Mexico Rigid Plastic Packaging Market Size

Mexico Rigid Plastic Packaging Market Analysis

The Mexico Rigid Plastic Packaging Market size is estimated at USD 3.34 billion in 2024, and is expected to reach USD 4.18 billion by 2029, growing at a CAGR of 4.53% during the forecast period (2024-2029).

• Rigid plastic packaging provides unique benefits, such as stiffness, high impact strength, and high barrier properties, which expanded the market for rigid plastic packaging in recent years. In Mexico, the food industry is one of the significant contributors to the rigid plastic market. According to the International Trade Administration, in 2021, packaging was the key driver of Mexico's plastics industry, attributing 47% of the market demand. Plastic packaging items used in the food and beverage industry are usually created locally. The increased demand for packaged food and pharmaceutical products drove market growth during the pandemic. However, claims regarding the survival of the virus up to 72 hours on materials, such as plastic, also hampered market growth.
• Crude oil is a source of raw material (i.e., feedstock) for making plastics. According to the Bank of Mexico, in March 2022, Mexico's crude oil exports averaged USD 104.4 per barrel, the highest in over three years. The North American country's export blend price plummeted in the first months of 2020, dipping below USD 13 per barrel in April 2020, following a global decrease in demand amidst the pandemic. Since May 2020, Mexico's export of crude oil price showed a recovering trend and remained above USD 60 for 12 consecutive months. Overall, during the pandemic, due to price fluctuation, the manufacturing capability of rigid plastic declined. However, currently, it is recovering.
• The rigid plastic packaging industry is highly fragmented in the country, with market incumbents, such as Amcor, Grupo Phoenix, Berry Group, and ALPLA, along with several regional Mexican contract packaging firms. Although barriers to entry for new players are moderate, regional packaging companies witness value in foraying, especially in the rigid packaging industry, owing to significant demand from various end-user industries.
• Carbonated beverages dominate the Mexican soft drinks industry in a major way. Though packaged water and fruit-based drinks started gaining popularity among Mexican consumers in recent years, carbonated beverages are way ahead of the rest of these categories in the country's soft drinks market. In particular, the isotonic drinks segment in Mexico is the largest in Latin America.
• During the covid inflicted lockdown, industries were forced to shut down operations as the employees and workers were unable to report for work. Strict government regulations to curb the spread further aggravated the situation in the initial days. Owing to this, the demand for industrial-grade plastic declined in till the companies found a way to operate with limited strength. This impacted the industrial-grade rigid plastic demand equally.