Metta is a Guatemalan company that has been manufacturing educational toys for 45 years. It produces puzzles, memory games, lotteries, and even Bancopoly. It currently has 100 games and educational materials, such as coloring books and stories, according to Andrés Dorigoni, director of Juegos Metta.

The possibility of Guatemala entering the toy industry value chain is a conversation that began more than three years ago, according to Gabriela García, Minister of Economy. For Diego Cuéllar, operations manager at Renepack, S.A., this industry has high potential, but there is currently a gap in the market. “No one is offering these alternatives,” says Cuéllar, whose company manufactures paper packaging and is also involved in the toy industry, focusing on lottery and memory games.

In the midst of the tariff battle that has been raging since 2025, there may be light at the end of the tunnel. Lisardo Bolaños, former Deputy Minister of Investment and Competition at the Ministry of Economy, says that new policies promoted by the United States have raised concerns among US companies that depend on Chinese manufacturers. “That is one of the main concerns of the Trump administration: where will toy production go?” says Bolaños, who believes that this concern could be an incentive for US companies to seek suppliers outside of China's influence.

But Rubén Morales, former Minister of Economy, points out that the sector has lacked organization. García argues that, in order to integrate into this chain, it is necessary to participate in international events recognized for their good practices and to form public-private missions to understand how the industry works. Bolaños, for his part, suggests adopting a more aggressive vision, which includes not only attending trade fairs, but also generating contacts and designing a joint strategy.

Bolaños estimates that, in four years, Guatemala could achieve exports exceeding Q100 million and generate up to 10,000 jobs in the toy sector alone, provided that the establishment of this industry in the country is actively promoted.

Can Guatemala become a major toy manufacturer?

Currently, Guatemala attracts only 1.5% of its gross domestic product (GDP) in foreign direct investment. Lisardo Bolaños states: “If we want to be successful, or at least start to see positive change, we should aim to generate over 4%.” To attract the toy industry, it is necessary to have a skilled workforce, specializations, adequate machinery, and a comprehensive analysis of the sector.

According to Gabriela García, Minister of Economy, the most important thing is to understand the market and have a thorough knowledge of the value chain for manufacturing toys. This understanding makes it possible to identify the needs of companies and carry out a cost analysis.

Bolaños asserts that labor is a key factor in attracting companies in the sector to Guatemala. Cuéllar adds that there is an urgent need for training. “It is increasingly difficult to find people to operate the machines,” he points out, adding that there are no people in the market capable of using the machines required for the job. Cuéllar estimates that it takes three months to a year to train personnel.

García highlights that the toy industry is part of a highly specialized value chain that requires certifications, licenses, and protocols to ensure sustainable practices. In this regard, he stresses the need to sophisticate the market. “The productivity of the national workforce is important, but human resources do need to be improved,” agrees Rubén Morales, former Minister of Economy.

Cuéllar mentions that one of the country's main limitations in this industry is technology. In his opinion, investment in technology and precision machinery is needed. At Renepack, for example, new printers were purchased to improve quality, reduce errors, and increase efficiency. “We estimate that we can give our products 10% to 25% more brightness and fewer errors with new technology,” he says.

On the other hand, Andrés Dorigoni, Director of Juegos Metta, believes that automation is an area for improvement, since many processes at his company are still done manually.

Bolaños also considers it essential to optimize administrative procedures, with the goal of establishing an efficient, clear, and standardized process that allows operations to begin in less than six months.

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

Incentives: nearshoring and basic services

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

Bolaños adds that the country has favorable conditions for the light manufacturing sector, especially in terms of delivery times to the North American market.

García states that Guatemala offers incentives such as free trade zones and special public economic development zones (Zdeep). He also mentions that the region offers tax incentives that make the country a more attractive destination for investment. Industrial parks, for their part, guarantee access to basic services such as energy, water, and connectivity.

However, if a producer wants to start operations in two or three months, Guatemala may not be the right place, warns Bolaños: “It has to do with the paperwork, both from the moment the company is formed until it obtains the qualifications as a user of Decree 29-89, the Zdeep or the free trade zones. It is not as fast as required.”

Rubén Morales emphasizes that facilitating licenses, permits, authorizations, and registrations is key to incorporating the country into the value chain. As an example, he points to the electronic signature, which has been legally approved since 2008 but has not yet been fully implemented: “The electronic signature could be used extensively to streamline procedures,” he says.

García proposes two investment models for this industry. The first is a completely new investment, and the second is a joint venture with a national company. “Personally, I think joint ventures are excellent because they help national companies modernize and adopt more sophisticated processes,” he says.

Raw Materials

Lisardo Bolaños points out that one of the key investments for developing the toy industry in Guatemala should focus on the plastics sector. However, he clarifies that this industry, in its current state, is not geared toward manufacturing toys, but rather toward producing kitchenware.

However, in addition to plastic, Rubén Morales points out that Guatemala has good quality wood, which makes this material a viable option for toy design and manufacturing. “Wooden toys fetch a better price than plastic toys and could reach a very specific market niche in the international market,” he says.

One 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 that they work with few imported materials and that almost everything they need can be found locally.

In addition to wood and plastic, Morales points out that toys related to the textile industry could also be produced, a sector in which Guatemala already has strengths. “This industry represents a strength in the country and that can serve to add specialization within the sector and venture into fabric toys,” he says.

Can Guatemala adjust?

Cuéllar maintains that Guatemala has a high capacity for adaptation. “We believe we have the capacity and ability to adjust and work on packaging other types of toys,” he says.

Alejandro Guillén, from Spectrum, agrees, believing that the country has everything it needs to welcome this industry, thanks to favorable macroeconomic and demographic factors.

Guillén highlights that the country's demographic dividend is a competitive advantage, as the average age in Guatemala is 26. Bolaños points out: “It should be remembered that the current situation in the country is that a significant percentage of the adult population has not completed secondary education and is looking for employment opportunities.” According to Bolaños, this value chain could close the gap towards a sustainable middle class by generating formal employment.

Guillén también destaca que, al existir en el país manufactura y producción de plásticos, se pueden aprovechar las competencias ya desarrolladas para atender y proveer a las empresas de juguetes interesadas en instalarse en Guatemala.

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Guillén also points out that, since the country has plastics manufacturing and production capabilities, it can leverage its existing expertise to serve and supply toy companies interested in setting up operations in Guatemala.

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