Jamaica’s clampdown on single-use plastics is opening new opportunities for local manufacturers, and AMG Packaging & Paper wants in, with lunch boxes now under consideration as part of a wider expansion drive that could reshape the company’s future.

The Junior Market company, known for cartons and corrugated packaging, told the Jamaica Observer that it is now assessing the category as part of a broader diversification push.

“Yes, we are considering lunch boxes as a means of product diversification. We are still in the research and development stages of the project and will provide more information as we progress,” General Manager Michael Chin said.

The disclosure gives fuller meaning to comments made at AMG’s annual general meeting in March, where a shareholder asked whether the company could handle food boxes in the future. Chairman Metry Seaga responded that the matter would be considered as part of the company’s expansion plans.

If AMG proceeds, it would move the company into a segment that has grown steadily since the Government prohibited several categories of plastic and polystyrene containers. Restaurants, supermarkets, schools, caterers, and delivery operators still need affordable packaging, but the material mix has changed. Foam boxes that once dominated the trade have increasingly been replaced by bagasse containers made from sugar cane fibre, kraft paper meal boxes, PET cold-food containers, and other recyclable or compostable alternatives.

Checks made by the Business Observer show that much of that supply appears to come through importers and distributors rather than large-scale domestic manufacturing. The market, however, is not entirely dependent on imports.

Dynamic Packaging Products Limited, a long-established local manufacturer in the non-corrugated packaging segment, currently lists plain lunch boxes among its product lines alongside pizza boxes, cake boxes and other custom packaging items on its website. The company says it has operated in Jamaica since 1982 and supplies a range of corporate clients. Its social media pages also show packaging work for brands such as KFC, Island Grill, Tastee Patties and Prestige Donuts.

That means AMG would be entering a market where local capability already exists, but where demand appears broad enough to support multiple suppliers, particularly as food-service operators seek reliable packaging sources, custom branding and steady delivery.

For AMG, the lunch box proposal sits within a much larger expansion plan already underway.

In recent updates, management has pointed to land acquisition, warehouse expansion, ERP system upgrades, and major equipment investment as part of efforts to improve efficiency, lift output, and widen the company’s reach. The current upgrade of its Corrugator line is one of the clearest signs of that strategy in motion.

That context matters because it suggests lunch boxes may be one way AMG intends to use upgraded capacity to move beyond its traditional carton business and into faster-moving areas of demand.

The timing is significant, as the company’s core operations have faced near-term pressure.

For the six months ended February 28, 2026, revenue or sales fell 17.24 per cent to $414.59 million from $500.95 million a year earlier. Gross profit declined to $138.82 million from $165.82 million, while net profit dropped to $20.40 million from $43.69 million. Earnings per share slipped to $0.04 from $0.09.

The second quarter was weaker still. Revenue for the three months to February fell to $190.84 million from $248.32 million, while gross profit moved to $64.29 million from $79.29 million.

Management linked the decline largely to disruption tied to the upgrade programme.

“For the period in review, equipment downtime increased because of mechanical issues and lost production time associated with the installation and commissioning of the Glue Station and Single Facer on the Corrugator. This weighed heavily on us not being able to complete customer orders during the period,” the company said in its management discussion and analysis.

Even so, management maintains that the same investment now affecting output should strengthen performance once fully settled.

“As stated before, the upgrading of the Corrugator will allow for better efficiency and improved quality,” the company said.

It added: “With the upgrade of the Corrugator line, we expect to feel the benefits within Q3. We are optimistic as we are now experiencing positive changes in our production processes.”

AMG closed February with $360.73 million in cash and cash equivalents.