Latin America: Modest growth and optimism

Growth forecasts for the region might be modest, if steady, but machinery suppliers serving the Latin American label market are optimistic about its long-term potential, as pressure-sensitive labels, in-mold and shrink sleeves continue to gain market share, and digitalization and automation increase production efficiency.

The IMF projects the Latin American and Caribbean region’s economy to grow by around 2.3 percent in 2026, a slight moderation from 2025. Growth forecasts for individual countries vary, with Mexico at 1.5 percent and Argentina – shaking off previous financial restraints – at a more bullish 4.5 percent. Brazil, Chile, Colombia and Peru are at 2 to 3 percent. Central America is predicted to perform better than the wider region at 3.8 percent. ‘Global trade headwinds and domestic fiscal constraints’ are cited as reasons for the modest growth figures.

“Latin America is such a dynamic region right now. There is so much political change”

Politically, the shift towards right-wing governments continues, with Bolivia and Chile recently joining Argentina, Ecuador and several Central American nations in electing conservative leaders. This rightward trend tends to result in an uptick in sales, says John Vigna, Latin America sales manager for Mark Andy, though election years can cause uncertainty. Brazil and Colombia both hold elections in 2026.

‘For Mark Andy, 2025 was better than 2024, but I think both years were limited by elections and geopolitical issues,’ Vigna says. ‘2025 was our best-ever retrofit year, so converters are still investing to enhance their productivity. Machine sales are improving. Mexico is our fastest-growing market, and we attribute this to our new service organization, along with the introduction of Mark Andy Print Products in Mexico. Central America continues to show good growth, with a lot of opportunities and projects.

‘Colombia has been growing strongly in flexo. Chile has been good, as converters there always want to keep up with the latest technology. Argentina is opening up; we had lots of retrofits there last year. There could also be potential in Venezuela, where we have a strong installation base. It’s such a dynamic region right now. There is so much political change. I’m optimistic that there are good opportunities coming to us this year.’

‘There has been a wave of change in Latin America recently,’ says Francisco Soto, sales director for the Americas at Rotocon. ‘Once an economy of uncertainty, it is positioning itself as an open market. I see Latin America as a strategically important region with solid long-term growth prospects. There is strong potential in markets such as Argentina, Chile, El Salvador and Mexico.’

Nick Vindel, international sales manager for plate mounting equipment specialist Heaford, reports 2025 as a ‘difficult but positive’ year, with a 50 percent increase in narrow web machine sales. ‘We put this down to Labelexpo Mexico and Labelexpo Europe. We sold machines on the show floor in Guadalajara and made some sales off the back of it. It was a similar result in Barcelona, which was very good for visitors overall and particularly for Latin Americans. We closed orders at the show to Bolivia and Brazil.’

‘Argentina is starting to open up,’ continues Vindel. ‘Payment terms are better. A lot of companies are looking at it again. Chile has slowed because the market is oversaturated. Brazil has been growing both in sales and quotations. There is still lots of growth in that market. In Bolivia, the new right-wing government has helped, and converters are suddenly interested in investing again.’

Market trends

Regarding industry trends in the region, Rotocon’s Francisco Soto says automation is key. ‘There is a clear trend toward automation, flexibility and efficiency. Customers are increasingly seeking equipment that minimizes waste and cuts set-up times, while supporting shorter run lengths. There is also growing interest in modular and hybrid systems.’

Vindel says converters increasingly want automated machines. ‘Companies are finding it hard to get good people.’ But the market ‘is still price-sensitive. They want the advanced machinery, but sometimes they don’t want to pay the money.’

Heaford is setting up a demo center in São Paulo, Brazil, at the facility of its agent Maquinarium, which will have an FTS 700 plate mounter on display. ‘It’s a sign of confidence in the market. When people see the FTS in action, the price issue disappears.’

Vindel also notes that converters are buying wider machinery. ‘The traditional widths for the FTS are 500mm or 700mm. Now we are getting orders for 900mm. Narrow-web converters are moving into the mid-web market. Meanwhile, CI press manufacturers are going narrower. We saw Comexi at Labelexpo Europe and Uteco at Labelexpo Mexico; the crossover is happening. It’s very interesting for the future.’

Industry analyst AWA sees the South American label market (it separates Mexico as part of North America) as one with ‘significant long-term potential’, according to senior consultant Catalina Steenbakkers, who notes increasing adoption of not only pressure-sensitive labels, but also sleeve, in-mold and flexible packaging formats.

The ongoing shift from glue-applied to pressure-sensitive labels continues across the region, particularly in the beer sector. Shrink sleeves continue to grow at a solid rate, while AWA identifies in-mold as the fastest-growing label format in the region, with a CAGR of 5.5 percent for 2024-2027.

‘While the region continues to face political and economic volatility, the label market has remained resilient and is expected to continue growing,’ she says.

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