Mexico Zinc Oxide Market Research Report: Forecast (2022-27)

Market Definition

Zinc oxide is a white-colored inorganic compound used in rubbers, plastics, ceramics, glass, cement, pharmaceuticals, paints, etc. It is also used as a skin protectant to cure minor skin irritations, such as burns, cuts, & diaper rashes. Its wide usage in industries like automotive, pharmaceutical, construction, food & beverages, etc., is the primary reason behind the expansion of the Zinc Oxide Market across Mexico.

Market Insights

The Mexico Zinc Oxide Market is projected to grow at a CAGR of 2.8% during the forecast period, i.e., 2022-27. Zinc oxide is an inorganic compound and is insoluble in water. Since it acts as an activating agent, its application is growing in numerous materials & products. Various cosmetics manufacturers like Swan Cosmetics, Francobel Comercializadora, etc., are headquartered in Mexico and produce cosmetics locally. The high awareness among consumers regarding the impact of solar exposure on the skin and the ability of zinc oxide to act as a powerful sunscreen agent, especially for customers with sensitive skin, drive the Mexico Zinc Oxide Market. 

Furthermore, the country is home to various tire manufacturers, such as Michelin, Pirelli, etc. It is leading the way for sustained growth in automotive manufacturing by becoming the 7th largest automotive producer globally. Hence, increased investments by automotive companies in the establishment & expansion of manufacturing facilities would encourage tire manufacturers to boost tire production in the country.

• In 2021, BMW started the production line of its Series 2 Coupe compact sports car in its plant in central Mexico.

As a result, the expansion plans of tire manufacturers in the country on account of the mounting demand from the automotive sector would directly contribute to the increased demand for zinc oxide in Mexico and drive the overall market. For instance:

• In 2021, Pirelli announced the approval of its tire plant in Silao, Mexico, which would be worth USD 36 million. Once completed, the plant would have a capacity of around 7.2 million tires

Covid-19 Impact on the Mexico Zinc Oxide Market

The Covid-19 pandemic has impacted almost every industry in Mexico due to the sudden lockdown & shutdown of production plants in 2020. The demand for zinc oxide was also affected since most rubber companies, cosmetic & personal care product manufacturers, construction & chemical industries, etc., witnessed certain challenges like social distancing norms, massive disruptions in the supply chain network, etc. As a result, it negatively influenced their manufacturing capabilities.

On the other hand, the shutdown of tire manufacturing plants by many companies owing to the rising number of cases also negatively impacted the demand for zinc oxide amidst the pandemic. For instance:

• Cooper Tire & Rubber Co. closed down its manufacturing facilities in the United States & Mexico to protect the health of its employees.

However, the upliftment of restrictions and increased government focus on boosting the local production & reducing dependency on imports shall strongly contribute to the growth of the zinc oxide market in the years to come.