Wine - Mexico

The Wine market in Mexico has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Mexican consumers have shown an increasing interest in wine, with a growing number of people incorporating wine into their social gatherings and meals. This can be attributed to a shift in consumer preferences towards healthier and more sophisticated alcoholic beverages. Wine is often perceived as a more refined and elegant choice compared to other alcoholic beverages, and it is seen as a symbol of status and sophistication. Additionally, the popularity of wine has been fueled by the influence of international trends and the rise of wine tourism, which has exposed Mexican consumers to a wider variety of wines and wine cultures.

Trends in the market: One of the key trends in the Mexican wine market is the growing demand for premium and imported wines. As consumers become more knowledgeable about wine, they are willing to explore different varieties and regions. This has led to an increase in the consumption of imported wines, particularly from traditional wine-producing countries such as France, Italy, and Spain. Mexican consumers are also increasingly interested in organic and biodynamic wines, as they value products that are perceived as more natural and environmentally friendly. Another trend in the Mexican wine market is the emergence of domestic wine production. While Mexico has traditionally been known for its tequila and beer production, there has been a significant increase in the number of Mexican wineries in recent years. This can be attributed to favorable climatic conditions in certain regions of Mexico, such as Baja California and Querétaro, which are well-suited for grape cultivation. Domestic wineries are not only catering to the growing demand for wine in Mexico but are also exporting their products to other countries, contributing to the growth of the Mexican wine industry.

Local special circumstances: Mexico has a rich culinary tradition, and wine is increasingly being seen as a complement to Mexican cuisine. Wine pairing is becoming more popular, with consumers seeking wines that enhance the flavors of traditional Mexican dishes. This has created opportunities for local wineries to produce wines that are specifically tailored to the local palate and food culture. Additionally, the growing popularity of wine tourism in Mexico has led to the establishment of wine routes and vineyard tours, attracting both domestic and international tourists.

Underlying macroeconomic factors: The growth of the wine market in Mexico can also be attributed to underlying macroeconomic factors. Mexico has experienced a period of sustained economic growth, which has led to an expansion of the middle class and increased disposable income. As a result, consumers have more purchasing power and are willing to spend on premium and imported wines. Furthermore, the Mexican government has implemented policies to promote the wine industry, including the reduction of import tariffs on wine and the establishment of designated wine regions. These policies have created a favorable business environment for both domestic and international wine producers. Overall, the Wine market in Mexico is experiencing growth due to changing customer preferences, including a growing interest in premium and imported wines, as well as local special circumstances such as the emergence of domestic wine production and the popularity of wine pairing with Mexican cuisine. These trends are supported by underlying macroeconomic factors, including sustained economic growth and government policies that promote the wine industry.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.