Juice in Mexico

PROSPECTS

Further retail volume growth despite weaker trust in health credentials

Retail volume sales of juice continue to grow in 2019, albeit at a slightly slower rate than in 2018. Nectars and 100% juice continue to see the fastest growth rates.

Price and convenience override high sugar concerns for many consumers

In line with rising awareness of high sugar content, and the inclusion of other potentially harmful ingredients, such as additives and preservatives, consumers are reading the labels on packages more closely. While consumers want to avoid products with high sugar content and artificial ingredients, price remains the main factor in the purchasing decisions of most consumers.

Premiumisation boosts appeal of 100% juice as nutritious option

Concerns over whether packaged juice represents a healthy and nutritious soft drinks option are being allayed by premiumisation. This rising trend increases the perception of 100% juice as a natural and healthy option.

COMPETITIVE LANDSCAPE

Leading players invest in production to grow capacity and sales

Major juice companies are investing heavily in production facilities to increase capacity, domestic and export sales potential and reduce logistics costs. In April 2019, The Coca-Cola Co inaugurated a new Jugos del Valle-Santa Clara manufacturing plant in Lagos de Moreno, Jalisco.

New launches create a competitive edge in tight price segments

The intense competition in juice exerts downward pressure on prices. The price differential between the leading brands and private label in price segments is not high.

Players use new pack types and designs to stand out from the crowd

Packaging is another increasingly important consideration for players seeking to stand out on the shelf from other juice brands/products and alternative types of soft drinks. The growing use of PET bottles is exemplified by Jugos del Valle, which launched Del Valle Nutri Vegetales in PET bottles, featuring a sleeve to offer a premium appearance.

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