Advances in circular economy in Mexico

Mexico is making progress in adopting the circular economy, a model aimed at eliminating waste in production and consumption. Government, business, and industrial initiatives stand out for promoting sustainability and recycling. Experts and legislators stress the need for greater collaboration for long-term results.

The circular economy in Mexico is gaining momentum amid environmental and economic challenges. This approach transforms production and consumption to conserve resources, as outlined in the National Development Plan, which incorporates circular principles.

Leading companies are adopting sustainable supply chains, using recycled materials and redesigning products for better recyclability. Universities and NGOs provide training programs to promote responsible consumption. Investments in advanced recycling technologies, such as automated separation and biotechnologies for plastics, enhance efficiency.

Digital platforms connect consumers with recycling firms, boosting rates in urban areas. Mexico is forging international alliances to share knowledge and practices. Sustainability indicators measure environmental and social impacts.

The Confederation of Industrial Chambers (CONCAMIN) established the Circular Economy Commission a year ago, aligned with the UN Sustainable Development Goals. The commission promotes recycling, resource reuse, and waste reduction in supply chains.

At CONCAMIN's 108th general assembly, Alicia Bárcena, SEMARNAT secretary, praised the commission's work and suggested: “The circular economy should be proposed as a new industrial sector.” She highlighted the unanimous approval of the General Circular Economy Law by the Chamber of Deputies and Senate.

During the installation of the Special Commission on Circular Economy and Business Development, Senator Néstor Camarillo Medina stated: “Mexico is entering a new stage where economic development and sustainability complement each other.” He mentioned his participation in the 2026 World Economic Forum in Davos to learn global practices.

Examples include Texinova, which recovers fibers for reuse; Biofase, producing bioplastics from avocado waste; Ecolana, a recycling platform; and Biobreak in Mexicali, transforming seashells into biodegradable additives.

These initiatives require more collaboration among government, private sector, civil society, and academia to transition to a sustainable model.

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Vibrant photo of mipyme innovators driving Valle del Cauca's economic boom in a Cali tech hub, with cityscape and agribusiness backdrop.
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Valle del Cauca transforms economy with mipymes and innovation

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Valle del Cauca is undergoing a deep economic transformation driven by micro, small, and medium enterprises (mipymes), technology adoption, and leadership in artificial intelligence. According to the Cali Chamber of Commerce, 99.6% of businesses are mipymes generating employment and diversifying sectors like commerce and agribusiness. The Business Rhythm Survey shows optimism for the second half of 2025, with 49.6% expecting sales increases.

The circular economy expanded by 7.5% last year, employing over 2.2 million people worldwide, as outlined in the StartUs Insights’ 2025 Circular Economy Report. Investors poured more than $670 million into startups advancing material recycling across sectors like fashion and energy. Several companies stood out for their innovations and partnerships, positioning them for growth in 2026.

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Global material recycling has fallen to 7.2%, yet five consumer goods firms prove circular practices boost profits and reduce environmental harm. From furniture to fashion, these companies use take-back programs, recycling, and sustainable designs to extend product life cycles. Their results highlight scalable solutions amid declining worldwide circularity.

Over 11 million people in Mexico lack constant access to potable water in their homes, according to Coneval. An environmental management specialist calls for linking housing policies with water planning to ensure basic services in new developments. In Morelia, integral initiatives are advancing dignified housing.

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Mexico gears up for a pivotal 2026 in its economy, with potential in investment and mergers and acquisitions, but regulatory uncertainty poses risks. While nearshoring provides structural advantages, the local transaction slump contrasts with recovery in the United States. Experts emphasize the need for certainty to draw global capital.

Mexico's informal economy reached its highest contribution to GDP in 2024, accounting for 25.4% of the total, according to preliminary INEGI data. This marks a 3.2 percentage point increase since 2020, underscoring the persistence of labor informality affecting 54.4% of the employed population.

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The T-MEC review poses major hurdles for Mexico, as the US prioritizes national security over commercial efficiency. Analysts highlight Mexico's vulnerability in bilateral talks and shifting strategic perceptions. Mexico's low 0.7% economic growth in 2025 worsens its position.

 

 

 

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