Market Trends of Mexico Plastic Packaging Industry
Plastic Bottles to Drive the Plastic Industry in the Country
- Plastic is widely recognized in several regions, and a wide range of innovative, cost-effective, and ecological packaging options are available. As a result, key competitors, such as Amcor, have introduced new plastic product shapes to meet the need for bottles.
- The beverage sector's plastic bottle market is anticipated to grow rapidly, 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 must also 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.
- 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.
- According to the National Institute of Statistics and Geography (INEGI), it is projected that the revenue from manufacturing reinforced and non-reinforced plastic containers for packaging in Mexico will amount to approximately USD 1.1 billion by 2024 compared to the 2018 value, which was around 0.96 billion. A rise in revenue indicates a potential expansion of the market. Manufacturers will be exploring new markets or experiencing increased demand domestically and internationally. This expansion can contribute to the competitive plastic packaging industry in Mexico.
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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 Mexican Online Sales Association, the national e-commerce market was valued at USD 19.7 billion in 2021, up 27% from 2020. Mexico had 57.5 million e-commerce users in 2021, up 11% from 2020. Owing to improved connectivity, better access to finance, streamlined logistics management, and digital literacy, Mexico is predicted to have more than 77.9 million e-commerce users by 2025.
- Furthermore, the growth in e-commerce users means more and more people are shopping online. This expanded customer base results in higher requirements for packaging materials, as each order typically requires some form of packaging, often including plastic materials.
- The Mexican Online Sales Association (MOSA) found that 35% of food and beverage online shoppers in Mexico purchase groceries online at least once a week. As a result, packaging companies may need to invest in technological innovations to meet the needs of these frequent online grocery shoppers. These innovations may include smart packaging with features such as temperature sensors and QR codes to track freshness and tamper-evident seals to enhance the e-commerce experience further.
- According to Agriculture and Agri-Food Canada, Mexico's annual per capita food spending was USD 1,340 in 2018, which was 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.
- 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 more products to be shipped per shipment. Such benefits may allow companies to adapt rigid plastic packaging.
- According to the USDA Foreign Agricultural Service, chicken meat production was forecast to continue increasing in 2023, totaling roughly 4 million tons compared with 3.4 million tons in 2018. With higher chicken meat production, there will likely be a corresponding rise in the demand for packaging materials to store and transport the products. Plastic packaging, such as trays, containers, and wraps, is commonly used in the poultry industry due to its durability, affordability, and ability to maintain product freshness.
