Food and Drink Opportunities

An Expert's View about Beverages in Mexico

Last updated: 28 Feb 2011

Changes to eating habits in a country of over 112 million, rising living standards and the spread of large US style supermarkets have led to an increase in the import of foreign foods. The US, France, Spain and Germany are doing well in this sector

Sector briefing Food and Drink Opportunities in Mexico Why Mexico? Changes to eating habits in a country of over 112 million, rising living standards and the spread of large US style supermarkets have led to an increase in the import of foreign foods. The US, France, Spain and Germany are doing well in this sector as are some British companies. Opportunities are there for more British companies to enter an increasingly profitable market. This is particularly true now that UK producers stand to benefit from the EU-Mexico free trade agreement which means tariffs on industrial goods, which include a number of processed foods, have been eliminated since the beg inning of 2008. Opportunities exist both for investing in the retail sector and for selling Mexico is becoming to the market. increasingly dependant on imports of some products. F ind general information on the Mexican market conditions on UKTI?s website. The Only in the last three years Doing Business Guide for Mexico gives an imports have raised 7% to overview of Mexico?s economy, business culture, poten reach a 42.7% of the overall tial opportunities and an introduction to other relevant issue. products in Mexican supermarkets. UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico Opportunities Food & Drink Food & Dr Consumption per capita of biscuits and ink products that reflect health concerns, crackers in Mexico is close to 4 kg per year. weight loss and a healthy way of life are among the products with the h ighest rate of growth. Mexican consumers (simi The last Food and Drink trade mission to lar to consumers al Mexico was the largest organised by the local l over the world) are now worried about diets and health, and the med UKTI network. More than twenty companies ia is also g visited both Mexico and Guadalajara where iving wide coverage to issues like diabetes and they had high level meetings with obesity. Mexico is the 2nd most affected country in the wor supermarkets and targeted potential clients or ld for obesity problems, just beh distributors. The next ANTAD trade mission will ind the US. take place in March 2011. The popu lation is living longer, so there will be the need for products for peop Beverages (alcoholic and non-alcoholic): le older than 50 or 60 years, which cover their calcium requ During 2009 the non-alcoholic beverage sector irements and help them to protect against d maintained its growth. Soft drinks consumption iseases like osteoporosis; or products that provide energy and he grew 2%, compared to the previous year. lp them to improve d Mexico is ranked 2nd just after the US in terms igestion. of soda consumption and Mexicans consume In circa 160 litres of soda every year, and each Mexican supermarkets, fresher, better qual family spends $700 USD on soft drinks over ity goods on many levels are in need, although at an affordab the same period. Mexico also has a strong le price. Dairy products are very popu manufacturing chain with 230 facilities that lar in Mexico. serve the Mexican and Latin-American market. Mexico is becoming They produce 300 million boxes, worth more increasingly dependant on than $15,000 thousand million USD. imports of some products. Only in the last three years imports have risen 7% to reach a 42.7% of the overal In 2009, Tequila production was 249 million l products in Mexican supermarkets. Th litres and 45% percent of all drinks sold in is represents a great area of opportun Mexico have some kind of link with Tequila. ity for British companies. 136 million litres were sold in international Imported markets. sweets now have a market share of 25%. These products are cheaper than local products due to lower sugar costs in the Rum represents 21% of the alcohol market in countr Mexico, in second place behind Tequila. ies of origin. The most popular imported products are: choco Two million litres of Mezcal were produced in late, hard sweets, lollipops, gum, confectionery goods and biscu 2009. There are over 150 Mezcal brands that its. export half a million litres to countries such as Despite the current economic situat New Zealand, Australia, China, Russia, USA ion, ANTAD (Nat and other countries in Central and South ional Association of Supermarkets and Department Stores) has reported an important America. There are 3000 jobs related to this growth industry which has grown more than 250% of 7.7% for 2009 in the food sector, during the last 5 years. including frozen and ready-to-eat food. O Beer consumption per capita in 2009 reached lder, wealthier Mexicans appreciate the finer foods, most of wh 59.6 litres. It is expected that consumption per ich are imported - smoked salmon, fine teas, jams and biscu capita will reach 60 litres in 2010 (final data its. Only qual not available yet). Grupo Modelo and Femsa ity shops stock foreign confectionery. Cerveza have about 97% of the beer market in Mexico Mexico. This has limited the inclusion of foreign is a big consumer of biscuits and crackers. The main producer in Mexico is brands that only have 2% to 3% of the Gamesa-Quaker, a Pepsi Co company. Mexican Market. In the imported beer category, there are about 25 brands from UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico different countries. Imported beers have a price up to 100% greater than national beers. You can be alerted to business opportunities on The main sales channels for beer are a regular basis by registering on the UKTI convenience and retail stores as well as website. Find out more on UKTI?s business consumption centres. opportunities service on the UKTI website In Mexico there are about 63 million potential beer consumers and every year, a million more are added (from consumers that have reached the age to drink). Mexico is no longer a closed market for beer. FEMSA Cerveza is now owned by Heineken and Anheuser-Bush (now part of InBev) owns 50% of Grupo Modelo. The juice and bottled water sectors have been growing significantly (2% during 2009). Now those consumers are looking for healthier products. Mexico is the second largest consumer of bottled water. More than 22,700 million litres are consumed every year, just behind the US, accounting for $6,200 thousand million USD per year. The main companies selling bottled water in the Mexican market are Coca Cola, Pepsicola, Danone (Evian and Bonafont) and Nestlé. Currently the energy drinks market value is $1,500 million USD with more than fifty brands, including: Red Bull, Boost, Sobe Rush, Bomba, Café Olé, Monster, TAB Burn, Rockstar and Gladiatior. A new official rule is being proposed to reduce the maximum level of caffeine and taurine - not to exceed 33 mg per every 100 ml. In 2009 the energy drinks market grew 36%. More than 150 million cans of energy drinks were sold during 2009. Higher consumption of beverages with high sugar content are causing health problems within the population. For that reason, non- carbonated drinks were the niche product that presented the highest growth, more than 100%. A rapid change in consumption habits is being observed. National coffee consumption has doubled in recent years, mainly caused by the opening of international and local coffee shops. If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico Major events and activities UKTI contacts ANTAD Iván Ramírez/Alicia Zayas Director Expo Guadalajara, Jalisco UK Trade & Investment Office Guadalajara Time: 9-11 March 2011 Tel +52 33 3630 4357 ext. 101 *A trade mission will attend this exhibition. For Fax +52 33 3616 2159 further information please contact Angus Email: Murray, International Trade Advisor, UKTI South East. Alimentaria Mexico Centro Banamex, Mexico City Carlos Montes de Oca Time: 31 May ? 2 June 2011 Trade & Investment Officer British Embassy Mexico City Expopack Tel +52 55 1670 3242 Fax +52 55 1670 3222 Centro Banamex, Mexico City Email: Time: 21-24 June 2011 Confitexpo Expo Guadalajara, Jalisco Time: 2-5 August 2011 Expo Gourmet Centro Banamex, Mexico City Time: August 2011 Abastur Centro Banamex, Mexico City Time: 30-31 Aug ? 1 September 2011 Gourmet Show World Trade Centre, Mexico City Time: September 2011 New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Mexican market are advised to you to meet contacts and promote your undertake as much market research and company in the Mexican market planning as possible in the UK. UKTI?s team in M exico, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Mexican market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico
Posted: 24 February 2011, last updated 28 February 2011

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