A recent report by IndexBox reveals promising trends in the Latin America and Caribbean market for sacks and bags made of polymers of ethylene, projecting continued growth through to 2035. As consumption rises steadily, key countries such as Brazil, Mexico, and Argentina are emerging as dominant players in both production and consumption.

Market Overview

The market for sacks and bags of polymers of ethylene in Latin America and the Caribbean is showing a strong growth trajectory, with consumption expected to reach 4.4 million tons by 2024. A compound annual growth rate (CAGR) of 1.6% in volume and 2.3% in value is forecasted, leading to an anticipated consumption volume of 5.2 million tons and a market value of $25.2 billion by 2035. The consistent demand for these products has fueled this positive outlook, and they are increasingly integral to various industries across the region.

Dominant Players

Brazil, Mexico, and Argentina are responsible for more than two-thirds of the market share, accounting for 67% of total consumption and 68% of production in the region. Among these countries, Mexico plays a vital role as both the largest importer and exporter, significantly influencing regional trade dynamics. Notably, as demand grows, import and export prices are also rising, reflecting a robust market environment.

Key Findings

• The market is projected to grow steadily, reaching 5.2 million tons by 2035, with a CAGR of +1.6% in volume and +2.3% in value.
• Brazil, Mexico, and Argentina are responsible for 67% of total consumption, with Ecuador showing the fastest growth in both use and production.
• Mexico is identified as the trade hub, with a 36% share of imports and a 44% share of exports.
• Import and export prices are rising consistently, indicating a stable market.

Consumption Trends

The demand for sacks and bags of polymers of ethylene in Latin America and the Caribbean reached 4.4 million tons in 2024, representing a year-over-year increase of 2.8%. Over the past decade, the market has generally experienced consistent annual growth of around 1.6%. The peak consumption volume recorded was 4.5 million tons. However, the growth trajectory from 2023 to 2024 noted a slowdown in consumption increase.

The revenue from the ethylene polymer bag market surged to $19.8 billion in 2024, with a 5.7% rise compared to the previous year. This figure considers all revenue from producers and importers but does not factor in logistics, retail, or marketing costs. The market value historically has shown fluctuations but has also increased at an average rate of 2.0% per year since 2013.

Regional Consumption Breakdown

By examining consumption by country, Brazil emerged as the leading consumer with 1.4 million tons, followed closely by Mexico at 1 million tons and Argentina at 464,000 tons. Together, these three nations comprise 67% of total consumption in the region. Other countries like Colombia, Venezuela, Peru, and Ecuador collectively accounted for an additional 22% of the market.

Among these, Ecuador reported the highest growth rate in consumption, with a CAGR of 5.1%. In terms of market size, Brazil leads with a value of $6.6 billion, followed by Mexico’s $4.5 billion and Argentina’s $2.9 billion. Notably, Ecuador has also seen rapid growth in market value, with a CAGR of 8.0% over the same period.

Regarding per capita consumption, Argentina stands out with 9.9 kg per person, followed by Venezuela at 8.0 kg and Mexico at 7.8 kg.

Production Trends

The production of ethylene polymer bags in Latin America and the Caribbean also saw an uptick, reaching 4.3 million tons in 2024, marking an increase of 2.6% from the previous year. Similar to consumption, the average annual growth rate for production since 2013 has been approximately 1.6%. Production reached its highest level in 2022 at 4.4 million tons, although output declined slightly in subsequent years.

In terms of production value, ethylene polymer bag manufacturing experienced significant growth, resulting in a market value of $19.8 billion in 2024 in export prices. The value has grown at an average annual rate of 2.2% since 2013, despite some fluctuations in certain years, decreasing by 5.5% from the peak value of $20.9 billion in 2022.

Leading Production Countries

Brazil, Mexico, and Argentina are the top producers, accounting for 68% of the total output. Ecuador again demonstrated the fastest growth, achieving a CAGR of 5.0%.

Import Trends

In 2024, Latin America and the Caribbean imported approximately 244,000 tons of ethylene polymer sacks and bags, a 5% increase compared to the previous year. The growth in import volume over the last decade averaged 1.2% annually. The most substantial growth was recorded in 2022 with a notable increase of 19% year over year, resulting in a peak import level of 281,000 tons that year.

The value of these imports rose significantly to $1 billion in 2024, reflecting an average annual growth rate of 4.1% since 2013. Notably, imports increased substantially by 36.7% compared to 2020 figures, showcasing a recovering market.

Key Import Countries

Mexico dominated the imports with around 88,000 tons, representing a 36% share of total imports. Following Mexico, Chile imported 25,000 tons (10% share), while other countries like Costa Rica and Nicaragua contributed smaller shares.

While Mexico’s import trends have remained relatively stable, countries like El Salvador have shown impressive growth rates, with a CAGR of 10.6% since 2013. The variations among different countries indicate changing dynamics in trade patterns, with El Salvador’s share in total imports increasing significantly over the decade.

Export Trends

After a period of decline, exports of ethylene polymer bags experienced a revival in 2024, reaching 166,000 tons. This increase reversed two years of declining exports. The overall export volume has shown an average annual growth of 2.4% between 2013 and 2024.

Leading Export Countries

Mexico once again emerged as the largest exporter, shipping 73,000 tons that accounted for 44% of total exports, followed by El Salvador, Brazil, Guatemala, and Honduras. The share of exports from these countries has increased over the decade, showing varied growth rates among them.

In contrast to growth in exports by Mexico and Honduras, other countries such as Costa Rica and the Dominican Republic faced declines during the same period.

Import and Export Prices

By 2024, the average import price for ethylene polymer bags in Latin America and the Caribbean reached $4,137 per ton, a rise of 1.9% compared to the preceding year. The average price trend over the last eleven years has shown a growth rate of 2.8%.

Among the primary importing nations, Brazil recorded the highest price at $5,765 per ton, while Honduras had one of the lowest at $2,476 per ton. Similarly, among exporters, Mexico’s average export price was the highest at $5,729 per ton.

Conclusion

As the Latin America and Caribbean market for sacks and bags of polymers of ethylene continues on its growth trajectory, the dynamics of consumption, production, trade, and pricing reveal an evolving sector poised for future developments.