Industry in El Salvador: An Overview

Textile industry

The textile industry in El Salvador is considered the country’s most prominent. It is known for having a broad range of production and exports, according to the Salvadoran Chamber of the Textile Industry (CAMTEX).

Among the products manufactured by the textile industry in El Salvador are fibers, yarns, fabrics, fabrics, and clothing. The sector generates a significant number and a wide variety of jobs for the labor force in El Salvador.

According to the “Salvadoran Association of Industries” (ASI), many companies in the textile industry in El Salvador are of foreign origin. The plant’s Salvadoran workers manufacture products and export them to North America. Some multinational textile manufacturers in El Salvador include the Sara Lee Corporation, Hanes Brands, Intratex, AVX, and F&D.

Plastics Industry

The plastics industry in El Salvador is characterized by both domestic production and export-oriented manufacturing. The country produces various plastic products, including packaging materials (containers, bottles, and bags), household items, and industrial components.

El Salvador’s plastics industry has established export markets primarily in Central America and North America. The country’s strategic location within the Central American region allows relatively easier access to these markets.

Among the most important plastic manufacturers in the country are: Celpac, Ecolplast, Plásticos Salvadoreños, Indusola, Salvaplastic Internacional, and Tacoplast.

Furniture Industry

A mix of small, medium, and large-scale enterprises characterizes El Salvador’s furniture manufacturing industry. The sector has gradually evolved from traditional craft-based practices to more modern manufacturing techniques, incorporating technology and innovation to improve productivity and product quality.

Among the principal companies in the furniture industry in El Salvador are Olimpia Beds, Capri, Mobilia, Flores Lazo, Indufoam, Moblex, Capri, and Olins.

 Food Processing Industry

The food processing industry in El Salvador encompasses a wide range of activities, from basic food preservation techniques to more advanced processing methods. It involves transforming raw agricultural products into packaged and market-ready food products for local consumption and export.

Food factories that contribute to the Salvadoran economy include Diana, Molinos from El Salvador (Molsa), Harisa, and Bocadelli.   Foreign-origin food producers in El Salvador include the American company McCormick, Bimbo from Mexico, and Calvo from Spain.

Beverage Industry

The beverage industry in El Salvador is characterized by a diverse range of products, including alcoholic and non-alcoholic beverages. It features traditional drinks deeply rooted in Salvadoran culture and more contemporary offerings that align with evolving consumer preferences.

Among the products manufactured in the beverage industry in El Salvador are:

• Alcoholic Beverages: The production of alcoholic beverages was an essential segment of the industry in El Salvador, with locally produced beers, wines, and spirits being popular choices among consumers. Some companies also engaged in the production of artisanal and craft beverages.
• Non-Alcoholic Beverages: Non-alcoholic beverages hold a significant market share. These products include carbonated soft drinks, bottled water, fruit juices, energy drinks, and ready-to-drink teas and coffees.
• Local and Traditional Drinks: Traditional Salvadoran beverages like horchata (a rice-based drink), ATOL (a hot corn-based drink), and fruit-based aguas frescas were integral to the beverage culture, often enjoyed by locals and tourists alike.

Among the factories and/or brands dedicated to beverage production in El Salvador, the following stand out: Livsmart de Centroamérica, Ambev, Bon Appetit, and the Mexican company, Jumex, among others.

Consumer Goods and Packaging industry

The consumer goods and packaging industry in El Salvador plays a crucial role in producing a diverse array of products for both domestic consumption and export. This industry encompassed various sectors, including the manufacturing of consumer goods, packaging materials, and related services.

The industry covers a broad spectrum of consumer goods, including household products, personal care items, cleaning products, cosmetics, and more. These goods cater to the everyday needs and preferences of the local population.

The packaging industry in El Salvador is a crucial component of the local economy. It ensures product safety, preservation, and attractiveness on the shelves. Companies specialize in producing various packaging materials, including bottles, containers, boxes, and labels.

While serving the domestic market, many companies in El Salvador’s consumer goods and packaging industry also aim to tap into export opportunities, particularly within Central America and other international markets.

Products manufactured in this industry are distributed through various channels, including supermarkets, convenience stores, wholesalers, and online platforms.

Kimberly-Clark Central America is prominent in El Salvador. Also in this segment of the economy are the foreign companies Procter & Gamble and SCA of Sweden. Domestic packaging producers include Alas Doradas, Impresora la Unión, Sigma Q, Evergreen Packaging, and Boxes and Bags.

Pharmaceutical Industry

The pharmaceutical industry in El Salvador is characterized by a mix of domestic and international players involved in various aspects of pharmaceutical production, distribution, and sales. The sector aims to provide essential medications to the local population and contribute to the healthcare system.

While domestic production is a significant aspect of the industry, El Salvador also imports pharmaceutical products, particularly specialized medications, and raw materials. Some local manufacturers export their products to neighboring countries.

Some of the predominant companies in the pharmaceutical industry in El Salvador are Laboratorio Vijosa, Laboratorios Ancalmo, Santa Lucia, Laboratorio Gamma, Laboratorio Lopez, and Laboratorio Teramed, among others.

Footwear industry

The footwear industry in El Salvador has a diverse range of products. It produces various types of footwear, including athletic shoes, casual footwear, sandals, boots, and specialized footwear for different purposes. The product range caters to various age groups, genders, and fashion preferences.

In the footwear industry, one of the most prominent factories and brands in the market is the domestic company ADOC. Foreign companies producing footwear in the country include Lee Shoes, Ricerfelli, and Hush Puppies.

Industry in El Salvador plays a significant role in the national economy. It contributes to employment, exports, and economic growth. The industrial sector in El Salvador is a primary source of employment, providing jobs to a significant portion of the population. This includes a wide range of roles, from skilled manufacturing to administrative and managerial positions.