Market Trends of Mexico Flexible Plastic Packaging Industry
The Polyethylene (PE) Segment is Expected to Witness Strong Growth
- Polyethylene (PE), a lightweight, partially crystalline, thermoplastic resin, finds its primary application in the Mexican flexible plastic packaging industry, notably in plastic bags, films, and pouches. Its attributes, including high chemical resistance, low moisture absorption, and sound insulation, bolster the demand for flexible plastic packaging.
- Flexible plastic packaging solutions crafted from polyethylene (PE) boast leak-proof qualities, safeguarding products from both moisture and tampering. PE, known for its affordability, ease of processing, and durability, also offers robust barrier properties against gases, aromas, and light. This makes it a preferred choice for crafting stand-up pouches of varying sizes, especially prominent in Mexico's food and beverage, personal care, pet care, and pharmaceutical sectors.
- Furthermore, Mexican manufacturers are increasingly focusing on research and development to create eco-friendly packaging that caters to industries like food, beverages, consumer goods, and personal care. In a recent development, in February 2024, Amcor PLC, an Australian packaging giant with operations in Mexico, collaborated with Stonyfield Organic and Cheer Pack North America to introduce a polyethylene (PE) spouted pouch for refrigerated yogurt.
- Given the rising demand for plastic products in Mexico, the nation's plastic market presents a lucrative opportunity for US exporters. Data from the National Institute of Statistics and Geography (INEGI) and the International Trade Administration reveals that Mexico's local plastic and resin production saw a 1.81% increase in 2023, driven largely by the surge in food and beverage packaging demands.
Understand The Key Trends Shaping This Market
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The Food Industry is Expected to Hold a Significant Share in the Market
- The surge in food consumption, spanning baked goods, snacks, confectionery, and processed foods, is a key driver behind the escalating demand for flexible plastic packaging in Mexico. As per the United States Department of Agriculture (USDA), Mexico ranks third in the Americas for its food processing industry, trailing only the United States and Brazil. Notably, the heightened demand for bakery items, closely followed by meat and dairy products, is fueling the Mexican flexible packaging market.
- Furthermore, as Mexican consumers increasingly pivot toward healthier food choices and exhibit a growing penchant for on-the-go indulgence, coupled with the resurgence of the nation's tourism sector, the market is witnessing a notable upswing. Highlighting this trend, in 2023, Mexico's processed food imports from the United States reached a value of USD 5.86 billion, further amplifying the need for flexible plastic packaging.
- With a working population seeking convenient food options, the demand for easily transportable food items is rising in Mexico. Ready-to-eat meals, a rapidly expanding segment, are predominantly housed in plastic laminate pouches featuring wide seals. These pouches cater to a variety of products, from fully cooked thermo-stabilized meals to those that can be reheated with hot water or a heater or even consumed cold, thereby widening the market's scope.
- Additionally, the burgeoning Mexican pet food industry is driving up the demand for pouches and bags. The country's rising income levels and a surge in pet ownership are key factors propelling the flexible packaging market. Notably, with nearly 70% of Mexican households owning pets, the nation is poised to become the world's fifth-largest consumer market for pet food, as per the International Trade Administration.
