Light Barriers to Imports
  • The total market size for organic packaged food and beverages in Mexico in 2017 is US$43.9mn, making it the 33rd largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in Mexico is US$0.36, which ranks as the 42nd largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Grupo Herdez SAB de CV, which maintains 34.5% of total sales; it is followed by Nestlé SA and Grupo Industrial Cuadritos Biotek.
  • Organic packaged food and beverages in Mexico will see moderate year-on-year growth of close to 8% in 2018, which is slightly higher than the Latin America region.
  • Mexico maintains a market size for organic packaged food and beverages of US$43.9mn in 2017, which is 0.1% of global category sales.
  • Within the Latin America region, only Brazil surpasses Mexico in terms of total value sales of organic packaged food and beverages.
  • Mexico will experience moderate forecast growth of sales of organic packaged food and beverages, at an 8.4% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in Mexico in 2017 is US$43.9mn, making it the 33rd largest market in the world by value.
  • Organic packaged food sales remain limited to a few categories, including spreads, dairy, ready meals, sauces, dressing, condiments and baby food.
  • The competitive landscape within organic food and beverages remains relatively consolidated, with few multinational companies willing to enter the low-growth category.

Market Trends

Competitive Landscape

  • The competitive landscape within organic packaged food and beverages remains relatively consolidated, as few multinational companies are willing to enter the low-growth category.
  • In 2017 Grupo Herdez SAB de CV controlled 35% of the market, followed by Nestlé SA at just 5%.
  • Private label products accounted for 10% of organic product sales value, a figure that has been largely stable since 2015.

Prospects and Growth Opportunity

  • Organic packaged food and beverages are expected to experience annual sales value growth through 2022 as consumer awareness grows and distribution improves.
  • Baby food is projected to be the fastest growing organic packaged food category through 2022, and fruit/vegetable juice is projected to have the highest growth rate among organic beverage categories, albeit from a low base.
  • Potential threats to growth include the high price of organic products, especially given the challenging economic situation in Mexico.
  • Companies are likely to focus their communication efforts on educating consumers about the health, environmental and social benefits of organic products in an effort to increase awareness and, ultimately, drive sales growth.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • Real GDP grew by 2.1% in 2017 and is projected to grow by 2.0% in 2018.
  • Fears of a disorderly renegotiation of NAFTA area source of uncertainty, undermining investment.
  • The unemployment rate was 3.4% in 2017 and is projected to rise to 3.9% in 2018. Productivity has begun to rise, but the average output per Mexican workers still only around a third of that in the USA.

Population demographics:

  • Mexico’s population was 124 million in 2017, up from 103 million in 2000.
  • Mexico’s population—though still young—is aging. The number of people aged over 65 was 8.8 million 2017 but will reach 15.0 million by 2030.
  • The country has a long history of emigration. According to the US Census Bureau, Mexicans account for around one-third of the foreign-born population of the USA.

Income & expenditure:

  • Mexico has the second-largest consumer market in Latin America, behind Brazil.
  • In 2017 per capita disposable income was US$7,351; it is projected to grow by 1.8% in 2018.
  • Per capita consumer expenditure was US$6,291 in 2017 and is projected to grow by 1.6% in 2018.
  • According to the latest statistics, poverty has risen to 46.2%, mainly in urban areas.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

   13,701.2

   14,405.0

   15,259.0

   16,303.0

   16,836.6

   17,397.1

   17,978.2

6.0%

3.3%

Organic packaged food and beverages consumption

USD million

          34.5

          34.6

          39.0

          43.9

          47.7

          51.8

          56.1

8.4%

8.5%

Organic packaged food consumption

USD million

          22.0

          20.6

          23.6

          26.6

          29.1

          31.9

          34.9

6.5%

9.5%

Organic beverages consumption

USD million

          12.5

          14.0

          15.4

          17.3

          18.6

          19.9

          21.2

11.4%

7.0%

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

%

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

            0.0

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

        119.7

        121.0

        122.3

        123.5

        124.7

        125.9

        127.1

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

% Population aged 0-14

%

            0.3

            0.3

            0.3

            0.3

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

Average number of children per household

children

            1.2

            1.2

            1.2

            1.2

            1.1

            1.1

            1.1

GDP per capita

USD per capita

     7,622.8

     7,969.6

     8,439.2

     9,062.5

     9,185.3

     9,316.8

     9,462.3

Consumer expenditure per capita (US$)

USD per capita

     5,133.4

     5,370.7

     5,760.3

     6,231.5

     6,344.0

     6,456.1

     6,591.0

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

USD per capita

     1,210.1

     1,259.3

     1,357.4

     1,469.7

     1,498.1

     1,526.8

     1,560.1

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Mexico City

           21.3

Top cities by population (2017)

2

Guadalajara

             4.9

Top cities by population (2017)

3

Monterrey

             4.5

Top cities by population (2017)

4

Puebla

             3.0

Top cities by population (2017)

5

Tijuana

             2.0

Top grocery retailers by sales (2017)

1

Bodega Aurrera

 -

Top grocery retailers by sales (2017)

2

OXXO

 -

Top grocery retailers by sales (2017)

3

Walmart

 -

Top grocery retailers by sales (2017)

4

Soriana

 -

Top grocery retailers by sales (2017)

5

Chedraui

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Apples

54,644.0

Apples

48,634.0

Apples

60,048.0

Apples

78,811.0

2

Grapes

9,189.0

Grapes

22,991.0

Grapes

27,138.0

Grapes

28,952.0

3

Pears

10,822.0

Pears

13,452.0

Pears

12,943.0

Pears

14,347.0

4

Coffee Roast

5,054.0

Coffee Roast

11,137.0

Coffee Roast

11,194.0

Coffee Roast

10,465.0

5

Onions

13,799.0

Onions

9,233.0

Onions

10,644.0

Onions

10,159.0

Total

127,623.0

137,869.0

154,314.0

166,012.0

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: 

English versions of these documents are available.

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

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

Guidelines for the Operation of Organic Agricultural Activities

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 Requirements

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)

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 Mexico Food and Agricultural Import Regulations and Standards - Narrative (2017)

USDA's GAIN Report Mexico Officially Extends Deadline to Comply with Organic Regulation (2015)
USDA's GAIN Report Mexico Exporter Guide (2017)
USDA's GAIN Report Mexico Food Processing Ingredients (2018)
USDA's GAIN Report Mexico’s Food Service Hotel, Restaurant and Institutional Report for CY 2016 (2018)
USDA's GAIN Report Food Service - Hotel Restaurant Institutional 2016 Annual Report 
USDA's GAIN Report Mexico Retail Foods Annual Report (2017)

Definitions

Review definitions of terminology included in this website.