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.
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.
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:
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Zinc Nacional, Brenntag, RE Caroll Inc., Zochem Inc., Glencore, Lanxess, PAN Continental Chemical, Weifang Longda Zinc Industry, Others|
|Unit Denominations||USD Million/Billion|
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:
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.
Based on the Application:
Of them all, the rubber industry captured a majority share in the Mexico Zinc Oxide Market during 2017-19 due to its high usage in the tire production for the automotive sector. Zinc Oxide is used as an activating agent in the vulcanization of rubber to enhance its durability. In addition, zinc oxide has high-temperature resistance, i.e., a much sought-after feature in tires with high-speed ratings. The surging tire production in the country to cater to the demand from the automotive industry is anticipated to strongly contribute to the growth of the Mexico Zinc Oxide Market. With the growing demand for zinc oxide, many manufacturers are focusing actively on expanding their production capacities. For instance:
Based on the Grade:
Here, Standard Grade captured a considerable share in the Mexico Zinc Oxide Market during 2017-20 owing to its extensive application in rubbers & ceramics due to its purity ranging between 99-99.5%. Moreover, the favorable weather conditions of Mexico allow farmers to grow fruits & vegetables around the year, thereby contributing to the market growth. Zinc deficiency is one of the major micronutrients deficiencies experienced in the Mexican agriculture sector.
Hence, the crucial role of zinc in plant development through participating in the metabolism of cells has been positively contributing to the market growth. Additionally, zinc oxide is mixed in ceramics to yield low thermal expansion, corrosion resistance, high-temperature stability, & lightweight products, owing to which standard grade zinc oxide in the ceramic industry has experienced an uptick in its demand.
Key Driver: Escalating demand for Zinc Oxide in Rubber Industry
The expansion in Mexico's automotive industry is one of the key contributors to the rising demand for zinc oxide since it is utilized in the rubber industry for manufacturing tires & other parts. Mexico is home to tire manufacturers such as JK Tornel, Bridgestone, etc., for several passenger & commercial vehicles.
The strategic location of Mexico helps in trade between North American & Central American markets, where road transportation plays a key role. It has positively impacted the demand for trucks in the country and provided more opportunities for the players to offer truck tires.
In 2019, Cooper Tires & Rubber Company announced manufacturing a new line of tires in Jalisco, Mexico, which would include tires for passenger cars & trucks. Moreover, the growth in the e-commerce sector and increasing construction activities & mining projects in the country are anticipated to boost the demand for trucks and, in turn, for zinc oxide while manufacturing their tires. For instance:
Possible Restraint: Worldwide Shortage of Semiconductor Chips
The shifting focus of manufacturers of semiconductors to cater to their demand in industries such as consumer electronics, telecommunications, and home automation has resulted in the shortage of semiconductors from December 2020 in the automotive sector. Hence, the worldwide semiconductor shortage after the pandemic resulted in Audi reducing its production in the country & increasing the cost of components by 10%. There was a drop in production of the Audi Q5 Model by 42.5% in January 2021 from January 2020. Hence, the chip shortage resulted in several automotive manufactures temporarily closing their production facilities, which severely impacted the demand for tires & led to their reduced production. This temporary shut-down of automotive production plants posed a challenge for the zinc oxide demand.
Key Questions Answered in the Research Report:
Frequently Asked Questions
A. The Mexico Zinc Oxide Market is projected to grow at a CAGR of around 2.8% during 2022-27
A. The Rubber industry is anticipated to emerge as an area of remunerative opportunities for the leading players in the Mexico Zinc Oxide Market during 2022-27.
A. The growing market for zinc oxide nanoparticles would create lucrative opportunities for its use for biological purposes since it is easy to formulate, environment-friendly, & a non-toxic blend.
A. In 2020, the Covid-19 pandemic affected the supply chain network & production facilities of the Mexico Zinc Oxide Market. After witnessing the supply chain disruptions during the pandemic, the Mexican government became more focused on establishing a robust local production environment. It, in turn, is expected to boost massive investments in sectors like Automotive, Cosmetics, Pharmaceutical, etc., and positively impact the demand for zinc oxide over the forecast years.