Mexico Liquefied Petroleum Gas (LPG) Market Research Report, 2029

Liquefied Petroleum Gas (LPG), also known as propane, has a long history in Mexico. Since the mid-20th century, LPG has been a cornerstone of the country's energy mix, particularly for residential cooking and heating. Initially, domestic production met most of the demand. However, Mexico's own LPG reserves have dwindled, and since the 1990s, the nation has become increasingly reliant on imports, primarily from the United States. Mexico's cultural emphasis on home-cooked meals fuels the demand for LPG in households. While natural gas infrastructure is expanding in urban areas, LPG canisters remain the dominant cooking solution in most homes, especially in rural regions. However, a trend towards cleaner energy sources is emerging, with some consumers looking towards natural gas or even electric appliances. According to the research report "Mexico Liquefied Petroleum Gas (LPG) Market Research Report, 2029," published by Actual Market Research, the Mexican Liquefied Petroleum Gas (LPG) market is expected to reach market size of more than USD 7 Billion by 2029. Several factors drive the Mexican Liquefied Petroleum Gas (LPG) market. One key driver is the ongoing urbanization process. As more people migrate to cities, the demand for reliable cooking fuel rises. Additionally, LPG's versatility extends beyond residential use. It plays a significant role in the industrial and commercial sectors, powering machinery and heating processes. Mexico's growing industrial base is expected to further propel LPG consumption. The Mexican Liquefied Petroleum Gas (LPG) market faces its share of challenges. Firstly, fluctuations in global oil prices can significantly impact LPG costs for Mexican consumers. Secondly, government regulations aimed at price control can create market distortions and disincentivize investment in infrastructure expansion. Finally, competition from natural gas, particularly in industrial applications, could pose a threat to LPG's dominance in the long term.

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Market segmentation for the Liquefied Petroleum Gas (LPG) market in Mexico reveals distinct categories based on application and source. Domestically, LPG is integral, serving cooking, water heating, and space heating needs, particularly in areas without natural gas access, driven by urbanization, rising incomes, and governmental initiatives. In agriculture, LPG powers essential equipment such as dryers and irrigation pumps, with its clean and portable nature supporting remote farming, expected to surge due to agricultural modernization and governmental backing. Industrially, LPG finds diverse applications spanning metal processing, food manufacturing, ceramics, and textiles, chosen for its cleanliness over traditional fuels, with demand linked to industrial activity. Transportation embraces Autogas, offering a cost-effective and eco-friendly alternative to gasoline, with potential growth fueled by governmental incentives and rising fuel prices. Refineries utilize LPG both as a fuel source and feedstock, with demand tied to refinery activity and petroleum product output. Chemically, LPG serves as a feedstock for plastics, solvents, and refrigerants, with growth hinged on product demand and competitiveness. Sourcing highlights include refinery extraction, associated gas from oil extraction, and non-associated gas from natural gas wells, with refinery efficiency dictating LPG availability, and potential for increased production from unconventional oil and gas resources. Mexico's Liquefied Petroleum Gas (LPG) market is shaped by a complex web of policies, regulations, and certifications designed to ensure safety, quality, and fair competition. The Energy Regulatory Commission (CRE) is the main governing body, overseeing everything from import and storage permits to distribution and pricing. Standards for LPG composition, cylinder manufacturing, and filling plant operations are set by the Ministry of Energy (Sener) in collaboration with the National Agency for Industrial Standardization (NORMEX). Importantly, all equipment involved in the LPG supply chain, from cylinders to valves and regulators, needs to be officially certified by an accredited Mexican Entity for Standardization and Evaluation (Entidad Mexicana de Acreditación, EMA). Furthermore, to participate in the market, distributors must obtain a permit from the CRE, demonstrating financial solvency, technical expertise, and adherence to safety protocols. These regulations can be a hurdle for new entrants, but they also create a stable and secure environment for established players, fostering consumer confidence in the quality and safety of LPG products. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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Kripa Shah

Senior Analyst

By Application • Domestic • Agriculture • Industrial • Transportation • Refinery • Chemical By Source • Refinery • Associated Gas • Non-associated Gas The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

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Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.