Total volume sales of beer declined by 7% in 2020, which compares to a 3% uplift in growth the previous year, highlighting the impact COVID-19 had on the landscape. During the first months of the pandemic, there were 40 days during April and May, where certain Mexican states had limited availability of beer through retail.
Sales of beer were heavily impacted by closures in the on-trade channel in 2020, with outlets closing in March and venues facing ongoing closures for several weeks during the year. In addition, once foodservice venues and bars were open to the public, COVID-19 restrictions were put in place that continued to impact sales.
From a small sales base, non/low alcohol beer recorded the fastest volume growth in 2020, being one of the only areas, alongside flavoured/mixed lager, to record positive total volume growth. Despite this, total growth was stifled as many consumers focused their purchases on more essential items given the stay-at-home message in Mexico and high price sensitivity.
On-trade sales of beer are expected to record a recovery in 2021 as the pandemic situation evolves. As bars and restaurants in Mexico slowly begin to reopen, beer sales in the on-trade are predicted to gradually pick up over the coming years, leading to an on-trade 12% volume CAGR for the forecast period.
Over the remainder of the forecast period, the mid-priced lager segment will present an opportunity in the country, as the currency exchange rate is predicted to become more favourable. As the Mexican peso stands to appreciate against the US dollar, this will positively impact brands that are well known, such as Tecate, Modelo Especial, Victoria, Stella Artois and other imported beers.
An increase in beer consumption occasions is expected to drive category sales growth in the forecast period, mostly encouraged by premium brands, with domestic premium lager recording the highest volume growth across the coming years. These offerings will compete with other alcoholic beverages such as wine and spirits.
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Understand the latest market trends and future growth opportunities for the Beer industry in Mexico with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Beer research and analysis database.
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