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Packaging Industry in Mexico - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 100 Pages
  • April 2023
  • Region: Mexico
  • Mordor Intelligence
  • ID: 4773689
The packaging industry in Mexico is anticipated to register a CAGR of 14% over the forecast period.

Key Highlights

  • The longer product shelf life, changing lifestyle of people, and new innovative products across the region will drive market growth. The country's packaging landscape has been garnering high foreign direct investments across the food processing industry. This is expected to maintain an upward growth trend for flexible packaging demand. Consequently, manufacturers in the region have witnessed the demand for high-quality machines for packaging needs.
  • Plastic packaging has been observing a positive inclination from consumer products over other products for material handling, as plastic packages are lightweight and more comfortable. Furthermore, even major manufacturers prefer plastic packaging solutions owing to their lower production costs.
  • The Mexican market is one of the world's largest per capita consumers of soft drinks. But increasing health consciousness and concerns about obesity are leading to a growing focus on water and non-carbonated beverages. As physical activity across the country grows, the demand for energy drinks will improve, leading to the growth of plastic bottles in the country.
  • Packaging effectively protects the product from oxygen and moisture thanks to its longer and better barrier capabilities. However, it is projected that worries about the environment and recycling will hinder and limit market expansion.
  • Alternatively, amidst the outbreak of the COVID-19 pandemic, the demand for FMCG and packaged food has been leading to significant demand for fibers, films, and flexible packaging. Moreover, the stock-piling behaviors among consumers have led critical converters in the country to pre-order plastic film in anticipation of a shortage in packaging raw materials.​

Key Market Trends

Plastics to Drive the Market

  • Plastic bottles and jars are most frequently used in the food, beverage, cosmetics, and personal care industries. The plastic bottle market in the beverage industry is anticipated to grow significantly due to the demand for bottled water and non-alcoholic beverages.
  • For instance, in April last year, Mondi launched a sustainable packaging solution for the food industry. Mono Formable PP is a semi-rigid plastic tray created from mono-material polypropylene (PP) that features a printed top web and a thermoformable semi-rigid bottom web. The packaging weighs 30% less than a comparable polyester (PET) tray and has features like easy-peel for convenient opening and reclosure.
  • Carbonated beverages have a significant market share in Mexico's soft drinks business. Though packaged water and fruit-based drinks have gained appeal among Mexican consumers recently, carbonated beverages outperform the rest of the country's soft drinks sector.
  • Moreover, pouch packaging is rapidly gaining popularity, as it is a highly convenient and portable packaging solution. Over the past decade, consumers across the region exponentially drove the demand for stand-up pouches (for snack food, beverage, baby food, or industrial oils and lubricants).

Food and Beverage to Have the Largest Market Share

  • The consumer trends in Mexico are moving rapidly in terms of new products that match unique worldwide lifestyles, including frozen or ready-made meals, on-the-go snacks for breakfast/lunch, and many more.
  • Moreover, the rise of touchless packaging gives chances for food businesses to differentiate their products by providing a better customer packaging experience. Aesthetically appealing packaging that delivers health and hygiene may appeal to grocery buyers. The buyers want tamper-resistant packaging across the region that is also easy to open and packaging that makes food preparation convenient, easy, and safe.
  • Most fresh-baked products have only a few days shelf life at ambient temperature. Molds are the most typical type of spoilage organism related to baked products. Storage temperature and water activity are the two most important factors governing the mold-free shelf life of cakes. The lower the water activity and storage temperature, the longer the product's shelf life. In several emerging economies, table bread usually has a shelf life of around 4 to 5 days and is generally packed in polyethylene and polypropylene bags, which are twist-tied.
  • Consumers are changing the way they consume and buy beverages. Factors such as high disposable income, ease of availability, improvement in living standards, and a wide variety fuel the country's carbonated soft drinks industry's growth. The demand for consumption during different events may rise due to efforts to reduce the calories in soft drinks, which would substantially impact the demand for plastic packaging.

Competitive Landscape

The packaging industry in Mexico is highly competitive and consists of several major players. Few big competitors now control most of the market in terms of market share. These major firms, which hold a significant market share, are concentrating on growing their consumer base internationally. These businesses use smart joint ventures to boost their market share and profitability.

In December 2022, Amcor Rigid Packaging developed and introduced a two-step, lightweight quantum technology for polyethene terephthalate (PET) bottles that eliminate more than 50% of the material and weight in the finish of the bottle and deliver sustainability benefits, lowers cost, and improves packaging appearance.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Longer Product Shelf Life and Changing Lifestyle of People
5.1.2 New Innovative Products
5.2 Market Restraints
5.2.1 Concerns about the Environment and Recycling
6.1 By Packaging Material
6.1.1 Plastics
6.1.2 Metal
6.1.3 Glass
6.1.4 Other Packaging Material
6.2 By Packaging Type
6.2.1 Flexible Packaging Pouches & Bags Films and wraps Tubes
6.2.2 Rigid Packaging Bottles and Jars Trays and Containers Other Rigid Packaging Types
6.3 By End-user Vertical
6.3.1 Personal Care
6.3.2 Home Care
6.3.3 Automotive
6.3.4 Pharmaceutical
6.3.5 Food and Beverage
6.3.6 Other End-user Verticals
7.1 Company Profiles
7.1.1 Amcor PLC
7.1.2 Mondi PLC
7.1.3 Wipak Group
7.1.4 Sit Group SpA
7.1.5 Phoenix Closures Inc.
7.1.6 Glenroy Inc.
7.1.7 Fres-co System USA Inc.
7.1.8 JL Packaging Corporation
7.1.9 Belmark Inc.
7.1.10 Printpack Inc.
7.1.11 Constantia Flexibles Group
7.1.12 Innovia Films Mexico S.A. de C.V.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Amcor PLC
  • Mondi PLC
  • Wipak Group
  • Sit Group SpA
  • Phoenix Closures Inc.
  • Glenroy Inc.
  • Fres-co System USA Inc.
  • JL Packaging Corporation
  • Belmark Inc.
  • Printpack Inc.
  • Constantia Flexibles Group
  • Innovia Films Mexico S.A. de C.V.