This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/25/2017

Overview
The packaging materials and equipment industry in Honduras has presented positive growth over the last decade.
Despite the conservative growth presented in other local 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.

61 percent of the packaging market is represented by the carton industry in Honduras and its imports represent 51 percent of the total market.

Decisive purchasing factors for packaging materials are price, quality and estimated delivery times, as well as credit terms. However multinational operators prefer quality before price.

In Honduras the majority of the market competitors are manufacturing polyethylene and polypropylene containers as well as 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 involved in its manufacturing. 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.

Promotion strategies focus on direct sales for this sector. The majority of producers are highly educated with rudimentary knowledge of the production process. Marketing is limited to sample offers and retail displays.
Honduras reported exporting 9,995 metric tons of cardboard products to Central America and the world in 2015.
According to a report from the 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.

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, Guatemala and the United States.

Costa Rica remains the main buyer of Honduran carton, mainly in vessels and conventional cardboard boxes, followed by Guatemala, Nicaragua, El Salvador and Panama. The SDE also reported that there are 7 enterprises engaged in the activity, located mainly in the northern sector of the country.

In 2016, the value of imported plastic and its manufactures in the region amounted to $3.668 million, equivalent to 1.7 million tons, 9 percent more than the volume purchased in 2015.

In 2016, the main importer of plastic and its manufactures in Central America was Costa Rica with 457 thousand tons, followed by Guatemala with 425 thousand tons, El Salvador with 329 thousand tons, Honduras with 227 thousand tons, in 2016, 34 percent of the volume imported by Central America came from the United States, 9 percent from China, 8 percent from Mexico, 7 percent from Taiwan and 3 percent from Colombia.

During the months between January 2012 and December 2016, the average price per kilo of imports registered its highest value in May 2014 at $2.76 per kilo, and the lowest was in January 2012, at $1.64 per kilo.

 2014201520162017 (Estimated)
Total Local Production232,251236,634241,475263,207
Total Exports164,515168,223171,360186,782
Total Imports414,734422,561431,206470,014
Imports from the US124,420143,083157,391171,549
Total Market Size482,470490,972501,321546,439
Exchange Rates20.9222.1323.0523.46
Statistics are unofficial estimates. Data in USD Millions. Sources: Honduran Central Bank, 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
  • Natural polymers
Opportunities
  • Close proximity to the United States.
  • Cargo from gateway cities can be transported to Honduras 48 to 72 hours.
  • Importers strongly prefer U.S. equipment because of its high-quality and reliability.
Web Resources

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Honduras Packaging Equipment Trade Development and Promotion