Food Processing / Packaging Global Market
Insights and Opportunities
Overview: Argentina’s strength in agricultural and food products presents opportunities for U.S. exporters of food processing and packaging equipment in market niches due to recent growth in food exports.
Imports of equipment in 2008 almost doubled that of the previous year. However, the current global economic crisis will have an impact on Argentine agribusiness exports as prices and volumes fall. Projections for 2009 and beyond present opportunities in niche segments at moderate growth rates. In the food processing equipment segment, the United States continues to be the market leader with 28 percent of the import market, where imports traditionally account for approximately 85 percent of the total market. Imports in the packaging equipment segment are led by Italy and Germany, while the United States ranks fifth, with a 7 percent market share.
Local production has grown rapidly due to the lower costs of production. Local production also
caters to a stronger demand from small- to medium-sized companies in the interior provinces of
Argentina, since many companies in these areas are not able to cover the expenses involved in
Opportunities: The food processing and packaging equipment market in Argentina relies heavily on imports from large domestic food processing companies and food exporters. Market growth is largely tied to investment in technology and the expansion strategies of these companies. Healthcare companies are increasingly demanding imported packaging equipment, although figures are still relatively low in comparison to food companies. Other segments such as household consumer goods and cosmetics continue to follow the trend. Several agribusiness companies in Argentina announced investments in the food processing industry. However, the lack of local financing and the inability to access foreign credit, as well as electrical power capacity limits, may jeopardize the expansion plans of these companies.