Packaging Industry in Mexico

Euromonitor International's Packaging Industry in Mexico Euromonitor International's World Market for Glass Packaging report offers insight into key trends and developments in global and regional consumer glass packaging. It provides analysis of the major growth markets and end-use applications, together with analysis of the corporate strategies of the leading companies.

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Executive summary

There is always a quiet period after the storm

Compared to previous years, such as 2004 when several mergers, acquisitions and joint ventures took place within the packaging industry, 2005 and the first half of 2006 yielded no major changes in terms of composition and main players. It was a relatively quiet period for the industry. In fact, seems as if the packaging industry is still reorganising itself after a period of relative turmoil due in part to merger and acquisition activity and joint ventures that took place in 2004. Companies are increasingly focusing on becoming more competitive in order to stay viable and increase value share.

Plastic packages became more expensive, benefiting glass

In 2005-2006, oil prices in all world markets increased greatly due to different international events (such as the conflict in the Middle East) and several natural disasters like Hurricane Katrina in the US. This oil crisis had a negative impact in many different products dependent on the oil industry, especially plastics. Thus, the overall plastic packaging industry suffered from increasing production costs, which had a negative impact in final consumer prices of most products packaged in plastic containers. In the beverage industry, for example, PET bottles increased 30-40% in 2005 compared to 2004 prices.

Nevertheless, there is always a counterpart for every negative trend, and this is the case for the glass packaging industry, which experienced increased demand during this period because of competitive overall prices compared to plastic alternatives. That was the case in soft drinks, especially in carbonates, where main players such as Coca-Cola, Pepsi and other small participants turned their eyes to returnable glass bottles.

Consumer trends driving packaging companies' efforts

Consumer trends in Mexico are moving rapidly in terms of new products that match new worldwide life styles. Most companies are still trying to adjust to the recent process of consolidation in the packaging industry. Whether companies are multinational enterprises that just entered packaging through a joint venture or merger/acquisitions during the frenzy of corporate activity that took place in 2004, or are long-established local companies, they are all attempting to take advantage of the rapid increase in certain consumption trends to boost their sales. Frozen or ready meals, bottled water, energy and sports drinks, on the go snacks for breakfast/lunch, among others, are driving company efforts to come up with cheaper and more practical packaging solutions to match consumers' needs.

The beer industry, the first affected by environmental legislation

In late 2005, new legislation was introduced imposing higher taxes to all non-returnable packages in the beer industry. Ostensibly, this new legislation is designed to benefit the environment by increasing the use of returnable bottles. Although only the beer industry has been affected by the new law so far, it is quite possible that it will be adopted in other beverage industries as well in the near future. Non-returnable packages include glass bottles, metal beverage cans and PET bottles. Nevertheless, most glass bottles, the main pack type used in this industry (75.1% of all beer packages), are returnable glass bottles, which reduces, to some extent, the negative impact for local bottlers. The new legislation will certainly have a more negative impact in imported brands and potentially new players using non-returnable packages.

Table of contents

EXECUTIVE SUMMARY

There is always a quiet period after the storm

Plastic packages became more expensive, benefiting glass

Consumer trends driving packaging companies' efforts

The beer industry, the first affected by environmental legislation

MARKET BACKGROUND

PACKAGING LEGISLATION

Packaging legislation still weak in terms of recycling

New taxes impact the beer non-returnable system

RECYCLING AND THE ENVIRONMENT

Recycling legislation must match international recycling efforts

ECOCE commissions first Latin American bottle to bottle recycling plant

PET bottles still need recyclable closures

CORPORATE ACTIVITY IN PACKAGING

A very calmed year for the packaging industry

MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)

ALUPRINT SA DE CV / GLOBALPACK CORPORATION

Summary 1 Aluprint SA de CV: Operational Indicators 2005 (year end December)

CONVERTIDORA INDUSTRIAL SA DE CV

Growth likely to continue

Summary 2 Convertidora Industrial SA de CV: Operational Indicators 2005

Summary 3 Major End-use Markets for Convertidora Industrial SA de CV by Pack Type 2005

GRUPO INDUSTRIAL PLASTICO (GIPSA)

Joint ventures helped GIPSA became Mexico's pouch leader

Summary 4 Grupo Industrial Plastico (GIPSA): Operational Indicators 2005

Summary 5 Major End-use Markets for Grupo Industrial Plastico (GIPSA) by Pack Type 2005

GRUPO VITRO

Vitro strongly benefited from high oil prices

Summary 6 Grupo Vitro: Operational Indicators 2005 (year end December)

Summary 7 Major End-use Markets for Grupo Vitro by Pack Type 2005

VIDRIO FORMAS SA DE CV

A small player with a high growing potential

Summary 8 Vidrio Formas SA de CV: Operational Indicators 2005

Summary 9 Major End-use Markets for Vidrio Formas SA de CV by Pack Type 2005

FEMSA EMPAQUES

SIVESA

FAMOSA

Summary 10 FEMSA Empaques: Operational Indicators 2005

Summary 11 Major End-use Markets for FEMSA Empaques by Pack Type 2005

GRUPO ZAPATA

A Mexican company with a presence in the Americas

New patents and licences

Summary 12 Grupo Zapata: Operational Indicators 2005

Summary 13 Major End-use Markets for Grupo Zapata by Pack Type 2004

INDUSTRIAS INNOPACK

PET bottle partner to kings

International joint ventures

Summary 14 Industrias Innopack: Operational Indicators

Summary 15 Major End-use Markets for Industrias Innopack by Pack Type 2004

BEMIS FLEXIBLE PACKAGING DE MEXICO SA DE CV

Masterpak transition still painful, but the future looks bright for Bemis

Summary 16 Major End-use Markets for Masterpak SA de CV by Pack Type 2005

GRAHAM PACKAGING PLASTIC PRODUCTS DE MEXICO S DE RL DE CV

Graham Packaging gains Owens-Illinois expertise

Summary 17 Graham Packaging Plastic Products de Mexico S de RL de CV: Operational Indicators 2005 (year end December)

Summary 18 Major End-use Markets for Graham Packaging Plastic Products de Mexico S de RL de CV by Pack Type 2005

TETRA PAK SA DE CV

Tetra Pak continues to innovate

The Tetra Pak Wedge Aseptic Clear launches in Mexico

Further innovations

Summary 19 Tetra Pak SA de CV: Operational Indicators 2005 (year end December)

Summary 20 Major End-use Markets for Tetra Pak SA de CV by Pack Type 2005

COPAMEX SA DE CV

Busy with divestiture

Future in corrugated boxes and specialty papers

Summary 21 Copamex SA de CV: Operational Indicators 2005 (year end December)

Summary 22 Major End-use Markets for Copamex SA de CV by Pack Type 2005

RENOPAC SA DE CV

Summary 23 Major End-use Markets for Renopac SA de CV by Pack Type 2005

ABASTECEDORA DE ENVASES SA DE CV

Summary 24 Major End-use Markets for Abastecedora de Envases SA de CV by Pack Type 2005

ALUCAPS MEXICANA SA DE CV

Summary 25 Alucaps Mexicana SA de CV: Operational Indicators 2005

Summary 26 Major End-use Markets for Alucaps Mexicana SA de CV by Pack Type 2005

ENVASES ELOPAK SA DE CV

Summary 27 Envases Elopak SA de CV: Operational Indicators 2005

Summary 28 Major End-use Markets for Envases Elopak SA de CV by Pack Type 2005

SIG COMBIBLOC MéXICO

Summary 29 Major End-use Markets for SIG Combibloc México by Pack Type 2004

REXAM BEVERAGE CAN AMERICAS SA DE CV

Summary 30 Rexam Beverage Can Americas SA de CV: Operational Indicators 2005

Summary 31 Major End-use Markets for Rexam Beverage Can Americas SA de CV by Pack Type 2005

MAJOR MARKET PLAYERS BY PACK TYPE

RIGID PLASTIC

Summary 32 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005

METAL

Summary 33 Major Metal Packaging Manufacturers by Pack Type 2005

Summary 34 Ranking of Major Metal Beverage Can Manufacturers 2005

FLEXIBLE PACKAGING

Summary 35 Ranking of Major Flexible Packaging Manufacturers 2005

GLASS

Vitro – a world class player in the industry of glass

FEMSA Empaques competes as vertical provider

Summary 36 Ranking of Major Glass Packaging Manufacturers 2005

LIQUID CARTONS

Tetra Pak rules the roost

Summary 37 Share of Major Liquid Carton Manufacturers 2005

PAPER-BASED PACKAGING

Summary 38 Major Paper Board Containers Manufacturers by Pack Type 2005

CLOSURES

Summary 39 Ranking of Major Closure Manufacturers 2005

APPENDIX

Table 1 Mexican Packaging Statistics 2005

Table 2 Packaging Industry Share of Mexican National Economy 1999-2005

Table 3 Packaging Production in Mexico 1999-2005

Table 4 Consumption of Packaging in Mexico 1999-2005

Table 5 Mexico Packaging Production 1999-2004

Table 6 Metal Container Production 1999-2004

Table 7 Glass Production 1999-2004

Table 8 Plastic Production 1999-2004

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