Market Trends of mexico adhesives Industry
Rising e-commerce food and beverage market sales with forecast of around USD 15 billion in 2025 is likely to boost packaging industry
- Packaging is one of the fastest-growing industries in the country. The demand for quick and on-the-go packaged items is increasing as a result of busier lifestyles, greater spending power, and related factors in the country. Due to the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including disruptions in the supply chain, imports, and exports. Thus, the country's packaging production declined by 6% in 2020 compared to the previous year, significantly affecting the market.
- Mexico’s packaging industry is majorly driven by the rapid growth of the food and beverages industry. Over the recent years, the demand for online food and beverage shopping has been increasing as it offers food at home and decreases the time. The e-commerce food and beverage market sales amounted to around USD 6.8 billion in 2021 and are forecast to grow to around USD 15 billion in 2025.
- Packaging production is majorly driven by paper and paperboard in the country, which accounted for around 38% of the packaging produced in 2021. However, with the advancement of plastic recyclability, the plastic production segment is likely to register the fastest growth rate of around 4.8% CAGR during the forecast period.
- The growing interest in public health, along with the emerging e-commerce activities across the nation, is likely to continue the growth of the food processing industry, which will further increase the packaging demand in the coming years.
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Government's United states-Canada-Mexico agreement for automobile components and rising electric vehicles demand will increase the automotive production
- The Mexican automotive manufacturing industry is one of the country's most significant industries, accounting for 20% of the nation's GDP and employing over one million people nationwide. Around 30 global OEMs have manufacturing facilities in Mexico. Automotive manufacturing in Mexico comprises seven major operating segments: original equipment (OEM), aftermarket parts, electric and hybrid vehicles, remanufactured products, heavy vehicles, and other specialty motor vehicles.
- Mexico is the sixth-largest global passenger vehicle manufacturer. 89% of vehicles produced in Mexico are exported, with 80% exported to the United States. Mexico is the sixth-largest manufacturer and ranks fourth globally in the exports of heavy-duty vehicles for cargo, with 14 manufacturers operating through 11 manufacturing plants. Mexico is the leading global exporter of tractor trucks, exporting 94.5% of its production to the United States. In 2020, due to supply chain restrictions and labor unavailability caused by the COVID-19 pandemic, the country's production capacity declined by 20%.
- However, high raw material prices, shortage of semiconductor chips, and other logistical factors have restricted the growth of the automotive industry post-pandemic. Mexico's 12 free trade agreements with 46 countries, especially the United States-Mexico-Canada Agreement (USMCA), have placed Mexico in a strategic position to locally purchase auto parts previously imported from outside North America. However, in 2021, the country's electric vehicle registration witnessed a growth rate of 80% compared to 2020, and it is likely to increase in the future, thereby increasing automotive production in the country over the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- With aircraft manufacturers comprising 79% of the aerospace sector, aircraft components production holds the major share in Mexico's aerospace industry
- Owing to 12 free trade agreements of Mexico, the globalization of the footwear industry is likely to boost the demand
- Rising government initiatives including the National Development Plan (2018–2024) to propel the construction industry
- Rising interior furnishing and easy purchase and install of furniture leads to the woodworking and joinery demand
