Wine in Mexico

PRE-COVID-19 PERFORMANCE

Wine culture strengthens

In 2019, despite deceleration, wine maintained robust sales growth, as consumers were increasingly curious and knowledgeable about the wine offer. More consumers are developing a more sophisticated palate regarding wine, and recognise the brands and types of wine they like.

Competition from beer heightens

Although wine maintained fairly strong volume sales growth in 2019, it increasingly competed with other types of beverages, such as beer, as they have similar consumption occasions. Both beer and wine are perceived as lighter alcoholic beverages when compared with spirits, and consumers choose them daily for lunch or dinner.

More Mexicans are raising a glass of sparkling wine

Sparkling wine recorded a dynamic performance over the review period. Sales are being driven by the entry of more brands in the category, which are offering a wider variety of products at different price points.

2020 AND BEYOND

COVID-19 impact

Retail sales of wine are now expected to climb by just 3% in volume terms in 2020 overall, in light of the impact of COVID-19. This is a moderate contrast to the 7% rise in sales forecast in Euromonitor International’s 2019 edition of alcoholic drinks.

Affected products within wine

From its low sales base, still rosé wine is poised to decline the most in 2020. While the closure of bars, pubs and restaurants has hugely negatively affected all wine categories, the retail performance of still rosé wine will be stifled too, albeit to a lesser extent, by the lack of opportunity to share this drink, which is heavily associated with socialising.

Recovery and opportunities

As the government allows the horeca channel to gradually reopen in Mexico, on-trade sales of wine are set to begin to return, though a heavy decline is predicted for 2020 as a whole. Retail sales of wine stand to benefit from the easing of lockdown restrictions too, as gatherings with friends in one’s house or garden will be allowed again within certain limits.

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