Mexico's increase in packaged goods demand can be attributed to factors like increased consumer purchasing power, shifting consumer preferences, and the growth of e-commerce.
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Mexico's packaging machinery market is growing rapidly as consumer demand for packaged foods surges, driven by rising wages, e-commerce growth, and record food exports. The sector benefits from both domestic consumption and the processing of imported grains and proteins for export.
Food sector drove Mexico's packaging machinery imports up 3% in 2023, making it the primary market driver
Mexico-U.S. agri-food trade reached $76.6 billion in 2023, a 5.3% increase from 2022
Mexico supplies nearly 25% of U.S. imported agri-food products, the largest supplier globally
Rising consumer purchasing power from higher wages, remittances, and e-commerce fuels domestic packaged food demand
Over two-thirds of Mexico's grain and protein imports are processed and packaged domestically, driving machinery investment
As more Mexican consumers buy packaged food products, several producers are expanding their capacities to keep up with growing market needs.
That’s according to PMMI Business Intelligence’s report, “Mexico’s Packaging Machinery Market Trends and Opportunities 2024-2025.” The food sector was the primary driver of Mexico’s packaging machinery imports in 2023, rising 3% compared to the previous year.
The food sector accounted for the largest share of packaging machinery imports by sector in 2023, followed by the beverage sector.PMMI Business Intelligence: Mexico’s Packaging Machinery Market Trends and Opportunities 2024-2025Growing packaged food demand fuels expansion
This demand growth is evident in reports from publicly traded food companies like Bimbo and Sigma Alimentos, which have consistently reported record-breaking revenues and profits in recent years, driven by unprecedented volumes in both local and export markets.
An uptick in consumer purchasing power, fueled by rising wages, remittances, and social programs, coupled with shifting consumer preferences toward convenience and the burgeoning growth of e-commerce and delivery platforms, has contributed to domestic demand for packaged food products.
Mexico stands among the top ten largest global producers of packaged food and is a significant exporter in the sector. Notably, Mexico holds the position of the largest food supplier to the United States, accounting for nearly 25% of its imported agri-food products.
Trade affects packaging machinery demand
The trade in agri-food products between Mexico and the U.S. soared to record levels in both value and volume in 2023, reaching U.S. $76.6 billion, reflecting a 5.3% increase from 2022.
Since 2012, Mexico has maintained a positive trade balance in this sector. However, in 2023, American agri-food exports to Mexico saw a faster growth pace, primarily driven by grains and proteins, narrowing Mexico’s positive trade balance by nearly U.S. $1 billion. Despite this, Mexico retained a surplus of U.S. $14.4 billion in agri-food trade with the U.S. in 2023.
In addition to the export growth of packaged products, Mexico’s demand for packaging machinery benefits from substantial quantities of grains and proteins that Mexico imports, then processes and packages domestically.PMMI Business Intelligence: Mexico’s Packaging Machinery Market Trends and Opportunities 2024-2025
In 2023, Mexico imported U.S. $5.9 billion worth of corn and U.S. $3.7 billion worth of soybeans, primarily used for animal feed and oil production. Furthermore, Mexico imported U.S. $2.8 billion worth of pork meat, U.S. $1.6 billion worth of chicken, and U.S. $1.1 billion worth of beef.
Given that over two-thirds of these products are imported for processing and packaging within Mexico, the increasing imports serve as catalysts for additional investments in packaging machinery.
SOURCE: PMMI Business Intelligence: Mexico’s Packaging Machinery Market Trends and Opportunities 2024-2025.
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The food sector accounted for the largest share of packaging machinery imports by sector in 2023, followed by the beverage sector.PMMI Business Intelligence: Mexico’s Packaging Machinery Market Trends and Opportunities 2024-2025
The food sector accounted for the largest share of packaging machinery imports by sector in 2023, followed by the beverage sector.PMMI Business Intelligence: Mexico’s Packaging Machinery Market Trends and Opportunities 2024-2025
PMMI Business Intelligence: Mexico’s Packaging Machinery Market Trends and Opportunities 2024-2025
