Mexico's Food and Beverage Sector

In terms of food and beverages, Mexico is Latin America’s most important market. It has enormous growth potential and a great many as yet unexploited niche markets targeting the middle and lower classes, as well as the upper with its gourmet products and differential marketing.

Food and beverages continue to be the area in which Mexican households spend the most. In 2006, 29.4% of expenditure went to food and beverages.

According to acumulative INEGI (Spanish acronym for Mexico’s National Institute of Statistics, Geography and Informatics) figures, between January-March 2007 and 2008, food and beverage imports increased by 31.4%. The main imports were fruits, cereals, animal and vegetable fats, coffee, tea, spices, fish, milk and dairy products, eggs, honey, beverages, and meat.

Why Mexico?

• Because of its size and importance in the region: Mexico is Latin America's leading economic power, number 13 in the world. Its strategic location on the North American continent gives it a border with the United States extending more than 3,000 km. The country has a population of over 104 million inhabitants, of which more than 70% are under the age of 40 and 72% of these are part of the labor force. 10% belongs to very high social classes.

• Because of its openness: Mexico is an economy which is approximately 60% open. Its trade agreements guarantee preferred access to the world's major economic regions for its products (44 countries), giving it a market of over 1,000 million consumers and making Mexico a platform with both exports and imports. Mexico has established a position as a point of entry to the markets of North America thanks to NAFTA. In addition, the framework of economic complementation agreements and FTAs with several countries in Europe and South America and its negotiations with MERCOSUR hold the promise of Mexico becoming a launching pad for access to the southern region of South America.

• Because of its tourist draws and their effect on the food, beverage and equipment sector: Mexico is a major tourist power and tourism accounts for a little over 8% of GDP. This is the country's third largest source of foreign currency and in the past five years cumulative investment has totalled 12 million dollars.