, supplying more than 20% of the Mexican market.
During the review period, domestic packaging manufacturers increasingly adopted new technology in order to meet the standards set by international packaging machinery suppliers. As a result, Mexican packaging machinery suppliers are expected to increase their market share by approximately 25% by 2015. Key end-users of packaging machinery are the food, drinks, pharmaceuticals, consumer goods and personal care industries.
Stringent recycling law
The Mexican packaging industry is governed by stringent recycling laws, and the lack of natural forest reserves has forced manufacturers to use recycled raw material for the production of paper and board packaging. The government is gradually tightening recycling laws in order to satisfy strict packaging recycling legislation outlined by the EU, as Mexico has free trade agreements with a number of EU countries. In order for packaging produced by Mexico to enter EU countries, it must comply with such regulations.
According to new legislation, packaging suppliers will be required to increase recycling rates and implement a system whereby packaging material is collected from consumers and recycled. Such a system will increase the price of packaging material and require additional investment from both packaging manufacturers and end product suppliers.
Competition for market share
Satisfying end-user demand for packaging solutions and the maintenance of a competitive advantage over foreign manufacturers in the domestic market are the key challenges for domestic packaging manufacturers in Mexico. In order to increase competitiveness, domestic companies must invest in new packaging machinery.
The majority of US based packaging companies have established manufacturing facilities in Mexico, which offer packaging solutions for domestic, Latin American and North American markets. One of the key challenges faced by domestic packaging manufacturers is to enhance the quality of packaging solutions. Domestic manufacturers must therefore improve capital investment in research and development and new packaging machinery in order to improve the quality of end products. Such investment will enable domestic companies to compete with foreign manufactures in the Mexican market, and also assist in the capture of lucrative market share in countries such as the US, Canada and EU countries
To purchase the full version of the report, ‘The Mexican Packaging Industry – Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015’, please click here.
About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.
We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.
The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.
With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.
For more information, please visit our website at www.industryreview.com
For more information on the article, please contact:
Shelly Wills
Tel: +44 (0) 20 7936 6671
shelly.wills@industryreview.com
London – July 11, 2011 – As a result of consistently strong growth, the Mexican packaging industry is one of the most attractive markets in the world and has encouraged many packaging manufacturers to establish operations in the region due to low the country’s low labor and energy costs and the proximity to the world’s largest packaging industry, the US. The key end-user sectors for the Mexican packaging industry are the food and drinks and pharmaceuticals industries, which combined account for more than 80% of the value of the packaging market.
Low cost structure and proximity to the US
During the review period (2006–10), the Mexican packaging industry recorded a strong CAGR and valued approximately US$9 billion in 2010. Such strong growth was largely a result of the country’s proximity to the US, which has the largest packaging industry in the world, and the ability of manufacturers operating in the region to manufacture and supply products at a lower cost than other regions. Factors such as these have encouraged substantial investment in the Mexican packaging industry, and as a result, in value terms, the country is ranked among the top 15 packaging markets in the world.
Mexican packaging industry growth stimulators
The food industry is one of the largest markets in Mexico, and consumer expenditure on food in the country is high. In addition, the country has one of the largest carbonated drinks markets and the third largest beer market in the world. Of total packaging consumption, the food and drinks sector accounted for approximately 75%, and growth in consumption in such key end-user sectors is expected to fuel Mexican packaging industry growth throughout the duration of the forecast period (2011–15).
Free Trade Agreement
In terms of imports and exports, Mexico is an attractive investment destination due to the multiple free trade agreements it holds with a number of countries worldwide. The country has close to 30 free trade agreements with countries such as the US, Canada, Japan, Israel and countries in the EU, which have reduced the import and export duty on trade from Mexico. This has encouraged many packaging companies from the US and Canada to establish manufacturing units in the country in order to gain access to the markets in free trade countries.
Packaging machinery
The Mexican packaging machinery market is import oriented, with more than 80% of packaging machinery demand currently met by imports. European machinery suppliers dominate imports, and the US is second largest exporter of packaging machinery, supplying more than 20% of the Mexican market.
During the review period, domestic packaging manufacturers increasingly adopted new technology in order to meet the standards set by international packaging machinery suppliers. As a result, Mexican packaging machinery suppliers are expected to increase their market share by approximately 25% by 2015. Key end-users of packaging machinery are the food, drinks, pharmaceuticals, consumer goods and personal care industries.
Stringent recycling law
The Mexican packaging industry is governed by stringent recycling laws, and the lack of natural forest reserves has forced manufacturers to use recycled raw material for the production of paper and board packaging. The government is gradually tightening recycling laws in order to satisfy strict packaging recycling legislation outlined by the EU, as Mexico has free trade agreements with a number of EU countries. In order for packaging produced by Mexico to enter EU countries, it must comply with such regulations.
According to new legislation, packaging suppliers will be required to increase recycling rates and implement a system whereby packaging material is collected from consumers and recycled. Such a system will increase the price of packaging material and require additional investment from both packaging manufacturers and end product suppliers.
Competition for market share
Satisfying end-user demand for packaging solutions and the maintenance of a competitive advantage over foreign manufacturers in the domestic market are the key challenges for domestic packaging manufacturers in Mexico. In order to increase competitiveness, domestic companies must invest in new packaging machinery.
The majority of US based packaging companies have established manufacturing facilities in Mexico, which offer packaging solutions for domestic, Latin American and North American markets. One of the key challenges faced by domestic packaging manufacturers is to enhance the quality of packaging solutions. Domestic manufacturers must therefore improve capital investment in research and development and new packaging machinery in order to improve the quality of end products. Such investment will enable domestic companies to compete with foreign manufactures in the Mexican market, and also assist in the capture of lucrative market share in countries such as the US, Canada and EU countries
To purchase the full version of the report, ‘The Mexican Packaging Industry – Market Opportunities and Entry Strategies, Analyses and Forecasts to 2015’, please click here.
About Industry Review:
Industry Review is a collection of incisive, regularly updated market reports across 40+ industry sectors and 100+ countries.
We provide access to the latest data on global and local markets, key industries, top companies, M&A activity, new product launches and trends so you can make faster and better informed business decisions.
The reports in our store draw on robust primary and secondary research, proprietary databases, industry surveys and insightful analysis from our own expert teams and from carefully selected third-party publishers.
With access to over 400 in-house analysts and journalists, and a global media presence in over 30 industries, Industry Review delivers in-depth knowledge of local markets worldwide.
For more information, please visit our website at www.industryreview.com
For more information on the article, please contact:
Shelly Wills
Tel: +44 (0) 20 7936 6671
shelly.wills@industryreview.com
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