Mexico extruded plastic market is projected to grow at a CAGR of 3.52% during the forecast period to reach US$2.420 billion by 2027, from US$1.900 billion in 2020.
Extrusion is among the most widely used methods for generating parts from polymers. Extrusion, apart from injection moulding, typically produces a partly finished or moderate article that requires further sorting to make a finished article. Fibre and filament represent a small proportion of total polymer extrusion. Tubing, film, wire insulation, and sheet are the most common results. Polymer films are widely used in protective coating, release, and packaging. Plastic extrusion is an intricate plastic production method that, at its most basic, includes converting solid plastic into a structure that can be made into useful objects. The screw delivers, liquefies, and pressurizes the plastic as it rotates around its axis. The molten plastic is then forced through a die, which structures it into a specific cross-section, yielding parts with a presumably wide range of lengths. Plastics can be extruded from solid-state to liquid and back without losing their unique characteristics. Trash parts can thus be powdered and re-extruded with little degradation, attempting to make extrusion a popular method for minimizing or reprocessing plastic waste. Plastic extrusion's numerous industrial capacities enable to the production of a large volume of components quickly and affordably. When combined with reduced tooling costs and multiple design and manufacturing centres, it can achieve even greater cost efficiency and speed.
Mexico Extruded Plastic Market and Its Growth Drivers
As per the International Trade Association, packaging accounts for 47 percent of Mexico's plastics industry market demand. Extruded plastic packaging goods used in the food and beverage industry are produced locally. It is expected that the demand for extruded plastic is driven by the plastic packaging segment due to its wide application in packing various things in many industries. Mexico's construction sector has transitioned from metal-based to plastic-based, with plastics used in windows, doors, roofing tiles, covering, water, and gas piping. The construction sector anticipates that as alternative building methods become more popular, more plastic items will be consumed in the short term, which is predicted to boost the country's extruded plastic market. Polymers and rubber goods have assisted the automotive sector in meeting its goal of reducing vehicle weight by 30%, and popularity is expected to rise, anticipating the use of extruded plastic and motivating the market in the country.
Restraints
Plastic scorch, which is a frequent problem during the extrusion process, creates pores or bubbles in the extrusion layer segment and poor plasticization of the extrudate. These are among the factors expected to quash the growth of the extruded plastic market in Mexico.
COVID-19 Impact on Mexico Extruded Plastic Market
The COVID-19 pandemic struck Mexico at a critical juncture in its development. The Mexican administration's initial response has been disappointing. The government's budget objectives have not changed, nor has it been willing to grant a life preserver to residents or businesses. While the government-subsidized a modest recovery pack for some of the country's weakest sectors, it did not include assistance to many Mexicans who had to close their businesses due to the pandemic. When expressed as a percentage of GDP, Mexico's economic response to the COVID-19 disease outbreak is among the world's most frugal. Due to the less government initiative in response to the disease, the extruded plastic market was badly jolted because of the shutdown of the operation of the end-user industry in Mexico. According to OICA, 1 046 705 units of vehicles were sold in Mexico in 2021, a 23 percent drop from the year 2019 was recorded. Being one of the key end-user industries, it has tumbled the extruded plastic market in Mexico.
Extruded Plastic and Mexico Market
Mexico's total plastics imports totalled US$ 27.5 billion in 2020, with the United States accounting for 63% (US$17.4 billion). Mexico was the largest market for plastics exporters, with US$14.7 billion in 2020. Mexico's production of plastic has steadily increased at a rate of 3.5 percent per year. According to Mexico's National Institute of Statistics and Geography, manufacturing in the sector tumbled 11.2%, affecting the overwhelming amounts of small manufacturers. Small and medium-sized producers were particularly hard hit, with several forced to cease operations entirely. In 2020, Mexico's plastics and resins industry sector was valued at more than US$39 billion in the sale of capital devices, resins, plastic equipment, and injection moulded parts. Production companies are also considering the recycling process as the industry is prompted to make sustainable economic systems to meet environmental obligations. Organizations are launching bioplastics as an alternative to reduce pollution in light of the preceding non-recyclable waste.
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