Mexico stands out in the processing ingredients market, according to a report from the Department of Agriculture (USDA).
Worldwide, Mexico ranks 11th in this market, and third in the region, after the United States and Brazil.
While Mexico continues to be a growing market for US processing ingredients, the processing industry itself in Mexico remains stable.
For the USDA, the forecast for this sector, at least before the pandemic, was very promising.
The USDA indicated that by 2024, retail sales of packaged foods in Mexico were expected to reach $ 72.9 billion.
The sector in Mexico is diversifying to offer tailored products.
For example, the USDA put as a case, some small companies positioned their products as healthy and they were quickly acquired by larger corporations that covered the main distribution channels.
In addition, consumers have had to change their consumption patterns due to the pandemic and are now more interested in taking care of their health, even when they are indoors and, in many cases, cannot exercise outdoors.
Top Market Drivers and Consumer Trends, According to USDA:
Mexico remains a price sensitive market in general, even when there are consumers willing to pay for premium products.
The Mexican market is divided into two large segments:
- High-level consumers: high and middle socioeconomic levels who demand functional and quality products (usually imported).
- Regular consumers: middle to low socioeconomic levels who buy mainly based on price. (According to the World Bank, 53% of Mexico’s population lives on less than $ 100 a month. This statistic will change after the Covid-19 pandemic. Mexican authorities estimate that this figure could reach 56.7 percent).
Increased consumer demand for healthy products lead to specific needs (gluten / soy free, vegan products, sugar free, organic, kosher, fat free, ketogenic products, superfoods, etc.).
This has been further emphasized by the pandemic and lockdown, the inability to exercise outdoors, and the need to avoid diet-related illnesses such as diabetes and hypertension.
Now more than ever, consumers value convenience and prepackaged and prepared foods and savory snacks.
In addition to worrying about consuming healthy products, consumers in Mexico, mainly in urban areas, are also concerned about reducing the impact that their habits have on the planet.
Consumers are less dependent on brands, instead they buy products that fit their lifestyle and make them happy.