Honduras - Commercial Guide
Packaging Equipment & Machinery

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2020-10-12

Overview

Despite the conservative growth in other industry sectors, Honduras has developed a substantial increase in the packaging manufacturing market with a dynamic mix of local and international companies fabricating their products in different regions of Honduras. Local packaging manufacturing has become an effective way to cut down on shipping costs that have a negative impact on the median price range of certain products. Additionally there have been numerous carton manufacturers establishing operations in Honduras due to the elevated shipping cost of this particular material.

In Honduras 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 economy to ensure sustainability, due to 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 under half of its cardboard packaging products to Central America, making the country one of the largest manufacturers of cardboard containers in the region. Currently 61% of the packaging market is represented by the carton industry and its imports represent 51% of the total market. The packaging industry is the fifth largest revenew generator for Honduras after coffee, banana, palm oil and shrimp exports.  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 plastic and the local companies have begun to import biodegradable options. Given the rise of online commerce to the detriment of traditional channels, the contact point between customers and brands is packaging, which must meet the demands of consumers, who are increasingly responsible for the environment.

It is expected that during this year the demand for carton packaging in the region could fall up to 17%, if  the isolation measures as a result of COVID-19 are extended.

It is also expected that the manufacture of flexible plastic bags and films will be among the activities that will suffer a considerable impact in the coming months. Another sub- sector affected, but to a lesser degree, is the manufacture of rigid plastic laminates.

 

2017

2018

2019

2020 estimated

Total Local Production

242

263

253

253

Total Exports

184

200

238

207

Total Imports

225

197

236

219

Imports from the US

93

76

88

86

Total Market Size

283

260

251

265

Exchange Rates

23.46

23.90

24.00

24.80

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

Modern and eco friendly packaging solution are slowly but steadily meeting the demands of consumers, who are increasingly environmentaly conscious. This trend is supported by legislation aimed at banning single use packaging in an order to reduce local enviromental impact. Honduran companies need to modernize and shift to production of new more ecological materials which presents a great opportunity for U.S. manuifacturers of these types of machinery.

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