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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Herdez SAB de CV Grupe leads the organic segment in Mexico with a value share of 33.6% in 2019, followed by Nestle’ SA with a share of 5.7% and Grupo Industrial Cuadritos Biotek, SA de CV with a value share of 4.6%.
  • Mexico ranks 35th globally in terms of market size, with a value of US$51.2 mn in 2019, despite being the second-largest consumer market in Latin America, which indicates that the demand for organic products in Mexico is still small.

  • Organic products in Mexico represent roughly 0.1% of global demand and approximately 1.0% of the market in the Latin American region, recording a per capita expenditure of US$0.41 in 2019.
  • With demand for organic products expected to grow as a result of more companies entering the market, the market for organic products is expected to grow with a value CAGR of 6.4% for the forecast period 2019-2024, reaching a value of US$69.8 mn by 2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in Mexico witnessed a value growth of 10.8% over 2018-2019 to record a market size of US$51.2 mn in 2019.
  • Growth in organic packaged food was led by organic baby food, which recorded current value growth of 19.0% in 2019.
  • Organic instant coffee led growth for organic beverages, recording current value growth of 11.0% in 2019.
Market Trends
  • Organic products in Mexico have benefitted from broader product availability, particularly within packaged food. The wider product availability is helping drive volume growth, catering to increasingly specific consumer requirements such as organic milk brand Bové, which has expanded its product portfolio with lactose-free and semi-skimmed versions of organic cow’s milk. However, currently, organic products are mainly produced for export purposes, as the high prices are a barrier for local consumption with the Mexican economy witnessing sluggish GDP growth and a reduction in consumer expenditure.
  • Organic products market remain a niche with a limited consumer base of the high-income and health aware who are keen on the value and benefits offered by the organic varieties.
Competitive Landscape
  • Aires De Campo (a subsidiary of the larger firm Grupo Herdez SAB de CV) led organic beverages in 2019, leveraging its resources to increase its product availability and utilize a more extensive distribution network for organic offerings. In addition to organic fruit/vegetable juice and organic herbal infusions, the company launched organic fresh eggs, organic fresh meat and organic honey. Over the forecast period, Aires de Campo SA is expected to remain an important player within organic beverages, retaining its share, which stood at 28.3% in organic beverages and 33.5% in organic packaged food in 2019.
  • With the demand for organic packaged food increasing in Mexico, several major brands are launching products within organic packaged food. Some examples include mayonnaise brand Hellmann’s, pasta brand De Cecco, and the evaporated milk brand Carnation. This has led to an increasing level of competition, with more brands set to enter the category in the forecast period 2019-2024.
Prospects And Growth Opportunity
  • Rising awareness on the benefits of organic products, coupled with a decline in prices to make organic products more affordable can help boost demand and cater to a diverse number of consumers’ requirements. For example, the dominant organic milk brand Bové has expanded its product portfolio by including lactose-free and semi-skimmed as well as flavored organic milk.
  • The increasing number of households where both parents are working, particularly in urban areas is driving demand for organic baby food, that is ready to eat, and easy to transport, but is also healthy and clean. Furthermore, with the Mexican economy expected to recover and disposable income expected to grow further, organic baby food is expected to witness a steady increase in demand over the forecast period 2019-2024.
  • There is a growing trend of brands innovating within categories that are witnessing maturity or saturation, in an attempt to sustain demand. For example, Grupo Lala SAB de CV launched an organic milk offering for its Lala brand in 2018, following Kraft Heinz launch of its Heinz organic ketchup in 2017. Other popular categories such are also witnessing the launch of organic offerings, including Campo Vivo' chilli sauce. This trend presents an opportunity for other organic players to enter into these categories and leverage their positioning.
General Health And Wellness Trends
  • Organic products in Mexico are struggling to gain high volumes, as they are only popular among high-income consumers. The higher unit price, compared to non-organic variants, makes organic products a luxury among consumers.
  • Brands operating in premium categories such as coffee pods are witnessing positive demand with organic launches appealing to high-income consumers. Nescafé, for example, has launched a collection of Dolce Gusto Absolute Origins capsules, which features a variety of organic coffee from Central and South America.
General Economics And Demographic Landscape

Economy:

  • The economy of Mexico is expected to record slow growth in 2020, with a GDP growth of 0.8% expected, post a fall of 0.1% in 2019. While investment has been weak, it is expected to increase gradually on the back of lower interest rates.
  • Private final consumption witnessed an increase of 0.5% in 2019, with gains of 1.2% expected in 2020.  
  • GDP growth is expected to rise in the coming years, with growth expected to hit 1.5% in 2021, averaging about 2.3% annually through 2027.

  

 Population demographics:

  • The population of Mexico has recorded a strong increase. In 2019, the population totalled 126 million, up from 101 million in 2000. However, population growth has decelerated over time.
  • The median age in Mexico was recorded at 28.7 years in 2019, an increase of 5.7 years from in 2000. The number of those over the age of 65 years has jumped from its 2000 value of 5.2 million to 9.4 million in 2019, with the indicator expected to reach 13.9 million by 2030.
  • Fertility fell by more than 50.0% between 1980-2018 and presently stands at 2.1 births per female. The primary driver behind the declining family size is the rise in smaller family households in metropolitan areas, with more couples preferring to have at most, one child. However, fertility is expected to remain at 2.1 births per female through 2030.
     

Income & expenditure:

  • The savings ratio in Mexico was 12.0% of disposable income in 2019, with the indicator rising to 12.1% in 2020.
  • Consumer expenditure per capita was recorded at US$6,605 in 2019, with the indicator expected to increase by 0.2% in 2020. For the period 2020-2030, expenditure is expected to be highest in medical services and transportation.
  • Disposable income per capita was US$7,424 in 2019. The indicator is expected to grow by 0.3% in 2020. For the period 2020-2030, disposable income is expected to increase by a cumulative value of 28.3% in real terms, recording an annual average rate of 2.5%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

13,112.2

14,176.2

15,202.1

16,293.2

17,104.7

17,978.1

18,916.8

7.5%

5.2%

Organic packaged food and beverages consumption

USD million

36.2

41.2

46.2

51.2

54.8

58.5

62.2

12.3%

6.5%

Organic packaged food consumption

USD million

21.2

24.4

27.5

30.6

32.8

35.1

37.4

13.0%

6.8%

Organic beverages consumption

USD million

15.0

16.8

18.7

20.6

22.0

23.4

24.8

11.2%

6.2%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

%

0.3%

0.3%

0.3%

0.3%

0.3%

0.3%

0.3%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

122.3

123.5

124.7

125.9

127.1

128.2

129.4

% Middle and upper class of total population

%

26.0

26.0

26.8

26.6

26.3

26.3

26.3

% Population aged 65+

%

6.9%

7.1%

7.2%

7.4%

7.6%

7.8%

8.1%

% Population aged 0-14

%

27.5%

27.1%

26.8%

26.5%

26.2%

25.9%

25.6%

% Population with higher education degrees

%

15.4

15.4

15.5

15.6

15.6

15.6

15.7

Average number of children per household

children

1.2

1.2

1.2

1.1

1.1

1.1

1.1

GDP per capita

USD per capita

8,544.6

9,212.7

9,780.3

9,996.5

9,855.7

9,871.2

9,986.1

Consumer expenditure per capita (US$)

USD per capita

5,675.6

6,078.0

6,403.6

6,605.4

6,621.7

6,668.8

6,764.7

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

USD per capita

1,337.8

1,422.9

1,499.3

1,544.7

1,527.8

1,529.0

1,544.5

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Mexico City

20.4

Top cities by population (2019)

2

Guadalajara

5.1

Top cities by population (2019)

3

Monterrey

4.7

Top cities by population (2019)

4

Puebla

2.7

Top cities by population (2019)

5

Tijuana

1.8

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Walmart Inc

Top grocery retailers by sales (2019)

2

Fomento Económico Mexicano SAB de CV

Top grocery retailers by sales (2019)

3

Organización Soriana SAB de CV

Top grocery retailers by sales (2019)

4

Grupo Comercial Chedraui SAB de CV

Top grocery retailers by sales (2019)

5

Casa Ley SA de CV

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To Mexico

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

Mexico

1

Organic Apples Fresh

69,877,435

2019

Mexico

2

Organic Onion Sets Fr/Ch

24,942,868

2019

Mexico

3

Organic Grapes Fresh

23,784,534

2019

Mexico

4

Organic Pears Fresh

19,179,918

2019

Mexico

5

Organic Spinach Fr/Ch

14,360,735

2019

Mexico

Total

Total Organics*

190,781,868

2018

Mexico

1

Organic Apples Fresh

26,079,202

2018

Mexico

2

Organic Grapes Fresh

16,256,291

2018

Mexico

3

Organic Onion Sets Fr/Ch

12,592,175

2018

Mexico

4

Organic Peach/Nectarin Fresh

11,901,432

2018

Mexico

5

Organic Pears Fresh

11,172,102

2018

Mexico

Total

Total Organics*

108,690,010

2017

Mexico

1

Organic Apples Fresh

55,338,566

2017

Mexico

2

Organic Onion Sets Fr/Ch

14,943,606

2017

Mexico

3

Organic Pears Fresh

11,308,851

2017

Mexico

4

Organic Grapes Fresh

10,609,395

2017

Mexico

5

Organic Peach/Nectarin Fresh

9,171,865

2017

Mexico

Total

Total Organics*

133,305,233

2016

Mexico

1

Organic Apples Fresh

48,633,896

2016

Mexico

2

Organic Grapes Fresh

22,990,936

2016

Mexico

3

Organic Pears Fresh

13,451,832

2016

Mexico

4

Organic Coffee Roast Not Decaf

11,136,736

2016

Mexico

5

Organic Onion Sets Fr/Ch

9,232,866

2016

Mexico

Total

Total Organics*

137,868,519


Note : Total organics is the sum of all exports in a particular year   
Definitions

Definitions

Term

Definition

Health and Wellness

Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy Information

Policy Information

Government Agency(s) / Competent Authority

Authorized Government Agency(s):

Ministry of Agriculture, Ranching, Rural Development, Fisheries and Food Supply (SAGARPA)

Agency(s) Contact Information:

National Health Service, Food Safety and Food Quality (SENASICA)
Guillermo Perez Valenzuela 127, Primer Piso
Col. Del Carmen, Del. Coyoacan
Mexico, DF 04100
Telephone: 52 (55) 5090-3000 or 52 (55) 5905-1000, Ext. 51511
Website

M.C. Aurora Josefina Lobato Garcia
Assistant Director of Control of Organic Agriculture and Aquaculture
Aurora.lobato@senasica.gob.mx

MSc. Erandi Valdovinos Romero
Department of Control of Organic Animal Products
Erandi.valdovinos@senasica.gob.mx

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard:

The Law of Organic Products (in English)
Download .pdf (in Spanish)
Download .doc (in Spanish)

Regulations to the Organic Products Act (.pdf in Spanish)
Download .doc (in Spanish)

Guidelines for the Operation of Organic Agricultural Activities (.pdf in Spanish)

Amendment for Imported Organic Products (in English)

Date of Implementation: Pending

Regulation and/or Standard Scope:

The Guidelines contain detailed crop, livestock and processing standards and require written organic plans, as well as contain detailed record keeping and livestock feed standards.  In addition, specific standards are included for wild plants, wild animals, non-traditional capture (larvae, insects), and beekeeping.  While aquatic animals are mentioned in the definition of Animal Production, there are no standards that specifically address aquaculture.  Hydroponic production is not allowed.

The expressions organic, ecological, biological, and denominations with prefixes such as bio and eco used on labels are considered equivalent synonyms and terms in national or international trade.

Mexico’s Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA) extended the date to comply with Mexico’s organic regulations for products certified as organic in countries in the process of achieving organic equivalency with Mexico, which includes the United States, to April 2017. The United States has been in talks with Mexico to make an equivalency agreement for organic products.  In an April 27, 2017 meeting with Mexican retailers, SENASICA outlined its regulatory plans, including removing the requirement that organic certifiers must have a physical office in Mexico, revising the regulations to allow products from third countries that are certified to the SENASICA standard to display the SAGARPA organic seal, and developing new inspection procedures to implement the requirement for SENASICA to verify the organic certificate and document of control. Until new regulation are published in the Diario Oficial (in no less than 2-3 months), there will be no change to the current procedures to import U.S. organic products. Representatives from the Federal Attorney's Office for the Consumer (PROFECO) confirmed that they only conduct enforcement based on the Spanish language version of the label.

Imported Products

Imported products may be marketed in national markets as organic and with equivalent terms if they comply with the Mexican Organic Regulations and certified by a certifier accredited by Mexico or from a country with organic regulations and control systems recognized as equivalent by Mexico. Imports must be accompanied by an organic inspection document, or its equivalent, granted by the competent authority or body.

The 'USDA Organic' label will still be valid, as long as U.S. exporters remain in compliance with the Government of Mexico program.

Imported seeds or vegetative material will be treated with methods or treatment including the use of hot water, copper sulfate pentahydrate, Trichoderma Spp, or Bacillus Subtilis.

Certification and Accreditation

Certification:

All organic operations in Mexico must become certified to the Mexican standard by a certifying agent approved by the Mexican government.

For a list of certification agencies approved to operate in Mexico, download the list (Padrón de Organismos de Certificación Orgánica).

SAGARPA offers free certification through FIRCO (see below):

SAGARPA New Organic Law – 08/27/2018

Accreditation:

Ministry of Agriculture, Ranching, Rural Development, Fisheries and Food Supply (SAGARPA) -

Certification bodies must apply to the Secretary of Agriculture and must be accredited by an accreditation body in terms of the Federal Law on Metrology and Standardization and/or to ISO Guide 65 or an equivalent country. 

Additional Information

Reference Standards:

CODEX, IFOAM Basic Standards, EU organic regulations.

Additional Information:

OTHER Agencies:

FIRCO: The Shared Risk Trust FIRCO is a parastatal entity, created by presidential decree and operates as a sector in the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), to promote agribusiness, rural development and acting as micro- technical staff in programs of agricultural and fisheries sector.

National Council for Organic Production (CNPO) (website; in Spanish): established by Law to be a consultative body of the SAGARPA, inclusive and representative of the interests of producers and stakeholders in the field of organic products.

USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA's GAIN Report Mexico Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA's GAIN Report Mexico Officially Extends Deadline to Comply with Organic Regulation (2015)
USDA's GAIN Report Mexico Exporter Guide (2019)
USDA's GAIN Report Mexico Food Processing Ingredients (2020)
USDA's GAIN Report Mexico’s Food Service Hotel, Restaurant and Institutional Report (2019)
USDA's GAIN Report Mexico Hotel Restaurant and Institutional Guide 2018 (2018)
USDA's GAIN Report Mexico Retail Foods (2019)
USDA's GAIN Report Implementation of the New Mexican Regulation for Front-of- Package Nutrition Label (2020)