Market Trends of Mexico Plastic Packaging Industry
This section covers the major market trends shaping the Mexico Plastic Packaging Market according to our research experts:
Plastic Bottles to Drive the Plastic Industry in the Country
- Plastic as a product is widely recognized in several regions, and a wide range of innovative, cost-effective, and ecological packaging options are available in the market. As a result, key competitors, such as Amcor, have introduced new plastic product shapes to meet the need for bottles.
- The beverage sector's market for plastic bottles is anticipated to witness rapid growth, owing to the never-ending demand for bottled water and non-alcoholic beverages. The need for bottled water is credited to the consumers' propensity for specifically demanding high-quality drinking water, owing to the fear of diseases resulting from drinking polluted tap water and the ease of portability and convenience provided by bottled water.
- The developing significance of modern packaging in the pharmaceutical industry has led the brands to utilize the potential of the characteristic plastic packaging to stand out from their competitors and increase profitability. Apart from the essential condition of protecting the drug, the pack also needs to be appealing and distinct, sufficient to promote itself. Thus, the aesthetic appeal of plastic packaging has been a driving factor for its usage in pharmaceutical packaging.
- According to the United Nations, Mexico's exports of beverages, spirits, and vinegar were USD 10.01 billion in 2021. Such a high export rate is expected to increase the demand for plastic bottles in the region. Plastic bottles are rugged and robust, and when dropped, they do not shatter into jagged fragments, safely handling the items and packaging. Because plastics are polymers (large molecules formed by joining several small molecules), and have critical physical qualities, such as toughness and chemical resistance. Plastic bottles are resistant to leaks and bursts, preserving the contents and the outside shipping containers.
- Companies are incorporating new product features to expand their regional market share. For example, INOAC's standard PET and PP resin bottles are available for culinary spices, dressings, alcohol, and beverages. INOAC provides standard bottles based on the contents with which they are to be filled.
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Food Industry to Drive the Growth of the Market
- The Mexican food industry is one of the major consumers of plastic packaging due to the increasing demand for easy-to-use and small packaging solutions, with the growing consumer demand for ready-to-eat types.
- According to the USDA Foreign Agriculture Service, Mexico's beef and veal meat production experienced an overall increasing trend between 2010 and 2022. Production exceeded two million metric tons of carcass weight equivalent in recent years, increasing more than 16.3% over 2010. In 2021 the region produced 2,190 metric Ton of meat, increasing from 2020 production, i.e., 2,079 thousand metric tons. Such an increase in meat production may significantly drive the demand for plastic packaging for the studied market.
- Furthermore, according to Agriculture and Agri-Food Canada, Mexico's annual per capita food spending was USD 1,340 in 2018, which is anticipated to reach about USD 1,743 in 2023. With the increase in per capita food spending, the demand for food packaging may also increase. Plastic packaging may withstand harsh environments and does not degrade in hot and cold temperatures, protecting the integrity of the food inside. It also safeguards products against moisture, oxygen, dust, light, and smells. Such properties may create the demand for plastic packaging for food.
- According to the Ministry of Agriculture and Rural Development (Sader ), Mexican agri-food exports set a new high in 2021, with a total value of USD 44,442 million, the largest in 29 years. Exports increased by 12.44% compared to 2020, totaling USD 39,525 million.
- In August 2021, According to the National Association of Chocolate Manufacture, Jalisco was home to 14% of the companies dedicated to producing sweets and chocolates, which generate 58% of national production. In the case of confectionery, the per capita consumption for this year is predicted to be 196 pounds or nearly four kilos. The per capita chocolate consumption is 750 grams nationally. However, certain people consume more chocolate per year, primarily during winter.
- Due to the expansion of the food companies in the Mexican region, the demand for rigid plastic packaging may increase. Rigid plastics are the lightest and least expensive packaging material to carry. Users may also make designs as tiny as possible, allowing for shipping more products per shipping. Such benefits may allow the companies to adapt rigid plastic packaging.
