MEXICO INDUSTRIAL BULK PACKAGING MARKET ANALYSIS

Industrial packaging is the packaging of heavy industrial goods in order to protect them from damage and contamination. Industrial bulk packaging is widely done across various manufacturing facilities such as food & beverages, chemicals & petrochemicals, and pharmaceuticals. On the basis of packaging type, they are classified into drums, pails, and jerry cans.

Mexico industrial bulk packaging market was valued at US$ 643.0 Million in 2022 in terms of revenue, exhibiting a CAGR of 6.7 % during the forecast period (2023 to 2030).

Drivers

Growth in the pharmaceutical industry

Growth in the pharmaceutical industry in Mexico is primarily fuelling the market growth of industrial bulk packaging. They are widely used in the storage of medical devices and other pharmaceutical products. Growing demand for plastic-based packaging products such as drums in the country is also anticipated to augment the market growth of industrial bulk packaging over the forecast period.

Increasing export of food & agricultural products

The increasing export of food & agriculture products in Mexico is expected to propel the market growth of industrial bulk packaging. According to the USDA, in 2022, Mexico’s agricultural exports totaled about US$ 46.6 billion. The U.S. is Mexico’s largest agricultural trading partner, buying approximately 80 percent of Mexican exports and supplying roughly 70 percent of the country’s imports in this category.

Market Restraints

High cost of the logistics

The high cost of logistics and poor road infrastructure in Mexico is projected to restrict the market growth of industrial bulk packaging.

Strict rules and regulations on industrial packaging

Strict rules and regulations on industrial packaging for direct food contact and healthcare products is expected to curb the market growth. Also, strict regulations on the use of volatile organic compounds are further expected to limit Mexico's industrial bulk packaging market growth.

Market Trends

Increasing wine trade in Mexico, owing to the increasing consumption of wine around the globe, is a major trend in the market. A rapidly growing population coupled with increasing disposable income and changing spending patterns is creating demand for various consumer goods. Moreover, the growing transportation of minerals and semi-finished products is also expected to propel the market growth of Mexico industrial bulk packaging.

Mergers and acquisitions by key manufacturers for business expansion is a growing trend in the market. This trend is expected to spur the market growth of Mexico industrial bulk packaging. For instance, in April 2018, ORBIS Corporation, a provider of reusable packaging and part of Menasha Corporation, acquired Response Packaging, headquartered in Piedmont, South Carolina. Response Packaging has 245 employees in the U.S. and Mexico and serves the automotive and industrial markets.

Figure 1. Mexico Industrial Bulk Packaging Market Value Share (%), By Product Type, 2022

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Recent Developments

• In April 2020, Greif, Inc., a manufacturer of packaging products, offers industrial packaging products such as steel, fiber, and plastic drums, rigid intermediate bulk containers, transit protection products, closure systems for industrial packaging products, water bottles, and reconditioned containers, acquired a minority stake in Centurion Container LLC, in order to expand its intermediate bulk container (IBC) reconditioning network in North America. This acquisition of Centurion Container LLC is expected to enhance the company’s IBC and IBC reconditioning businesses.
•  In 2020, Mexico saw a dramatic decrease in packaging and processing machinery acquisition, mostly driven by perceived political instability, unclear government policies, and heightened risk concerning foreign direct investment, exchange rate fluctuations, and the slowdown of the economy as a result of the global pandemic.
• In January 2021, Mauser Packaging Solutions launched the KORTRAX barrier tight-head container, expanding its portfolio of tight-head containers

Competitive Section

Major players operating in the Mexico industrial bulk packaging market include Mauser Group B.V., Greif, Inc., International Paper Company, Hoover Container Solutions, Inc., Menasha Corporation, Cleveland Steel Container Corporation, and Composite Containers LLC.