Hot Drinks in Mexico

Hot drinks sales still dominated by traditional products despite rising sophistication

2019 saw sales of hot drinks in Mexico remain dominated by the traditional categories of flavoured powder drinks and instant coffee. However, with consumers becoming more sophisticated and interested in new taste experiences as well as focused more on healthy beverages, sales are rising in fruit/herbal tea and fresh ground coffee.

The wider range of products on offer a sign that consumers are becoming more adventurous

The variety of hot drinks available Mexico expanded significantly towards the end of the review period as new categories emerged while innovative new products became more widely available in product categories that are already popular. Health and wellness was among the main drivers of new product development and innovation across the industry in 2019, with new healthier references seen in flavoured powder drinks, a category which has recently come under fire due to the high sugar content of many products.

Nestlé is the strong leader due to its dominance in instant coffee and strong position in flavoured powder drinks

During 2019, Nestlé remained well out in front as the strong leading player in hot drinks in Mexico. While Nestlé accounts for slightly less than half of all value sales industry level, its closest rival Mead Johnson Nutricionales de México was unable to generate a double-digit value share, with the other leading players all registering value shares of below 5%.

Health and wellness, convenience and new taste experiences underpin innovation

Innovation remained an important aspect of Mexico’s hot drink industry in 2019 despite sales remain dominated by standard products that have remained unchanged for many years. Among the main drivers of innovation across industry were health and wellness, convenience and new taste experiences.

Widening product choice set to cater to an increasingly sophisticated consumer base

The forecast period is likely to see hot drinks register positive sales growth, with moderate growth likely be seen in sales of the more traditional standard product categories such as instant coffee and flavoured powder drinks. More dynamic growth is expected however in categories that are likely to see innovation, including fresh coffee and tea.

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