Market Trends of Mexico Rigid Packaging Industry
This section covers the major market trends shaping the Mexico Rigid Packaging Market according to our research experts:
Rigid Plastic Material to Hold Significant Share
- The Mexican rigid plastic packaging market is very dynamic. The industry offers a wide range of opportunities, with food processing, beer, tobacco, and coffee being the main sectors. Rigid plastic packaging provides unique benefits, such as high impact strength, stiffness, and high barrier properties, which have expanded the rigid plastic packaging medium market in recent years.
- The increasing need for rigid plastic packaging in the healthcare sector has been one of the essential aspects driving industry growth in recent years. Inert properties of rigid plastics added with physical properties such as durability, transparency, lightweight, and cleanliness increased the usage of rigid plastics in the storage and packaging of medical products.
- In December 2021, US-based Pretium Packaging LLC expanded into Mexico by acquiring Grupo Edid, a family-owned packaging solutions provider. This acquisition includes four separate operations: Ediplast, Edipacks, Refrepet, and Ediprint. Grupo Edidmay is integrated into Pretium Packaging, thus enabling the company to expand into the region.
- Companies in the region invest in new equipment and expand the production and recycling of rigid plastics. For instance, in January 2022, Austria-based packaging supplier Alplaand Coca-Cola FEMSA partnered to build a PET recycling plant in South Mexico with an investment of USD 60 million and an annual capacity of 50,000 tons of reusable PET material.
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Food Industry to Hold the Highest Market Share
- The Mexican food industry has grown rapidly over recent years, fuelled by the establishment of the North American Free Trade Agreement (NAFTA) and the spread of its retail model leading to an increase in the import of foreign foods. International operators are seeking to extend their product portfolios, and new producers are looking to enter this profitable market. A fact is that Mexico is becoming increasingly dependent on imports of some products.
- According to the National Institute of Geography and Statistics (INEGI), there are 217,245 economic units, including offices, manufacturing plants, and distribution centers, under and industry classification of 'food and beverage manufacturing and processing.' According to the Ministry of Agriculture (SADER), 9.3 million people in Mexico work to generate and transform agricultural and fish products (SIAP). The food processing industry employs more than 800,000 workers.
- The Mexican processed food industry receives about 90% of its supplies locally. These supplies include fruits, vegetables, cartons, glass, plastic, and tinplate. Domestically produced products have certain competitive advantages, such as a better understanding of the local industry and its needs and logistical advantages due to their closeness, but small players may face issues of quality, traceability, or lack of ability to meet larger quantity orders.
- Growing demand for protein-rich food products is another major driver of the Mexican packaging market. The country is continuously boosting domestic meat production to meet the increasing demand for meat products. Factors such as vertical integration of farms, investments in biosecurity, improvement in the production chain, and increased efficiency are spurring the local food production in the country, which, in turn, is bolstering the market growth of fresh food packaging in Mexico.
