Overview

Despite conservative growth in other industry sectors, Honduras has experienced a substantial increase in the packaging manufacturing sector with a dynamic mix of local and international companies operating in different regions of Honduras. Local packaging manufacturing has become an effective way to cut down on shipping costs and control the median price range of products. As a result, numerous carton manufacturers have established operations in Honduras due to the elevated shipping cost of this material.

The majority of the plastics market competitors are manufacturing polyethylene and polypropylene containers but the primary export has always been carton. Plastic laminates are sold mostly by foreign suppliers since Honduras lacks the scale to ensure sustainability and the elevated costs of the machinery required. The customs temporary import regimen is slowly allowing the market to further develop capacity by making it accessible to introduce high end and specialized equipment into the country.

Carton and plastics producers are the largest importers of packaging materials and equipment in Honduras. The textile industry, food processing and agricultural exporters are the main consumers. Specialized packaging for the cosmetics, pharmaceutical, and chemical manufacturing industries in Honduras is mostly imported from Mexico, China, Colombia the United States and Guatemala.

According to a report from the Honduran Ministry of Economic Development (SDE), Honduras sells almost half of its cardboard packaging products to Central America, making the country one of the largest manufacturers of cardboard containers in the region. The packaging market is the fifth largest sector in the Honduran export economy after coffee, banana, palm oil and shrimp. 

In Honduras, the environmental movement is maintaining its upward growth trend. In the same way that customers are showing greater concern over the processes followed in the food service industry, local brands trying to adapt to modern packaging and the material’s life cycle. There has been a strong push in the region to ban single use plastics and increase importation of  biodegradable materials. For this reason, local manufacturers are paying more attention to health and environmental issues, and are looking for renewable resources for production. The sector is opting to manufacture cardboard with recycled material in order to contribute to the protection of the environment and become more competitive in the international market.

Central America Data reports that the manufacture of flexible plastic bags and films is expected to experience a significant decline. Another subsector affected, but to a lesser degree, is the manufacture of rigid plastic laminates.

Table:  Market Size for Flexible Plastic Bags and Films

 Units: USD millions

Source: Central American Economic Integration Secretariat – SIECA

Leading Sub-Sectors

Sealing machines, container labeling machines, lid, seal & close machinery, packaging and wrapping machinery, parts and service, palettizing equipment and materials, numbering, labeling and printing solutions, silicones, phenolic resins, polyurethanes,  coatings,  petroleum resins and  natural polymers.

Opportunities

Demand for modern and eco-friendly packaging solutions is steadily rising to meet the demands of increadingly environmentally conscious consumers. This trend is supported by legislation aimed at banning single-use packaging in an order to reduce local environmental impact. As Honduran companies modernize and shift to using  new ecological materials, this will create an important  opportunity for U.S. manufacturers.

Resources

• Foreign Agricultural Service                                                          
• Packaging Machinery Manufacturers Institute            
• Pack Expo Show 2023: September 11-13, 2023, Las Vegas, NV.

U.S. Commercial Service Contact:

Name:               Rossana Lobo        

Position:           Senior Trade Specialist

Email:               Rossana.Lobo@trade.gov