Due to the recent development of shale gas extraction, the promotion of the productivity of domestic manufacturing through the provision of cheaper polymer raw materials and low energy and operating costs stimulated the North American Free Trade Zone's polymer market. According to the headquarters in Bristol, UK A recent report by consulting firm AMI International shows that this is one of the important factors for the growth of North American flexible packaging market.
Overall, it is projected that by 2022, the North American polymer market will grow at an annual rate of 2.7%, while between Canada's slowest growth market and fast-growing Mexico, this market has seen little change. According to the report, Some leading polymer producers in the United States have advanced production capabilities, and the United States’ scientific and technological strength has enabled the development of the entire plastics supply chain.
It is expected that natural gas extraction will increase by 58% from 2017 to 2040, which indicates that the United States will have the same raw material and electricity cost base as the Middle East.
With globalization, market maturity, environmental awareness, and the success of the automotive industry, the popularity of plastics in flexible packaging and the revival of construction activities have enabled the plastics industry to flourish in the North American market. Polyethylene, especially linear low density grades, The rise in demand for flexible consumer and industrial packaging has taken the lead, mainly due to the enhanced mechanical properties that have reduced the measurement accuracy.
The AMI report also pointed out that Mexico’s emerging economy has played an important role in promoting the development of the plastics industry. The growth there has already exceeded the regional average. The more objective income of the middle class, a huge export economy and other factors lead to the Mexican polymer industry. Demand increases by more than 3% annually.
The ongoing North American Free Trade Agreement negotiations have brought a degree of uncertainty to a number of industries because trade tariffs may have an impact and affect the supply chain. However, efforts are being made to support the entire region through protectionist policies and fiscal stimulus. As a general development, these policies and fiscal stimulus are expected to promote the growth of the plastics industry.