Mexico Beer Market

The beer production volume in Mexico reached 141 million hectoliters in 2022, which is an CAGR increase of 5.09% from its production volume of 110 million hectoliters in 2017. The Mexico consumed 99.90 million hectoliters volume of beer in 2022. The beer market in Mexico is one of the largest and most dynamic in the world. It has experienced steady growth over the years, driven by factors such as changing consumer preferences, urbanization, rising disposable incomes, and a vibrant tourism industry. Mexico is renowned for its rich beer culture, with a wide variety of traditional and craft beers available in the market.

Importance of Mexico in the Global Beer Supply Chain

Mexico plays a significant role in the global beer supply chain, both as a producer and consumer. It is home to some of the world's largest beer manufacturers, such as Grupo Modelo and Cuauhtémoc Moctezuma Brewery (part of Heineken). Additionally, Mexico is a major exporter of beer to various international markets, particularly the United States.
In 2022, Mexico secured the 4th position in global beer production and consumption, following China, the USA, and Brazil. The global beer production totaled 1.89 billion hectoliters in 2022. Mexico holds the title of the world's largest beer exporter, shipping out beer valued at US$ 5.02 billion in 2022, representing almost 30% of global sales.

Beer Ingredients- An Overview & Situation

Barley stands as the foremost crucial element and primary ingredient in the beer industry. Traditionally, beer is crafted from malted barley (Hordeum vulgare), hops (Humulus lupulus L.), water, and yeast. Additionally, other grains like wheat, rye, oats, triticale, sorghum, maize, among others, are viable raw materials for beer production.
Mexican breweries rely on U.S. hops and barley producers to be their main suppliers for imports. Mexico imported 323.50 million metric tons of U.S. barley & barley products in the 2021/2022 marketing year. Mexico is the second largest importer of hops and majorly imports hops from USA (which is world largest producer and exporter of hops). Mexico imported 630 tonnes of extracts of hops in 2022.

COVID-19 Pandemic: The pandemic led to widespread disruptions in the beer industry due to lockdowns, restrictions on social gatherings, and economic uncertainty. Many breweries faced challenges such as reduced demand, supply chain disruptions, and closures of bars, restaurants, and other establishments where beer is typically consumed. This resulted in decreased production levels and financial losses for breweries worldwide.

Russia-Ukraine War: The Russia-Ukraine conflict has also influenced the global beer production landscape, particularly in terms of the availability and cost of key ingredients such as barley and hops. Ukraine is a major producer of barley, and any disruptions to its agricultural sector due to the conflict could lead to supply shortages and price increases for barley, affecting beer production globally. Additionally, geopolitical tensions and trade disruptions caused by the conflict may impact the export and import of beer and related materials between countries involved, further affecting production levels.

Market Drivers

Economic growth, demographic trends, tourism, innovation, and export opportunities are key growth factors propelling the beer market in Mexico. Breweries are capitalizing on emerging opportunities, expanding their consumer base, and sustain long-term growth in the dynamic and competitive Mexican beer market.

Steady Economic Growth
Mexico's steady economic growth over the years has been a significant driver of the beer market. As the economy expands, there is an increase in disposable income among consumers. This rise in purchasing power enables consumers to spend more on discretionary items like beer. With higher disposable incomes, consumers are more likely to indulge in leisure activities such as socializing and dining out, where beer consumption often takes place. Economic growth also contributes to urbanization, which further boosts the demand for beer, especially in urban centers where socializing and nightlife are prevalent.

Demographic Trends: Median Age Range of Population is 29.4
Mexico boasts a youthful population demographic (median age range of population is 29.4 years in 2022), with a significant proportion falling within the prime beer-drinking age range. Young adults and millennials make up a substantial consumer base with a propensity for socializing and engaging in leisure activities, including consuming alcoholic beverages like beer. This demographic trend ensures a steady demand for beer in the market, as the younger population cohort continues to enter adulthood and become legal drinking age consumers. Additionally, Mexico's demographic dividend implies a growing working-age population with higher consumption patterns, further bolstering beer sales.

Tourism: Large Number of International Tourists Arrival
Mexico's vibrant tourism industry is a crucial driver of beer consumption in the country. Mexico ranked 6th in world tourism ranking and attracted nearly 38.3 million international tourists in 2022. With millions of tourists visiting Mexico annually, particularly from the United States, Canada, and Europe, there is a significant demand for beer both within tourist destinations and across the country. Tourists often seek out local experiences, including trying regional beers and enjoying the vibrant nightlife Mexico has to offer. As tourism continues to thrive, driven by factors such as cultural attractions, natural beauty, and affordable travel options, the demand for beer among both domestic and international tourists remains robust, contributing to market growth.

Innovation and Product Diversity: Enhanced Efforts from Brewers
The beer market in Mexico has witnessed a surge in innovation and product diversity in recent years. Brewers are constantly introducing new flavors, styles, and packaging formats to cater to evolving consumer preferences. This innovation not only attracts new consumers but also encourages existing consumers to explore different beer options. The emergence of craft breweries, in particular, has significantly expanded the beer market by offering unique and artisanal brews that appeal to niche consumer segments seeking authenticity and quality. As breweries continue to innovate and diversify their product portfolios, the market experiences sustained growth by capturing a broader consumer base and increasing consumption occasions.

Export Opportunities: High Demand & Favorable Trade Agreements
Mexico's prominence in the global beer market extends beyond its domestic consumption. The country is a major exporter of beer to various international markets, particularly the United States. Mexican beer brands have gained popularity worldwide, driven by factors such as favorable trade agreements, strategic marketing initiatives, and the growing appreciation for Mexican culture and cuisine globally. The export market presents significant growth opportunities for Mexican breweries, allowing them to tap into new markets and expand their reach beyond domestic borders. This expansion into international markets further fuels the growth of the Mexican beer industry, enhancing its global competitiveness and driving overall market growth.

Market Challenges

Regulatory Hurdles
Stringent regulations regarding alcohol sales, distribution, marketing, and taxation present significant challenges for the beer industry in Mexico. These regulations are often subject to change and vary across different regions within the country. Compliance with complex regulatory requirements can increase operational costs for breweries and distributors, impacting profitability. Additionally, restrictions on advertising and promotion limit breweries' ability to effectively market their products and differentiate themselves in a competitive market.

Competition from Other Beverage Products
The beer market in Mexico faces intense competition from other alcoholic and non-alcoholic beverages. Tequila, wine, spirits, and ready-to-drink cocktails compete for consumers' beverage choices, particularly in social settings and nightlife establishments. Additionally, the growing popularity of health-conscious beverages like sparkling water, energy drinks, and functional beverages presents a challenge for beer sales, especially among younger consumers seeking healthier alternatives. Breweries must innovate and differentiate their products to stay competitive in a crowded market and capture consumer interest amidst diverse beverage options. The beer market is undergoing transformation due to evolving consumer preferences and shifting consumption patterns. While there's a rising popularity of non-alcoholic beers and seltzers, the beer market is expected to maintain its strength and vitality for the foreseeable future, as evidenced by its historical resilience.

Mexico Beer Market Competitive Analysis

The Mexico beer market is highly competitive, with major players like Grupo Modelo (owned by AB InBev) and Cuauhtémoc Moctezuma Brewery (part of Heineken) leading the market. These companies compete not only on product quality and variety but also on branding, marketing, and distribution networks. Additionally, the market has seen a rise in the popularity of craft breweries, offering unique and artisanal beer options to cater to niche consumer segments.
In 2022, Mexico, known for its iconic brand Modelo, held the global lead in beer exports, with a value exceeding USD 5.4 billion. Modelo stands out as the preferred beer in numerous nations, including Chile, Argentina, and Angola.
In 2022, Heineken has announced its intention to establish a new manufacturing plant specifically dedicated to producing cans in northern Mexico. This strategic decision reflects Heineken's commitment to expanding its production capabilities to meet the growing demand for canned beverages, particularly beer, in the region.
In overall, the Mexico beer market presents significant opportunities for growth, driven by various factors such as economic development, changing consumer preferences, and the country's pivotal position in the global beer supply chain. However, challenges such as regulatory hurdles, competition, and supply chain disruptions need to be navigated effectively by industry stakeholders to capitalize on these opportunities.
Grupo Modelo (Part of Anheuser-Busch InBev), Cuauhtémoc Moctezuma Brewery (Part of Heineken), Grupo Cuauhtémoc y Famosa (Part of Heineken), Grupo Modelo Pacifico, Grupo Modelo Baja California, Cervecería Minerva, Cervecería Primus, Cervecería Mexicana, Cervecería Calavera, and Cervecería Santo Coraje are some of the major beer companies in Mexico.

Key Companies in Mexico Beer Market include (Manufacturers and Exporters)

        ■ Grupo Modelo (Part of Anheuser-Busch InBev)
        ■ Cuauhtémoc Moctezuma Brewery (Part of Heineken)
        ■ Grupo Cuauhtémoc y Famosa (Part of Heineken)
        ■ Grupo Modelo Pacifico
        ■ Grupo Modelo Baja California
        ■ Cervecería Minerva
        ■ Cervecería Primus
        ■ Cervecería Mexicana
        ■ Cervecería Calavera
        ■ Cervecería Santo Coraje

Popular Beer Brands in Mexico:

        ■ Corona Extra (Grupo Modelo)
        ■ Modelo Especial (Grupo Modelo)
        ■ Pacifico (Grupo Modelo)
        ■ Victoria (Grupo Modelo)
        ■ Sol (Cuauhtémoc Moctezuma Brewery, subsidiary of Heineken)
        ■ Tecate (Cuauhtémoc Moctezuma Brewery, subsidiary of Heineken)
        ■ Dos Equis (Cuauhtémoc Moctezuma Brewery, subsidiary of Heineken)
        ■ Indio (Cuauhtémoc Moctezuma Brewery, subsidiary of Heineken)
        ■ Bohemia (Cuauhtémoc Moctezuma Brewery, subsidiary of Heineken)
        ■ Carta Blanca (Cuauhtémoc Moctezuma Brewery, subsidiary of Heineken)



Future Outlook

The Mexican beer market faces challenges including intense competition among local and international brands, fluctuating raw material costs, and regulatory pressures on alcohol advertising and consumption. Additionally, shifts in consumer preferences towards craft and premium beers are disrupting traditional market dynamics. The outlook for the market involves navigating these challenges by adapting to consumer trends, optimizing production efficiency, and exploring growth in emerging segments like craft and specialty beers. Emphasis on innovation and sustainability will also be key to future success.



Report Coverage

The Mexico beer market report covers historical market data from 2010-2022 and projections to 2030. The report also includes supply & demand and trade (import-export) market analysis. The decision matrix analysis helped in identifying the barriers and their implications on the value chain and different factors of relative significance to the Mexico beer market are diligently tracked and their impact closely monitored for short, medium, and long-term market cycles. The report's contents cover an analysis of the aspects involved in the beer market such as the parent market, the evolution of the industry, innovative technologies in the manufacturing process, supply chain, and listing of key exporters.



Scope of the Report




Report Attributes	Details
Historical Years	2010–2022
Base Year	2023
Forecast Period	2024–2030
Units	Value (US$ Million) and Volume (Tonnes)
Report Coverage	Production, Consumption, Export, and Import
Segments Covered	▪ By Distribution Channel   ▪ By Packaging
Geographies Covered	Mexico
Companies Profiled	The market players include Grupo Modelo (Part of Anheuser-Busch InBev). Cuauhtémoc Moctezuma Brewery (Part of Heineken), Grupo Cuauhtémoc y Famosa (Part of Heineken), Grupo Modelo Pacifico, Grupo Modelo Baja California, Cervecería Minerva, Cervecería Primus, Cervecería Mexicana, Cervecería Calavera, and Cervecería Santo Coraje, and more.




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FAQs:

1. What is the production size of the Mexico beer in 2022?
Mexico produced 141 million hectolitres of beer in 2022.

2. What is the consumption size of Mexico beer in 2022?
Mexico consumed 99.90 million hectolitres of beer in 2022.

3. What is the Mexico beer Export market size?
Mexico is largest beer exporter and exported US$ 5.02 billion valued beer in 2022.

4. What are the key driving factors to the Mexico beer market?
Economic growth, demographic trends, tourism, innovation, and export opportunities are key growth factors propelling the beer market in Mexico. Breweries are capitalizing on emerging opportunities, expanding their consumer base, and sustain long-term growth in the dynamic and competitive Mexican beer market.

Table of Contents: Mexico Beer Market – Trend Analysis & Forecast to 2030

1. Executive Summary
2. Introduction
    2.1 Objectives & Scope of the Study
    2.2 Definitions & Economic Importance
    2.3 Research Methodology
    2.4 Factors and Decision Matrix Analysis
    2.5 Limitations & Challenges
3. Commodity/Product/Market Overview
    3.1 Evolution/ Origin & Geographic Suitability
    3.2 Beer: Product Images
    3.3 Beer Consumption and Export Seasonality
    3.4 Processing & Grading
    3.5 Regulatory Analysis
4. Mexico: Country Profile
5. Mexico Market Growth Factors Analysis
    5.1. Mexico Alcoholic Beverages Consumption Trend
    5.2. Drivers and Restraints Analysis
    5.3. Challenges and Opportunities Analysis
    5.4. Mexico Beer Market SWOT Analysis
    5.5. Mexico Beer Market PESTEL Analysis
    5.6. Mexico Beer Market Porter's Five Forces analysis
6. Mexico Beer Market: Supply Analysis
    6.1. Beer Supply Analysis (Production)
    6.1. Beer Production Capacity Analysis
    6.2. Beer Supply Analysis, by Packaging
7. Mexico Beer Market: Demand Analysis
    7.1. Domestic Beer Demand
            7.1.1. Domestic Consumption
            7.1.2. Mexico Beer Market, by Sales Channels (On-trade and Off-trade)
    7.2. Export Demand
    7.3. Beer Supply Chain Analysis
    7.4. Analysis on Mexico Beer Raw Materials/Ingredients Demand
8. Mexico Beer Market: Trade (Export & Import) Analysis
    8.1. Beer Export & Import Trend
    8.2. Top 10 Export Destinations of Mexico Beer
9. Mexico Beer Market: Price Trend Analysis
    9.1. Domestic Price Trend
    9.2. Export Price Trend
    9.3. Price Seasonality
    9.4. Mexico Beer Brands Price Details
10. Competitive Analysis
    10.1. List of Key Companies Supplying Beer from Mexico
    10.2. Mexico Beer Market, Brand Share Analysis, 2022
    10.3. Key Company Profiles
            10.3.1. Grupo Modelo (Part of Anheuser-Busch InBev)
            10.3.2. Cuauhtémoc Moctezuma Brewery (Part of Heineken)
            10.3.3. Grupo Cuauhtémoc y Famosa (Part of Heineken)
            10.3.4. Grupo Modelo Pacifico
            10.3.5. Grupo Modelo Baja California
            10.3.6. Cervecería Minerva
            10.3.7. Cervecería Primus
            10.3.8. Cervecería Mexicana S.A. De C.V.
            10.3.9. Cervecería Calavera
            10.3.10. Cervecería Santo Coraje
11. Conclusion
12. Appendix

Table 1: Mexico Beer Production Volume (Litres) (2010-2030)
Table 2: Mexico Beer Production, Value (Litres) (2010-2030)
Table 3: Mexico Beer Market, Demand Volume Details (Volume) (2015-2025)
Table 4: Mexico Beer Supply and Demand Analysis, Volume (2015-2025)
Table 5: Mexico Beer Consumption Trend (litres) (2015-2025)
Table 6: Mexico Beer Export Trend, by Value (2010-2030)
Table 7: Mexico Beer Export Trend, by Volume (2010-2030)
Table 8: Mexico Beer Export Destinations by Volume (in %share) (2015-2022)
Table 9: Mexico Beer Export Destinations by Value (in %share) (2015-2022)
Table 10: Top 10 Countries Importing Beer from Mexico, by Volume
Table 11: Top 10 Countries Importing Beer from Mexico, by Volume
Table 12: List of Companies in Mexico Beer Industry
Table 13: List of USA Companies Importing Beer from Mexico
Table 14: Industry Recent Developments
Table 15: Key Companies involved in Global Beer Trade

Figure 1: Beer Harvest Seasonality Trend
Figure 2: Mexico Population Dynamics, 2022
Figure 3: Mexico Beverage Consumption Dynamics
Figure 4: Mexico: GDP Annual Growth & Exchange Rate Trend
Figure 5: Global Beer Market – An Overview
Figure 6: Mexico Beer Production Trend, 2010-2030 (Volume)
Figure 7: Mexico Beer Production Trend, 2010-2030 (Value)
Figure 8: Mexico Beer Companies Production Capacity Trend
Figure 9: Mexico Domestic Consumption of Beer, 2015-2030 (Volume)
Figure 10: Mexico Beer Supply Channel Framework
Figure 11: Beer Product Variants Available in the Market
Figure 12: Global Imports of Beer, Value (USD Million), 2015-2022
Figure 13: Mexico Beer Export, Value, 2010-2030
Figure 14: Mexico Beer Import, Volume, 2010-2030
Figure 15: Mexico Beer Export Destinations Share (by Volume), 2022
Figure 16: Mexico Beer Export Trend, by Value & Volume, 2010-2030
Figure 17: Top 10 Countries Importing Beer from Mexico, %share by Value
Figure 18: Top 10 Countries Importing Beer from Mexico, %share by Volume
Figure 19: USA Imports of Beer, by Value & Volume (2015-2022)
Figure 20: China Imports of Beer, by Value & Volume (2015-2022)
Figure 21: Japan Imports of Beer, by Value & Volume (2015-2022)
Figure 22: Mexico Beer Price Trend, Annual Average Prices, 2015-2030
Figure 23: Mexico Price Trend, Monthly Average Prices, 2015-2022