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Value Chain Definition on the Chemicals in Mexico.

The chemical industry in Mexico is a vital component of the national economy, acting as a key supplier to approximately 96% of the manufacturing sector and over 40 other industrial branches, including automotive, textile, construction, agriculture, and pharmaceuticals. Its value chain is complex and integrated, transforming raw materials into a vast array of products essential for numerous downstream industries and direct consumption.

Value Chain outline

The value chain of the chemicals industry in Mexico can be broadly outlined in several key steps:

  • Raw Material Supply: This initial step involves the extraction, production, and provision of the basic inputs required by the chemical industry. In Mexico, hydrocarbons (petroleum and natural gas, specifically ethane and propane) are the predominant organic raw materials, although bio-based materials like oils and fats also play a role. Inorganic raw materials are also crucial.
  • Basic Chemical Production: This step transforms raw materials into fundamental chemical products, often in large volumes. These products serve as intermediaries for other chemical processes or as direct inputs for various industries.
  • Specialty Chemical Production: This stage focuses on producing chemicals with specific properties and higher value-added applications, often tailored to the needs of particular customer industries. This segment involves more research and development.
  • Formulation and Compounding: This step involves mixing and blending basic and specialty chemicals with other substances to create finished products with desired characteristics for specific applications (e.g., paints, adhesives, cleaning products, fertilizers).
  • Distribution and Commercialization: This involves the storage, transportation, marketing, and sale of chemical products from manufacturers and formulators to end-users across various industries.
  • End-Use Industries: This final step represents the consumption of chemical products by a wide range of industrial sectors for manufacturing their own goods. The chemical industry's products are fundamental to the production of over 95% of finished goods.

Identification and description of each step in the value chain.

Raw Material Supply: * Description: The provision of natural resources and intermediate products that serve as the foundational inputs for chemical manufacturing. * Segments: * Hydrocarbons: Extraction and processing of crude oil and natural gas to obtain feedstocks like ethane, propane, naphtha, and other petrochemical precursors. * Main Activities: Exploration, extraction, refining, gas processing, and transportation of petrochemical feedstocks. * Types of Players: State-owned oil and gas companies, private exploration and production companies (though historically dominated by the state), and companies involved in midstream activities (transportation and processing). * Examples of Main Players: Petróleos Mexicanos (Pemex) is historically the dominant player in the supply of basic petrochemicals derived from hydrocarbons. Shortage and inconsistent supply from Pemex have led to increased imports. * Minerals and Inorganic Feedstocks: Mining and processing of minerals (e.g., sulfur, phosphates, salts) and production of basic inorganic chemicals (e.g., acids, alkalis, industrial gases). * Main Activities: Mining, chemical synthesis of inorganic compounds, purification, and supply to chemical manufacturers. * Types of Players: Mining companies, manufacturers of basic inorganic chemicals. * Examples of Main Players: While specific major players for inorganic feedstocks weren't extensively detailed in the results, companies producing industrial gases and basic inorganic chemicals would fall into this category. * Bio-based Feedstocks: Sourcing and processing of agricultural products, animal fats, and other renewable resources for chemical production. * Main Activities: Agriculture, rendering, processing of biomass, production of biofuels and bio-based chemicals. * Types of Players: Agricultural producers, food processing companies, specialized bio-chemical companies.

Basic Chemical Production: * Description: The large-scale manufacturing of fundamental chemical building blocks. This segment is typically capital-intensive. * Segments: * Petrochemicals: Production of chemicals derived from petroleum and natural gas, such as olefins (ethylene, propylene), aromatics (benzene, toluene, xylene), and their primary derivatives. * Main Activities: Cracking, polymerization, synthesis of monomers and basic polymers. * Types of Players: Large chemical manufacturing companies, often integrated with or closely linked to petrochemical complexes. * Examples of Main Players: Alpek (part of ALFA, a Mexican conglomerate with a petrochemical group), Idesa Petroquímica. Pemex also has petrochemical production facilities, although their operation has faced challenges. * Inorganic Basic Chemicals: Manufacturing of high-volume inorganic chemicals like acids (sulfuric acid, nitric acid), bases (sodium hydroxide), salts, and industrial gases. * Main Activities: Chemical synthesis, electrolysis, gas separation. * Types of Players: Large chemical manufacturers. * Examples of Main Players: Companies listed in ANIQ's manufacturers directory could include producers of these chemicals. Cryoinfra is mentioned as a provider of industrial gases. * Polymers and Resins: Production of synthetic polymers and resins that are the basis for plastics, synthetic fibers, and synthetic rubber. * Main Activities: Polymerization processes, production of various plastic resins (polyethylene, polypropylene, PVC, PET, etc.). * Types of Players: Large-scale chemical manufacturers. * Examples of Main Players: ALPEK POLYESTER MEXICO, Corporación Mexicana de Polimeros, Americas Styrenics, Akra Polyester (part of ALPEK).

Specialty Chemical Production: * Description: Manufacturing of chemicals with specific functionalities and higher value, used in a wide range of applications and industries. This segment relies heavily on R&D and customer collaboration. * Segments: This is a diverse step with numerous segments serving specific markets: * Agrochemicals: Production of fertilizers, pesticides, herbicides, and other products for agriculture. * Main Activities: Synthesis of active ingredients, formulation of agricultural products. * Types of Players: Specialized chemical companies. * Examples of Main Players: Agricultura Nacional, S.A. de C.V., Agrogen, S.A. de C.V., UPL Ltda.. * Pharmaceutical Ingredients: Production of active pharmaceutical ingredients (APIs) and excipients. * Main Activities: Complex organic synthesis, purification to high standards. * Types of Players: Pharmaceutical companies with manufacturing arms, specialized chemical producers. * Examples of Main Players: ADYFARM-Aditivos y Farmoquímicos, S.A. de C.V. * Paints, Coatings, and Adhesives: Production of formulations for surface protection, decoration, and bonding. * Main Activities: Pigment dispersion, resin blending, formulation of paints, varnishes, and adhesives. * Types of Players: Manufacturers specializing in coatings and adhesives. * Examples of Main Players: Adhesivos Industriales Géminis, S.A. De C.V. * Soaps, Detergents, and Cosmetics: Production of chemicals and formulations for personal care and cleaning products. * Main Activities: Synthesis of surfactants, blending of ingredients, formulation of finished products. * Types of Players: Companies in the consumer goods sector with chemical manufacturing capabilities, specialized chemical suppliers. * Examples of Main Players: Stepan México, S.A. de C.V. * Water Treatment Chemicals: Production of chemicals used for purifying and treating water for industrial and municipal use. * Main Activities: Synthesis and formulation of coagulants, flocculants, disinfectants, and other water treatment agents. * Types of Players: Specialized chemical companies. * Examples of Main Players: Aldar Química, S.A. de C.V., AQUA MONT, S. DE R.L. DE C.V., Aqua-Clor, S.A. de C.V.. * Other Specialty Chemicals: Includes a wide range of chemicals for various applications like textiles, paper, electronics, construction, etc. * Main Activities: Diverse chemical synthesis and formulation depending on the specific application. * Types of Players: Highly specialized chemical companies, often smaller or medium-sized. * Examples of Main Players: Abaquim, S.A. (importation, manufacturing, and distribution of raw materials and specialty chemicals).

Formulation and Compounding: * Description: The process of mixing and reacting chemicals, often from both basic and specialty production, to create final chemical products with specific performance characteristics. * Segments: This step is closely linked to the specialty chemicals segment and often performed by the same companies or by downstream industries themselves. * Main Activities: Blending, mixing, reacting, quality control to produce finished chemical products. * Types of Players: Manufacturers of finished chemical products, some large industrial consumers.

Distribution and Commercialization: * Description: The logistics and sales activities involved in moving chemical products from manufacturing sites to end-users. This includes storage, transportation (often requiring specialized handling due to the nature of chemicals), warehousing, sales, and technical support. * Segments: * Wholesale Distribution: Companies that purchase chemicals in bulk from manufacturers and sell them to a wide range of industrial customers, often providing value-added services like technical support and inventory management. * Main Activities: Sourcing chemicals globally and locally, warehousing, logistics, sales, technical service, regulatory compliance support. * Types of Players: Large international distributors, national and regional distributors. * Examples of Main Players: Brenntag México, Univar Solutions México, Química Delta, Alveg Distribución Química, IMCD Mexico, Desa Química, Química Mexibras, Moreli (also a manufacturer), Disan México. The ANIQ directory lists numerous distributors. * Direct Sales from Manufacturers: Some large manufacturers sell directly to their major customers, particularly for high-volume basic chemicals or specialized products requiring direct technical engagement. * Main Activities: Managing direct customer relationships, logistics for large shipments, technical support related to product application. * Types of Players: Chemical manufacturing companies with direct sales forces.

End-Use Industries: * Description: The diverse range of manufacturing and service sectors that utilize chemical products as essential inputs for their own production processes. * Segments: Virtually all manufacturing sectors are customers of the chemical industry, including: * Automotive * Construction * Agriculture (fertilizers, pesticides) * Textiles and Apparel * Food and Beverages * Pharmaceuticals * Electronics * Mining * Packaging * Home and Personal Care * Main Activities: Manufacturing of finished goods using chemical inputs. * Types of Players: Companies operating in all manufacturing and related sectors.

Show estimates of volumes and sizes of each step in the value chain.

Providing precise volume and size estimates for each discrete step of the value chain based on the provided search results is challenging as the data is often presented for the industry as a whole or specific segments (basic, specialty, etc.), rather than delineated by value chain step. However, the following data points offer insights into the overall size and some segments:

  • Overall Industry Size: In the fourth quarter of 2024, the chemical industry in Mexico registered a GDP of $6.79B MXN. The gross production value in 2019 was $986,072M MXN. The industry can potentially add $7 billion to $17 billion annually to the sector's GDP by 2035. The chemical industry is a significant part of Mexico's GDP, estimated at around 1.8% to 2.1% in recent years, and is the second most important manufacturing sector by GDP contribution.
  • Production Volume: In August of an unspecified year (context suggests post-2017, likely pre-2022 given other dates in the source), the production volume was 34,808,331 thousand pesos, showing a monthly decrease of (-)3.8% and an annual decrease of (-)2.1%. The accumulated volume for that year up to August was 292,919,150 tons, a decrease of (-)0.4% compared to the previous year. In 2023, production volume grew 3.2% compared to the previous year, adding $643 million.
  • Trade: The chemical industry in Mexico has a significant trade deficit. In 2023, imports were valued at $43,916 million USD, a 24.20% increase annually. Exports reached $10,099 million USD in 2023, a substantial increase of 47.90% annually. The trade deficit in 2023 was (-) $33,817 million USD. The majority of trade is with North America (TMEC), accounting for 69.03% of imports and 59.31% of exports in 2023, resulting in a deficit of $6,625 million USD with this block.
  • Segment Size (Example - Agrochemicals): The Mexican agrochemical market is estimated to be $1.43 billion USD in 2025 and is expected to reach $1.74 billion USD by 2030, with a CAGR of 4.1% during that period.
  • Capacity Utilization: The utilization of installed capacity in the Mexican chemical industry showed a decrease of 7.8 percentage points in 2023 compared to 2022, reaching 64.1%.
  • Employment: The sector is responsible for over 49,468 well-compensated and highly specialized jobs.

It is difficult to provide specific volumes and sizes for each step like "Raw Material Supply" or "Formulation and Compounding" as the available data aggregates production and trade by type of chemical product rather than by process step in the value chain.

Value Chain Summary Table

Value Chain Step Main Activities Key Segments (Examples) Types of Players Examples of Main Players Available Volume/Size Data
Raw Material Supply Extraction, processing, and provision of basic inputs. Hydrocarbons, Minerals & Inorganic Feedstocks, Bio-based Feedstocks State-owned companies, private extractors, processors. Pemex (hydrocarbons) Linked to national oil/gas production, mining output (specific chemical feedstocks not detailed).
Basic Chemical Production Large-scale manufacturing of fundamental chemical building blocks. Petrochemicals, Inorganic Basic Chemicals, Polymers & Resins Large chemical manufacturers, integrated complexes. Alpek, Idesa Petroquímica, Pemex (historically), ALPEK POLYESTER MEXICO, Corporación Mexicana de Polimeros, Stepan México Contributes significantly to overall production volume and value. Petrochemicals and Gases Industriales are major subsectors.
Specialty Chemical Production Manufacturing of chemicals with specific functionalities and higher value. Agrochemicals, Pharmaceutical Ingredients, Paints & Coatings, Personal Care, Water Treatment Specialized chemical companies (various sizes). Agricultura Nacional, Agrogen, ADYFARM, Aldar Química, AQUA MONT, Aqua-Clor, Abaquim. Agrochemical market size estimated ($1.43B USD in 2025).
Formulation and Compounding Mixing and blending chemicals to create finished products with specific properties. Often integrated within Specialty Chemical Production. Manufacturers of finished chemical products. (Overlap with Specialty Chemical Players) Data often included within specialty chemical production or end-use product manufacturing.
Distribution & Commercialization Storage, transportation, marketing, and sale of chemical products. Wholesale Distribution, Direct Sales from Manufacturers. Large international distributors, national/regional distributors, manufacturing companies with direct sales. Brenntag México, Univar Solutions México, Química Delta, Alveg Distribución Química, IMCD Mexico, Desa Química, Química Mexibras, Moreli, Disan México. Significant import/export values and deficit ($43.9B USD imports, $10.1B USD exports in 2023).
End-Use Industries Consumption of chemical products in manufacturing processes. Automotive, Construction, Agriculture, Food & Beverages, etc. Companies in virtually all manufacturing sectors. (Examples are companies in various manufacturing sectors) Represent the demand side of the value chain, consuming the bulk of chemical output and imports.

Examples of Main Players

Alpek: Part of the Mexican conglomerate ALFA, Alpek is a prominent player in the petrochemical segment. They are involved in the production of purified terephthalic acid (PTA), polyethylene terephthalate (PET), and other related chemicals. They have a significant presence in Mexico and internationally.

Idesa Petroquímica: A pioneer in Mexico's petrochemical industry. Grupo Idesa's petrochemical division includes companies like SOSA, IDESA, NOVIDESA (focused on polystyrene), and PETRAMÍN (alkylamines). They produce a range of chemicals and have a presence in national and international markets.

Brenntag México: A subsidiary of a global market leader in chemical distribution. Brenntag México provides a wide range of chemical products and ingredients, offering integrated solutions and individual chemicals across the country. They serve various industries, including food and nutrition, automotive, mining, and polymers. Their role is crucial in connecting chemical producers with a broad base of industrial customers.

Univar Solutions México: Described as the principal distributor of chemical products in Mexico, offering a combination of global trends access, chemical products, and local market expertise. They provide a wide range of chemicals, ingredients, and value-added services, with a distribution network across Mexico to ensure timely service.

Química Delta: Identified as a leading distributor of chemical products and base oils in Mexico. They focus on integrating value chains between suppliers and clients, emphasizing service and personalization.

ANIQ (Asociación Nacional de la Industria Química): While not a player in the production or distribution sense, ANIQ is a key association representing the chemical industry in Mexico. They provide valuable data, analysis, and advocacy for the sector, highlighting its importance and challenges.

Volumes and Sizes

The chemical industry in Mexico contributes significantly to the national economy, accounting for around 1.8% to 2.1% of the national GDP. In the fourth quarter of 2024, the sector's GDP was $6.79 billion Mexican pesos. The gross production value was reported as $986,072 million Mexican pesos in 2019. There is a potential for the industry to almost double its size by 2035, adding between $7 billion and $17 billion USD annually to its GDP contribution.

In terms of production volume, the industry's output grew by 3.2% in 2023 compared to the previous year. However, there are indications of decreased capacity utilization, which stood at 64.1% in 2023, a drop of 7.8 percentage points from 2022.

International trade is a major aspect, with a significant deficit. In 2023, imports reached $43,916 million USD, while exports were $10,099 million USD, resulting in a deficit of $33,817 million USD. The North American market is the primary trading partner, representing the largest shares of both imports and exports for the Mexican chemical industry.

While specific market shares for individual players are not readily available in the provided sources, the presence of major international companies like BASF and Bayer, alongside significant national players like Alpek and Idesa, indicates a competitive landscape.

References