Market Trends of Mexico Glass Packaging Industry
Glass Bottles and Containers Expected to Witness Significant Growth
- Mexico emerged as one of the quickest-developing container glass industries in the South Americas in the last few years. Spurred by the boom in the Mexican non-alcoholic beverage enterprise and growing exports to the US, the glass industry has made significant visible investments and ability expansions in the country.
- Mexico's deep-rooted tradition in crafting alcoholic beverages has made glass containers a staple product in the country. This heightened demand for glass containers has spurred notable expansion in Mexico's glass manufacturing sector, witnessing swift advancements. With a primary focus on alcoholic beverages like beer, wine, and spirits, the demand for glass products in Mexico remains robust.
- Consumer trends in Mexico are rapidly changing regarding new products that match unique lifestyles, including energy and sports drinks. In Mexico, the packaging industry benefitted from the increase in the demand for beer and provided standardized, custom-designed packaging. This well-known packaging is critical for the developing microbrewery segment, which requires distinctive packaging while avoiding identification with higher-volume products.
- The country is also home to various non-alcoholic beverages, including carbonated soft drinks and energy drinks. According to the National Institute of Statistics and Geography (INEGI), the sales volume of flavored soft drinks produced in April 2023 was 385,230 thousand liters, up from 336,747 thousand liters in January 2023. Such an increase in soft drinks volume would drive the glass bottles market in the country.
- According to the National Institute of Statistics and Geography (INEGI), industries such as beverages, pharmaceuticals, and perfumery faced a need for glass bottles due to an international increase in demand. However, Mexican glass producers manufactured 5,317.3 million containers, an increase of 7.1% per year after two years of the pandemic. Also, according to INEGI, the country's 94 glass plants operate at an average capacity of 95%, and to increase their capacity, Vitro and Vidrio Formas announced the expansion of their plants in 2023.
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Personal Care Expected to Witness Significant Growth
- While plastic packaging technologies have made significant strides recently, glass remains the preferred choice for exclusive fragrances, skincare, and personal care packaging. The glass utilized in cosmetic and fragrance applications is predominantly crafted from natural and sustainable materials, including sand, limestone, and soda ash. Notably, glass packaging products boast a 100% recyclability rate without compromising quality or purity, with 80% of recovered glass repurposed into new glass products.
- Cosmetic containers, including bottles, jars, vials, and ampoules, package skincare, haircare, nail care, and makeup products. These containers, especially those used in luxury cosmetic packaging, often come in glass. Glass jars and bottles are favored for their versatility, offering various dispensing options like jet and drop inserts, frothing caps, spray nozzles, and pump heads.
- Recent years have seen a surge in demand for glass packaging in the personal care industry, influenced by a robust US dollar and the renegotiation of the North American Free Trade Agreement in Mexico. As of November 2023, the International Trade Administration (ITA) highlighted Mexico's market as one of the world's top 10 cosmetics and personal care products and the second-largest in Latin America for beauty products.
- Being a key manufacturer of personal care products in the region, Mexico offers competitive pricing, especially for mass-consumed items by major international companies. Additionally, there's a notable rise in demand for organic and natural personal care products, aligning with the global shift towards eco-friendly offerings.
- Local brands emphasizing natural ingredients invest in premium packaging and vying with global brands in marketing and distribution to bolster their presence in Mexico. Such endeavors are poised to invigorate the glass packaging market within the personal care sector. Supporting this trend, INEGI projects that the the production value of cosmetics, perfumes, and toiletries in Mexico in 2020 was MXN 129.22 billion (USD 7.28 billion) and reached MXN 146.47 billion (USD 8.26) in 2023. This uptick in personal care product revenue underscores the nation's growing demand for glass packaging.
