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

Consumers in Mexico and Latin America

The Latin American region is highly influenced by health and wellness, particularly with the growing opportunity for weight-management solutions. According to the United Nations in 2017, more than two thirds (~66.7%) of consumers living in Mexico, Chile, and Ecuador were overweight or obese (compared to 39.6% of adults and 18.5% of children who were classified as obese in the US)^{Footnote 1}. High rates of obesity, unhealthy, sugar-laden diets, and sedentary lifestyles are growing concern's that Latin American governments are trying to alleviate. Whereby in 2014, Mexico launched a nationwide 8% tax on non-basic foods that have a caloric value equal or greater to 275 calories per 100 grams, as well as, a MXN$1.17 tax per liter on the sales price of flavoured beverages with added sugar. In turn, packaged food brands are also likely to face challenges entering the Latin American market due to imposed government regulations like Chile's black stop-sign labeling system introduced in 2016, which helps highlight high fat, sugar, calorie, or salt products.^{Footnote 2}

Natural ingredients are the number one factor that would encourage Latin Americans (40%) to choose one brand over another. Natural credentials such as preservative-free, free from synthetic ingredients, real ingredients, organic or eco-friendly are claims that are often synonymous with being 'healthy' in this region. Key H&W consumer trends in food and beverages, other than weight management, are products that promote fresh, natural and pure, moderation and avoidance, disease management and wellbeing attributes.^{Footnote 2}

Consumers in Mexico are continuously seeking alternative food and beverage product options that are offered at lower prices; therefore, in order to maximize H&W opportunities, retailers need to be able to meet the most competitive and comparable prices domestically available in this sector. According to a GlobalData survey^{Footnote 3} in 2018, 39% of responders said that 'how the product impacts their health and well being', will always influence their product choice (8% are rarely or never influenced by these health impacts). However, all things considered, 76% of Mexicans consider themselves to be a saver (slightly higher among men than women) rather than a spender; therefore price definitely plays a role in influencing consumers' purchasing decisions regardless of the beneficial health claim attribute.

Many leading companies in Mexico have goals to extend the presence of private label products by launching a new and improved line of exclusive products that will increase total private label sales. For example private label brand's like Member's Mark recently aimed towards launching up to 600 exclusive products over a 2-year period (2017-19) consolidating these products into 21 brands within Sam's Club stores, with a goal to increase total sales by 25%. Another company in Mexico, Soriana, has experienced difficulties with domestic suppliers being unable to meet their demand capacity levels and thus aim to reach 7% of total private label sales in 2019, which are currently less than 4%. This company is seeking international suppliers to sell larger quantities in bulk, yet will be packaged in Mexico to save on production costs (Private label market in Mexico report, page 33).

Health and wellness sector market overview

Overall, the H&W Mexican sector reached a retail sales value of US$18.9 billion in 2018, which has increased at a compound annual growth rate (CAGR) of 4.6% (2015-2018). A total of 60.2% were H&W packaged food products, with naturally healthy (NH) products representing the highest sales value in 2018 at US$11.4 billion. In 2018, H&W beverages reached sales of US$7.1 billion, thriving the most from within the naturally healthy, functional and fortified, free from and food minus related drink categories.

Within the H&W sector the packaged food and beverage categories by type, often contain popular product claims such as health management (cardiovascular, diabetic/dietetic, digestive, bone and joint health: free from/reduced/no added, source of nutrient ingredients), weight and shape management (weight management: no/reduced calories or fat), and general wellbeing (bone and joint health: added/all natural/multi-grain, functional and fortified, source of protein) or performance (energy boosting). Non-alcoholic H&W beverages fall under categories such as carbonates, energy/sport drinks, fruit powders, juices, nectars, squash/syrups, still drinks, iced/ready-to-drink (RTD) coffee or tea drinks, and enhanced/flavored or packaged water combinations.

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• Food intolerance (FI): US$169.9 million (0.9%)
• Food minus: US$2.0 billion (10.8%)
• Free from: US$2.6 billion (13.6%)
• Functional and fortified (FF): US$2.7 billion (14.1%)
• Naturally healthy (NH): US$11.4 billion (60.2%)
• Organic: US$53.2 million (0.3%)

Source: GlobalData Intelligence, 2019

Naturally healthy packaged food and beverage category

Naturally healthy (NH) products are generally categorized as all natural, herbal, multi-grain or a good source of nutrients, vitamins, fiber or proteins. naturally healthy drinks contain categories of packaged/flavored/enhanced water, fruit powders, juices and nectars.

Market sizes: Naturally healthy

In Mexico, naturally healthy products is the largest category within the H&W sector reaching retail value sales of US$13.3 billion in 2018, mainly within the naturally healthy dairy and soy food category. All naturally healthy categories are expected to moderately grow from 2019 to 2022, however, naturally healthy drinks are expected to decline (mostly due to a decline in sales of naturally healthy enhanced water products) by a CAGR of 3.8% from 9.7% between 2015 and 2018.

Top company retail shares: Naturally healthy

Artisanal producers represent company shares of 24.4% in terms of retail value sales within the naturally healthy food category, while private labels represent 0.7% in 2018. Other top companies in the naturally healthy food category include Grupo Lala - S.A. de C.V., Ganaderos Productores de Leche Pura SA de CV and Grupo Bimbo - S.A.B. de C.V.

The Danone Group dominates within the naturally healthy drink category at 39.5% market share in 2017. Coca-Cola (18.8%), the Dr. Pepper Snapple Group (8.3%) and Grupo Jumex - SA de CV (8.2%) are also leading companies in the beverage category.

Product launch analysis: Naturally healthy

According to Mintel, there were approximately 7,371 new products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between 2014 and 2018. These claims were either an 'all natural', GMO free, wholegrain product or was a product that contained no additives/preservatives. During this same period there were 1,113 naturally healthy related drink products launched.

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	2014	2015	2016	2017	2018	Total Sample
Food	1,208	1,105	1,359	1,296	1,290	6,258
Drinks	262	218	195	228	210	1,113

Total item count: 7,371

Source: Mintel, 2019

According to new product launches in Mexico (2014 to 2018), top sub-categories (brands) within the naturally healthy food category were snacks (Fruit Corp.), bakery (Charras), sauces and seasonings (La Costeña), dairy (Ades) and breakfast cereals (Granvita).

More recently, over the last year and a half, among a sample size of 303 new products (Jan.'18-Jul.'19), top brands launched within the naturally healthy drink category were Bonafont Kids, Jumex, Yogi, Sin Secretos and Birdman Falcon.

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• Bonafont Kids: 13
• Jumex: 12
• Yogi: 9
• Sin Secretos: 7
• Birdman Falcon: 6
• Sello Rojo: 6
• Pukka: 6
• Elixia: 5
• Celestial Seasonings: 5
• Stash Organics: 5

Source: Mintel, 2019

Total item count: 303

Popular claims associated with naturally healthy food and beverage new product launches over the last five-year period were no additives/preservatives, Kosher, 'all natural' product and also, wholegrain.

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• No additives/preservatives: 4,571
• Kosher: 2,394
• All natural product: 2,282
• Low/no/reduced allergen: 1,973
• Gluten free: 1,770
• GMO free: 1,317
• Wholegrain: 1,244
• Total sample: 7,371

Source: Mintel, 2019

Total item count: 7,371

Product examples

White Corn Tortilla with Morita Chili

Source: Mintel 2019

Company	Desarrollo Gourmet
Brand	Huerto Verde by Desarrollo Gourmet
Sub-category	Bakery/bread and bread products
Country	Manufactured in Mexico, not imported
Related claims	No additives/preservatives, all natural product, Kosher, premium, gluten free, low/no reduced allergen
Launch type	New variety/range extension
Date published	June 2019
Price in US dollars	1.27

This premium, artisan fresh tortilla has been made with raw materials of the highest quality, has been carefully selected and packaged one by one. The kosher certified product is 100% natural, free from preservatives and gluten, has been packaged in a modified atmosphere, minimizing the use of preservatives and additives when increasing the product's shelf-life and preserving it naturally, and retails in a recyclable 500 gram (g) pack.

Apple Kick Juice

Source: Mintel 2019

Company	Jungle Group
Brand	The Wow Fact
Sub-category	Juice drinks/juice
Country	Manufactured in Mexico, not imported
Related claims	No additives/preservatives, all natural product, functional – other/immune system/energy, gluten free, antioxidant, low/no/reduced allergen, vegan/no animal ingredients
Launch type	New product
Date published	June 2019
Price in US dollars	7.95

The Wow Fact Jugo de Manzana (Apple Kick Juice) is cold pressed and 100% natural. The product contains antioxidants that fortify the immune system, helps to reduce Alzheimer disease risk, and is described as raw, vegan, never heated and free from gluten, dairy and preservatives. It is a natural source of energy.

Functional and fortified packaged food and beverage category

The functional and fortified (FF) attribute are products with added nutrients, vitamins or proteins that often claim having health benefits such as an immunity boosting or probiotic or prebiotic product attribute. functional and fortified beverages included carbonates, fruit powders, energy, iced/RTD tea, sports and still drinks, enhanced/packaged water, nectars and squash/syrups.

Market sizes: Functional and fortified

In 2018, functional and fortified packaged food and beverage products reached US$6.2 billion, which had healthy growth in all categories from 2015 to 2018. The functional and fortified bakery and cereals category with added fiber/prebiotic or vitamin attributes reached the highest food sales in 2018. However, functional and fortified drinks held the highest share over the food category, representing 57% of sales. functional and fortified still drinks performed well at sales of US$2.0 billion, followed by sports drinks (US$900.6 million) and energy drinks (US$374.8 million). All categories are expected to grow (2019-2022), except for the functional and fortified confectionery category at a CAGR of −0.2%.

Top company retail shares: Functional and fortified

In 2018, Artisanal producers continued to lead in the functional and fortified H&W packaged food category at 39.9% company share. Other leading companies included The Kellogg Company, Grupo Bimbo - S.A.B. de C.V., and Yakult Honsha. Coca-Cola dominates the drink category at 42.8% share, followed by Sociedad Cooperativa Trabajadores de Pascual (13.1%) and PepsiCo (9.2%) as reported in 2017.

Product launch analysis: Functional and fortified

According to Mintel, there were approximately 6,574 new products launched (including new variety/range extension, packaging, formulation or relaunched) within Mexico between 2014 and 2018. These products contained either functional (antioxidant, functional: bone health, brain and nervous system, cardiovascular, digestive, energy, eye health, immune system, other, slimming, stress and sleep, slimming, weight and muscle gain, high satiety, prebiotic, probiotic) or food plus claims (added calcium, high/added fiber or protein, stanols/sterols, vitamin/mineral fortified) claims. During this same period, there were 1,471 functional or food plus-related drink products launched.

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	2014	2015	2016	2017	2018	Total Sample
Food	972	1,026	1,069	1,035	1,001	5,103
Drinks	326	261	237	292	355	1,471

Total item count: 6,574

Source: Mintel, 2019

According to new product launches in Mexico (2014 to 2018), top sub-categories (brands) within the functional and fortified food category were dairy (Santa Clara), bakery (Bimbo), snacks (Terrafertil Nature's Heart), breakfast cereals (Kellogg's Special K) and side dishes (La Moderna).

More recently, over the last year and a half, among a sample size of 506 new products (January 2018 to July 2019), top brands launched within the functional and fortified drink category were Birdman Falcon, Vive 100%, Yogi, Abbott Ensure and V8 Splash.

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• Birdman Falcon: 11
• Vive 100%: 10
• Yogi: 10
• Abbott Ensure: 9
• V8 Splash: 8
• Monster Energy: 6
• Nestlé Nesquik: 6
• Boing! Tradicional: 6
• Abbott Glucerna: 6
• Fuze Tea: 5

Total item count: 506

Source: Mintel, 2019

Popular claims associated with functional and fortified food and beverage new product launches over the last five-year period were vitamin/mineral fortified, Kosher, low/no/reduced allergen, no additives/preservatives, and also antioxidant.

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• Vitamin/mineral fortified: 3,447
• Kosher: 1,752
• Low/no/reduced allergen: 1,307
• No additives/preservatives: 1,169
• Low/no/reduced fat: 1,059
• Antioxidant: 1,026
• Gluten free: 907

Total item count: 6,574

Source: Mintel, 2019

Product examples

Chocolate Chip Protein Cookie & Baking Mix

Source: Mintel 2019

Company	JaceyCakes, importer Tiendas Chedraui
Brand	FlappJacked
Sub-category	Baking ingredients and mixes
Country	Manufactured in the United States
Related claims	All natural product, low/no/reduced carb, high/added protein, high satiety, GMO free, functional – energy, weight and muscle gain, slimming, low/reduced sugar
Launch type	New product
Date published	February 2019
Price in US dollars	7.83

Each serving (2 cookies) contains 10 grams of protein to keep consumers feeling fuller for longer, but with fewer carbohydrates and less sugar than traditional cookies. It is free from GMOs and artificial ingredients, is said to be useful for curbing cravings, and is guilt-free. This product is described as a convenient way to properly fuel the family for the day, is easy to make, and always fortified with protein. This mix fuels fat burning, promotes muscle growth, and increases energy, due to its protein content. Also available in banana hazelnut or buttermilk protein pancake and baking mix options.

Salted Watermelon Flavored Energy Gel with Carbohydrates & Amino Acids

Source: Mintel 2019

Company	GU Energy Labs, importer Zembor
Brand	GU
Sub-category	Sports and energy drinks/sports drinks
Country	Manufactured in the United States
Related claims	Wholegrain, functional – cardiovascular, high/added protein
Launch type	New packaging
Date published	June 2019
Price in US dollars	2.36

Gu Gel Energético con Carbohydratos y Aminoácidos Sabor Sandía-Sal (Salted Watermelon Flavored Energy Gel with Carbohydrates and Amino Acids) has been repackaged with an updated design. The kosher and naturally flavored product can be consumed 5 minutes before workouts, and every 45 minutes during workouts, contains 450 millligrams (mg) amino acids, 125mg sodium and 20mg caffeine, and provides 92 calories. It is free from gluten, is suitable for vegans and vegetarians.

Food minus packaged food and beverage category

Food minus products generally include reduced sugar, fat, or salt categories. Food minus beverages includes carbonates, energy and still drinks, iced/RTD tea and coffee drinks, flavored water, fruit powders, nectars and squash/syrups.

Market sizes: food minus

In 2018, food minus packaged foods and beverages had retail value sales of US$3.6 billion. Both the dairy and soy food and reduced calorie/sugar/sodium or salt drink categories each brought in around one-third of the total sales in the food minus H&W sector. However, the drink category performed the best with a CAGR of 18.3% from 2015 to 2018. This category is expected to continue to lead by a CAGR of 15.6% (2019-2022), noting that carbonate beverages with food minus attributes are expected to be the most popular with 68.2% growth in sales by 2022.

Top company retail shares: Food minus

In 2018, the leading company within the 'food minus' H&W packaged food category was Mondelez International Inc., at 73.2% share. Other companies with a higher amount of 'food minus' products include Artisanal producers, Grupo Lala - S.A. de C.V., and Grupo Bimbo - S.A.B. de C.V. It appears that the McCormick company products may no longer fall under the food minus category with no reported numbers in 2018. Once again, Coca-Cola held the highest company share at 43.5% in the food minus drink category, followed by Grupo Jumex - SA de CV (18.5%) and PepsiCo (11.4%) as reported in 2017.

Product launch analysis: food minus

According to Mintel, there were approximately 6,484 new products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between 2014 and 2018. These products contained food minus attribute claims (diet/light, low/no/reduced: calorie, fat, glycemic, saturated fat, sodium, transfat, or low/reduced sugar). During this same period, there were 1,165 food minus-related drink products launched.

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	2014	2015	2016	2017	2018	Total Sample
Food	1,032	1,120	1,176	1,025	996	5,319
Drinks	286	183	226	248	223	1,165

Total item count: 6,484

Source: Mintel, 2019

According to new product launches in Mexico (2014 to 2018), top sub-categories (brands) within the 'food minus' food category were snacks (Sabritas), dairy (Sello Rojo), bakery (Bimbo), processed fish, meat and egg products (Zwanenberg Oss Zwan Premium) and sauces and seasonings (McCormick).

More recently, over the last year and a half, among a sample size of 307 new products (January 2018 to July 2019), top brands launched within the food minus drink category were Coca-Cola Sin Azúcar, Coca-Cola, V8 Splash, 7 UP, and Coca-Cola Light.

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• Coca-Cola Sin Azúcar: 11
• Coca-Cola: 10
• V8 Splash: 8
• 7UP: 7
• Coca-Cola Light: 7
• Nestlé Agüitas: 6
• Níkte: 5
• Miller Lite: 5
• Tecate Light: 5
• "ON Optimum Nutrition Gold Standard 100% Whey": 5

Total item count: 306

Source: Mintel, 2019

Popular claims associated with 'food minus' food and beverage new product launches over the last five-year period were low/no/reduced fat or transfat, Kosher, low/no/reduced calorie or allergen.

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• Vitamin/mineral fortified: 1,231
• No additives/preservatives: 1,344
• Low/no/reduced allergen: 1,461
• Low/no/reduced calorie: 1,566
• Low/no/reduced transfat: 1,845
• Kosher: 1,875
• Low/no/reduced fat: 2,286

Total item count: 6,484

Source: Mintel, 2019

Product examples

Dulce de Leche Flavored Meringue Cookies

Source: Mintel 2019

Company	Daylish
Brand	Daylish Merenlight
Sub-category	Bakery/sweet biscuits/cookies
Country	Manufactured in Mexico, not imported
Related claims	No additives/preservatives, all natural product, low/no/reduced: cholesterol, calorie, fat, sodium, and allergen, gluten free, dairy free, diet/light
Launch type	New packaging
Date published	July 2019
Price in US dollars	3.10

Daylish Merenlight Merengues Sabor Cajeta (Dulce de Leche Flavored Meringue Cookies) have been repackaged with an updated design. These kosher certified cookies are low in calories, featuring 3kcal per unit, said to be both gourmet and artisan, and 100% natural. They are free from gluten, preservatives, colors, cholesterol, dairy, fats, and sodium.

Banana Chia Latte Drink Mix

Source: Mintel 2019

Company	Burchers
Brand	Vechelé
Sub-category	Other beverages/beverage mixes
Country	Manufactured in Mexico, not imported
Related claims	Low/no/reduced: calorie, sodium, allergen, and lactose, antioxidant, high/added protein
Launch type	New product
Date published	March 2019
Price in US dollars	7.28

This product is enriched with proteins, contains less than 65 kcal per portion, is naturally sweetened with monk fruit, is low in sodium, and contains banana and chia, which provides a source of omegas. It is a source of natural minerals such as potassium, calcium and iron, features antioxidants properties, is free from lactose, can be prepared hot or cold.

Free from packaged food and beverage category

While free from examples include fat-free/extra lean or salt/sodium-free or no added ('unhealthy') ingredients. Free from beverages include carbonates, energy and sport drinks, fruit powders, nectars and squash/syrups that have no calories, no added sugar, or are sugar free products.

Market sizes: Free from

The free from market in Mexico had a retail sales value at US$2.7 billion in 2018. In 2018, the largest sector food category was bakery and cereal products with cholesterol/sugar free attributes. The free from drinks category historically declined in growth at a CAGR of −15.7% from 2015 to 2018, partly due to a decline in the free from fruit powders sub-category. Regardless, all free from sector categories are expected to have moderate compound growth rates during the 2019 to 2022 period.

Artisanal producers continue to lead within the free from H&W packaged food category sector with 28.7% in 2018. Other companies with the highest retail sales value of 'free from' products include Mondelez International Inc., Grupo Bimbo - S.A.B de C.V., and Interdeli - S.A. de C.V. Coca-Cola has continued to hold the highest company share up until 2016 (64.0%) within the free from drink category, however, PepsiCo performed better in 2017 at a 51.5% share over Coca-Cola at 28.9%. In 2017, Mondelez International Inc. (15.4%) and Monster Beverage Corporation (3.3%) also performed well within the free from drink category.

Product launch analysis: Free from

According to Mintel, there were approximately 3,520 new products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between 2014 and 2018. These products contained 'free from' (caffeine, dairy, hormone free) or 'food minus' attribute claims (sugar free, no added sugar, low/no/reduced: carb, cholesterol, not pasteurised). During this same period, there were 702 free from-related drink products launched.

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	2014	2015	2016	2017	2018	Total Sample
Food	513	516	573	599	617	2,818
Drinks	159	137	145	147	114	702

Total item count: 3,520

Source: Mintel, 2019

According to new product launches in Mexico (2014 to 2018), top sub-categories (brands) within the 'free from' food category were dairy (Lala), snacks (7-Select), bakery (Charras), processed fish, meat and egg products (Tyson) and breakfast cereals (Kellogg's Special K).

More recently, over the last year and a half, among 178 new products (January 2018 to July 2019), top brands launched within the 'free from' drink category were Coca-Cola Sin Azúcar, Yogi, Celestial Seasonings, FL24, and Tang.

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• Coca-Cola Sin Azúcar: 11
• Yogi: 9
• Celestial Seasonings: 5
• FL24: 4
• Tang: 4
• Lifestyle Awareness: 4
• Twinings Infuso: 4
• Birdman Falcon: 3
• Monster Energy: 3
• NXT Protein: 3

Total item count: 178

Source: Mintel, 2019

Popular claims associated with 'free from' food and beverage new product launches over the last five-year period were low/no/reduced cholesterol, Kosher, low/no/reduced allergen, sugar or gluten free.

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• Low/no/reduced fat: 710
• No additives/preservatives: 944
• Gluten free: 951
• Sugar free: 958
• Low/no/reduced allergen: 1,214
• Kosher: 1,295
• Low/no/reduced cholesterol: 1,558

Source: Mintel, 2019

Total item count: 3,520

Product examples

Edible Pure Soy Oil

Source: Mintel 2019

Company	Ragasa Industrias
Brand	Nutrioli DHA
Sub-category	Sauces and seasonings/oils
Country	Manufactured in Mexico, not imported
Related claims	Low/no/reduced: cholesterol and transfat, Kosher, functional – brain and nervous system, maternal
Launch type	New packaging
Date published	July 2019
Price in US dollars	1.54

This product has been repackaged in a limited edition 850 millilitres (ml) pack including a free pencil case. The kosher product contains 0 grams of trans fat and cholesterol, and provides DHA, which can promote brain development in babies during pregnancy and breastfeeding. It can also help create strong neurons and help mental development and learning whilst maintaining a normal brain function in adults.

Orange Vanilla Flavored Calorie-Free Cola Soft Drink

Source: Mintel 2019

Company	The Coca-Cola Company
Brand	Coca-Cola Zero Sugar
Sub-category	Carbonated soft drinks
Country	Manufactured in the United States
Related claims	Low/no/reduced calorie, sugar free
Launch type	New variety/range extension
Date published	July 2019
Price in US dollars	0.98

Coca-Cola Zero Sugar Refresco Sin Calorías Sabor Naranja Vainilla (Orange Vanilla Flavored Calorie-Free Cola Soft Drink) is now available. It contains other natural flavors and retails in a 355ml recyclable pack.

Food intolerance packaged food and beverage category

Food intolerance (FI) products included gluten-free, lactose-free and other FI category segments. There were no reported FI-related products available within the beverage category.

Market sizes: Food intolerance

The FI sector category had a fairly small market footprint within Mexico, with packaged food retail sales of US$169.9 million in 2018. Nevertheless, all categories reported growth from 2015-2018, especially within the gluten-free savory snacks sector category at a CAGR of 9.2%. All categories including lactose-free dairy and soy food, and gluten-free pasta and noodles, savory snacks, and seasonings, dressings and sauces, are expected to continue to moderately grow by an overall CAGR of 2.9% from 2019-2022.

Top company retail shares: Food intolerance

In Mexico, Ganaderos Productores de Leche Pura - SA de C.V. (9.0%), The Hershey Co. (8.4%) and Nestlé SA (5.2%) were the leaders in the FI packaged food H&W sector category in 2018. 'Other companies' held a large retail sale share of 36.1%.

The WhiteWave Foods Company and Unilever seem to have dropped out of the FI food category with a reported share of 0% in 2018, whereby these two companies had previously held the 2^nd and 3^rd largest market share in 2017. WhiteWave Foods is now part of a new organization - Danone North America, which is currently focusing on offering a wider choice of 'better-for-you' alternative claims. Unilever offers online food solution advice to promote and raise awareness on fully understanding the conditions affecting food allergies or intolerance. For more information, visit the Unilever Food Solutions: Food allergy vs intolerance page.

Product launch analysis: Food intolerance

According to Mintel, there were approximately 3,592 new products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between 2014 and 2018. These products contained 'suitable for' claims such as gluten free and low/no/reduced lactose. During this same period there were 454 food intolerance related drink products launched.

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	2014	2015	2016	2017	2018	Total Sample
Food	473	584	647	703	731	3,138
Drinks	62	75	71	96	150	454

Total item count: 3,592

Source: Mintel, 2019

According to new product launches in Mexico (2014 to 2018), top sub-categories (brands) within the FI food category were snacks (Terrafertil Nature's Heart), dairy (Alpura), bakery (Schär), processed fish, meat and egg products (Peñaranda) and sauces and seasonings (Badia).

More recently, over the last year and a half, among 211 new products (January 2018 to July 2019), top brands launched within the FI drink category were Abbott Ensure, Birdman Falcon, Stash Organics, ON Optimum Nutrition Gold Standard 100% Whey, and Celestial Seasonings.

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• Abbott Ensure: 9
• Birdman Falcon: 6
• Stash Organics: 5
• ON Optimum Nutrition Gold Standard 100% Whey: 5
• Celestial Seasonings: 5
• Nestlé Health Science Boost: 5
• Lifestyle Awareness: 4
• Abbott Ensure Clinical: 4
• Holy Kombucha: 4
• FL24: 4

Total item count: 211

Source: Mintel, 2019

Popular claims associated with 'food intolerance' food and beverage new product launches over the last five-year period were low/no/reduced allergen, gluten free, Kosher, no additives/preservatives, low/no/reduced lactose, and also 'all natural product.'

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• Low/no/reduced allergen: 3,586
• Gluten free: 3,080
• Kosher: 1,519
• No additives/preservatives: 1,157
• Low/no/reduced lactose: 880
• GMO free: 799
• Low/no/reduced fat: 653
• All natural product: 607

Total item count: 3,592

Source: Mintel, 2019

Product examples

Bread with Yogurt and Nuts

Source: Mintel 2019

Company	Comercial City Fresko
Brand	Golden Hills
Sub-category	Bakery/bread and bread products
Country	Manufactured in Mexico
Related claims	All natural product, low/no/reduced Allergen, dairy free
Launch type	New variety/range extension
Date published	July 2019
Price in US dollars	2.62

Golden Hills Pan de Yoghurt y Nuez (Bread with Yogurt and Nuts) is 100% natural product that is free from egg and milk, and retails in a 500g pack.

Lactose-Free Milk with Vegetable Fat

Source: Mintel 2019

Company	Wal-Mart
Brand	Aurrera
Sub-category	Dairy/white milk
Country	Manufactured in Mexico, not imported
Related claims	Low/no/reduced lactose, vitamin/mineral fortified, low/no/reduced allergen
Launch type	New packaging
Date published	April 2019
Price in US dollars	0.67

This ultra-pasteurized product has been repackaged with an updated design and is enriched with vitamins A and D, does not require refrigeration unless opened, and features a 50% milk content. It retails in a recyclable 1L pack featuring a new cap that can be opened in just one step.

Organic packaged food and beverage category

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

Nestlé launched its first organic range on the Brazilian market in early 2018. The cereals range marks the development of a largely unestablished organic market in the country.^{Footnote 4} Although, Mexico is a significant producer of organic produce for exports, demand and domestic consumer confidence of the overall benefits in organics, remain low due to their higher prices and limited availability. In 2018, retail sales reached US$57.3 million, with 66.5% of sales from within the organic dairy and soy food category. However, this category showed a significant growth decline at a CAGR of −17.8% between 2015 and 2018. During this period, there has been a significant growth increase within the organic beverage category at a CAGR of 47.9% and is expected to continue to increase at a CAGR of 14.4% (2019-2022).

Top company retail shares: Organic

In Mexico, Grupo Industrial Cuadritos Biotek at an organic packaged food retail sales share of 53.4%, Unifood International (S) Pte. Ltd. (14.1%), and Saber y Sabor (6.4%) were the brand leaders in the organic packaged food H&W sector category in 2018. Italpasta Ltd. and George E. DeLallo Co. Inc. seem to have no reported share in 2018. Private labels within the organic packaged food category hold one of the largest company share percentages over the other H&W sector categories at 1.4% in 2018. According to a private label market report in Mexico (pg. 34), Soriana has a project for the development of organic, wine and liquor private label programmes. The company's goal is to see double digit growth in this segment, whereby private label products currently represent less than 4% of sales.

Envasadora Aguida and Acapucoco were the only companies within the Mexican organic drink category at 100% share in 2017.

Product launch analysis: Organics

According to Mintel, there were approximately 1,575 new organic products launched (including new variety/range extension, packaging, formulation or relaunched), within Mexico between 2014 and 2018. During this same period, there were 382 organic drink products launched.

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	2014	2015	2016	2017	2018	Total Sample
Food	219	246	234	244	250	1,193
Drinks	70	83	52	76	101	382

Total item count: 1,575

Source: Mintel, 2019

According to new product launches in Mexico (2014 to 2018), top sub-categories (brands) within the organic food category were snacks (Nopalia), bakery (Tega Trusnack), dairy (H-E-B Organics), sauces and seasonings (H-E-B Organics) and sweet spreads (Aires de Campo).

More recently, over the last year and a half, among 140 new products (January 2018 to July 2019), top brands launched within the organic juice category were Birdman Falcon, Yogi, Pukka, Nescafé Dolce Gusto, Stash Organics, and Aires de Campo.

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• Birdman Falcon: 11
• Yogi: 10
• Pukka: 6
• Nescafé Dolce Gusto: 5
• Stash Organics: 5
• Aires de Campo: 4
• Holy Kombucha: 4
• Acapulcoco: 4
• Campo Vivo: 4
• H-E-B Central Market: 4

Total item count: 140

Source: Mintel, 2019

Popular claims associated with organic food and beverage new product launches over the last five-year period were Kosher, GMO free, low/no/reduced allergen, gluten free, in addition to, vegan/no animal ingredients, all natural product, ethical - toxins free and wholegrain claims.

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• Organic: 1,575
• Kosher: 717
• GMO free: 582
• Low/no/reduced allergen: 581
• Gluten free: 543
• No additives/preservatives: 429
• Vegan/no animal ingredients: 305
• All natural product: 219
• Ethical - toxins free: 185
• Wholegrain: 174

Total item count: 1,575

Source: Mintel, 2019

Product examples

Goji Berry, Quinoa, Almonds, Sunflower and Pumpkin Seeds Dark Chocolate Pieces

Source: Mintel 2019

Company	Supermercados Internacionales H-E-B
Brand	H-E-B Organics
Sub-category	Chocolate confectionery
Country	Manufactured in Peru
Related claims	Organic, GMO free
Launch type	New product
Date published	May 2019
Price in US dollars	4.70

H-E-B Organics Chocolate Amargo en Trozos con Bayas de Goji, Quinoa, Almendras y Semillas de Calabaza (Goji Berry, Quinoa, Almonds, Sunflower and Pumpkin Seeds Dark Chocolate Pieces) are made with ingredients grown using only organic compliant materials according to sustainable soil management methods. This GMO-free product retails in a 119g pack featuring the USDA Organic logo.

Green Detox

Source: Mintel 2019

Company	Lácteos Ticoy
Brand	Holistik by Elixir
Sub-category	Other beverages/meal replacement drink
Country	Mexico, sold in Sam's club store
Related claims	Low/no/reduced lactose, vitamin/mineral fortified, low/no/reduced allergen
Launch type	New variety/range
Date published	September 2018
Price in US dollars	4.85

Holistik by Elixir Green Detox is a refreshing and delicious cucumber, apple, linseed, squash and kale juice that is said to be the perfect supplement to keep the consumer healthy, light and young thanks to its antioxidant properties. The product is all natural, vegan, and makes five juices. This shake and go product comprises organic agave syrup, antioxidants, vitamin E and Omega 3.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

• Overview of Trade Commissioner Services in Mexico
• Find a Trade Commissioner

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

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

Prepared by: Erin-Ann Chauvin, International Market Analyst

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