Why could I start in Guatemala?

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Why could I start in Guatemala?

METTA is a Guatemalan company dedicated to the manufacture of didactic toys for 45 years. Manufactures puzzles, memoirs, lotteries and even Bancópoli. Currently, it has 100 games and didactic material, such as coloring books and stories, says Andrés Dorigoni, director of Metta Games.

The possibility that Guatemala enters the value chain of the toy industry is a conversation that began more than three years ago, according to Gabriela García, Minister of Economy. For Diego Cuéllar, Renepack Operational Manager, SA, this industry has a high potential, but there is currently a vacuum in the market. “No one is offering these alternatives,” says Cuéllar, whose company is dedicated to the manufacture of paper packaging and also participates in the toy industry, focused on lottery and memory games.

In the midst of the tariff battle unleashed in this 2025, there may be a light at the end of the tunnel. Lisardo Bolaños, former Minister of Investment and Competition of the Ministry of Economy, ensures that, following new policies promoted by the United States, a concern has emerged among companies in that country that depend on Chinese producers. “That is one of the main concerns of the Trump administration: where will the production of toys go?” Says Bolaños, who considers that this concern could be An incentive for US companies to seek suppliers outside of Chinese influence.

But Rubén Morales, former Minister of Economy, points out that the sector has lacked organization. Garcia argues that, to integrate into this chain, It is necessary to participate in international events recognized for their good practices and form public-private missions To understand how the industry works. Bolaños, meanwhile, suggests adopting a more aggressive vision, which includes not only factor assistance, but also the generation of contacts and the design of a joint strategy.

Bolaños estimates that, in four years, Guatemala could reach exports greater than Q100 million and generate up to 10,000 jobs Only in the toy sector, as long as the settlement of this industry in the country is actively promoted.

Can Guatemala be a great toy manufacturer?

Currently, Guatemala attracts only 1.5% of the gross domestic product (GDP) in direct foreign investment. Lisardo Bolaños states: “If we want to be successful, or at least begin to see a positive change, we should seek to generate above 4%.” To attract the toy industry, It is necessary to have qualified labor, specializations, adequate machinery and an integral analysis of the sector.

According to Gabriela García, Minister of Economy, the main thing is to understand the market and know completely the value chain to manufacture a toy. This understanding allows identifying the needs of companies and performing a cost analysis.

Bolaños says that labor is a key element for companies in the sector to see Guatemala. Cuéllar complements and indicates that there is an urgent need for training. “It is increasingly difficult to get people to operate”he points out, and adds that in the market there are no people capable of using the machines required for work. To form personnel, Cuéllar estimates that three months are required up to one year.

Garcia emphasizes that the toy industry integrates A highly specialized value chain, which requires certifications, licenses and protocols that guarantee sustainable practices. In this sense, it underlines the need to sophisticate the market. “The productivity of national labor is important, but it is necessary to improve human resources,” says Rubén Morales, former Minister of Economy.

Cuéllar mentions that One of the country’s main limitations in this industry is technology. In his opinion, it is necessary to invest in technology and precision machinery. In Renepack, for example, new printers were acquired to improve quality, reduce errors and increase efficiency. “We evaluate that we can give between 10% to 25% more brightness and less errors to our products with new technology,” he says.

For his part, Andrés Dorigoni, director of Metta Games, considers that Automation is an improvement area, since in your company many processes are still done manually.

Bolaños also considers fundamental to optimize administrative procedures, with the objective of establishing an expedited, clear and standardized process that allows starting operations in less than six months.

And from the industrial parks sector, Alejandro Guillén, director of the Spectrum industrial business, emphasizes that the infrastructure should be improved, especially in the Pacific port and in highway investment. He adds that it is necessary to better position Guatemala as a foreign investment destination.

Incentives: Nearshoring and Basic Services

Guatemala has a strategic advantage due to its proximity to the world’s largest market: United States, according to Lisardo Bolaños. Minister Garcia states that “the Pacific is very well connected, not only towards the exit of the Quetzal port, but also by land towards the east and west, which puts us in a favorable location with Mexico, which is a assembly destination.”

Bolaños adds that The country has favorable conditions for the light manufacturing sector, especially regarding delivery time to the North American market.

Garcia argues that in Guatemala incentives such as free zones and public development areas (ZDEEP) are handled. In addition, he mentions that the region offers tax incentives that make the country a more attractive destination for investment. Industrial parks, meanwhile, guarantee access to basic services such as energy, water and connectivity.

However, If a producer wishes to start operations in two or three months, Guatemala may not be the right placeBolaños warns: “It has to do with the procedures, both from the moment of forming the company to the qualifications as a user of Decree 29-89, the ZDEEP or the free zones. It is not as fast as it is required.”

Rubén Morales points out that The facilitation of licenses, permits, authorizations and records is key to the incorporation of the country into the value chain. As an example, says the electronic signature, legally approved since 2008, but not yet fully implemented: “The electronic signature could be used a lot for the streamlining of procedures”, He says.

Garcia proposes two investment modalities for this industry. The first is an investment from scratch, and the second, a coinversion with a national company. “Personally, I think that coinversion is excellent because it helps the national company to modernize and to enter more sophisticated processes,” he says.

Raw material

Lisardo Bolaños points out that one of the key investments to develop the toy industry in Guatemala It must focus on the plastics sector. However, he clarifies that this industry, in its current state, is not oriented to the manufacture of dolls, but to the production of kitchen containers.

However, in addition to plastic, Rubén Morales points out that Guatemala It has good quality wood, which allows to consider this material as an option for the design and manufacture of toys. “Wooden toys are paid at a better price than plastic toys and could reach a very particular niche in the international market,” he says.

An example of this is metta. According to Andrés Dorigoni, most of the games they produce include wooden accessories and use very little plastic. Dorigoni says they work with few imported materials and that almost everything they need is located at the local level.

In addition to wood and plastic, Morales highlights that Toys related to the textile industry could occur, A sector in which Guatemala already has strengths. “This industry represents a fortress in the country and that can be used to add a specialization within the sector and venture into cloth toys,” he says.

One of the needs of the industry in the country is automation. (Free Press Photo: María Renée Barrientos)

Can Guatemala adapt?

Cuéllar argues that Guatemala has a high capacity for adaptation. “We believe we have the ability and ability to adapt and work on the packaging of another type of toys,” he says.

To this is added Alejandro Guillén, from Spectrum, who considers that the country has all the conditions to receive this industry, thanks to favorable macroeconomic and demographic factors.

Guillén highlights that the country’s demographic bonus is a competitive advantage, since the average age in Guatemala is 26 years. Bolaños points out: “It must be remembered that in the country the current condition is that there is a significant percentage of the adult population that has not finished high school and that is looking for employment conditions.” According to Bolaños, this value chain It could close the gap to a sustainable middle class, by generating formal employment.

Guillén also emphasizes that, when there in the country manufacturing and production of plastics, you can take advantage of the skills already developed to serve and provide toy companies interested in settling in Guatemala.

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