Health and wellness trend continues affecting soft drinks industry
2013’s performance was good in general terms; however, this year showed increasing trends in health and wellness concerns within consumers giving more careful thought to their purchasing decisions. Soft drinks industry shows that health and wellness concerns benefitted categories like RTD tea, which had the strongest growth during 2013, reinforcing the fact that consumers tend to consume what they believe has more health benefits or at least is less harmful to health.
Mexico’s government acts directly on soft drinks to combat obesity and diabetes rates
The biggest event in the soft drinks industry during 2013 was the proposed new tax that President Enrique Peña Nieto passed to the Mexican Congress in February 2012 targeting all sugar-sweetened beverages in an effort to reduce the ratio of obesity and diabetes type 2 in the country, where 7 out of 10 adults are overweight and 15% of the population above 20 years old have diabetes Type 2. The proposed tax was approved by the Congress and by the Mexican Senate in November of 2012, thus was to start levying the tax in January 2014.
Three major companies strongly lead competitive environment
The competitive environment in Mexico’s soft drinks industry is strongly concentrated in three major companies Coca-Cola de México, Danone de México and Pepsi-Cola Mexicana. These three account for the highest volume shares in soft drinks by engaging in strong media efforts, having excellent distribution networks and offering products that are perceived as high quality and/or well priced. Therefore these company’s brands remain very popular amongst consumers of all segments and ages in Mexico.
Off-trade channel is still the preferred channel to buy soft drinks
The off-trade channel still accounts for the bulk of soft drinks volume sales. Soft drinks in Mexico are a very rooted custom amongst the Mexican population, and the preferred channels from which to purchase them are the modern and traditional trade channels where consumers can interact more with the potential brands before deciding what to get. Moreover, an increasing price war amongst many soft drinks categories makes consumers wait until the point of purchase to decide on what to purchase.
Soft drinks expected to stabilise despite new tax on sugar-sweetened beverages
Soft drinks is expected to have a good performance over the forecast period despite the new tax imposed on sugar-sweetened beverages which account for the majority of volume sales within the soft drinks category. Companies are expected to invest efforts in manufacturing products that widen the soft drinks portfolio with lesser priced options that do not contain sugar. This effort will help the category’s growth despite the increasing prices of sugarised beverages.
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Discover the latest market trends and uncover sources of future market growth for the Soft Drinks industry in Mexico with research from Euromonitor's team of in-country analysts.
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The Soft Drinks in Mexico market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Soft Drinks in Mexico?
- What are the major brands in Mexico?
- What potential exists for multinational vs. local soft drinks companies looking to increase market share?
- How have changing social attitudes affected soft drink sales?
- How have sustainability issues; such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, affected the soft drink industry?
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This industry report originates from Passport, our Soft Drinks market research database.