Mexico is a country of rich cultural heritage and flavors. Its intricate and diverse food and beverage industry reflects the nation's unique history, geography, and traditions. This sector is deeply rooted in ancient indigenous practices and shaped by colonial influences, offering a vast array of products, from world-renowned tequilas to spicy salsas and traditional tortillas.
Historically, the nation’s fertile lands and diverse climates enabled the production of a wide range of crops, from cacao and corn to tropical fruits, which were highly valued by indigenous civilizations and later by European colonizers.
With the establishment of NAFTA in 1994, Mexico’s food export industry experienced significant growth as trade barriers were lowered, enabling Mexican food products to reach North American markets more efficiently. Since then, the sector has expanded rapidly, driven by increasing demand for Mexican staples such as avocado, tomatoes, and tequila.
Today, Mexico is one of the world’s leading exporters of a variety of food products, and the industry continues to grow, supported by advancements in technology, quality standards, and trade agreements like the USMCA, which have bolstered Mexico’s position as a global food supplier.
Food & Beverage Industry in Mexico
The agri-food sector in Mexico is a mature and large industry. It ranks 11th worldwide and accounts for about 8% of the country's GDP. It is made up from:
- Agriculture Sector (NAICS 111)
- Food Production (NAICS 311)
- Beverage & Tobacco (NAICS 312)
With a value of +$50 billion dollars of agri-food products exported in 2023, Mexico grew 3.9% over 2022 exports.
Mexico’s agri-food trade balance registered a surplus of $6.91 billion, marking the third-highest figure in 31 years. Beverages, vegetables, and fruits were the top export groups, accounting for 59% of the total.
MEXICO'S FOOD & BEVERAGE QUICK FACTS
Agricultural Products
Mexico's agricultural sector is a vital contributor to both the national economy and international trade, showcasing impressive growth and a significant presence in global markets.
Sector Participation in GDP & Exports, 2023
|
Sector in Mexico |
Exports (USD) | % Total | Sector GDP (MXN) | % Total |
| Agriculture (11) | US$21,809,100,000 | 4.1% | MX$3,311,017,000,000 | 3.3% |
Source: INEGI via Tukan. Note - available export data is classified by Sector 11 - Agriculture, that includes sub-sectors Agriculture (111), Livestock (112), Forestry (113), Fishing (114) and Services (115).
Makeup of Agriculture Industry, 2023
According to the 2022 Agriculture Census, the total formal workforce includes over 11 million workers. Of these, about 3.3 million are producers, nearly 6 million are unpaid family members, and the rest are considered temporary laborers. The activities of these workers include farming, livestock production, forestry, fishing and hunting.
Mexico's Leading Agriculture Products, 2023
Mexico is one of the leading producers of organic foods in the world. The main organic products produced in Mexico include coffee (+36,000 tons), avocado (84,000 tons), and mango (+35,000 tons). Additionally, the main states producing organic foods are Chiapas, Oaxaca, and Michoacán.
Growth in Mexican Agriculture Exports (Sector 11)
Mexico is the largest single source of U.S. horticultural imports. In 2023, Mexico supplied 63 percent of U.S. vegetable imports and 47 percent of U.S. fruit and nut imports. To sell their produce in the United States, Mexico’s growers must meet U.S. regulations, including those in the Food Safety Modernization Act (FSMA), which was enacted in 2011 with staggered compliance dates that began in 2016. The law ensures safety of the U.S. food supply chain from growing to processing to transportation, whether on U.S. or foreign soil.
From 2000 to 2023, annual U.S. horticultural imports from Mexico in real terms (inflation adjusted, measured in 2023 dollars) increased more than fourfold from $3.9 billion to $19.7 billion, corresponding to a compound annual growth rate of 7.3 percent. On average during that period, the United States was the destination for 91 percent of Mexico’s total annual horticultural exports.
Food, Beverage and Tobacco Products
Food, beverage and tobacco production made up about 24% of total manufacturing GDP in Mexico in 2023 (INEGI). There are about 882,000 employees working in food production and another 167,000 in beverage and tobacco production facilities (INEGI via Tukan).
Participation in GDP & Exports, 2023
|
Sector in Mexico |
Exports (USD) | % Total | Sector GDP (MXN) | % Total |
| Food (311) | n/d | $3,940,299,863,000 | 3.9% | |
| Beverage & Tobacco (312) | $1,000,113,621,000 | 1.0% | ||
| Total | US$29,678,381,000 | 4.8% | $4,940,413,484,000 | 4.9% |
Source: INEGI via Tukan. Note - export data is categorized as food industry, including food, beverage, and tobacco.
Makeup of Food, Beverage and Tobacco Industry, 2023
About 6 million employees work in the food production industry, spanning offices, manufacturing plants, and distribution centers, according to the Ministry of Economy. There are 26 supermarket chains with over 3,300 food retail outlets throughout the country.
Growth of Food & Beverages Exports
Mexico has a robust food production and processing export market that serves many countries, especially the United States. Other export markets include Japan, Canada, China, and Guatemala.
Specifically among IMMEX companies, or those almost fully geared toward the export industry, over 177,000 employees work throughout 329 establishments (2023, INEGI via Tukan). The manufacturing-for-export industry has also experienced growth over the years.
Top Agri-Food Products Exported in 2023 (millions of USD)
Food & Beverage Manufacturing in Mexico
Some Mexican states stand out for their expertise in agri-food production and exports. There are a number of foreign companies that operate in Mexico, from multi-nationals with a strong domestic strategy to artesanal companies utilizing specific ingredients.
Production Zones in Mexico
The production centers for the food and beverage industry in Mexico are located throughout the country, each region contributing its unique flavors and specialties:
Baja Peninsula
This region in Mexico is characterized by fishing exports, especially from Baja California North & South as well as Sonora.
Central-West Mexico
This region includes agricultural powerhouse states of Sinaloa and Michoacan as well as top food exporters like Guanajuato, Jalisco and Zacatecas.
Northern Mexico
This region in Mexico is dominated by livestock exports, specifically from the states of Chihuahua, Durango and Sonora.
Northeastern Mexico
The states of Coahuila and Nuevo Leon are leading food, beverage and tobacco exporters.
Gulf Coast
This region is known for its fishing and food products from coastal states like Veracruz, Tabasco and Yucatan.
Foreign Companies Utilizing Mexico's Food & Beverage Export Market
These companies contribute significantly to Mexico’s food and beverage export market, making use of the country’s strategic location, skilled labor force, and trade agreements to access North American and global markets:
Nestlé
- Location: Multiple locations, with major facilities in Querétaro, Guanajuato, and Jalisco.
- Primary Products: Coffee (Nescafé), dairy products, baby food, pet food.
- Exports: Coffee, dairy products, and nutritional products.
PepsiCo
- Location: Ciudad Obregón, Sonora; Guadalajara, Jalisco; Monterrey, Nuevo León; Mexico City.
- Primary Products: Snacks (Sabritas, Doritos), soft drinks (Pepsi), and other beverages.
- Exports: Snack foods and beverages.
Mondelez International
- Location: Salinas Victoria, Nuevo León; Puebla.
- Primary Products: Chocolate, gum, and candy (Trident, Chiclets, Cadbury).
- Exports: Chocolate and confectionery products.
Coca-Cola FEMSA
- Location: Monterrey, Nuevo León; Mexico City; Guadalajara, Jalisco; other locations across the country.
- Primary Products: Soft drinks (Coca-Cola, Sprite, Fanta), bottled water, and juices.
- Exports: Bottled beverages.
Danone
- Location: Irapuato, Guanajuato.
- Primary Products: Dairy products, bottled water (Bonafont).
- Exports: Dairy and bottled water products.
General Mills
- Location: San Luis Potosí.
- Primary Products: Yoplait yogurt, Häagen-Dazs ice cream.
- Exports: Yogurt and ice cream products.
Grupo Bimbo
- Location: Several locations across Mexico, including Mexico City, Monterrey, and Toluca.
- Primary Products: Baked goods (Bimbo bread, Marinela pastries).
- Exports: Bread, pastries, and baked goods.
Cargill
- Location: Jalisco and Tamaulipas.
- Primary Products: Corn-based ingredients, animal feed, vegetable oils.
- Exports: Corn ingredients, oils, and animal feed products.
Heineken International
- Location: Monterrey, Nuevo León; Meoqui, Chihuahua.
- Primary Products: Beer (Tecate, Heineken, Sol).
- Exports: Beer.
AB InBev (Grupo Modelo)
- Location: Mexico City; Zacatecas; Guadalajara, Jalisco.
- Primary Products: Beer (Corona, Modelo, Pacifico).
- Exports: Beer (especially Corona, one of Mexico’s top exports).
Diageo
- Location: Atotonilco El Alto, Jalisco.
- Primary Products: Tequila (Don Julio).
- Exports: Tequila.
Mars, Inc.
- Location: Nuevo León; Querétaro.
- Primary Products: Chocolate (M&M’s, Snickers), pet food.
- Exports: Chocolate products and pet food.
Conagra Brands
- Location: Irapuato, Guanajuato.
- Primary Products: Packaged foods, including frozen meals.
- Exports: Frozen and packaged foods.
Unilever
- Location: Tultitlán, State of Mexico.
- Primary Products: Ice cream (Ben & Jerry’s, Magnum), condiments.
- Exports: Ice cream and condiments.
Lactalis Group
- Location: Aguascalientes.
- Primary Products: Cheese and other dairy products.
- Exports: Cheese and dairy products.
Kellogg’s
- Location: Querétaro.
- Primary Products: Breakfast cereals.
- Exports: Cereals.
McCormick & Company
- Location: San Luis Potosí.
- Primary Products: Spices, sauces, and condiments.
- Exports: Spices and condiments.
Givaudan
- Location: Cuernavaca, Morelos.
- Primary Products: Flavors and fragrances for food and beverages.
- Exports: Flavorings and ingredients.
Tyson Foods
- Location: Sonora; Querétaro.
- Primary Products: Processed chicken products.
- Exports: Chicken and other meat products.
Dr Pepper Snapple Group (Keurig Dr Pepper)
- Location: Monterrey, Nuevo León.
- Primary Products: Soft drinks (Dr Pepper, Snapple).
- Exports: Beverages.
Mexico's Culinary Landscape
Mexico's food and beverage industry is vast, producing many products that have captivated palates worldwide. Corn, or 'maíz', is central to this industry, cultivated in Mexico for millennia. Corn is the foundation for numerous dishes, notably tortillas, tamales, and pozole. Alongside corn, beans, chilies, and tomatoes form the center of Mexican cuisine, providing depth, heat, and color to many dishes.
Beyond these staples, Mexico is renowned for its tequila and mezcal, distilled from the agave plant. These spirits, deeply intertwined with Mexican culture and tradition, have gained global acclaim, with tequila being one of the country's most global exports.
Popular Tequila Brands, Globally
Among the most popular Mexican tequila brands are:
Patrón
Established in 1989, Patrón is one of the most recognizable luxury tequila brands globally, offering a range of premium tequilas known for their smoothness and quality.
Don Julio
Founded by Don Julio González-Frausto Estrada in 1942, this brand has become synonymous with high-quality tequila, especially its ultra-premium offerings like Don Julio 1942.
Jose Cuervo
As one of the oldest and most renowned tequila producers, Jose Cuervo offers a wide range of tequilas, from its traditional Especial to its premium Reserva de la Familia.
Herradura
With a legacy dating back to 1870, Herradura is celebrated for its authentic, handcrafted tequilas, including its iconic Herradura Reposado and Añejo expressions.
El Tesoro
Produced by the Camarena family in the Jalisco highlands, El Tesoro is revered for its artisanal approach to tequila production, offering a range of exquisite tequilas that showcase the agave's purest flavors.
Other Popular Mexican Brands
Several branded food and beverage items have achieved iconic status within Mexico and abroad. Among them are:
Jarritos
A famous brand of Mexican sodas, Jarritos offers a range of fruity flavors that encapsulate the vibrant essence of Mexican fruits like tamarind, guava, and lime.
Dulces Vero
Specializing in candies and sweets, Dulces Vero tantalizes taste buds with tamarind-based treats, offering a harmonious blend of sweetness and spice.
Bimbo
One of the largest bakery product companies globally, Grupo Bimbo, originating from Mexico, produces an array of bread, pastries, and snacks that have become household staples.
Corona and Modelo
These beer giants, originating from Mexico, have achieved global recognition, epitomizing the crisp, refreshing taste of Mexican beer.
Opportunities for Investors in Mexico's Food & Beverage Industry
The food and beverage industry in Mexico presents a diversity of opportunities for investors seeking to tap into its rich potential:
Agave Cultivation and Distillation
With the global demand for tequila and mezcal rising, investing in agave cultivation and distillation facilities offers promising returns. Adopting sustainable practices can further enhance the appeal of these ventures.
Artisanal and Specialty Products
There's a growing market for artisanal and specialty Mexican products, ranging from gourmet salsas and sauces to organic coffee and chocolate. Collaborating with local producers and promoting these products internationally can yield substantial dividends.
Technological Advancements
Leveraging technology to enhance production processes, optimize supply chains, and introduce innovative products can position companies at the forefront of the industry.
Cultural Experiences
Investing in culinary tourism, such as agave tours, cooking classes, and gastronomic festivals, can capitalize on the growing interest in Mexican cuisine and culture, offering immersive experiences to enthusiasts worldwide.
Benefits of Manufacturing in Mexico
Producing items in the food and beverage industry in Mexico offers a dual advantage: catering to the rich and diverse domestic market while simultaneously tapping into lucrative international consumer bases.
For the domestic front, the Mexican populace's sheer size and varied preferences provide a robust market for both traditional staples and innovative products. With a rising middle class and evolving consumer tastes, there's an increasing demand for premium, health-focused, and international culinary experiences.
Learn more about Mexican consumers in the e-commerce blog.
On the international stage, Mexico's reputation for authentic flavors, coupled with its strategic trade agreements, positions its products favorably in global markets. From the allure of tequila and mezcal to the richness of its coffee and the versatility of its agave-based products, Mexican food and beverages hold a distinct place in global gastronomy.
Thus, producers have the unique opportunity to blend tradition with innovation, serving local palates while enticing international consumers with the authentic tastes of Mexico.
Key Takeaways:
- Growing Export Market: Mexico's agri-food exports reached over $50 billion in 2023, marking a 3.9% growth compared to the previous year, showcasing the robust expansion of this sector in global trade.
- Significant GDP Contribution: The agri-food sector contributes about 7% to Mexico’s GDP, with food, beverage, and tobacco production alone accounting for nearly 24% of total manufacturing GDP, underscoring its economic importance.
- Employment in the Sector: In 2023, Mexico’s agriculture and food industries provided employment for approximately 11 million people in agriculture; an additional 1 million in food, beverage, and tobacco production; and 5 million more in related areas, demonstrating the industry’s role in job creation.
- U.S. Market Dependency: Mexico is the largest source of U.S. horticultural imports, supplying 63% of vegetables and 47% of fruits and nuts in 2023, highlighting Mexico's critical role in meeting the U.S. demand for fresh produce.