PACKAGING SECTOR
Colombia has a mature packaging industry which represents almost 40 billion units sold. As it grows, it boosts other segments such as cosmetics, personal care products, and processed foods.
This is one of Colombia’s most competitive sectors, with a regulatory framework developed to facilitate a circular economy, an ample supply of raw materials, and a wide variety of local stakeholders with whom to form partnerships.
WHY INVEST IN THE PACKAGING SECTOR?
Positive growth forecasts for the packaging industry
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The Colombian packaging market is expected to reach 43.7 billion units sold in 2026, a 2.7% compound annual growth rate for 2020 – 2026 period. Euromonitor International
Colombia has raw materials to supply the sector
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Base industries in Colombia supply raw materials for the packaging sector, including petrochemicals and cellulose for paper production and glass manufacturing. The domestic availability of these materials translates into savings in import costs.
Colombia focuses on packaging exports
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In 2021, the sector exported USD 332 million. The top destination markets were the USA, Ecuador, Mexico, and Peru. DANE
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Packaging exports have had a compound annual growth of 13.3% over the last three years. DANE
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In Colombia, there is a diverse exporters’ network that fits the needs of the international market. Packaging for exports is made from both natural and synthetic fibers, including plastic, paper, and cardboard, glass, aluminum, among others.
Colombia is highly regarded as a production hub for processed foods by major companies
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Major global food producers such as Danone, Nestlé, Pepsico, SABMiller, and Kraft Foods demand large volumes of containers and packaging with the highest-quality standards.
Colombia is highly regarded as a production hub for cosmetics and personal care products by major companies
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Large multinationals in the cosmetics and toiletries sector—including L'Oréal, Unilever, P&G, Johnson & Johnson, Kimberly Clark, Belcorp and Yanbal—have operations in Colombia, which subsequently drives consumption of packaging. In 2021, exports from this sector totaled USD 601 million.
These are the main reasons that make the Colombian packaging sector an excellent investment decision.