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 2013. The study reviews current market data and interviews with companies to analyze packaging machinery demand and supply trends in the Mexican market.
"Current conditions in Mexico are favorable for capital investment projects," noted 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."
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% to 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," Guzman 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 United States. The U.S. Hispanic 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.
The demand for packaging machinery is clear, and the companies who took part in the survey made it clear 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.
"The interviews we conducted for the PMMI Mexico Packaging Machinery Market Study underscored the importance of EXPO PACK México," Guzman adds. "Latin American companies are investing in machinery, equipment, components and materials to compete in the global marketplace, and to find what they need, they come to EXPO PACK México."
EXPO PACK México 2013 reflected the market demand: More than 29,000 buyers attended the four-day show last June. The next edition of EXPO PACK México, June 17–20, 2014, will feature more than 1,000 packaging and processing industry suppliers at Centro Banamex in Mexico City.
