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Mexico Glass Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 120 Pages
  • April 2023
  • Region: Mexico
  • Mordor Intelligence
  • ID: 5459054
UP TO OFF until Dec 31st 2023
The Mexico Glass Packaging Market is expected to register a CAGR of 9.5% during the forecast period. With the outbreak of COVID-19, the country has taken steps to deem alcohol production and non-essential business. This will significantly impact the consumption and requirement of glass containers and further suspended beer production after preventive orders from the Mexican government to stop the spread of the coronavirus.

Key Highlights

  • The country has been witnessing an active expansion of its production capacities. For instance, the joint venture between Constellation Brands, O-I, and Industria Vidriera de Coahuila (IVC), operates several glass bottle plants in Mexico. Further, in early 2020, IVC opened the fifth furnace in Piedras Negras.
  • Although the growth rate is less than the United States, Mexico’s craft beer market is growing by 53% every year. According to the Mexican craft beer association, Acermex estimates that there are now over 600 independent breweries in Mexico. This is expected to drive increased demand for the glass packaging market.
  • Further, Owens-Illinois Inc.,acquired Nueva Fabrica Nacional de Vidrio, from Grupo Modelo for USD 188 million. The glass bottle manufacturer expects the Mexican market to contribute around USD 140 million of revenue and an additional USD 40 million yearly earnings before interest, taxes, depreciation, and amortization. Currently, this plant has four furnaces that can produce and supply approximately 300,000 metric tons of glass containers annually for Grupo Modelo brands, which include Corona, Modelo Especial, and Pacifico. This acquisition happened to capture the growing glass market in Mexico, which is expected to strengthen the demand for glass packaging in the country.

Mexico Glass Packaging Market Trends

Glass Bottles and Containers Expected to Witness Significant Growth

  • Mexico is one of the prominent markets for glass bottle packaging because of its traditional manufacturing and production of alcoholic beverages. In addition, in December 2020, Country Malt Group broadened its distribution in Mexico with BeerMex, a brewing and distilling supply business in Merida, Yucatan, Mexico. The expanded partnership will enable craft brewers and distillers across Mexico easy access to the full range of quality malts, ingredients, and products in the Country Malt portfolio.
  • The country is witnessing new partnerships for the establishment of new breweries. For instance, in the recent past, Heineken partnered with KHS to open one of the largest breweries in Mexico, setting a gold standard for ecological and economic sustainability. Such expansions in production capacities are anticipated to generate demand for glass bottles in the country over the forecast period.
  • While the glass industry in Mexico is currently faced with the challenges posed by the COVID-19 pandemic, the trade agreement between Mexico, Canada, and the United States is expected to increase demand in Mexico's glass industry with increased demand for glass bottles and container market.
  • Moreover, the president of the country, Andres Manuel Lopez Obrador, criticized the production of beer and milk in areas with insufficient water. In 2020, the populist president canceled plans for Constellation’s new 10 million hl brewery on Mexico’s northern border and questioned the whole idea of producing beer for export. This is currently acting as a restraint for the glass bottle producers in the country.

Personal Care Expected to Witness Significant Growth

  • The personal care industry is witnessing increased demand for glass packaging in recent years because of a strong US dollar and the renegotiation of the North American Free Trade Agreement in Mexico.
  • In addition, in the recent past, Avon announced its new R&D facility in Mexico. The research and development lab will primarily operate as part of the company’s global R&D network and will help in exploring further innovation possibilities. These expansions from global players are also expected to drive the market in the country.
  • Moreover, in Apr 2020, IZO Agave Spirits aided in community preparedness efforts by suspending its production to produce alcohol-based, natural hand sanitizer. The company will be formulating 100% natural alcohol sanitizer to help keep people safe. The company currently plans to provide thousands of bottles of hand sanitizer to the residents of the distillery’s Durango, Mexico community.
  • The recent COVID-19 outbreak has seen a rapidly rising demand for sanitizers making the shelves empty at pharmacies, supermarkets, and other stores. Further, organizations in the market are putting effort into meeting increasing demand with glass packaging.

Mexico Glass Packaging Market Competitor Analysis

The Mexico Glass Packaging Market is moderately competitive owing to multiple players in the market. Players in the market adopting strategies such as product innovation, partnerships, mergers and acquisitions to increase their market share and further recyclability driving the market.
  • March 2021 - SGD Pharma announced the updated version of the Type I molded glass vial range, available in three market-driven offerings, each offered to satisfy different needs and parenteral drug specifications. The offering provides pharma and biopharma companies with products and services solutions that meet the needs of their therapeutic applications, drug properties, and business environment.
  • January 2021 - Frigoglass S.A.I.C. announces that the Company's beverage coolers supply agreement with Coca-Cola HBC AG, extended until December 31, 2025. Further, Frigoglass has a strong presence in more mature regions while still expanding and establishing itself in emerging areas.

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  • The market estimate (ME) sheet in Excel format
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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 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Mexico Glass Industry
5.1 Market Drivers
5.1.1 Higher Disposable Income and Integration in Premium Packaging
5.1.2 Commodity Value of Glass Increased with Recyclability
5.2 Market Challenges
5.2.1 Increased Relevance of Alternate Material
5.2.2 Operation and Logistical Concerns
6.1 By Type
6.1.1 Bottles/Containers
6.1.2 Vials
6.1.3 Ampoules
6.1.4 Jars
6.2 By End-user Vertical
6.2.1 Pharmaceuticals
6.2.2 Personal Care
6.2.3 Household Care
6.2.4 Agricultural
6.2.5 Other End-user Vertical
7.1 Company Profiles
7.1.1 Gerresheimer AG
7.1.2 Frigo Glass
7.1.3 Sonoco Products Company
7.1.4 Schott AG
7.1.5 Corning Incorporated
7.1.6 Owens-illinois Inc
7.1.7 SGD Pharma SA
7.1.8 Saver Glass, Inc.
7.1.9 Vitro S.A.B. de CV
7.1.10 Amcor