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Country Content Sections/Tabs

Country Content Sections/Tabs

Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Herdez SAB de CV Grupe leads the organic segment in Mexico with a value share of 27.2% in 2021, followed by Grupo Industrial Cuadritos Biotek, SA de CV with a value share of 6.0% and Nestle’ SA with a share of 5.8%. 
  • Mexico ranks 35th globally in terms of market size, with a value of US$63.0 mn in 2021, despite being the second-largest consumer market in Latin America, which indicates that per capita demand for organic products in Mexico is still small.

 

  • Organic products in Mexico represent roughly 0.1% of global demand and just under 10% of the market in the Latin American region, recording a per capita expenditure of US$0.49 in 2021. 
  • With demand for organic products expected to grow as a result of more companies entering the market, the market for organic products is projected to increase with a value CAGR of 7.2% for the forecast period 2021-2026, reaching a value of US$83.9 mn by 2025.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • The organic packaged food and beverages category in Mexico registered a value growth of 12.7% in 2021 to record a market size of US$63.0 million. 
  • Growth in organic packaged food was led by organic milk, which recorded current value growth of 30.0% in 2021.
  • Organic 100% juice led the growth in organic beverages category, recording current value growth of 10.7% in 2021. 
Market Trends
  • Mexican consumers are increasingly shifting towards a more holistic and preventive approach to health and wellness. Rising consumer awareness regarding the harmful effect of artificial additives is generating interest in natural ingredients. These trends are further fuelled by the new front of packaging (FOP) labelling regulations, which provide warnings on sugar, fat, sodium, and calorie levels and have strengthened consumer awareness and knowledge regarding packaged food and beverage ingredients. 
  • Organic products have also benefited from these ongoing trends, as consumers are paying close attention to production processes and are careful about the artificial chemicals in the products. Owing to rising awareness, organic products showed notable growth in coffee, juices, and baby food in 2021. Meanwhile, fortified products such as teas, other hot drinks, and milk continue to grow strongly.
Competitive Landscape
  • Grupo Herdez SAB de CV continued to lead organic beverages in 2021, leveraging its vast distribution network and wide range of products. The company had a market share of 24.5% in 2021. However, the company has lost 9.4% market share since 2018 as new competitors have entered the market. 
  • Grupo Herdez SAB de CV is leading the organic packaged food category with a market share of 28.8% in 2021. Grupo Industrial Cuadritos Biotek is placed second with a market share of 9.4% in the category.
Prospects And Growth Opportunity
  • Artificial sweeteners are increasingly gaining negative perception among consumers, and concerns are further fuelled by products carrying the seal “Contiene edulcorantes, no recommendable en ninos” (“Contains sweeteners, not recommended for children”). Regulation calling out artificial sugar in carbonates is expected to push consumers towards low sugar variants over the forecast period. Coca Cola Sin Azúcar Brands is likely to gain market share in the low sugar carbonates category over the coming years.  
  • Mexicans are increasingly concerned about their calorie intake. They often keep a count of the amount of fats, salt and sugar they are consuming, which may drive attention to product packaging and labelling. As a result, they might prefer to purchase the products based on their overall caloric intake. This would potentially strengthen the demand of better for you products over the forecast period. 
  • Manufacturers of coffee mixes and instant teas will reconsider their formulations to reduce the sugar content. The hot beverages category will come under the same scrutiny by consumers as they reassess the sugar intake in their morning coffee. Low sugar flavoured powdered drinks are expected to decline during the forecast period due to growing concerns of parents about the sugar intake of their children. They are increasingly looking to shift towards products with natural health-oriented positioning.
General Health And Wellness Trends
  • Covid-19 has further reinforced the health trends that were gaining traction before the pandemic. Due to rising concerns of obesity, the country introduced new labelling regulations in October 2020. As a result, health and wellness beverages and packaged food is expected to see a growth trajectory during the forecast period. Manufacturers are expected to innovate and launch more sophisticated products to gain market share and cater to the preferences and choices of consumers.
  • The government’s decision to enforce restrictions on highly processed food and drinks with high sugar, fat and salt is set to boost the demand for low sugar and naturally non-sweet products. Although these regulations will likely not drastically shift consumption of products that were already broadly perceived to be unhealthy (for instance, carbohydrates), they are expected to effectively highlight products positioned as healthy but containing unhealthy ingredients. 
  • Although the conditions are favourable for the development of the health and wellness category, the economic impact of Covid-19 is likely to act as a significant constraint on growth. Customers might shift to regular products that are more affordable, which might impact the category growth during the forecast period. Indeed, there is likely to be a reversal of the premiumisation trend during the forecast period, with products like cold brews and functional waters potentially struggling to maintain momentum.
General Economics And Demographic Landscape

Economy: 

  • The economy of Mexico has registered a 5.0% rebound in 2021, post a fall of 8.2% in 2020. 
  • Real GDP growth is expected to moderate in the coming years, with growth expected to hit 2.5% in 2022, averaging around 2.0% annually through 2030.
  • Private final consumption witnessed an increase of 13.5% in current terms in 2021, with gains of 2.8% expected in 2022.  

 

Population demographics: 

  • The population of Mexico has reached 127.7 million in 2021. It is expected that the population will increase by 2.6% to reach 131.1 million in 2025.
  • The median age in Mexico was recorded at 29.4 years in 2021, an increase of 3.4 years from 2010. 
  • Mexico has 25.6% of its total population under 14 years of age in 2021. The population over 65 years of age contributes 7.9% to the total population of Mexico. 

 

Income & expenditure: 

  • The savings ratio in Mexico was 21.3% of disposable income in 2021, with the indicator set to rise to 22.3% in 2022.
  • Consumer expenditure per capita was recorded at US$6,537 in 2021, with the indicator expected to increase by 1.9% in 2022. For the period 2020-2030, expenditure is expected to be highest in medical services and transportation.
  • Disposable income per capita was US$8,190 in 2021. The indicator is expected to grow by 3.2% in 2022. For the period 2020-2030, disposable income is expected to increase by a cumulative value of 27.4% in real terms, recording an annual average rate of 3.2%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

CAGR
(18-21)

CAGR
(22-25)

Health & wellness products consumption [1]

USD million

15,314.5

16,240.7

17,276.8

18,093.4

18,504.7

18,979.9

19,511.1

20,095.0

5.7%

2.8%

Organic packaged food and beverages consumption

USD million

45.7

50.2

55.9

63.0

67.8

73.2

78.6

83.9

11.3%

7.4%

Organic packaged food consumption

USD million

27.3

30.5

34.8

40.2

44.0

48.1

52.2

56.0

13.8%

8.4%

Organic beverages consumption

USD million

18.4

19.6

21.1

22.8

23.8

25.0

26.4

27.8

7.4%

5.3%

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

%

0.3

0.3

0.3

0.3

0.4

0.4

0.4

0.4

-

-

 

[1] Health and Wellness Definition: 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. The above definition and more can be referenced from the definitions table at the end of the report.

Economic And Demographic Data

Data type

Unit

2018

2019

2020

2021

2022

2023

2024

2025

Total population

million

124.7

125.8

126.8

127.7

128.6

129.5

130.3

131.1

% Middle and upper class of total population

%

26.8

26.6

26.3

26.3

26.3

26.2

26.2

26.2

% Population aged 65+

%

7.3

7.4

7.7

7.9

8.1

8.3

8.6

8.8

% Population aged 0-14

%

26.8

26.4

26.0

25.6

25.2

24.9

24.5

24.2

% Population with higher education degrees

%

15.5

15.6

15.6

15.6

15.7

15.7

15.7

15.8

Average number of children per household

children

1.2

1.1

1.1

1.1

1.1

1.0

1.0

1.0

GDP per capita

USD per capita

9298.7

9582.3

9081.9

10151.5

10332.1

10500.6

10661.9

10817.5

Consumer expenditure per capita (US$)

USD per capita

6109.3

6329.0

5784.3

6537.4

6662.5

6792.1

6895.9

7002.4

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

USD per capita

1502.9

1575.2

1611.5

1670.8

1696.0

1723.6

1744.0

1767.6

 

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2021)

1

Mexico City

20.7

Top cities by population (2021)

2

Guadalajara

5.2

Top cities by population (2021)

3

Monterrey

4.8

Top cities by population (2021)

4

Puebla

2.7

Top cities by population (2021)

5

Tijuana

1.8

 

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2021)

1

Walmart Inc

Top grocery retailers by sales (2021)

2

Fomento Económico Mexicano SAB de CV

Top grocery retailers by sales (2021)

3

Organización Soriana SAB de CV

Top grocery retailers by sales (2021)

4

Grupo Comercial Chedraui SAB de CV

Top grocery retailers by sales (2021)

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$)

2021

Mexico

1

Organic Apples Fresh

80,012,458

2021

Mexico

2

Organic Grapes Fresh

21,033,392

2021

Mexico

3

Organic Lettuce Not Head Fr/Ch

20,765,916

2021

Mexico

4

Organic Pears Fresh

18,413,782

2021

Mexico

5

Organic Peach/Nectarine Fresh

15,291,852

2021

Mexico

Total

Total Organics*

200,430,567

2020

Mexico

1

Organic Apples Fresh

46,347,952

2020

Mexico

2

Organic Spinach Fr/Ch

14,672,437

2020

Mexico

3

Organic Pears Fresh

13,191,082

2020

Mexico

4

Organic Lettuce Not Head Fr/Ch

12,962,374

2020

Mexico

5

Organic Grapes Fresh

8,552,981

2020

Mexico

Total

Total Organics*

117,543,983

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

 

Note : Total organics is the sum of all exports to a country within a 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 2018 – 2021 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 2018-2021 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 and Rural Development (SADER)

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
Organic products section

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:

Central page with all the organic laws and regulations in English. 

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

Guidelines with most recent revisions (in English) [Note: this is the most similar document to the NOP Rules.  The law and regulations are not as detailed]

Mexico Organic Seal (in English)

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

USDA's GAIN Report Mexico Publishes Changes to Organic Product Labeling (December 2021)
USDA's GAIN Report Quick-reference Guide to Mexico's LPO Enforcement in 2022 (December 2021)

Date of Implementation: December 28, 2020, with extension to January 1, 2022


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.

Organic agricultural imports entering Mexico must be certified by the Ministry of Agriculture and Rural Development (SADER) to Mexico’s organic standards under the Organic Products Law (LPO) starting on June 26, 2021, unless an equivalency agreement is in place. During recent years, the United States has been working 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 Mexico's organic seal, and developing new inspection procedures to implement the requirement for SENASICA to verify the organic certificate and document of control. Until new regulations are published in the Diario Oficial, 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

Organic agricultural imports entering Mexico must be certified by the Ministry of Agriculture and Rural Development (SADER) to Mexico’s organic standards under the Organic Products Law (LPO) starting on June 26, 2021. 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. Contact a certifier approved by Mexico’s National Service for Animal and Plant Health, Food Safety and Quality (SENASICA) for assistance with requirements for LPO certification and organic exports to Mexico.

Link to Control Document or International Transaction (Form O-SQ-F-03): (in Spanish)
https://www.gob.mx/cms/uploads/attachment/file/173654/Formato_DC.pdf

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).
Link to the registry of participatory organic certification systems: https://www.gob.mx/cms/uploads/attachment/file/692697/Sistemas_de_Certificacion_Organica_Participativa_2021.pdf (in Spanish) 

SAGARPA offers free certification through FIRCO (website in Spanish): 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.

SAGARPA New Organic Law – 08/27/2018 (in Spanish)

Accreditation:

Ministry of Agriculture and Rural Development (SADER) -

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:

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.

U.S. International Trade Administration

USDA's GAIN Report Mexico Publishes Changes to Organic Product Labeling (December 2021)
USDA's GAIN Report Quick-reference Guide to Mexico's LPO Enforcement in 2022 (December 2021)
USDA's GAIN Report Update - Organic Products Imported into Mexico before LPO Enforcement Deadline are Safe (December 2021)
USDA's GAIN Report Front of Pack Labeling Manual Published (2021)
USDA's GAIN Report Interinstitutional Agreement on Standard NOM-051 FOPL Compliance (2021)
USDA's GAIN Report Mexico Releases Clarifications on NOM-051 for Refurbished Products (2021)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA's GAIN Report Mexico Exporter Guide (2021)
USDA's GAIN Report Mexico Food Processing Ingredients (2021)
USDA's GAIN Report Mexico’s Food Service Hotel, Restaurant and Institutional Report (2021)
USDA's GAIN Report Mexico Retail Foods (2021)
USDA's GAIN Report Mexico Front of Pack second phase implementation (2021)
USDA's GAIN Report Mexico Front of Pack Requirements for Endorsed Products by Organizations and Associations (2021)