Plastic Packages.

1. CONTAINERS AND PACKAGING
Li
b ertad y
O
r
den
In the Colombian manufacturing industry, the plasticssector stands out
asoneofthemostdynamicandwiththelargestpotentialtodevelopnew
oracquisitions.

2. WHY COLOMBIA IS A STRATEGIC LOCATION IN
THE AMERICAS FOR THE DEVELOPMENT OF
PRODUCTION PROJECTS IN THE PLASTIC
PACKAGING INDUSTRY:
Plastic production in the country has surpassed one
million tons annually, and has a very positive outlook
for the coming years as the industries will continue to
demandplasticmaterialssuchascontainersandpacka-
ging,construction,agricultureandinstitutional.
-
ted in the Colombian market because they have
demonstrated their ability to preserve the quality and
durabilityofbothfoodproductsandtoiletries,replacing
containersmadeofglassandmetal.
food industry (66%), followed by beverage containers
(22%)andthirdlycosmeticsandtoiletries(9%).
Colombia´splasticpackagingmarkethasreachedthe29
billion units sold. By 2019 this market will surpass the
32billionunitssold.
PLASTIC PACKAGING SALES 2009-2019P
(Million of units)
Source: Euromonitor International, 2015. - Total Packaging demand Units 2014: 29,154 million
2013 2014 2015 2016 2017 2018 2019
6,026
22,466
6,218 6,422 6,634 6,849 7,074 7,296
22,936 23,397 23,702 23,803 24,186 24,759
RigidPlasticPackaging FlexiblePlasticPackaging

3. INVESTMENT
OPPORTUNITIES
projects to supply the country with plastic packaging for the
processed food industry and the cosmetic and toiletries
industry, and take advantage of Colombia as an export
platformtosupplytheLatinAmericanmarketsaswell.
Between2003and2014theproductionofprocessedfoodsincreasedbyabout
31%.Itisestimatedthattheindustrywillcontinuetogrowinthecomingyears.
Between 2014 and 2018, food consumption is expected to grow 45.4%
-
mentandnewprojectsinthisindustry,whichinturnwilldemandinputsforplastic
packagingalongitssupplychain.
growthof3.8%inthelast14years.
US$ 7,000
millionandisexpectedtogrow 9% inthecomingyears.
Inthelastdecade,exportsofcosmeticsandtoiletriesindustryincreasedmorethan
7times,fromUS$114millionin2000toUSD$870millionin2014.
A Colombian woman spends$ 84a year on cosmetics, which represents twice as
muchofwhatEuropeanwomenusuallyspend.

4. A REGIONAL MARKET WHICH CAN BE REACHED
WITH ZERO TARIFFS FROM COLOMBIA
Possibilitytoaccessan
expandedmarketofmore
than267billion
units,whichis
expectedtocontinue
growingataCAGRof
2.5%towards
2019.
Amongthemain
importersofplastic
containersareMexico
with49%,Brazilwith
11%,followedbyChile
with4.9%.Colombia
accountsthe3.5%of
totalimportsofplastic
packagingtotheregion.
preferentialaccesstoa
marketof 1.5
billionconsumersasa
resultofthe13
FTA’s
theexport-oriented
industry.
ImportsfromLatin
Americaandthe
Caribbeanofcontainers
andplasticpackaging
showedanannual
compoundgrowthrateof
5.5%between 2009
and2014,reaching
US$4,923million,
equivalentto9.6%of
totalimportsworldwide
(US$51,190million).
Colombiahasallowed
preferentialaccess
granting0%
mostmajorplastic
packagingitemsto
countriesliketheU.S.,
Brazil,Mexico,Peru,
EcuadorandChile.
Considerablecostsavings
canbeachievedfrom
Colombiainorder
tologisticallysupply
othermarketsthathave
animportantplastics
industrysuchasBrazil,
Ecuador,PeruandChile,
amongothers.

5. COMPETITIVE PRODUCTION COSTS AND
EASY ACCESS TO RAW MATERIALS
WagesintheindustrialsectorinColombiaarethesecondlowestinLatinAmeri-
ca (IMD World Competitiveness Yearbook, 2015). Wages are 24% lower than
theLatinAmericanaverageand71%lowerthanthoseonthecontinent.
Colombia has more than 161,000 graduates linked to the plastic packaging
Companies can acquire raw materials (plastic resins) at import prices approxi-
Colombia'sgascostforindustryis30%cheaperthanBrazil,EcuadorandChile.
Colombiahasadvantagesintermsofpriceandtransittimesbysea,tosupply
majormarketsofSouthandNorthAmerica,reachingportssuchasSantos
(Brazil)63%fasterand39%cheaperthanfromVeracruz(Mexico).

6. OTHER FACTORS
TO INVEST IN THE SECTOR
IncentivessuchasFreeTradeZones,aStimulusPlan
forproductivityandemployment,andincentivesfor
jobcreationthatreduceproductioncostsforcompa-
niespresentinColombiaandthatservethedomestic
marketandexportfromColombia.
-
mationoftheplasticsandrubberindustrybyimpro-
ving its competitiveness through the development
andoptimizationofprocessesandproducts.