Sector Trend Analysis – Health and wellness – Packaged food and beverage trends in Mexico

Note: This report includes forecasting data that is based on baseline historical data.

Executive summary

Key health and wellness (HW) trends across the world include keeping bellies and wallets full with satiating, nutritious food and drink; arming consumers with the know-how they need to adapt their meal plans using new alternative ingredients; giving overwhelmed consumers the freedom to indulge, to treat themselves and to help them optimize their mental performance at work, home and play; also, invigorating consumers with new experiences that helps them thrive in extreme environmental conditions by invoking food and drink more as a source of optimism, innovation and connection (Mintel: Global food & drink Trends, 2023).

In Mexico, the new labelling regulation (NOM051) introduced on packaging for food and drink products that have high levels in sugar, salt and fats content, which came into effect towards the end of 2020, has served to bolster consumer concerns and resulted in a continuation of HW trends in 2021. Lower and middle-income Mexicans continued to prioritize fortified foods & beverages in the interest of receiving maximum value from economy brands in the face of continued economic stress brought on by the pandemic (Euromonitor: Health & Wellness in Mexico, 2022).

In 2021, retail sales of the Mexican HW sector totaled US$18.1 billion. Of this total, 64% accounted for HW retail food sales at US$11.6 billion with the remainder 36% in HW retail beverage products at US$6.5 billion. The HW category with the highest retail sales value was for fortified/functional (FF) food and drink products at US$10.5 billion, followed by better for you (BFY) at US$3.9 billion and naturally healthy (NH) at US$2.3 billion in 2021. Free from food products and organic food and drink products are becoming more popular amongst Mexicans with registered sales and a compound annual growth rate (CAGR) between 2016 and 2021 of US$1.3 billion (13.1%) and US$63 billion (12.0%), respectively.

According to a Mintel Global survey consisting of 1,000 responses (2022), 59% of Mexicans indicated that they look to consume more nutritious food/drink products packed with vitamins and minerals. Although, competitive pricing is a key consideration when introducing high premium quality products to the market, consumers are looking for 'value-added' products that deliver in forms beyond low cost.

2023 – Global and Mexican food and drink trends

Consumers across the world are looking for reassurance as they continue to be challenged to adapt, with feelings of insecurity and uncertainty surrounded around increasing fluctuations in cost-of-living finances, such as food and drink products. Manufacturers are also, facing these same challenges and are trying to adjust alongside the anxious, value-conscious consumer by continuing to diversify and innovate their brand offerings that offer measurable tangible benefits from what they invest in terms of quality, premium, convenient and budget-friendly products. Consumers are looking for 'value-added' products that go beyond affordable, low prices, where they want satiating, yet nutritious food and drink, while also having the freedom to indulge in new experiences, including the choice between versatile options that help optimize one's health and well-being throughout all life occasions.^{Footnote 1}

To better connect with overwhelmed, fatigued consumers, on-pack product communication should be streamlined to focus on a few specific key health claim benefits in order to remain as a more trustworthy brand. Amongst, the countries with the highest inflation in mid-2022 (including Brazil, Canada, Italy, South Korea), key health claims such as immune support, healthy heart or digestive health benefits and the usage of natural health-boosting ingredients over fortified ones are factors that are often more important than low price offerings. In a Mintel Global Consumer survey, 59% of Mexicans (over 1,000 users) indicated that they look to consume more nutritious food/drink products packed with vitamins and minerals over seeking more affordable options (23%).^{Footnote 1}

'Better-for-us' will become the new 'better-for-you' for ethical consumers that expect that health products considered for 'luxury' should not be restricted to those with high disposable incomes. Food insecurities and exposed inequalities across global and local food systems have only heightened during the pandemic, forcing a shift toward community-led solutions - and moving away from power monopolies that have driven food systems in the past. Manufacturers are forced to address sustainable issues beyond storage and processing factors; to also, protect the factors that impact the nutritional value of food from farm to table by devoting resources to improve soil health, growing conditions (water stewardship, CO₂ levels, pollution), crop genetics, post-harvest nutrient degradation and climate change - to name a few.^{Footnote 1}

Consumers are still cooking at home frequently, but more recently, rising food costs due to inflation, export/food supply issues and the looming threat of a global recession have put more pressure on consumers' abilities to obtain, prepare and maximize their groceries. Brands will need to help consumers become more flexible in the kitchen, both to optimize the usage of alternative, cheaper ingredients and to find new ways to cook with them. Brands have the opportunity to help consumers gain confidence and put them in control when practicing flexibility, by arming them with the 'know how' guidance and support, while offering versatile ways to incorporate new ingredients and transforming traditional recipes in new ways. Now more important than it was pre-pandemic, brands can enhance the experience of at-home consumption, by building food and drink into self-care regimens, and transforming the experience from a guilty pleasure to a necessary coping mechanism - whereby lower than global average, 22% of 1,000 Mexican respondents indicated that they like to relieve stress by eating comforting foods and 27% like to pamper themselves (that is, taking relaxing baths/showers, in-home facials).^{Footnote 1}

Health and wellness sector – market overview

Overall, the HW Mexican sector reached a retail sales value of US$18.1 billion in 2021, which has increased at a CAGR of 6.5% (2016-2021) and a forecast CAGR of 6.4% (2021-2026). A total of 64% were HW packaged food products at a sales value of US$11.6 billion, with the FF category representing the highest market share at 66.3%, followed by BFY (11.7%), free from (11.3%), NH (10.5%) and organic (0.3%) in 2021.

The remainder 36% of HW non-alcoholic beverages reached sales of US$6.5 billion, which are thriving the most from within the FF (43.6%), BFY (39.4%), NH (16.7%), and organic ( 0.3%) related drink categories in 2021.

Retail sales in Mexico of HW packaged food and beverage products, historical and forecast using fixed 2022 exchange rate, US$ millions

Category	2016	2021	CAGR* % 2016-2021	2022	2026	CAGR* % 2021-2026
Total - Health and wellness food and drink by type	13,231.6	18,093.4	6.5	19,246.3	24,688.4	6.4
Better for you (BFY)	2,877.3	3,918.7	6.4	4,164.0	5,351.5	6.4
Fortified / functional (FF)	8,004.5	10,509.2	5.6	11,115.2	13,795.1	5.6
Free from	705.9	1,303.9	13.1	1,421.6	2,074.4	9.7
Naturally healthy (NH)	1,608.3	2,298.7	7.4	2,475.0	3,361.0	7.9
Organic	35.7	63.0	12.0	70.6	106.5	11.1
Source: Euromonitor, 2022 *CAGR: Compound Annual Growth Rate

Description of this image follows. — **Health and wellness food and drink sales in 2021**

	Value (US$ million)	Market share (%)
Better for you (BFY)	3,918.7	21.7
Fortified / functional (FF)	10,509.2	58.1
Free from	1,303.9	7.2
Naturally healthy (NH)	2,298.7	12.7
Organic	63.0	0.3

Health and wellness packaged food products

Retail sales in Mexico of HW packaged food products, historical and forecast using fixed 2022 exchange rate, US$ millions

Category	2016	2021	CAGR* % 2016-2021	2022	2026	CAGR* % 2021-2026
Total - Health and wellness packaged food by type	8,298.5	11,573.9	6.9	12,315.9	15,752.8	6.4
Better for you (BFY)	881.0	1,349.0	8.9	1,439.8	1,894.2	7.0
Fortified / functional (FF)	5,857.7	7,668.7	5.5	8,096.3	9,892.1	5.2
Free from	705.9	1,303.9	13.1	1,421.6	2,074.4	9.7
Naturally healthy (NH)	833.0	1,212.1	7.8	1,312.4	1,820.6	8.5
Organic	20.9	40.2	14.0	45.8	71.5	12.2
Source: Euromonitor, 2022 *CAGR: Compound Annual Growth Rate

Health and wellness beverages products

Non-alcoholic HW beverages fall under both hot drink (coffee, tea, other) and soft drink categories such carbonates, energy/sport drinks, fruit or vegetable juices or powders concentrations, functional drinks, iced/ready-to-drink (RTD) coffee or tea drinks, enhanced/flavored bottled water combinations, and Asian specialty drinks.

Retail sales in Mexico of health and wellness beverage products, historical and forecast using fixed 2022 exchange rate, US$ millions

Category	2016	2021	CAGR* % 2016-2021	2022	2026	CAGR* % 2021-2026
Total - Health and wellness beverages by type	4,933.2	6,519.5	5.7	6,930.3	8,935.7	6.5
Better for you (BFY)	1,996.3	2,569.7	5.2	2,724.2	3,457.3	6.1
Fortified / functional (FF)	2,146.9	2,840.5	5.8	3,018.8	3,903.0	6.6
Naturally healthy (NH)	775.3	1,086.5	7.0	1,162.5	1,540.4	7.2
Organic	14.7	22.8	9.2	24.8	35.0	8.9
Source: Euromonitor, 2022 *CAGR: Compound Annual Growth Rate

Competitive analysis – Health and wellness packaged food and beverages

In 2021, Coca Cola with a Mexican market share of 10.5% and Nestlé SA (9%) were set to see share growth in the HW space as they tapped into a great consumer demand for reduced-calorie and naturally healthy products. Coca-Cola leads in HW beverages with its Coca-Cola Sin Azúcar (Zero Sugar) continuing to make strong gains during the year, which is a brand targeted by the company to provide healthier options and actively tries to redirect consumers from regular Coca-Cola (whose price is also elevated by added taxes). Meanwhile, the Mexican multinational, Grupo Bimbo with a market share of 13.7% in 2021, leads in the HW packaged food segment with its national coverage, well-positioned brands, and efficient distribution network.^{Footnote 2}

"Back to local" is an important trend, which is increasing in visibility and gaining some traction in Mexico. Many coffee brands are looking to promote organic products to support the local coffee industry. During the year, the rationalization strategy implemented in 2020 by many companies has been replaced by products launched with consumers' willingness-to-pay in mind. Motivation for the move towards new product development was further strengthened by the implementation of the new labelling regulation - requiring companies to place black octagonal seals on products that contain excess of sugar, calories, sodium, or fat.^{Footnote 2}

Top 5 companies (associated brands) in health and wellness products in Mexico, 2021 retail value sales (US$ million) and market share (%) - fixed 2021 exchange rate

Company	Brand(s)	Retail sales (US$ million)	Market share in 2021
Grupo Bimbo SAB de CV	Bimbo, Marinela, Tía Rosa, Barcel, Lara, Milpa Real, Wonder	2,482.7	13.7
The Coca-Cola Company	Diet Coke, Powerade, Coca-Cola Zero Sugar, Ciel, Glacéau VitaminWater, Santa Clara, Del Valle, Ades, Sprite Zero	1,908.2	10.5
Nestlé SA	Nido, Nan, Sveltesse, Santa Maria, Nescafé, Gerber, Nesquik, Carnation, Nature's Heart, Chamyto, Chiquitin, S Pellegrino	1,631.8	9.0
PepsiCo Inc.	Gamesa, Gatorade, Lay's, Quaker, Diet Pepsi, Mafer, Be-Light, H2OH!, Maizoro, Diet 7-Up	1,223.5	6.8
Mondelez International Inc.	Trident/Dirol, Tang, Clorets, Halls, Clight	1,040.7	5.8
Private label	Private label	148.4	0.8
Others	Others	2,205.6	12.2
Total - market share		21,161.5	100.0
Source: Euromonitor, 2022

Better for you – packaged food and beverage category

To qualify for inclusion in the BFY product category, the 'less healthy' element of foodstuff needs to have been actively removed or substituted during the processing stage. Products most likely to be included in this BFY positioning/marketing claim will be those which are low-fat or low-sugar versions of standard products (that is, reduced fat mayonnaise/cheese/milk or reduced sugar confectionery etc). NH drinks contain categories of packaged/flavored/enhanced water, fruit powders, juices and nectars.

Market sizes: Better for you

In Mexico, better for you (BFY) packaged food (US$1.3 billion) and drink (US$2.6 billion) products reached a retail sales value of US$3.9 billion in 2021. The BFY - reduced fat in the food category had the largest sales (mostly dairy) at US$749.8 million, followed by BFY - reduced salt (butter and spreads) at US$403.7 million, and BFY - reduced/no sugar products at US$195.5 million (mostly confectionery) in 2021. BFY sub-categories with the highest CAGRs (2016-2021) were reduced fat sauces, dressings and condiments (12.2%) and ice cream (11.4%), along with reduced sugar yogurt (21%) and spreads, excluding honey (11.5%).

Retail sales of 'better for you' products in Mexico by sub-category, historic fixed 2021 exchange rate, US$ millions

Category	2016	2017	2018	2019	2020	2021
Total - Better for you food and drink by type	2,877.3	3,073.8	3,283.9	3,494.2	3,743.2	3,918.7
Better for you - packaged food	881.0	981.8	1,055.7	1,137.3	1,301.4	1,349.0
Better for you - reduced fat	484.7	528.5	575.6	621.6	708.6	749.8
Dairy	372.3	400.8	431.9	462.8	531.9	550.8
Ice cream	8.9	9.3	10.4	11.2	13.3	15.3
Sauces, dressings and condiments	103.5	118.5	133.3	147.5	163.5	183.7
Better for you - reduced salt (butter and spreads)	256.2	287.6	303.5	328.7	412.3	403.7
Better for you - reduced/no sugar	140.0	165.6	176.7	187.0	180.5	195.5
Confectionery (including sugar-free gum)	106.7	112.9	119.1	126.1	115.3	125.8
Spreads (excluding honey)	5.0	5.7	6.3	6.9	7.6	8.6
Sweet biscuits	11.5	12.6	13.9	14.9	16.2	17.3
Yoghurt	16.9	34.5	37.3	39.1	41.3	43.8
Better for you - beverages	1,996.3	2,092.0	2,228.2	2,357.0	2,441.8	2,569.7
Better for you - reduced caffeine	147.4	157.5	164.3	166.2	170.3	172.9
Better for you - reduced sugar	1,848.9	1,934.4	2,063.8	2,190.7	2,271.5	2,396.8
Source: Euromonitor International, 2022

Retail sales growth (%) of 'better for you' products in Mexico by sub-category, historic

Category	Annual growth % 2021/2020	CAGR* % 2016-2021	Total growth % 2016-2021
Total - Better for you food and drink by type	4.7	6.4	36.2
Better for you - packaged food	3.7	8.9	53.1
Better for you - reduced fat	5.8	9.1	54.7
Dairy	3.6	8.1	47.9
Ice cream	15.0	11.4	71.9
Sauces, dressings and condiments	12.4	12.2	77.5
Better for you - reduced/no salt (butter and spreads)	−2.1	9.5	57.6
Better for you - reduced sugar	8.3	6.9	39.6
Confectionery (including sugar-free gum)	9.1	3.3	17.9
Spreads (excluding honey)	13.2	11.5	72.0
Sweet biscuits	6.8	8.5	50.4
Yoghurt	6.1	21.0	159.2
Better for you - beverages	5.2	5.2	28.7
Better for you - reduced caffeine	1.5	3.2	17.3
Better for you - reduced sugar	5.5	5.3	29.6
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Retail sales of 'better for you' products in Mexico by sub-category, forecast fixed 2021 exchange rate, US$ millions

Category	2021	2022	2023	2024	2025	2026
Total - Better for you food and drink by type	3,918.7	4,164.0	4,426.6	4,710.9	5,017.8	5,351.5
Better for you - packaged food	1,349.0	1,439.8	1,540.7	1,648.7	1,765.8	1,894.2
Better for you - reduced fat	749.8	801.9	859.4	921.0	988.5	1,062.9
Dairy	550.8	581.8	617.3	655.9	698.6	746.8
Ice cream	15.3	16.5	17.9	19.3	21.0	22.8
Sauces, dressings and condiments	183.7	203.6	224.3	245.8	268.9	293.3
Better for you - reduced salt (butter and spreads)	403.7	425.2	451.3	480.2	511.6	546.2
Better for you - reduced/no sugar	195.5	212.7	230.0	247.4	265.7	285.1
Confectionery (including sugar-free gum)	125.8	137.7	149.8	162.0	174.8	188.6
Spreads (excluding honey)	8.6	9.6	10.7	11.8	12.9	14.2
Sweet biscuits	17.3	18.8	20.2	21.7	23.1	24.7
Yoghurt	43.8	46.6	49.3	52.0	54.8	57.6
Better for you - beverages	2,569.7	2,724.2	2,886.0	3,062.3	3,252.0	3,457.3
Better for you - reduced caffeine	172.9	178.9	185.4	191.8	198.5	205.1
Better for you - reduced sugar	2,396.8	2,545.3	2,700.6	2,870.5	3,053.5	3,252.1
Source: Euromonitor International, 2022

Retail sales growth (%) of 'better for you' products in Mexico by sub-category, forecast

Category	Annual growth % 2022/2021	CAGR* % 2021-2026	Total growth % 2021-2026
Total - Better for you food and drink by type	6.3	6.4	36.6
Better for you - packaged food	6.7	7.0	40.4
Better for you - reduced fat	6.9	7.2	41.8
Dairy	5.6	6.3	35.6
Ice cream	7.8	8.3	49.0
Sauces, dressings and condiments	10.8	9.8	59.7
Better for you - reduced salt (butter and spreads)	5.3	6.2	35.3
Better for you - reduced/no sugar	8.8	7.8	45.8
Confectionery (including sugar-free gum)	9.5	8.4	49.9
Spreads (excluding honey)	11.6	10.5	65.1
Sweet biscuits	8.7	7.4	42.8
Yoghurt	6.4	5.6	31.5
Better for you - beverages	6.0	6.1	34.5
Better for you - reduced caffeine	3.5	3.5	18.6
Better for you - reduced sugar	6.2	6.3	35.7
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Competitive landscape – better for you

Leading packaged food companies in Mexico and top brands in the BFY category in 2021, include Nestlé SA (Sveltesse, Carnation) at a market share of 18.4% (US$248.4 million), Cremería Americana SA de CV (Gloria, La Abuelita) at 12.4% (US$166.7 million), and Ganaderos Productores de Leche Pura SA de CV (Alpura) at 10.2% (US$137.9 million).

The Coca-Cola company (top brands: Coke, Ciel, Sprite) dominates within the BFY beverage category at a market share of 45.5% (US$1.2 billion), followed by Le Groupe Danone (Levité) at 24.3% (US$623.8 million), and PepsiCo Inc. (Pepsi Max, Be-Light, H2OH!, 7Up) at 9.7% (US$249.8 million) in 2021.

Top 5 companies (associated brands) of 'better for you' products in Mexico, 2021 retail value sales (US$ million) and market share (%) - fixed 2022 exchange rate

Category	Company	Brand(s)	Retail sales (US$ million)	Market share in 2021
Better for you - packaged food	Nestlé SA	Sveltesse, Carnation	248.4	18.4
	Cremería Americana SA de CV	Gloria, La Abuelita	166.7	12.4
	Ganaderos Productores de Leche Pura SA de CV	Alpura	137.9	10.2
	Sigma Alimentos SA de CV	Noche Buena, Eugenia	124.1	9.2
	Unifoods SA de CV	Chipilo, Breyers, Holanda	102.5	7.6
	Others	Others	194.6	14.4
	Total - market share		1,349.0	100.0
Better for you - beverages	The Coca-Cola Co.	Coke, Ciel, Sprite, Fuze Tea, Fresca, Lift	1,170.2	45.5
	Groupe Danone	Levité	623.8	24.3
	PepsiCo Inc.	Pepsi (Max), Be-Light, H2OH!, 7-Up	249.8	9.7
	Nestlé SA	Nescafé, Taster's Choice, Nestea	125.8	4.9
	Mondelez International Inc.	Tang, Clight	114.4	4.5
	Private label	Private label	12.1	0.5
	Others	Others	205.3	8.0
	Total - market share		2,569.7	100.0
Source: Euromonitor, 2022

Product launch analysis – better for you

According to Mintel, there were approximately 6,599 new BFY food products launched (including new variety/range extension, packaging, formulation or relaunched) within Mexico between January 2017 and December 2022. These minus food products contained claims such as low/no/reduced (saturated or trans) fat; low/no/reduced calories, cholesterol, sodium, carbs, glycemic; no added sugar or sugar free; diet/light and not pasteurized. During this same period there were 1,605 minus 'BFY' related drink products launched in the Mexican market.

Product	2017	2018	2019	2020	2021	2022
Food (6,599)	1,275	1,216	1,182	1,118	916	892
Drinks (1,605)	313	299	236	252	265	240

Top sub-categories (brands) within the BFY food category with new product launches in Mexico (2017 to 2022) were sweet biscuits/cookies (Sweetwell), white milk (Lala Deslactosada/Lala 100), corn-based snacks (Doritos Nacho), potato snacks (Sabritas) and flavoured milk (Lala Yomi/Lala 100).

Top brands of 'better for you' food product launches in Mexico, displaying number of products in top sub-categories (2017 to 2021)

Top 10 - Better for you sub-category	Top 50 brands launched (product item count)	Number of products in sub-category
Sweet biscuits / cookies	Sweetwell (20), Don't Worry (18), D'Meals (10), H-E-B Select Ingredients, Okko Super Foods (5), (6), Great Value (3), Granvita (3), I Am(aranth) (2), Sanissimo (1)	411
White milk	Lala - Deslactosada/100 (61), Alpura (26), Sello Rojo (24), Santa Clara (17), Valley Foods (8), Kirkland Signature (6), Great Value (4), Selecto Brand (3), H-E-B Select Ingredients (2), Member's Mark (2), 7-Select (2), Lyncott (2)	312
Corn-based snacks	Doritos Nacho (17), Nopalia (15), I Am(aranth) (5), Sanissimo (4), Nutrisa (4), H-E-B Select Ingredients (2), Hill Country Fare (1), Member's Mark (1), Yema & Co (1)	287
Potato snacks	Sabritas (55), Ruffles (18), 7-Select (14), Selecto Brand (8), H-E-B Select Ingredients (6), Great Value (3), Yema & Co (1), I Am(aranth) (1)	254
Flavoured milk	Lala Yomi/100 (41), Alpura Vaquitas (35), Santa Clara (30), Hershey's (29), Great Value (13), Sello Rojo (8), Alpura (3), Valley Foods (2), 7-Select (2)	252
Bread & bread products	Sanissimo (7), Nopalia (4), Great Value (3), Yema & Co (2), Valley Foods (1)	239
Snack / cereal / energy bars	Kellogg's Special K (15), Sweetwell (6), Don't Worry (6), Kirkland Signature (4), Okko Super Foods (4), Yema & Co. (2), Granvita (1), I Am(aranth) (1)	239
Plant based drinks (dairy alternatives)	Silk (28), AdeS (27), Nature's Heart (17), Kirkland Signature (5), Member's Mark (5), Great Value (4), Valley Foods (4), H-E-B (4), Granvita (3)	217
Cold cereals	Kellogg's Special K (18), Granvita (13), H-E-B Select Ingredients (1), Nature's Heart (1), I Am(aranth) (1), Nutrisa (1)	192
Spoonable yogurt	Chobani (26), H-E-B Select Ingredients (12), Santa Clara (7), Alpura (4), Lyncott (4), Kirkland Signature (2), Lala (1)	181
Total sample size		6,599
Source: Mintel, 2022

Between January 2017 and December 2022, among a sample size of 1,605 new products, top brands launched within the BFY non-alcoholic drink category were Coca-Cola (Sin Azúcar/Light), Tang, Bonafont Kids, V8 Splash and Great Value.

Popular claims associated with BFY food and beverage new product launches over the last six-year period were low/no/reduced allergen or fat, free from or no additives/artificial preservatives, Kosher, gluten free, vitamin/mineral plus, low/no/reduced calorie, no added sugar, and low/no/reduced transfat.

Product examples – better for you

Strawberry Pie Donuts

Source: Mintel, 2022

Company	Yadira Rivera Zapata
Brand	Keto Fitness
Sub-category	Bakery, cake, pastries and sweet goods
Country	Manufactured in Mexico, not imported
Related claims	Low / no / reduced calorie, fat or allergens, diabetic, gluten free, high/added protein
Store type	Mass merchandise / hypermarket, Mexico City 03310
Launch type	New product
Date published	December 2022
Price in US dollars	7.45

This product retails in a 120 gram pack containing two units. Contains excess amounts of saturated fat, and contains sweeteners according to the Mexican Health Secretariat. High in proteins. Baked artisan donut filled with cream cheese and natural strawberry jam. With added protein and monk fruit sweetener. Healthy snack with 11.7 grams of proteins - 4.7 gram of net carbs. Reduced total fat and calories comparing to similar products. Suitable for controlled diabetics and non-coeliac gluten intolerance.

Adobo Hot Flavored Potato Chips

Source: Mintel, 2022

Company	Operadora de Ciudad Juárez
Brand	S-Mart (private label)
Sub-category	Snacks, potato snacks
Country	Manufactured in Canada, market Mexico
Related claims	Gluten free, low / no / reduced transfat and Allergens
Store type	Supermarket
Launch type	New product
Date published	September 2022
Price in US dollars	1.61

This new product retails in a 141.75 gram pack. It is high in calories and sodium, according to the Secretariat of Health for Mexico- Naturally gluten-free - 0% trans fats. Also, available in cheddar and sour cream, sour cream and onion, and classic or wavy original flavoured potato chips.

Rainbow Unicorn Flavored Energy Drink

Source: Mintel, 2022

Company	Bang Energy
Brand	Bang
Sub-category	Sports and energy drink, energy drinks
Country	Manufactured in United States, market Mexico
Related claims	No additives / preservatives, low / no / reduced calorie and carb, antioxidant, functional – brain and nervous system / energy, sugar free, free from added / artificial colourings
Store type / location	Specialist retailer Mexico City 03600
Launch type	New product
Date published	December 2022
Price in US dollars	3.36

This new product retails in a 473 millilitres pack. Contains super creatine - Ultra CoQ10- EAA amino acids, natural flavors and stable aqueous amide-protected bioactive creatine species. Powers one up- by the makers of the legendary Redline Energy products. Potent brain and body fuel, with super creatine, caffeine. Zero carbohydrates, sugar, calories and artificial colors.

Fortified / functional – packaged food and beverage categories

When identifying FF products, focus is on products to which health ingredients or/and nutrients have been added, as well as, brands that are positioned to deliver certain functionality. To be included here the enhancement has to be highlighted in the label or hold a health/nutritional claim. FF food and beverages provide health benefits beyond their nutritional value and/or the level of added ingredients wouldn't normally be found in that product and merits inclusion only when the product was actively fortified/enhanced during production. For example healthy products such as 100% fruit/vegetable juices are only added under FF, if additional health ingredients have been added like calcium, omega-3 etc.

Market sizes – fortified / functional

In Mexico, FF packaged food (US$7.7 billion) & drink (US$2.8 billion) products reached a retail sales value of US$10.5 billion in 2021. The largest sales occurred in the FF soft drink category at US$2.6 billion, followed by FF dairy at US$2.3 billion, and FF bread at US$1.6 billion in 2021.

All FF food and drink products registered moderate growth between 2016 and 2021. Categories with the highest CAGRs (between 6-7%) during this period were FF sport drinks, FF bread, FF sweet biscuits, FF snack bars, and FF dairy. FF energy drinks (10%), FF sports drinks (7.9%), and FF milk baby formula (7.9%) are expected to grow the most between the forecast period (2021-2026).

Retail sales of 'fortified / functional' products in Mexico by sub-category, historic fixed 2022 exchange rate, US$ millions

Category	2016	2017	2018	2019	2020	2021
Total - fortified / functional food and drink by type	8,004.5	8,602.8	9,130.5	9,582.7	10,063.4	10,509.2
Fortified / functional - packaged food	5,857.7	6,283.2	6,660.2	6,957.6	7,368.7	7,668.7
Breakfast cereals	629.6	666.7	709.9	741.8	795.3	827.0
Bread	1,215.0	1,306.9	1,390.3	1,447.6	1,627.9	1,633.0
Confectionery	549.5	593.0	634.4	664.7	589.7	636.1
Dairy	1,803.5	1,920.8	2,019.2	2,100.6	2,240.1	2,340.2
Milk baby formula	650.3	694.7	731.2	763.7	795.9	841.9
Prepared baby food	74.1	81.0	86.8	92.1	96.8	103.1
Sweet biscuits	699.5	760.5	809.7	854.0	917.1	966.6
Snack bars	236.0	259.5	278.5	293.2	305.9	320.8
Fortified / functional - beverages	2,146.9	2,319.5	2,470.3	2,625.2	2,694.7	2,840.5
Hot drinks	231.9	242.5	234.7	242.6	250.9	264.6
Fortified / functional - soft drinks	1,915.0	2,077.0	2,235.6	2,382.6	2,443.8	2,575.9
Energy drinks	432.3	444.7	503.0	547.9	524.5	546.8
Sports drinks	437.2	488.3	529.8	566.6	550.4	613.0
Other soft drinks	1,045.5	1,144.0	1,202.9	1,268.2	1,368.9	1,416.1
Source: Euromonitor International, 2022

Retail sales growth (%) of 'fortified / functional' products in Mexico by sub-category, historic

Category	Annual growth % 2021/2020	CAGR* % 2016-2021	Total growth % 2016-2021
Total - fortified / functional food and drink by type	4.4	5.6	31.3
Fortified / functional - packaged food	4.1	5.5	30.9
Breakfast cereals	5.8	5.3	29.5
Bread	6.5	6.8	39.1
Confectionery	4.0	5.6	31.4
Dairy	0.3	6.1	34.4
Milk baby formula	7.9	3.0	15.8
Prepared baby food	4.5	5.3	29.8
Sweet biscuits	5.4	6.7	38.2
Snack bars	4.9	6.3	35.9
Fortified / functional - beverages	5.4	5.8	32.3
Hot drinks	5.5	2.7	14.1
Fortified / functional - soft drinks	5.4	6.1	34.5
Energy drinks	4.3	4.8	26.5
Sports drinks	11.4	7.0	40.2
Other soft drinks	3.4	6.3	35.4
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Retail sales of 'fortified / functional' products in Mexico by sub-category, forecast fixed 2022 exchange rate, US$ millions

Category	2021	2022	2023	2024	2025	2026
Total - fortified / functional food and drink by type	10,509.2	11,115.2	11,722.9	12,360.6	13,052.7	13,795.1
Fortified / functional - packaged food	7,668.7	8,096.3	8,505.9	8,928.5	9,393.5	9,892.1
Breakfast cereals	841.9	890.4	938.4	988.2	1,041.7	1,099.1
Bread	103.1	109.8	116.6	123.9	131.6	140.0
Confectionery	827.0	846.5	867.5	895.7	933.8	979.8
Dairy	1,633.0	1,721.8	1,811.0	1,904.6	2,004.7	2,115.2
Milk baby formula	636.1	694.6	752.0	810.5	869.0	931.2
Prepared baby food	2,340.2	2,461.1	2,563.3	2,662.7	2,779.7	2,898.7
Sweet biscuits	966.6	1,032.2	1,097.1	1,161.9	1,228.9	1,298.4
Snack bars	320.8	339.9	360.0	381.1	404.1	429.6
Fortified / functional - beverages	2,840.5	3,018.8	3,217.0	3,432.0	3,659.2	3,903.0
Hot drinks	264.6	262.7	267.5	272.7	277.7	283.0
Fortified / functional - soft drinks	2,575.9	2,756.2	2,949.5	3,159.4	3,381.5	3,620.0
Energy drinks	546.8	595.1	655.2	728.2	802.2	880.2
Sports drinks	613.0	670.0	724.3	777.3	834.3	895.5
Other soft drinks	1,416.1	1,491.0	1,570.1	1,653.8	1,745.0	1,844.3
Source: Euromonitor International, 2022

Retail sales growth (%) of 'fortified / functional' products in Mexico by sub-category, forecast

Category	Annual growth % 2022/2021	CAGR* % 2021-2026	Total growth % 2021-2026
Total - fortified / functional food and drink by type	5.8	5.6	31.3
Fortified / functional - packaged food	5.6	5.2	29.0
Breakfast cereals	5.8	5.5	30.5
Bread	6.5	6.3	35.8
Confectionery	2.4	3.4	18.5
Dairy	5.4	5.3	29.5
Milk baby formula	9.2	7.9	46.4
Prepared baby food	5.2	4.4	23.9
Sweet biscuits	6.8	6.1	34.3
Snack bars	6.0	6.0	33.9
Fortified / functional - beverages	6.3	6.6	37.4
Hot drinks	−0.7	1.4	7.0
Fortified / functional - soft drinks	7.0	7.0	40.5
Energy drinks	8.8	10.0	61.0
Sports drinks	9.3	7.9	46.1
Other soft drinks	5.3	5.4	30.2
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Competitive landscape – fortified / functional

Leading packaged food companies in Mexico and top brands in the FF category in 2021, include Grupo Bimbo SAB de CV (Bimbo, Marinela, Tía Rosa) at a market share of 30.3% (US$2.3 billion), Nestlé SA (Nido, Nan, Gerber) at 10.7% (US$820.8 million), and The Kellogg Company (Zucaritas, Choco Krispies, Corn Flakes) at 8.8% (US$676.9 million). Private labels accounted for a sales share of 0.9% (US$71.5 million) in 2021.

In 2021, leading FF beverage companies (top brands) in Mexico included The Coca-Cola company (Powerade, Burn, Ciel) at a 15.5% market share (US$441.1 million), followed by Grupo Nutresa SA (Zuko) at 10.8% (US$307.5 million), and Modelez International Inc. (Tang, Clight) at 10.7% (US$303.9 million).

Top 5 companies (associated brands) of 'fortified / functional' products in Mexico, 2021 retail value sales (US$ million) and market share (%) - fixed 2022 exchange rate

Category	Company	Top brand(s)	Retail sales (US$ million)	Market share in 2021
Fortified / functional - packaged food	Grupo Bimbo SAB de CV	Bimbo, Marinela, Tía Rosa, Milpa Real	2,325.0	30.3
	Nestlé SA	Nido, Nan, Gerber, Chamyto, Chiquitin	820.8	10.7
	Kellogg Company	Zucaritas, Choco Krispies, Corn Flakes	676.9	8.8
	Mondelez International Inc.	Trident/Dirol, Clorets, Halls	597.3	7.8
	Grupo Lala SAB de CV	Lala, Nutri Leche, Mi Leche	392.8	5.1
	Private label	Private label	71.5	0.9
	Others	Others	642.8	8.4
	Total - market share		7,668.7	100.0
Fortified / functional - beverages	The Coca-Cola Company	Powerade, Burn, Ciel, Gladiator	441.1	15.5
	Grupo Nutresa SA	Zuko	307.5	10.8
	Mondelez International Inc.	Tang, Clight	303.9	10.7
	PepsiCo Inc.	Gatorade, Propel	233.0	8.2
	Sociedad Cooperativa Trabajadores de Pascual SCL	Boing	216.9	7.6
	Others	Others	235.3	8.3
	Total - market share		2,840.5	100.0
Source: Euromonitor, 2022

Product launch analysis – fortified / functional

According to Mintel, there were approximately 5,502 new fortified / functional food products launched (including new variety/range extension, packaging, formulation or relaunched) within Mexico between January 2017 and December 2022. These products contained either fortified (food plus) claims (added calcium, high/added fiber or protein, stanols/sterols, vitamin/mineral fortified) or functional claims (antioxidant, functional: bone health, brain & nervous system, cardiovascular, digestive, energy, eye health, immune system, other; slimming, stress and sleep, weight and muscle gain, high satiety, prebiotic, probiotic).

During this same period there were 1,748 fortified / functional related drink products launched in the Mexican market.

Product	2017	2018	2019	2020	2021	2022
Food (5,502)	1,046	1,006	986	883	862	719
Drinks (1,748)	294	360	285	218	287	304

According to new product launches in Mexico (2017 to 2022), top sub-categories (brands) within the FF food category were cold cereals (Kellogg's - Zucaritas/Choco Krispis), white milk (Lala), snack/cereal/ energy bars (Berry Nuts), sweet cookies & biscuits (Garmesa Marias) and pasta (La Moderna).

Top brands of 'fortified / functional' food product launches in Mexico, displaying number of products for top sub-categories (2017 to 2022)

Top 10 - fortified / functional sub-category	Top 50 brands launched (product item count)	Number of products in sub-category
Cold cereals	Kellogg's - Zucaritas (30)/Choco Krispis (30)/Special K (20)/Fruit Loops (15)/All- Bran (9), Great Value (16), Nestlé - Cheerios (18)/Nesquik (14), Quaker (6), Valley Foods (4), H-E-B Select Ingredients (2), Aurrera (1), Okko Super Foods (1)	586
White milk	Lala (47) - Deslactosada (27)/100 (20), Alpura (27), Sello Rojo (27), Santa Clara (25), Nutri (19), Alpura Clásica (17), Great Value (13), Kirkland Signature (7), Aurrera (6), Valley Foods (10), Hill Country Fare (2), Nestlé Carnation Clavel (2), H-E-B Select Ingredients (2), Chedraui (2)	507
Snack/cereal/energy bars	Berry Nuts (18), Kellogg's - Special K (12)/All-Bran (5)/Fruit Loops (4)/Choco Krispis (1), Okko Super Foods (4), Quaker (3), Kirkland Signature (3), Great Value (2), Valley Foods (1)	400
Sweet cookies and biscuits	Gamesa Marias (19), Quaker (5), Mister Gourmet (2), Okko Super Foods (2), Kellogg's - Zucaritas (2)/Choco Krispis (1)/Fruit Loops (1), La Moderna (1), Great Value (1)	310
Pasta	La Moderna (76), Kellogg's - Choco Krispis (33), Yemina (32), S-Mart (17), Aurrera (15), H-E-B Select Ingredients (10), Chedraui (9), Valley Foods (2)	308
Flavored milk	Santa Clara (30), Great Value (13), Nestlé Nesquik (9), Sello Rojo (8), Kellogg's - All-Bran (5), Lala 100 (3), Alpura (3), Aurrera (2), Danonino (2), Valley Foods (2), Chedraui (1), Kirkland Signature (1)	283
Plant based drinks	AdeS (41), Silk (24), Nature's Heart (16), Valley Foods (4), Kirkland Signature (4), Great Value (3)	227
Liquid yogurt/cultured milk	Danone Danonino (20), Santa Clara (16), Hill Country Fare (10), Sello Rojo (2), Lala 100 (2), Chobani (1)	193
Fruit snacks	Mister Gourmet (6), Okko Super Foods (5), Great Value (3),	159
Bread and bread products	Bimbo (20), Nopalia (4), Hill Country Fare (3), H-E-B Select Ingredients (2), Great Value (1)	157
Total sample size		5,502
Source: Mintel, 2022

Between January 2017 and December 2022, among a sample size of 1,748 new products, top brands launched within the FF non-alcoholic drink category were Tang (Sin Azúcar/Light), Zuko, Powerade ION4, Nestlé Nesquick, and Great Value.

Popular claims associated with FF food and beverage new product launches over the last six-year period were vitamin/mineral fortified, Kosher, low/no/reduced allergen/fat/lactose, no additives/preservatives, gluten free, high/added protein, functional - energy, and antioxidant.

Product examples – fortified / functional

Cheddar & Mozza Style Blend

Source: Mintel, 2022

Company / brand	Daiya Foods
Importer	Tiendas Soriana
Sub-category	Dairy, processed cheese
Country	Manufactured in Canada, market Mexico
Related claims	Added calcium, Kosher, vitamin/mineral fortified, Halal, gluten free, low/no/reduced allergen, vegan/no animal ingredients, GMO and dairy free, plant based
Store name / type	Mega Soriana, mass merchandise/hypermarket, Mexico City 01090
Launch type	New variety / range extension
Date published	November 2022
Price in US dollars	7.12

This product is now available, and retails in a 200 gram pack. Deliciously dairy-free. Cutting board collection shreds, made with chickpea. Free from soy, gluten, GMO and peanuts. Good source of calcium. Plant based. Contains excess amounts of saturated fats and sodium, according to the Secretariat of Health of Mexico. Resealable pouch and is a freezable, Vegan product. Logos and certifications: Certified plant based, certified gluten free, non-GMO; Project verified: Halal, Kosher.

Avocado Almond Milk

Source: Mintel, 2022

Company / brand	Yumma Foods/Yumma Avocado
Importer	Distribuidora Yaxche
Sub-category	Dairy, plant based drinks (dairy alternatives)
Country	Manufactured in Canada, market Mexico
Related claims	High/added fibre, vegetarian, premium, vitamin/ Mineral fortified, gluten free, low/no/reduced allergen, dairy free, no added sugar, plant based
Store name / type	La Comer, supermarket, Mexico City 03900
Launch type	New product
Date published	June 2022
Price in US dollars	4.96

This unsweetened plant-based beverage is made with premium Hass avocados, is an excellent source of fibre, and vitamins D, A and E, and contains 50 calories per serving. It is kosher-certified, vegetarian and free from added sugar, dairy, gluten and soy. This product retails in a recyclable 946 millilitre pack, bearing the FSC Mix logo.

Free from – packaged food and beverage categories

The free from category includes product claims such as free from gluten, lactose, allergens, dairy and free from meat. This excludes foods which are certified 'free' of a specific product, when this is based on use of sterilised equipment.

Market sizes – Free from

The free from market has became more popular in Mexico, which grew at a CAGR of 13.1% (2016-2021) with a packaged food retail sales value of US$1.3 billion in 2021. The largest category in the free from food sector was within the free from lactose category with sales at US$845.5 million, consisting of sub-categories such as 'free from lactose - dairy' (US$735.8 million) and the 'free from lactose - baby food' (US$109.6 million).

There were no free from drink products reported in Euromonitor within the Mexican market. The free from allergens - HA milk formula category had the highest historical growth at a CAGR of 16.2% (2016-2021) and is expected to continue to grow the most at a CAGR of 11.5% (2021-2026).

Retail sales of 'free from' products in Mexico by sub-category, historic fixed 2022 exchange rate, US$ millions

Category	2016	2017	2018	2019	2020	2021
Total - 'free from' packaged food by type	705.9	821.1	939.4	1,060.6	1,227.6	1,303.9
Free from allergens - HA milk formula	84.7	102.0	119.8	138.7	158.1	179.8
Free from dairy - milk	148.6	169.5	189.7	211.6	244.8	278.6
Free from lactose	472.5	549.5	629.8	710.3	824.6	845.5
Baby food	72.2	80.5	87.7	94.9	101.7	109.6
Dairy	400.4	469.0	542.1	615.4	723.0	735.8
Source: Euromonitor International, 2022

Retail sales growth (%) of 'free from' products in Mexico by sub-category, historic

Category	Annual growth % 2021/2020	CAGR* % 2016-2021	Total growth % 2016-2021
Total - 'free from' packaged food by type	6.2	13.1	84.7
Free from allergens - HA milk formula	13.7	16.2	112.3
Free from dairy - milk	13.8	13.4	87.5
Free from lactose	2.5	12.3	78.9
Baby food	7.8	8.7	51.8
Dairy	1.8	12.9	83.8
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Retail sales of 'free from' products in Mexico by sub-category, forecast fixed 2022 exchange rate, US$ millions

Category	2021	2022	2023	2024	2025	2026
Total - 'free from' packaged food by type	1,303.9	1,421.6	1,559.0	1,711.1	1,883.0	2,074.4
Free from allergens - HA milk formula	179.8	203.4	228.0	253.8	281.4	310.5
Free from dairy - milk	278.6	313.1	348.9	387.4	429.7	476.7
Free from lactose	845.5	905.1	982.1	1,069.9	1,172.0	1,287.1
Baby food	109.6	118.6	128.0	138.3	149.5	162.1
Dairy	735.8	786.5	854.1	931.6	1,022.5	1,125.0
Source: Euromonitor International, 2022

Retail sales growth (%) of 'free from' products in Mexico by sub-category, forecast

Category	Annual growth % 2022/2021	CAGR* % 2021-2026	Total growth % 2021-2026
Total - 'free from' packaged food by type	9.0	9.7	59.1
Free from allergens - HA milk formula	13.1	11.5	72.7
Free from dairy - milk	12.4	11.3	71.1
Free from lactose	7.0	8.8	52.2
Baby food	8.2	8.1	47.9
Dairy	6.9	8.9	52.9
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Competitive landscape – free from

Leading packaged food companies (top brands) in Mexico in the 'free from' category in 2021, include Grupo Lala SAB de CV (Lala, Vita Lala, Borden) at a market share of 19.7% (US$257.0 million), Ganaderos Productores de Leche Pura SA de CV (Alpura) at 17.2% (US$224.3 million), and Nestlé SA (Nido, Nan, Nestlé) at 12.4% (US$162.0 million).

Top 5 companies (associated brands) of 'free from' packaged food products in Mexico, 2021 retail value sales (US$ million) and market share (%) - fixed 2022 exchange rate

Company	Brand(s)	Retail sales (US$ million)	Market share in 2021
Grupo Lala SAB de CV	Lala, Vita Lala, Borden, Boulder	257.0	19.7
Ganaderos Productores de Leche Pura SA de CV	Alpura	224.3	17.2
Nestlé SA	Nido, Nan, Nestlé, Nursoy, SMA	162.0	12.4
The Coca-Cola Company	Ades, Santa Clara, Del Valle	107.6	8.3
Groupe Danone	Silk, Aptamil	94.0	7.2
Others	Others	290.2	22.3
Total - market share		1,303.9	100.0
Source: Euromonitor, 2022

Product launch analysis – free from

According to Mintel, there were approximately 1,343 new free from food products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between January 2017 and December 2022. These products contained free from ingredient claims such as caffeine, dairy, hormone or palm oil free. During this same period, there were 376 free from drink products launched.

Product	2017	2018	2019	2020	2021	2022
Food (1,343)	207	255	269	260	162	190
Drinks (376)	77	65	65	58	56	55

According to new product launches in Mexico (2017 to 2022), top sub-categories (brands) within the free from food category were poultry products (Pilgrim's), white milk (Lala - Deslactosada/Light/100/Orgánica), sweet biscuits/cookies (Sweetwell), snack/cereal/energy bars (Nature's Bakery) and plant based drinks or dairy alternatives (Nature's Heart).

Top brands of 'free from' food product launches in Mexico, displaying number of products top sub-categories (2017 to 2022)

Top 10 - free from sub-category	Top 50 brands launched (product item count)	Number of products in sub-category
Poultry products	Pilgrim's (52), Tyson (52), Bachoco (22) - Prácticos (7), Del Día Empanizados (7), Aires de Campo (6), Lala Plenia (5), Verdes Motivos (4), H-E-B Select Ingredients (2)	237
White milk	Lala (33) - Deslactosada (27) / Light (12) / 100 (10) / Orgánica (5), Kirkland Signature (4), Aires de Campo (4), Valley Foods (4), H-E-B Select Ingredients (2)	120
Sweet biscuits/ cookies	Sweetwell (18), Lenny & Larry's The Complete Cookie (10), Gaveti (5), AngelFood2 (5), I Am(aranth) (2), H-E-B Select Ingredients (2)	109
Snack/cereal/energy bars	Nature's Bakery (8), Pal's (6), Sweetwell (5), Clean & Tasty Oh Joy! (5), Smart Bites (2)	80
Plant based drinks (dairy alternatives)	Nature's Heart (6), Califia Farms (10), H-E-B - Organics (8), Valley Foods (4), Silk (4), Kirkland Signature (3)	78
Spoonable yogurt	Chobani (24), H-E-B Select Ingredients (12) / H-E-B Organics (6)	57
Meat products	Verdes Motivos (7), Green Farmers (6), Frontière (6), Verdes Motivos Cortes Básicos & Finos (6), Kirkland Signature (2), Aires de Campo (1)	42
Eggs and egg products	Seleccionado de Allende (7), Aires de Campo (3), H-E-B (2)	36
Baking ingredients and mixes	Morama (9), Cooggies (6), H-E-B Organics (3) Aires de Campo (1)	35
Dairy based ice cream and frozen yogurt	H-E-B Select Ingredients (15), Crystal Creamery (8), Kirkland Signature (2)	34
Total sample size		1,343
Source: Mintel, 2022

Between January 2017 and December 2022, among a sample size of 376 new free from hot beverage products, top brands launched within the free from non-alcoholic drink category were The London Fruit & Herb Company, Therbal, Yogi, Lifestyle Awareness, and Celestial Seasonings.

Popular claims associated with 'food minus' food & beverage new product launches over the last six-year period were low/no/reduced allergen, gluten free, hormone free, Kosher, dairy free, no additives/ preservatives, GMO free, vegan/no animal ingredients, caffeine free, and organic.

Product examples – free from

Gluten Free Meatless Pepperoni Style Pizza

Source: Mintel, 2022

Company	Daiya Foods
Brand	Daiya
Sub-category	Meals and meal centers, pizzas
Country	Manufactured in Canada, market Mexico
Related claims	High / added fibre, Premium, gluten free, low / no / reduced allergen, vegan / no animal ingredients, GMO free, dairy free, plant based
Store name / type	Soriana, mass merchandise/hypermarket, Puebla 72020
Launch type	New formulation
Date published	April 2022
Price in US dollars	11.99

This product has been reformulated with and a new and improved recipe featuring premium cutting board cheeze shreds. This plant based product is made with gourmet ingredients, and is free from GMOs, dairy, gluten and soy. This vegan pizza is a good source of fiber, and contains saturated fat and sodium excess according to the Mexican Health Secretary. It retails in a recyclable 16.7 ounce pack featuring baking instructions.

Double Chocolate Quinoa Cookies

Source: Mintel, 2022

Company / importer	Cie 2 Ameriks/Tiendas Soriana
Brand	GoGo Quinoa
Sub-category	Bakery, sweet biscuits/cookies
Country	Manufactured in Canada, market Mexico
Related claims	High / added fibre, Kosher, gluten free low / no / reduced allergen, high / added protein, GMO free, dairy free, plant based
Store name / type	Soriana Mega, supermarket, Mexico City 03730
Launch type	New packaging
Date published	August 2021
Price in US dollars	8.91

This product has been repackaged with an updated design. These plant-based cookies, according to the Secretariat of Health for Mexico, are high in calories, sugars and saturated fats. They have been made using 70% cocoa, and comprise of natural ingredients, including: royal quinoa flour, which has been harvested in the Bolivian highlands; chia seeds, which are rich in protein and fiber; and kiwicha, a small crunchy seed with a full-bodied nuttiness. These cookies are free from eggs, milk, corn, soy, nuts and peanuts, have been kosher certified and made using RSPO certified palm oil. They retail in a recyclable 165 gram pack, itself made from 100% recycled fibres and features the Certified Gluten-Free and Non GMO Project Verified logos. The pack also features a plastic-free and compostable overwrap in accordance with the manufacturer's aim to reduce plastic consumption by 2021. Also, available in chocolate chip variety.

Dairy-Free Half & Half Alternative

Source: Mintel, 2022

Company / importer	Ripple Foods/RD Amerimex
Brand	Ripple
Sub-category	Dairy, creamers
Country	Manufactured in Canada, market Mexico
Related claims	Low / no / reduced: cholesterol, allergen, lactose, and saturated fat, Kosher, gluten free, vegan / no animal ingredients, GMO free, dairy free, plant based
Store name / type	Soriana Mega, supermarket, Mexico City 03730
Launch type	New variety / range extension
Date published	March 2022
Price in US dollars	6.16

The original, plant-based product is said to be smooth and creamy, and contains no nuts, GMO, gluten, lactose, soy or carrageenan, saturated fat or cholesterol. It can be used for coffee or cooking, is claimed to be nutritious and delicious, and is made with 100% vegan pea protein. This kosher-certified product retails in a recyclable 750 millilitre pack, bearing the Certified B Corporation logo, and an excess of calories warning by the Mexican Health Secretariat.

Naturally healthy – packaged food and beverage categories

The NH category includes food and beverages on the basis of naturally containing a substance that improves health and wellbeing beyond the product's pure calorific value and are usually a healthier alternative within a certain sector/subsector. Examples include high fibre food (wholegrain/wholemeal/ brown) soy products, sour milk drinks, nuts, seeds and trail mixes, honey, fruit & nut bars, and olive oil; along with NH beverages such as 100% fruit/vegetable juice, superfruit juice, natural mineral/spring water, RTD green tea etc. Noting that NH food and beverages that are additionally fortified fall into the FF category.

Market sizes: naturally healthy

In Mexico, NH packaged food (US$1.2 billion) and NH drink (US$1.1 billion) products reached a retail sales value of US$2.3 billion in 2021. The largest sales occurred in the NH soft drink category such as bottled water and fruit/vegetable juices at US$975.5 million, followed by staples like NH nuts, seeds & trail mixes at US$558.1 million, NH - high fibre breakfast cereals at US$190.7 million, NH olive oil at US$137.7 million, and NH honey at US$127.1 million in 2021.

The NH segment benefited from the ongoing shift towards a more holistic and preventative approach to health & wellness, which is highly related with rising consumer concerns about the long-term consumption of artificial additives and an interest in natural ingredients.^{Footnote 2} All NH food and drink products registered moderate growth between 2016 and 2021 at a total CAGR of 7.4%. Categories with the highest growth during this period were NH rice (11.4%), NH - high fibre pasta (9.5%), NH hot tea drinks (9.3%), NH fruit snacks (9%), and NH honey (9%). NH cereal bars (12.9%), NH olive oil (9.4%), and NH rice (9.2%) products are expected to grow the most over the forecast period (2021-2026).

Retail sales of 'naturally healthy' products in Mexico by sub-category, historic fixed 2021 exchange rate, US$ millions

Category	2016	2017	2018	2019	2020	2021
Total - Naturally healthy food and drink by type	1,608.3	1,777.4	1,915.0	2,053.1	2,186.8	2,298.7
Naturally healthy - packaged food	833.0	926.2	1,003.8	1,077.8	1,148.8	1,212.1
Cereal bars	61.9	68.9	74.6	81.5	80.9	82.8
Fruit snacks	24.4	27.5	30.6	33.3	35.3	37.6
Honey	82.6	96.8	102.4	110.2	121.4	127.1
Nuts, seeds and trail mixes	378.2	423.3	463.9	500.9	529.5	558.1
Olive oil	92.1	102.0	109.2	115.1	126.8	137.7
Rice	4.2	4.7	5.4	5.9	6.5	7.2
Naturally healthy - high fibre packaged food	189.6	202.9	217.8	230.9	248.3	261.6
Breakfast cereals	135.9	147.1	158.0	168.0	181.5	190.7
Pasta	9.7	10.8	11.9	12.7	14.0	15.3
Sweet biscuits	44.0	45.0	48.0	50.2	52.8	55.5
Naturally healthy - beverages	775.3	851.2	911.2	975.3	1,038.0	1,086.5
Naturally healthy - hot drinks	77.8	84.0	91.4	95.6	104.0	111.1
Tea	46.5	50.6	55.8	59.2	66.7	72.4
Other hot drinks	31.4	33.4	35.6	36.4	37.3	38.7
Naturally healthy - soft drinks	697.4	767.3	819.8	879.6	934.0	975.5
Bottled water	312.7	339.8	364.5	388.2	416.8	425.5
Fruit/vegetable juice	384.7	427.5	455.3	491.4	517.2	549.9
Source: Euromonitor International, 2022

Retail sales growth (%) of 'naturally healthy' products in Mexico by sub-category, historic

Category	Annual growth % 2021/2020	CAGR* % 2016-2021	Total growth % 2016-2021
Total - Naturally healthy food and drink by type	5.1	7.4	42.9
Naturally healthy - packaged food	5.5	7.8	45.5
Cereal bars	2.3	6.0	33.8
Fruit snacks	6.5	9.0	54.1
Honey	4.7	9.0	53.9
Nuts, seeds and trail mixes	5.4	8.1	47.6
Olive oil	8.6	8.4	49.5
Rice	10.8	11.4	71.4
Naturally healthy - high fibre packaged food	5.4	6.6	38.0
Breakfast cereals	5.1	7.0	40.3
Pasta	9.3	9.5	57.7
Sweet biscuits	5.1	4.8	26.1
Naturally healthy - beverages	4.7	7.0	40.1
Naturally healthy - hot drinks	6.8	7.4	42.8
Tea	8.5	9.3	55.7
Other hot drinks	3.8	4.3	23.2
Naturally healthy - soft drinks	4.4	6.9	39.9
Bottled water	2.1	6.4	36.1
Fruit/vegetable juice	6.3	7.4	42.9
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Retail sales of 'naturally healthy' products in Mexico by sub-category, forecast fixed 2021 exchange rate, US$ millions

Category	2021	2022	2023	2024	2025	2026
Total - Naturally healthy food and drink by type	2,298.7	2,475.0	2,667.8	2,877.7	3,108.8	3,361.0
Naturally healthy - packaged food	1,212.1	1,312.4	1,422.6	1,542.5	1,675.3	1,820.6
Cereal bars	82.8	93.8	106.4	120.3	135.5	151.8
Fruit snacks	37.6	41.3	45.0	48.6	52.7	57.3
Honey	127.1	134.2	143.3	154.1	166.6	180.5
Nuts, seeds and trail mixes	558.1	607.8	661.1	718.1	780.7	848.9
Olive oil	137.7	150.3	164.3	179.7	196.9	216.0
Rice	7.2	8.0	8.7	9.5	10.3	11.2
Naturally healthy - high fibre packaged food	261.6	277.1	293.8	312.2	332.5	354.9
Breakfast cereals	190.7	200.9	212.2	224.6	238.4	253.5
Pasta	15.3	16.7	18.2	19.8	21.6	23.7
Sweet biscuits	55.5	59.4	63.4	67.8	72.5	77.8
Naturally healthy - beverages	1,086.5	1,162.5	1,245.2	1,335.2	1,433.5	1,540.4
Naturally healthy - hot drinks	111.1	118.9	127.8	137.2	147.4	158.6
Tea	72.4	77.5	83.8	90.6	98.1	106.7
Other hot drinks	38.7	41.4	44.0	46.6	49.3	51.9
Naturally healthy - soft drinks	975.5	1,043.6	1,117.4	1,198.0	1,286.1	1,381.8
Bottled water	425.5	453.6	483.1	514.2	546.5	580.2
Fruit/vegetable juice	549.9	590.0	634.4	683.8	739.7	801.6
Source: Euromonitor International, 2022

Retail sales growth (%) of 'naturally healthy' products in Mexico by sub-category, forecast

Category	Annual growth % 2022/2021	CAGR* % 2021-2026	Total growth % 2021-2026
Total - NH food and drink by type	7.7	7.9	46.2
Naturally healthy - packaged food	8.3	8.5	50.2
Cereal bars	13.3	12.9	83.3
Fruit snacks	9.8	8.8	52.4
Honey	5.6	7.3	42.0
Nuts, seeds and trail mixes	8.9	8.7	52.1
Olive oil	9.2	9.4	56.9
Rice	11.1	9.2	55.6
Naturally healthy - high fibre packaged food	5.9	6.3	35.7
Breakfast cereals	5.3	5.9	32.9
Pasta	9.2	9.1	54.9
Sweet biscuits	7.0	7.0	40.2
Naturally healthy - beverages	7.0	7.2	41.8
Naturally healthy - hot drinks	7.0	7.4	42.8
Tea	7.0	8.1	47.4
Other hot drinks	7.0	6.0	34.1
Naturally healthy - soft drinks	7.0	7.2	41.7
Bottled water	6.6	6.4	36.4
Fruit/vegetable juice	7.3	7.8	45.8
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Competitive landscape – naturally healthy

Leading packaged food companies (top brands) in Mexico in the NH category in 2021, include PepsiCo Inc. (Lay's, Barras - Quaker, Mafer) at a market share of 33.1% (US$401.0 million), Grupo Bimbo SAB de CV (Barcel, Hot Nuts) at 12.6% (US$153.0 million), and Deoleo SA (Carbonell, Carapelli, Arroz SOS) at 4% (US$48.1 million). Private labels accounted for a sales share of 15.9% (US$192.7 million) in sales value in 2021.

In 2021, leading NH beverage companies (top brands) in Mexico included Nestlé SA (Santa María, S Pellegrino) at a 16.8% market share (US$182.1 million), followed by Grupo Jumex SA de CV (Jumex, Bida) at 15.1% (US$164.0 million), and Keurig Dr Pepper Inc. (Peñafiel, Aguafiel) at 12.7% (US$138.5 million). Private label NH beverages represented 0.3% (US$3.3 million) in sales in Mexico over the year.

Top 5 companies (associated brands) of 'naturally healthy' products in Mexico, 2021 retail value sales (US$ million) and market share (%) - fixed 2021 exchange rate

Category	Company	Top brand(s)	Retail sales (US$ million)	Market share in 2021
Natually healthy - packaged food	PepsiCo Inc.	Lay's, Barras - Quaker, Mafer, Sunchips	401.0	33.1
	Grupo Bimbo SAB de CV	Barcel, Hot Nuts	153.0	12.6
	Deoleo SA	Carbonell, Carapelli, Arroz SOS	48.1	4.0
	General Mills Inc.	Nature Valley, Fiber One	34.5	2.8
	Grupo Industrial Vida SA de CV	Granvita, Cashitas, Granola Muesli	31.4	2.6
	Others	Others	56.3	4.6
	Private label	Private label	192.7	15.9
	Total - market share		1,212.1	100.0
Natually healthy -beverages	Nestlé SA	Santa María, S Pellegrino	182.1	16.8
	Grupo Jumex SA de CV	Jumex, Bida	164.0	15.1
	Keurig Dr Pepper Inc.	Peñafiel, Aguafiel	138.5	12.7
	The Coca-Cola Company	Del Valle	92.5	8.5
	Groupe Danone	Evian	82.8	7.6
	Private label	Private label	3.3	0.3
	Others	Others	218.9	20.1
	Total - market share		1,086.5	100.0
Source: Euromonitor, 2022

Product launch analysis – naturally healthy

According to Mintel, there were approximately 8,043 new natural food products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between January 2017 and December 2022. These claims were either an 'all natural', GMO free, no artificial additives (colourings, flavourings) and preservatives, organic or wholegrain products.

During this same period there were 1,326 naturally healthy related drink products launched.

Product	2017	2018	2019	2020	2021	2022
Food (8,043)	1,379	1,373	1,389	1,492	1,166	1,244
Drinks (1,326)	267	242	210	200	203	204

According to new product launches in Mexico (2017 to 2022), top sub-categories (brands) within the NH food category were cold cereals (Nestlé Cheerios), both sweet biscuits/cookies and snack/cereal/energy bars (Quaker), vegetables (La Costeña), and seasonings (Esquina González).

Top brands of 'naturally healthy' food products launched in Mexico by product item count (2017 to 2022)

Top 10 - Naturally healthy sub-category	Top 50 brands launched (product item count)	Number of products in sub-category
Cold cereals	Nestlé Cheerios (18), Granvita (14), Bob's Red Mill (9), Eat Natural Lima Limón (9), Tía Ofilia (8), Quaker (6), H-E-B Select Ingredients (2), Aires de Campo (2), Valley Foods (2), Yema & Co. (1), I Am(aranth) (1)	473
Sweet biscuit/cookies	Quaker (15), Don't Worry (11), H-E-B (5) - Select Ingredients (3)/Organics (1), Okko Super Foods (4), I Am(aranth) (3), Kirkland Signature (2), Great Value (2), Granvita (2), Yema & Co. (1)	405
Snack/cereal/energy bars	Quaker (8), Kirkland Signature (7), Eat Natural Lima Limón (7), Okko SuperFoods (6), Don't Worry (6), Bob's Red Mill (5), Granvita (4), Valley foods (3), Great Value (2), Yema & Co. (2), Aires de Campo (1), I Am(aranth) (1)	365
Vegetables	La Costeña (19), La Huerta (18), Herdez (16), Del Monte (13), Great Value (11), Global Premier (8), Isadora (5), Kirkland Signature (4), Member's Mark (4), La Sierra (4), Valley Foods (3), Eat Natural Lima Limón (3), Chata (1), Yema & Co. (1)	295
Seasonings	Esquina González (28), Intalmesa (11), H-E-B - Select Ingredients (4)/Organics (1), Valley Foods (4), Yema & Co. (3), Knorr (1), Member's Mark (1), Aires de Camp (1)	289
Baking Ingredients	Morama (12), Bob's red Mill (11), Tía Ofilia (6), Granvita (5), H-E-B - Organics (5)/Select Ingredients (1), Aires de Campo (2), Yema & Co. (2), Esquina González (2), Okko Super Foods (2), Intalmesa (2), Great Value (1), Quaker (1)	276
Bread and bread products	Nopalia (4), H-E-B Select Ingredients (2), Great Value (2), Yema & Co. (2), Valley Foods (2), Member's Mark (1)	249
Fruit snacks	Nochiola (9), H-E-B Organics (5), Okko Super Foods (4), Intalmesa (2), Kirkland Signature (1), Member's Mark (1), Yema & Co. (1), Valley Foods (1)	247
Meat products	Chata (27), Kirkland Signature (5), H-E-B (6) - Select Ingredients (1), Aires de Campo (1), Herdez (1)	228
Fish products	Marina Azul (25), Atún Dolores (21), Member's Mark (11), Herdez (5), Kirkland Signature (4), Great Value (2), Chata (1) Valley Foods (1)	212
Total sample size		8,043
Source: Mintel, 2022

Between January 2017 and December 2022, among a sample size of 1,326 new products, top brands launched within the NH drink category were Jumex, Bonafont Kids, Del Valle, Therbal, and Campo Vivo.

Popular claims associated with NH food & beverage new product launches over the last six-year period were no additives/preservatives, free from added artificial preservatives/colourings/flavourings, Kosher, low/no/reduced allergen, gluten free, all natural product, GMO free, and wholegrain.

Product examples – naturally healthy

Tzatziki and Dill Dip

Source: Mintel, 2022

Company / importer	Skotidakis Goat Farm/Primex
Brand	Skotidakis
Sub-category	Savoury spreads, dips
Country	Manufactured in Canada, market Mexico
Related claims	All natural product, Kosher
Store name / type	Costco, club store, Mexico City 01180
Launch type	New packaging
Date published	January 2022
Price in US dollars	7.51

This product has been repackaged with an updated design. This kosher certified product is described both a dip and dressing and, according to the Secretariat of Health for Mexico, is high in saturated fats. It has been made using all natural ingredients and retails in a 681 gram pack.

Total Oat

Source: Mintel, 2022

Company	Tiendas Tres B
Brand	Quick (private label)
Sub-category	Breakfast cereals, hot cereals
Country	Manufactured in Canada, market Mexico
Related claims	All natural product, wholegrain
Store name / type	Tiendas 3B, mass merchandise / hypermarket, Mexico City 03020
Launch type	New packaging
Date published	February 2022
Price in US dollars	0.58

This product has been repackaged and now retails in a newly designed 400 gram pack featuring preparation instructions. The product is a source of fiber, is described as 100% natural wholegrain oat flakes, and contains no seals or legends, according to the Secretariat of Health of Mexico.

Blueberry Herbal Tea

Source: Mintel, 2022

Company / importer	Trans-Herb/Fertre
Brand	La Cour Tisane
Sub-category	Hot beverages, tea
Country	Manufactured in Canada, market Mexico
Related claims	All natural product, Kosher, toxins free
Store name / type	City Market, supermarket, Cuernavaca 62290
Launch type	New variety / range extension
Date published	October 2022
Price in US dollars	4.43

This product retails in a 34 gram pack containing 20 1.7 gram units within freshness sealed tea bags. 100% natural herbal tea. Non-chlorine bleached white filter paper. Can be enjoyed hot or iced. Pack bearing usage directions. Logos and certifications: Kosher.

Organic – packaged food and beverage categories

Organic products are often associated with 'free-from' or 'all natural' attribute claims, including fat-free/extra lean or salt/sodium-free or 'no added' ingredients that are known to be considered as being unhealthy. Beverages within the organic category only include juice types that usually consist of all natural ingredients. Opportunity exists in Mexico to develop claims such as organic, and interest in natural products is high across all sectors, making it an important consideration for new product development.

Market sizes – Organic

As consumers have become increasingly concerned about the production processes, as well as more aware about the presence of artificial chemicals in products, the organic market has become more trusted in Mexico growing at a CAGR of 12% (2016-2021), registering organic packaged food (US$40.2 million) and drink (US$22.8 million) combined retail sales value of US$63.0 million in 2021. With the demand for organic products also supported by rising environmental consciousness, organic products looked set to see notable growth in coffee, juices, and baby food in 2021.^{Footnote 2}

The largest category in the organic sector was within the hot drink - organic coffee category with sales at US$19.6 million, followed by organic spreads (US$16.1 million) and organic ready meals (US$6.9 million).

Between 2016 and 2021, the highest growing organic categories were dairy (24.1%), baby food (19.3%), sauces, dressings and condiments (14.9%), and ready meals (13.3%). Categories forecast (2021-2026) to grow the most are organic dairy (17.6%), organic baby food (12.5%), and organic rice, pasta & noodles (12.5%) products.

Retail sales of organic products in Mexico by sub-category, historic fixed 2022 exchange rate, US$ millions

Category	2016	2017	2018	2019	2020	2021
Total - organic food and drink by type	35.7	40.6	45.7	50.2	55.9	63.0
Organic packaged food	20.9	24.1	27.3	30.5	34.8	40.2
Baby food	1.9	2.6	3.1	3.6	4.1	4.6
Dairy	1.9	2.1	2.5	3.3	4.3	5.6
Edible oil	0.8	0.9	1.0	1.1	1.2	1.3
Ready meals	3.7	4.3	4.8	5.4	6.1	6.9
Rice, pasta and noodles	0.3	0.3	0.4	0.4	0.5	0.5
Sauces, dressings and condiments	2.6	3.1	3.6	4.0	4.5	5.2
Spreads	9.7	10.7	11.8	12.7	14.1	16.1
Organic beverages	14.7	16.6	18.4	19.6	21.1	22.8
Hot drinks - coffee	12.9	14.4	16.1	17.0	18.2	19.6
Soft drinks - fruit/vegetable juice	1.9	2.2	2.4	2.7	2.9	3.2
Source: Euromonitor International, 2022

Retail sales growth (%) of organic products in Mexico by sub-category, historic

Category	Annual growth % 2021/2020	CAGR* % 2016-2021	Total growth % 2016-2021
Total - organic food and drink by type	12.7	12.0	76.5
Organic packaged food	15.5	14.0	92.3
Baby food	12.2	19.3	142.1
Dairy	30.2	24.1	194.7
Edible oil	8.3	10.2	62.5
Ready meals	13.1	13.3	86.5
Rice, pasta and noodles	0.0	10.8	66.7
Sauces, dressings and condiments	15.6	14.9	100.0
Spreads	14.2	10.7	66.0
Organic beverages	8.1	9.2	55.1
Hot drinks - coffee	7.7	8.7	51.9
Soft drinks - fruit/vegetable juice	10.3	11.0	68.4
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Retail sales of organic products in Mexico by sub-category, forecast fixed 2022 exchange rate, US$ millions

Category	2021	2022	2023	2024	2025	2026
Total - organic food and drink by type	63.0	70.6	78.9	87.6	96.7	106.5
Organic packaged food	40.2	45.8	51.9	58.1	64.6	71.5
Baby food	4.6	5.1	5.8	6.5	7.4	8.3
Dairy	5.6	7.0	8.4	9.8	11.1	12.6
Edible oil	1.3	1.4	1.6	1.7	1.8	2.0
Ready meals	6.9	7.7	8.6	9.5	10.5	11.5
Rice, pasta and noodles	0.5	0.6	0.7	0.7	0.8	0.9
Sauces, dressings and condiments	5.2	5.8	6.4	7.1	7.8	8.6
Spreads	16.1	18.1	20.5	22.8	25.2	27.6
Organic beverages	22.8	24.8	27.0	29.4	32.1	35.0
Hot drinks - coffee	19.6	21.2	23.0	25.0	27.1	29.4
Soft drinks - fruit/vegetable juice	3.2	3.6	4.0	4.4	5.0	5.6
Source: Euromonitor International, 2022

Retail sales growth (%) of organic products in Mexico by sub-category, forecast

Category	Annual growth % 2022/2021	CAGR* % 2021-2026	Total growth % 2021-2026
Total - organic food and drink by type	12.1	11.1	69.0
Organic packaged food	13.9	12.2	77.9
Baby food	10.9	12.5	80.4
Dairy	25.0	17.6	125.0
Edible oil	7.7	9.0	53.8
Ready meals	11.6	10.8	66.7
Rice, pasta and noodles	20.0	12.5	80.0
Sauces, dressings and condiments	11.5	10.6	65.4
Spreads	12.4	11.4	71.4
Organic beverages	8.8	8.9	53.5
Hot drinks - coffee	8.2	8.4	50.0
Soft drinks - fruit/vegetable juice	12.5	11.8	75.0
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate

Competitive landscape – organic

Leading organic packaged food companies (brand) in Mexico 2021, include Grupo Herdez SAB de CV (Aires de Campo) at a market share of 28.8% (US$11.6 million), Grupo Industrial Cuadritos Biotek, SA de CV (Bové) at 9.4% (US$3.8 million), and Nestlé SA (Gerber) at 8.7% (US$3.5 million). Private labels accounted for a sales share of 5.6% (US$2.3 million) in sales value in 2021.

Leading organic beverage companies (top brands) in Mexico included Grupo Herdez SAB de CV (Aires de Campo, Blasón) at a market share of 24.5% (US$5.6 million), followed by Santa Cruz Natural Inc. (Santa Cruz) at 4.5% (US$1.0 million), and Nestlé SA (Taster's Choice) at 0.7% (US$0.2 million) in 2021. Private label organic beverages held a market share of 9.3% (US$2.1 million) in sales in Mexico over the year.

Top 5 companies (associated brands) of organic products in Mexico, 2021 retail value sales (US$ million) and market share (%) - fixed 2022 exchange rate

Category	Company	Brand(s)	Retail sales (US$ million)	Market share in 2021
Organic - packaged food	Grupo Herdez SAB de CV	Aires de Campo	11.6	28.8
	Grupo Industrial Cuadritos Biotek, SA de CV	Bové	3.8	9.4
	Nestlé SA	Gerber	3.5	8.7
	Lancaster Colony Corporation	Marzetti	1.9	4.6
	Grupo Lala SAB de CV	Lala	1.6	4.1
	Private label	Private label	2.3	5.6
	Others	Others	13.0	32.3
	Total - market share		40.2	100.0
Organic - beverages	Grupo Herdez SAB de CV	Aires de Campo, Blasón	5.6	24.5
	Santa Cruz Natural Inc.	Santa Cruz	1.0	4.5
	Nestlé SA	Taster's Choice	0.2	0.7
	Private label	Private label	2.1	9.3
	Others	Others	13.9	60.9
	Total - market share		22.8	100.0
Source: Euromonitor, 2022

Product launch analysis – organic

According to Mintel, there were approximately 1,421 new organic food products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between January 2017 and December 2022. During this same period there were 408 organic drink products launched in Mexico.

Product	2017	2018	2019	2020	2021	2022
Food (1,421)	244	250	276	259	185	207
Drinks (408)	76	101	71	64	42	54

According to new product launches in Mexico (2017 to 2022), top sub-categories (brands) within the organic food category were seasonings (Esquina González), snack/cereal/energy bars and cold cereals (Eat Natural Lima Limón), baking ingredients (Tía Ofilia) and pasta (Castagno Orgánico).

Top brands of organic food products launched in Mexico by product item count (2017 to 2022)

Top 10 - Organic sub-category	Top 50 brands launched (product item count)	Number of products in sub-category
Seasonings	Esquina González (28), Utopia Organics (10), Great Value (8), Orgánicos Monterrey (4), H-E-B Organics (1)	81
Snack/cereal/energy bars	Eat Natural Lima Limón (7), Campo Vivo (3), Aires de Campo (1), I Am(aranth) (1), Great Value (1), Yema 7 Co. (1)	78
Cold cereals	Eat Natural Lima Limón (5), Tu Tipo (5), Tía Ofilia (4), Nature's Path Organic (3), Aires de Campo (2), Campo Vivo (2), Léa Nature Jardin BiO (2), Full Circle Market Organic (1), GoGo Quinoa (1)	71
Baking ingredients	Tía Ofilia (6), H-E-B Organics (5), Bob's Red Mill (5), Ost (3), Aires de Campo (2), Esquina González (2), Campo Vivo (2), Orgánicos Monterrey (2), La Cocina Verde (1), Yema & Co. (1), Enature (1), GoGo Quinoa (1)	71
Pasta	Castagno Orgánico (10), H-E-B Central Market (7), Castagno (6), Ost (5), GoGo Quinoa (2), Campo Vivo (1)	62
Fruit snacks	H-E-B Organics (5), Kirkland Signature (1), Orgánicos Monterrey (1), Sun Harvest (1)	57
Corn-based snacks	Nopalia (14), Late July Snacks (11), Better Snack Org (8), I Am(aranth) (5), Kirkland Signature (3), Campo Vivo (1), Sun Harvet (1)	53
Vegetables	Earthbound Farm Organic (8), Buen Origen Orgánicos (2), Kirkland Signature (1), Campo Vivo (1), Yema & Co. (1), Léa Nature Jardin BiO (1)	45
Plant based drinks (dairy alternatives)	Güd (7), Kirkland Signature (5), H-E-B Organics (4), Extra Special (2), Great Value (1), Member's Mark (1)	44
Confiture and fruit spreads	Aires de Campo (5), Helios Bio (5), Enature (3), Kirkland Signature (2), La Cocina Verde (2), Léa Nature Jardin BiO (2), Yema & Co. (1), LaSelva (1)	44
Total sample size		1,421
Source: Mintel, 2022

Between January 2017 and December 2022, among a sample size of 408 new products, top brands launched within the organic drink category were Campo Vivo, Birdman Falcon, Yogi, Pukka, and Heath & Heather.

Popular claims associated with organic food & beverage new product launches over the last 6-year period were organic, GMO free, Kosher, low/no/reduced allergen, gluten free, no additives/preservatives, vegan/no animal ingredients, free from added artificial colourings, all natural product and no added sugar.

Product examples – organic

Organic Creamy Peanut Butter Spread

Source: Mintel, 2022

Company / importer	Tiendas Chedraui
Brand	Sun Harvest
Sub-category	Sweet spreads, nut spreads
Country	Manufactured in Canada, market Mexico
Related claims	Organic, ease of use
Store name / type	Chedraui Selecto, supermarket, Pueblo 72820
Launch type	New variety / range extension
Date published	July 2022
Price in US dollars	9.28

This product is new to the range. This USDA certified organic spread, according to the Secretariat of Health for Mexico, is high in calories, saturated fats and sodium. It is described as velvety smooth, can be spread on sandwiches or simply enjoyed as is with a spoon and does not require stirring. It retails in a 794 gram pack. According to the manufacturer, Sun Harvest embodies a green lifestyle with a wide collection of products that are natural, organic and earth friendly.

Organic Pure Maple Syrup

Source: Mintel, 2022

Company / importer	Hanseatik
Brand	Shady Maple Farms
Sub-category	Sweet spreads, syrups
Country	Manufactured in Canada, market Mexico
Related claims	Kosher, low / no / reduced fat, organic
Store name / type	City Market, supermarket, Cuernavaca 62290
Launch type	New product
Date published	February 2022
Price in US dollars	12.86

This grade A product is said to be rich in taste and amber in color. It is kosher-certified, fat-free and retails in a 250 millilitre pack.

Organic Early Grey Chocolate Raspberry Black Tea

Source: Mintel, 2022

Company / importer	Trans-Herb/Fertre
Brand	Four O'Clock
Sub-category	Hot beverages, tea
Country	Manufactured in Canada, market Mexico
Related claims	Kosher, organic, gluten free, low / no / reduced allergen
Store name / type	City Market, supermarket, Cuernavaca 62290
Launch type	New packaging
Date published	November 2021
Price in US dollars	11.84

This product has been repackaged with an updated design. This organic and kosher certified black tea has been naturally flavoured and is gluten-free. It has been naturally flavored and retails in a recyclable 37.5 gram pack containing 15 2.5 gram teabags, which are compostable, and printed with vegetable ink. The pack also features featuring brewing instructions and the Enterprise Familiale Canadienne, Fairtrade logos.

Health and wellness distribution channels

In Mexico, non-grocery specialist stores with sales of US$532.8 million (2021/2020: +4.0%) that are the source of important NH and organic brands, along with shopping centres that began to open up in the second half of 2021, helped bolster HW sales of healthy beverages at retail and on-trade locations in urban areas frequented by many office workers. These distribution channels, which were disproportionally affected by a decline during shutdowns in the previous year, in some cases were made up in the increases of online sales (+5.3%) at US$198.4 million in 2021 - but only high-income consumers moved to these higher priced items.^{Footnote 2}

A wide range of products that target the health and wellness concerns of consumers are offered through different distribution channels. Modern grocery retailers with the majority 72.4% market share at US$13.1 billion and traditional grocery retailers (23.4%) at US$4.2 billion in 2021, remain the most popular outlets, particularly for fortified foods and beverage sales, along with products low in calories or fat. Over the review period (2021/2020), traditional food/drink/tobacco specialist retailers increased the most in sales by 13.9% (US$201.0 million), while modern grocery retailers (+4.7%) have contributed to growth in sales of HW products with its outlets offering a wider variety of HW brands and products.^{Footnote 2}

Although COVID-19 has served to bolster consumers' health-consciousness, as sales through convenience stores at US$909.0 million (+5.2%) and forecourt retailers at US$88.0 million (+7.7%) returned in 2021, impulse purchases for on-the-go consumption of processed foods and drinks, driven by typical indulgence-seeking behaviours were favored more often in these outlets. Meanwhile in 2021, organic and naturally healthy products were mostly available through specialist retailers, supermarkets at sales of US$5.4 billion (+4.9%) and hypermarkets at US$4.3 billion (+4.3%) over the same review period.^{Footnote 2}

Distribution channels for bakery products in Mexico, by outlet type retail value sales (US$ millions) and market share

Outlet Type	2016		2021
Outlet Type	Value	Market share (%)	Value	Market share (%)
Total - retail channels	13,231.6	100.0	18,093.4	100.0
Store-based retailing	13,108.7	99.1	17,865.1	98.7
Total - grocery retailers	12,745.7	96.3	17,332.3	95.8
Modern grocery retailers	9,482.8	71.7	13,091.5	72.4
Convenience stores	671.1	5.1	909.0	5.0
Discounters	1,825.8	13.8	2,487.8	13.7
Forecourt retailers	67.8	0.5	88.0	0.5
Hypermarkets	3,096.4	23.4	4,250.3	23.5
Supermarkets	3,821.8	28.9	5,356.4	29.6
Traditional grocery retailers	3,262.9	24.7	4,240.8	23.4
Food/drink/tobacco specialists	166.9	1.3	201.0	1.1
Independent small grocers	2,980.5	22.5	3,864.8	21.4
Other grocery retailers	115.5	0.9	175.0	1.0
Total - non-grocery specialists	363.0	2.7	532.8	2.9
Non-store retailing	122.9	0.9	228.4	1.3
E-Commerce	100.3	0.8	198.4	1.1
Vending	22.5	0.2	30.0	0.2
Source: Euromonitor International, 2022

Health and wellness opportunities for Canada

Both the COVID-19 crisis and the introduction of the new labelling regulation (NOM051) that came into force in October 2020, has served to reinforce health concerns that were already gaining in urgency before the pandemic. There is a rising awareness of the seriousness of the problem of obesity in Mexico and Mexicans are increasingly adopting a more holistic and preventative approach to focus on the role that nutritional health plays in maintaining both physical and mental wellbeing.^{Footnote 2}

With a strong platform, further development of more sophisticated products by companies and the increased availability of new HW packaged food and beverage brands, particularly low sugar and naturally non-sweet products will continue to gain in relevance in Mexico over the forecast period (2021 to 2026). Nevertheless, as consumers' confidence and purchasing power adjusts towards added stress imposed by the pandemic, under this significant financial constraint many Mexicans may shift to regular, more affordable products or brands. Those premium products that were only beginning to gain in demand as consumer base incomes rose, such as cold brews and functional waters, may struggle over the coming few years. And, although political decisions to ban all products with black seals (high in sugar, fat or salt) from sale at public schools for example have raised awareness, the new regulation has not significantly shifted consumption of already widely perceived unhealthy products (that is, carbonates). Another impeding constraint on growth for International HW brands and products into Mexico includes the trend towards local production, where consumers are increasingly looking for products of Mexican origin.^{Footnote 2}

For more information

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For additional information on the upcoming flagship tradeshows in Mexico, please contact:

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ben.berry@agr.gc.ca

Resources

Euromonitor International, historical/forecasts (2016-2026) data source
Euromonitor | January 2022. Country Report: Health and Wellness in Mexico
Mintel Global New Products Database, 2022
Zegler, Jenny. Mintel | October 2022. 2023: Global Food & Drink Trends

Sector Trend Analysis – Health and wellness – Packaged food and beverage trends in Mexico
Global Analysis Report

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

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