Waste Separation Law to Spur Bioplastics Growth: AMBIO

Mexico’s bioplastics industry could grow by as much as 50% in 2026 following the implementation of new waste separation rules in Mexico City, according to the Mexican Association of Bioplastics (AMBIO). The regulations, which took effect Jan. 1, are expected to reshape waste management practices while opening new business opportunities tied to organic waste collection and composting.

Under the new scheme, residents, businesses, and institutions in Mexico City are required to separate waste into three categories: organic; inorganic (both recyclable and non-recyclable); and special or bulky waste, such as electronics and appliances. Collection schedules have been adjusted to support the system. Organic waste is collected on Tuesdays, Thursdays and Saturdays, while inorganics are collected on Mondays, Wednesdays, Fridays, and Sundays. Meanwhile, bulky waste is collected on Sundays. To ensure compliance, collection crews are authorized to reject waste that does not correspond to the designated day.

Gisela Galicia, President, AMBIO, says the policy could accelerate demand for bioplastics by increasing the recovery of organic waste and the production of compost at the city’s five composting plants. She notes that one of those facilities, Bordo Poniente, has a processing capacity of 3,200 metric t per day but currently receives only about 900 t. 

A main cause of this deficit is a lack of both willingness and know-how on the part of residents to separate their waste correctly. As a result, only about 15% of the city’s waste is now separated at the source, according to Roberto Castillo, Director, Integrated Waste Management Agency (AGIR), which was established last year by the Mexico City Ministry of Environment (SEDEMA). Castillo expects recovery rates to rise to as much as 75% once citizens and collectors adapt to the new rules. By 2030, the city aims to ensure that at least 50% of all waste generated in Mexico City is recycled or transformed before reaching final disposal.

“With the new regulation, which aims to recycle at least half of the more than 8,000 t of waste generated daily through the use of biodegradable bags and packaging, the sector should see double-digit growth,” Galicia says. “That is why investment in this niche market is increasingly relevant.” AMBIO estimates that the bioplastics sector in Mexico is valued at about MX$2 billion (US$115 million), excluding imports of finished products.

Overall, Mexico produces over 3.5 million t of plastic annually, while domestic consumption exceeds 7 million t. For Galicia, this indicates a reliance on imports and a potential opportunity to redirect investment toward circular economy products. She adds that waste separation requirements similar to those being enacted in the capital are likely to be adopted in other cities, expanding the market for biodegradable and bio-based materials.

The impact of the new rules expands far beyond bioplastics. Esteban Guzmán, Vice President, AMBIO, says the new separation strategy will make it easier to send organic waste, including food scraps, to composting plants. Thanks to a recent upgrade at the Bordo Poniente plant, the city would stand to generate up to 400,000 t of compost annually, much of which could be put to agricultural use in the capital and surrounding areas. With more waste being composted, the city would also be extending the lifespan of the city’s landfills, which are nearing capacity. With new composting plants planned for the eastern zone of the city, particularly in Xochimilco, Milpa Alta, and Tlahuac, these effects would only be compounded as the city upgrades its recycling infrastructure.

Bioplastics: A Primer

Bioplastics are defined as plastics that are bio-based, biodegradable, or both. While bioplastics account for less than 1% of the global plastics market as of 2010, the segment has posted annual growth rates of about 30% worldwide, according to research by the National Association of Plastic Industries (ANIPAC) and the Universidad Autónoma Metropolitana. About 65% of bioplastics are used in packaging and other short-life products, though applications are expanding into medicine, agriculture, electronics, and automotive components.