Mexico faces US trading uncertainty. But the personal care product sector remains optimistic, writes Elizabeth Machuca
The difficulties that have surged in diplomatic relations between the Mexican government and the new US administration of President Donald Trump have increased uncertainty within the Mexican personal care product market and industry.
With Mexico facing US demands to renegotiate the North American Free Trade Agreement (NAFTA), with the risk of the US imposing temporary safeguard duties on Mexican exports to protect American manufacturers, companies in Mexico are seeking to boost domestic consumption. They are also looking to expand their trading opportunities with other Latin American countries.
For the Mexican personal care product industry relies on its exports – which were valued at US$2.7bn in 2016; with the US heading the list of destinations for its products, followed by the rest of the countries in Latin America. Meanwhile, imports accounted for only $1.5bn during the same period, according to figures from the National Chamber for the Industry of Cosmetics (CANIPEC – Cámara Nacional de la Industria de Productos Cosméticos).
Fortunately for its members, Mexico’s personal care product market has been registering steady growth over the past five years – 2011 and 2012 saw domestic sales growth exceeding 4% year-on-year with the swine flu crisis encouraging hygienic habits among Mexican consumers; 4% in 2013; around 5% in 2014; 5.5% in 2015. This trend is actually increasing in scope, with a year-on-year increase in Mexican sales of personal care products being 6% in 2016, generating a market value of $9bn.
Interviewed by SPC about the uncertainty caused by the NAFTA renegotiations, Giselle Segovia, spokeswoman for CANIPEC, says that the sector is . . .
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