Packaging Industry in Mexico

Euromonitor International's Packaging Industry in Mexico report offers a comprehensive guide to the size and shape of the market at a national level. It provides historic market size data by industry, allowing you to identify the most popular pack types. It identifies the leading companies, and offers strategic analysis of key factors influencing the market- be they new product developments, recycling or legislation issues. Forecasts illustrate how the market is set to change.

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Executive summary

Recycling active in Mexico

Although there is not strong legislature in place regarding waste management in Mexico, there is a great deal of activity in terms of recycling, although with regard to some categories of packaging, such as PET bottles, the infrastructure for recycling is still in an early stage of development. Recycling efforts are carried out by companies with some support from the government. Households do not participate actively, however various schools and non-profit organisations make continuous efforts to increase their level of recycling. More than two-thirds of packaging products, such as metal beverage cans, folding cartons and glass containers, were recycled in Mexico in 2008.

Oil and energy price increases affect packaging manufacturers

In 2008, owing to the downturn in the global economy, packaging in Mexico was affected by price increases with regard to energy and raw materials. While manufacturers tried to keep their prices low, inflationary pressure forced them to increase their pricing. However, some categories of packaging benefited from recycling and technology, which enabled packaging manufacturers to increase their productivity and thus their competitiveness.

Consumer trends drive efforts of packaging companies

In 2008, most of the companies in packaging in Mexico were in the process of trying to adjust to the trend of consolidation that has occurred. Multinational companies and domestic companies alike all attempted to take advantage of the rapid growth of certain trends related to consumption in order to boost sales. Players in packaging made efforts to introduce more cost effective and more practical packaging options, for example in ready meals, bottled water, energy and sports drinks and sweet and savoury snacks, in order to meet the varied needs of consumers.

Opportunities for investment in packaging

Packaging in Mexico offers strong opportunities for foreign investment for various reasons, for example consumption of carbonates in extremely high, there is also strong demand for alcoholic drinks and the Mexican economy is stable. Therefore several multinational packaging companies have successfully entered packaging in Mexico and increased segmentation among consumer goods has enabled packaging manufacturers to innovate and to expand their consumer base. Expansion and consolidation with regard to retailing has also contributed to the expansion of packaging in Mexico.

Waste management key to success of packaging

Environmentalists and the government are concerned about the increasing amount of waste in Mexico and the lack of space for its management and disposal. However, local governments, such as the local government in Mexico City, plan to establish new waste management centres in order to address this issue. For example, PET bottles posed a problem over 2006 and 2007 due to the lack of infrastructure for recycling, however action is being taken to increase the level of recycling of PET bottles.

Table of contents

EXECUTIVE SUMMARY

RECYCLING ACTIVE IN MEXICO

OIL AND ENERGY PRICE INCREASES AFFECT PACKAGING MANUFACTURERS

CONSUMER TRENDS DRIVE EFFORTS OF PACKAGING COMPANIES

OPPORTUNITIES FOR INVESTMENT IN PACKAGING

WASTE MANAGEMENT KEY TO SUCCESS OF PACKAGING

MARKET BACKGROUND

PACKAGING LEGISLATION

Packaging legislation in Mexico of limited effect

Legislation regarding recycling insufficient

RECYCLING AND THE ENVIRONMENT

Recycling benefits manufacturers but households find it irrelevant

Metal packaging benefits from highest level of recycling

Better prospects for Mexico City

Wal-Mart de México SA de CV sustainability drive, a sign of things to come?

Table 1 Overview of Packaging Recycling and Recovery in Mexico 2007/2008 and Proposals for 2009 (%)

CORPORATE ACTIVITY IN PACKAGING

HIGH INCREASES IN COST OF OIL AFFECT ALL PACKAGING MANUFACTURERS

Changes to the competitive environment in packaging

Packaging substitutes, not a threat

MAJOR MARKET PLAYERS

ALCAN PACKAGING DE MEXICO

Summary 1 Major End-Use Markets for Alcan Packaging de Mexico by Pack Type 2008

ALPLA MEXICO SA DE CV

Summary 2 Major End-Use Markets for ALPLA Mexico SA de CV by Pack Type 2008

ALUPRINT SA DE CV

Summary 3 Major End-Use Markets for Aluprint SA de CV by Pack Type 2008

AMCOR PET PACKAGING DE MEXICO

Summary 4 Major End-Use Markets for Amcor PET Packaging de Mexico by Pack Type 2008

BEMIS FLEXIBLE PACKAGING DE MEXICO SA DE CV

Summary 5 Major End-Use Markets for Bemis Flexible Packaging de Mexico SA de CV by Pack Type 2008

CONVERTIDORA INDUSTRIAL SA DE CV

Well positioned but in a challenging environment

Summary 6 Convertidora Industrial SA de CV: Operational Indicators 2007

Summary 7 Major End-Use Markets for Convertidora Industrial SA de CV by Pack Type 2008

COPAMEX SA DE CV

Summary 8 Copamex SA de CV Operational Indicators 2007

Summary 9 Major End-Use Markets for Copamex SA de CV by Pack Type 2008

ENVASES ELOPAK SA DE CV

Summary 10 Major End-Use Markets for Envases Elopak SA de CV by Pack Type 2008

ENVASES UNIVERSALES SA

Summary 11 Major End-Use Markets for Envases Universales SA by Pack Type 2008

FEMSA EMPAQUES

Summary 12 Major End-Use Markets for Femsa Empaques by Pack Type 2008

GRAHAM PACKAGING PLASTIC PRODUCTS DE MEXICO S DE RL DE CV

Acquisition of Industrias Innopack SA de CV continues to pay dividends

Summary 13 Graham Packaging Plastic Products de Mexico S de RL de CV: Operational Indicators 2007

Summary 14 Major End-Use Markets for Graham Packaging Plastic Products de Mexico S de RL de CV by Pack Type 2008

GRUPO ALUCAPS MEXICANA SA DE CV

Summary 15 Grupo Alucaps Mexicana SA de CV: Operational Indicators 2007

Summary 16 Major End-Use Markets for Grupo Alucaps Mexicana SA de CV by Pack Type 2008

GRUPO INDUSTRIAL PLASTICO SA DE CV (GIPSA)

Summary 17 Major End-Use Markets for Grupo Industrial Plastico SA de CV (GIPSA) by Pack Type 2008

GRUPO SMURFIT MEXICO SA DE CV

Summary 18 Grupo Smurfit Mexico SA de CV: Operational Indicators 2007

Summary 19 Major End-Use Markets for Grupo Smurfit Mexico SA de CV by Pack Type 2008

GRUPO VITRO

Diversifying risk

Strong social positioning

Summary 20 Grupo Vitro: Operational Indicators 2007

Summary 21 Major End-Use Markets for Grupo Vitro by Pack Type 2008

GRUPO ZAPATA

Summary 22 Major End-Use Markets for Grupo Zapata by Pack Type 2008

INDUSTRIAS UNIDAS INTEGRADAS SA DE CV

Summary 23 Major End-Use Markets for Industrias Unidas Integradas SA de CV by Pack Type 2008

PO EMPAQUES FLEXIBLES SA DE CV

Summary 24 Major End-Use Markets for PO Empaques Flexibles SA de CV by Pack Type 2008

RENOPAC SA DE CV

Summary 25 Major End-Use Markets for Renopac SA de CV by Pack Type 2008

REXAM BEVERAGE CAN AMERICAS SA DE CV

Summary 26 Major End-Use Markets for Rexam Beverage Can Americas SA de CV by Pack Type 2008

SIG COMBIBLOC MéXICO

Summary 27 Major End-Use Markets for SIG Combibloc México by Pack Type 2008

TETRA PAK SA DE CV

The importance of promotional campaigns

A carefully crafted image

Summary 28 Tetra Pak SA de CV: Operational Indicators 2007

Summary 29 Major End-Use Markets for Tetra Pak SA de CV by Pack Type 2008

VIDRIO FORMAS SA DE CV

Summary 30 Major End-Use Markets for Vidrio Formas SA de CV by Pack Type 2008

MAJOR PLAYERS BY PACK TYPE

RIGID PLASTIC

Rigid plastic packaging highly concentrated

Vertical integration and concern about sustainability pose threat

Summary 31 Major Rigid Plastic Packaging Companies by Pack Type 2008

METAL

Regional companies continue to dominate

CCL Containers moves in

Summary 32 Ranking of Major Metal Packaging Companies 2007

Summary 33 Major Metal Packaging Companies by Pack Type 2008

FLEXIBLE PACKAGING

Flexible packaging competitive

Potential boom for flexible packaging

Summary 34 Ranking of Major Flexible Packaging Companies 2007

Summary 35 Major Flexible Packaging Companies by Pack Type 2008

GLASS

High concentration in glass packaging

Femsa Empaques competes as a vertical provider

Summary 36 Ranking of Major Glass Packaging Companies 2007

LIQUID CARTONS

Tetra Pak SA De CV continues to dominate

The race for food packaging

Summary 37 Ranking of Major Liquid Carton Companies 2007

PAPER-BASED CONTAINERS

Three major players and others minor followers

Grupo Gondi a strong competitor

Summary 38 Ranking of Major Paper-Based Container Companies 2007

Summary 39 Major Paper-based Container Companies by Pack Type 2008

CLOSURES

Closures dominated by three companies

Environmentalists ask for new types of closures

Summary 40 Major Closure Companies 2007

APPENDIX

Table 2 Mexican Packaging Statistics 2007

Table 3 Packaging Industry Share of Mexican National Economy 2002-2007

Table 4 Packaging Production in Mexico 2002-2007

Table 5 Mexico Packaging Production 2002-2007

Table 6 Metal Container Production 2002-2007

Table 7 Glass Production 2002-2007

Table 8 Plastic Production 2002-2007