Promising opportunities: food packaging Mexico

06.03.2012 By: Transfer Latin Business Consultancy

With a population of more than 112 million people being the most populous Spanish speaking country in the world, Mexico has an immense market and likewise tremendous business opportunities. However, the traditional Mexican consumption pattern is subject to change. Health concerns such as obesity, diabetes, and poor nourishment are rising according to the Mexican Government in combination with a higher environmental awareness. The pressure on public health resources created by treating these ailments has forced the government and congress to take action, urging the population to lead healthier lifestyles, eat more balanced diets and by doing so take the environment into account. This makes Mexico a vital market for packaged consumer good companies

Various aspects force Mexican consumers to become more aware of their nourishment. Amongst others the increasing amount of women on the labor market and prolonged working days increase the demand for faster but healthy dishes. This in combination with an increasing alertness of packaging material on the environment makes sustainable packaging of major interest for this Latin American market. The changing view of the Mexican citizens forces the industry to follow. The requirements regarding health, the environment, product variation, and nutrition standards make higher quality machines and stricter security regulation a prerequisite for a success formula in the food and packaging industry.

Packaging Trends
• A few major trends in packing have emerged in Mexico, especially with products such as canned and preserved vegetables.
• The major leader in canned and preserved vegetables in Mexico, “Del Fuerte”, migrated from metal cans to brick liquid cartons, setting a new standard in the industry that others are following.
• Many major sauce, dressing, and condiments producers are now using safer packaging, with less steel and more glass or aluminum.
• Many major sauce, dressing, and condiments producers are now using safer packaging, with less steel and more glass or aluminum. 

 Since total output of the food processing industry takes a big part of GDP in Mexico even as of total industrial output the Mexican market has a lot to offer. A recent study by the Packaging Machinery Manufactures Institute involving surveys among packaging machinery distributors, agents and local dealers who represent and/or sell international brands in Mexico, places the size of the packaging machinery market between US$590 and US$625 million. Of that amount US$500 million is imported. While the size of the packaged and prepared foods market is estimated to grow by 6% annually driven by the power of the retail sector. This power means more demand for private label products on the market requiring more customized packaging even as food companies making use of packaging to differentiate themselves from private label products and competitors. And all this with the increasing awareness of food companies that packaging is an important part of any sustainability strategy. This changing behavioral patterns and the image of Mexico being an economical stable country did already lead to the attraction of significant foreign investments. These positive developments offer big opportunities for Dutch companies as well.

Interested in Mexico?
The best way to get access to the Mexican market is by making use of a local agent or an importer. With Transfer Latin Business consultancy new opened office in Mexico City we can be of great importance to help you expand to Mexico.

Since January 2012 Transfer Latin Business Consultancy expanded their office network to Mexico. From now on we can locally answer your questions concerning export, distribution partners, investments, trade missions, fiscal or accounting issues. You are welcome to contact our office.

Transfer México Presidente Mazaryk 191 Int. 802 b-75
Col. Polanco (Del. Miguel Hidalgo)
11560 México, D.F.
Tel: +52 55 3687 4030
Cel: +52.1 55 5984 0852

Contact: Laura Vargas (English or Spanish): laura@transfer-lbc.com

If you prefer to correspond in Dutch you can contact us by email:
Sven Kallen sven@transfer-lbc.com or by phone+34.93.272 47 90