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EXPO PACK Mexico 2018 Wrap: No one narrative can describe this market

The vibrant Mexican and Latin American markets now exhibit a healthy mix of packaging machinery and materials sophistication levels.

EXPO PACK Mexico 2018
EXPO PACK Mexico 2018

EXPO PACK Mexico 2018 (Expo Santa Fe Mexico, Mexico City, June 5-8) revealed a more complex, more mature market in Mexico and Latin America than existed when the event started 32 years ago. It's different now than it was even five years ago.

What used to be considered a good show for the high-volume, low-cost, or entry-level machinery that developing markets require now supports a heathy demand for a plurality of machinery sophistication, including the fastest and most innovative.

In Mexico in particular, the beverage industry continues to set the pace among categories in new investment, with new breweries making beer the largest subsector. The biggest brewery in the world is coming soon to Mexico. Heineken, AB InBev, and Constellations Brands alone project 15 million hectoliters in new capacity in 2018. Such installations aren’t going to be using entry level machinery.

And in the broader Latin America market, consider the growth of snack food. According to new research by PMMI Business Intelligence, developing countries in Latin America and Asia Pacific will continue to grow at the fastest rate, globally, with larger Europe and North America remaining comparatively flat. This growth requires automation, and the region already has at least 25 years of installed base to grow upon.

None of this is to say the entry level market isn’t still a vibrant portion of this regional packaging machinery scene. Bosch Packaging Machinery, for instance, a producer of some of the most sophisticated machinery around the globe, used EXPO PACK Mexico 2018 to help rollout the entry-level Pack 102, a hygienic, stainless steel horizontal flow wrapper at a price point that’s well-suited for developing markets.

But on the other side of the coin, Serac had its  FC filler/capper machine on site at the show. The machine aims for extreme precision in its fill, and while many machines aim at a three-sigma precision limit, this machine attains one-sigma. Now, this level of precision might not be necessary if the overfill were an inexpensive liquid, like water. But for expensive products, like motor oil, perfume, milk, or anything else that has a lot of processing tied up in it prior to reaching the filler/capper, that’s a different story.

β€œWe pride ourselves on this precision, and a lot of times return on investment can be less than a year just by product give away savings,” says Alan Bonanno, Marketing Manager, Serac Group. β€œAnd that doesn’t just apply to the North American or European market, that applies here, too. If we can save an end user one, or two, grams per bottle, and they’re doing 300 containers a minute, that adds up wherever you are.”

Meanwhile, PolyPack brought to the show a top-of-the-line shrink bundling machine, capable of speeds of 60 bundles/min for this application, that they would otherwise market to Coca-Cola Co. or other massive players the world over. But this machine has already been sold, to the tune of around $300,000, into the Mexican market for a milk application. What’s more, the machine is being added to an existing Tetra Pak line, no small piece of innovation for no small price in its own right.

Annual Outlook Report: Workforce
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Conveying Innovations Report
Editors report on distinguishing characteristics that define each new product and collected video demonstrating the equipment or materials as displayed at the show. This topical report, winnowed from nearly 300 PACK EXPO collective booth visits, represents a categorized, organized account of individual items that were selected based on whether they were deemed to be both new, and truly innovative, based on decades of combined editorial experience in experiencing and evaluating PACK EXPO products.
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Conveying Innovations Report