GO TO MARKET REPORT:Mexico

The U.S. Department of Agriculture’s Foreign Agriculture Service (FAS)

provided funding for these reports through the Organic Trade Association’s Organic Export Program

Organic Trade Association (OTA) does not discriminate on the basis of race, color, national origin, sex,religion, age, disability, political beliefs, sexual orientation or marital/family status. Persons with disabilities,

who require alternative means for communication of program information, should contact OTA.

GO TO MARKET REPORT: MEXICO 1

OverviewMexico trades more with the United States than any other country, and half of Mexico’s imports come from theUnited States. In 2013, U.S. exports of agricultural products to Mexico totaled $18.1 billion, the third largest U.S.agricultural export market.1 Since the North American Free Trade Agreement (NAFTA) in 1994, exports ofagricultural, fish and forestry products have tripled; U.S. food and agriculture exports to Mexico have been climbingat over 10 percent per year.2

In 2013, the same year the Mexico’s government published a new regulatory framework and an organic labelingprogram, the organic market in Mexico was valued at $242.2 million, according to Euromonitor.3 By 2018 Mexico’sorganic market is expected to grow 73 percent.4 High-demand organic products include specialty processed foods,fresh fruits and vegetables, poultry and eggs, meat and dairy products.5

Meanwhile, Mexico is a world leader in producing organic coffee, organic tropical and sub-tropical fruit and organicvegetables. Organic vegetables commonly grown in Mexico include tomatoes, corn, hot peppers, avocados,cucumbers, onions, squash, and garlic. Organic fruit production includes apples, bananas, mangoes, melons,lemons, and berries. A small portion of Mexico’s organic production is peanuts, vanilla, sugar cane, beans, peas,sesame seeds, mint, ginger and other herbs and medicinal plants. In addition, organic production of honey, poultryand eggs, red meat and dairy is slowly expanding in Mexico. Approximately 85 percent of Mexico’s organicproduction is exported.6 Mexico’s organic export market was valued at $600 million in 2012.7

In general, businesses in Mexico are very price-conscious, seek financing options, and appreciate flexibility andexcellent service.

Market conditions by sectorRetail: Approximately half of Mexico’s retail market is via traditional channels, such as public markets, mobile streetvendors, mom-and-pop stores, and wholesale markets, which primarily distribute local and domestic products.Nevertheless, the Mexican Association of Nationwide Retailers (ANTAD) reports Mexico has 37 supermarket chainswith 4592 stores across the country, and retails sales are growing at approximately 5-7 percent per year.8

Among the fastest growing segments of the retail market are lower-end, smaller supermarkets and conveniencestores, not primary locations for U.S. products, which tend to be more expensive. However, several supermarketchains are expanding to smaller cities and are targeting specific localized, high-end segments, which is increasingthe number of upscale and gourmet supermarkets. Along with supermarkets, the modern sales channel includesdepartment stores, pharmacies and convenience stores. Growth in these areas is coming at the expense of the moreinformal, traditional channels. Within the modern channel, 80 percent of stores are specialized stores, 15 percent ofstores are supermarkets, and 5 percent are department stores.

GO TO MARKET REPORT:Mexico

TABLE OF CONTENTS:1—OVERVIEW1—MARKET CONDITION BY SECTOR7—TYPICAL IMPORTS9—MARKET TRENDS

10—ORGANIC SALES CHANNELS11—HOW TO FIND POTENTIAL

BUSINESS PARTNERS 13—NOTES16—REFERENCES

GO TO MARKET REPORT: MEXICO 2

Leading retailers: Wal-Mart is the clear leader, followed by Soriana, Comercial Mexicana, and Chedraui, and most ofthem carry organic products. Among upscale retail stores with premium brands and niche products, City Market,Chedraui Select, Liverpool, Palacio de Hierro, and Superama lead, although there are also a number of smallindependent specialty stores. Club stores Costco and Sam’s Club carry a variety of imported processed foods. Oxxoleads in the convenience store channel, with 77 percent of the market.9

Among the regional chains, Casa Ley is the largest privately-owned supermarket chain, and serves 12 states in northern Mexico, with Ley Express, Super Ley, and Ley Super Mayoreo, a wholesale-type store catering to institutions, restaurants, pharmacies and small retailers. The Calimax chain, located in Mexico’s northwest, carries over 30 percent of its products from abroad in over 100 stores, and maintains a joint venture with Smart & Final in Los Angeles.10

RETAIL SALES BY STORE TYPE, 2012

51.9%

30.2%

9.6%

8.3%

TRAD

ITIO

NA

L TRADE MODERN

TRA

DE

MODERN TRADE:Supermarkets � 30.2%Specialized stores � 9.6%Department Stores � 8.3%

Source: USDA Foreign Agriculture Service

LEADING NATIONAL RETAILERS IN MEXICO, 2012

Retailer Number of stores

Wal-Mart 1882

Bodegas Aurrera 412

Mi Bodega 256

Bodega Express 755

*Superama 90

Wal-Mart Supercenter 227

Sam’s Club 142

Comercial Mexicana

Comercial Mexicana Store Openings 199

Comercial Mexicana 52

Bodega C.M. 42

Mega C.M. 83

Al Precio 5

Sumesa 12

Fresko 1

*City Market 4

Grupo Soriana 606

Hiper Soriana 249

Mercado Soriana 147

Soriana Super 105

Mercado Express 26 25 72

*Soriana Super Marne 0

City Club 33

Grupo Comercial Chedraui

Chedraui 154

Super Chedraui 40

*Selecto Super Chedraui 2

*Selecto Chedraui 8

El Super (USA locations) 45

Source: USDA Foreign Agriculture Service* High-end/premium stores

GO TO MARKET REPORT: MEXICO 3

GO TO MARKET REPORT: MEXICO 4

Growth areas: Within the retail sector, the packaged food market has grown 23.5 percent since 2008, according toEuromonitor, and was estimated at US$55.8 billion in 2012.11 By 2017, retail sales of packaged foods in Mexico areexpected to reach US$64.9 billion.12 Meal replacement, sweet and savory snacks, confectionery, chilled processedfood, sauces, dressings and condiments, ready meals and dried processed food are all expected to be high-growthcategories. U.S. exporters have been successful with consumer-ready products in many categories, including poultrymeat, dairy, fresh vegetables, processed fruit and vegetables, breakfast cereals and mixes, processed meat, wine andbeer. The markets for wine, beer and food preparation are expected to grow.

Organic products in high demand include specialty processed foods, fresh fruits and vegetables, poultry and eggs,meat and dairy products.13

Hotel, Restaurant, Institution (HRI): Mexico has over 425,000 businesses registered as restaurants, caterers, nightclubs,bars or other food preparation services, and over 20,000 businesses registered as hotels, motels or other lodgingfacilities. Most of the foodservice market is concentrated in principal beach destinations, such as Cancun, Los Cabos,Acapulco, Puerto Vallarta, and Mazatlan, and major cities.14 Most food and beverages—almost 90 percent—in theHRI category are sourced either through supermarket chains, especially price club stores, or through the traditionalwholesale markets known as Centrales de Abasto (CEDA). Serving nearly 30 million people, CEDAs set up in MexicoCity, Guadalajara, and Monterrey, can serve as an indirect conduit to the foodservice sector and other markets, sincemost of the food supply for Mexico’s population passes through them. For the HRI sector, 80 percent of freshproduce comes directly from a supplier at the CEDAs.15 Independent distributors serve the HRI sector, but a fewhotels and restaurants do import directly. Price competitiveness, coupled with good service, is an importantconsideration for this market.

As one of the world’s top 10 tourist destinations in 2012 by number of foreign arrivals, Mexico has about $12 billionin reported tourism revenues, and is recovering from the economic downturn in 2009 and drug-related violencethat left a negative impression, particularly on U.S. tourists. Meanwhile, as the economy has improved, Mexicans aretraveling and eating outside of their homes more often. With North Americans as the majority of the internationaltourists in Mexico, restaurants and tourism are potential markets for food from the United States, giving many ofMexico’s visitors access to familiar products. Furthermore, the hotel sector may be a good prospect for importsthanks to the socio-economic group it targets, even though it is a smaller sector than restaurants and institutions.Over 25 percent of the 651,160 registered rooms in Mexico in 2011 were in one of the 85 foreign or domestic hotelchains, where the three-star and higher hotels are concentrated. Hotels in these categories, as well as specializedhigh-end resorts, are where imported foods are more in demand. Approximately 15% of all food productsconsumed in hotels and restaurants are imported.16 Hotel chains and other large institutions usually make buyingdecisions centrally, with occasional input from the hotel’s chefs.

Although organic foods are not widely distributed to the food service sector, major high-end hotel chains havesome organic options on the menu. In addition, small organic restaurants are opening throughout the country andbuilding clientele. Organic products are usually sourced locally or purchased directly at organic retailers.

A growing segment in the HRI sector are restaurants offering home delivery, due in part to fast-paced lifestyles inurban areas, and a sense of insecurity in some cities. As well there are increasingly professional institutionalfoodservice operations in hospitals, caterers, airlines, industry cafeterias, prisons and schools. Another trendincludes restaurants with international cuisines, such as Thai, Chinese, Mediterranean, Ethiopian, and Vietnamese,starting up across the country.

Types of distribution to HRI include:• Independent importers/distributors with their own warehouses that deliver to the entire HRI sector. These businesses offer

import and regulatory compliance assistance.• Specialist distributors who handle one product type, such as meat or seafood.• Specialist distributors who handle several products, such as frozen or refrigerated products or dry goods.

GO TO MARKET REPORT: MEXICO 5

• Wholesalers who work primarily with local products and cash transactions.• Price clubs/club stores, primarily for basic dry goods and some fresh products. These stores have been targeting the hotel

and restaurant market, particularly in resort areas, and are often used as a source for small volumes of products.• Direct sales are rare, but some institutions may use this option for specific products.

Best prospects for the HRI market include:• Pork, beef, and cold cuts, plus duck and lamb in some specific regions• Processed fruits and vegetables, including juices and mixes • Seafood products that Mexico does not produce; salmon and crab • Single-serve packaged food, such as nut mixes, small chips bags, single-serve fruit in syrup • Healthier foods, such as low sodium, low fat, or reduced sugar products• Specialized food products for specific cuisines, such as Thai, Korean, Mediterranean, etc., including dressings and salsas • Desserts, like high-end bakery, cookies and pastries; ice cream • Cheese and powdered milk• Meat, processed foods, and colds meats are the product categories with the biggest volumes.

Food ingredients: With over 170,000 food and beverage manufacturing/processing companies, Mexico’s foodprocessing industry is growing at about 2 percent each year in a market valued at about US$70 billion.17 Ingredientsfrom the United States are in high demand, and the United States was the main exporter of processed foods toMexico in 2012, when the market for imported processed foods fell to US$9.3 billion.18 Mexico’s leading brands havewell-developed national distribution networks and enjoy high brand awareness with consumers, who are veryloyal.19 Despite being dominated by multinational corporations, the food processing sector in Mexico offersopportunity for small and medium companies. Furthermore, some companies in Mexico seek business relationshipswith foreign food processors in order to gain technological innovations in exchange for market intelligence, asconsumer demand for healthy, convenient, innovative products grows.20

Ready-to-eat and frozen foods are becoming more popular as women enter the workforce, per capita income levelsincrease, and lifestyles change. Increasing rates of obesity and concern about childhood obesity has led to interestin healthier food products and created additional opportunities for healthier products in the processed food market.In 2014, Mexico’s Senate even passed a tax increase for processed foods that have 275 or more kcal for every 100grams, including sweets, chocolates, ice cream, cookies, snack foods, beer and bottle soda. The resulting higherprices will affect processed food sales.

Other key factors in the growth of the sector include:• Increasing demand for organic foods and more natural ingredients• Additional demand for gourmet or exotic flavors and ethnic foods. Consumers are open to new food experiences.• Growth in private label brands.• Increased demand for smaller sized packages and single portions as household size decreases.

Processed food products with good prospects for growing sales include:• Better-for-you foods, including low sodium, low-fat, and reduced sugar processed foods• Premium products that offer better quality and product innovation • Gourmet foods, especially sauces, condiments, artisanal cheeses • Ethnic foods such as Asian, Lebanese, or European food • Dairy products, including yogurt and milk products; sweet whey, cheese and fluid milk also have good potential.• Foods that are convenient to prepare and eat, such as ready meals, meal helpers, and frozen foods • Premium and specialty beers, including porters, stouts and IPAs.

GO TO MARKET REPORT: MEXICO 6

Personal care: Consumers are seeking ‘clean’ products, boosting demand for personal care products made withnatural and organic ingredients. This category is expected to become fiercely competitive. Meanwhile, U.S.manufacturers with organic and natural personal care products that perform effectively have an advantage overlocal manufacturers that do not yet make effective natural and organic products. Some brands that have beenintroduced to the Mexican market include natural products from Estee Lauder, Aveda, Kiehl’s, L’Occitine, and theBody Shop. Meanwhile, Burt’s Bees, Nuxe, Amway, Natura and local brand Organic Beauty are being distributedthrough local drugstore chains, with favorable response from consumers.22

MEXICO’S PROCESSED FOOD SALES, BY VOLUME, 2011–12

Quantity, thousands of metric tonsPROCESSED FOOD CATEGORY 2011 2012

Bakery 16,173.90 16,276.60

Dairy 6,729.40 6,851.80

Impulse and Indulgence 3,511.40 3,576.70

Meal Solutions 1,938.10 1,981.20

Dried Processed Food 1,036.70 1,056.40

Oils and Fats 956.8 979.4

Sauces, Dressings and Condiments 854.1 875

Canned and Preserved Food 541.1 552.3

Sweet and Savory Snacks 394.2 409.2

Confectionary 370.1 379

Pasta 305.5 312.1

Chilled Processed Food 252.9 258.6

Spreads 124.6 126.5

Frozen Processed Food 122.1 124.6

Ice Cream 75.3 76.7

Baby Food 70.4 71.6

Noodles 55.7 56.6

Ready Meals 50.8 51.7

Snack Bars 35.8 36.9

Soup 30.8 31.3

Meal Replacement 12.1 12.4

Source: USDA Foreign Agriculture Service, based on data from Euromonitor 21

GO TO MARKET REPORT: MEXICO 7

Organic: From January to August 2013, exports of U.S. organic products to Mexico were up 75 percent since 2011 andvalued at $103 million, on track to exceed the $113 million in U.S. Organic exports to Mexico in 2012.29 Cheeses,wines, salad dressings, breakfast cereals, and baby foods are among the large quantity of U.S. organic products soldin Mexico.

LEADING U.S. AGRICULTURAL EXPORTS TO MEXICO, 2013

PRODUCT Value, millions of US$

Corn 1,764.80

Soybeans 1,543.60

Dairy products 1,429.00

Poultry meat & products 1,164.80

Wheat 907.2

Sugar/sweeteners 764.8

Soybean meal 672.5

Fresh Fruit 625.9

Rice 404.6

Processed fruit & vegetables 367.1

Snack foods 265.3

Coarse grains 265.1

Tree nuts 206.5

Eggs & products 199.1

Wine & beer 147.5

Source: U.S. Foreign Agricultural Service’s Global Agricultural Trade System28

Typical importsNon-organic: Leading U.S. agricultural exports to Mexico in 2013 include: corn ($1.8 billion), soybeans ($1.5 billion),dairy products ($1.4 billion), pork and pork products ($1.2 billion), and poultry meat (excluding eggs) ($1.2 billion).23

U.S. exports of several product categories strengthened in 2013 including coarse grains, red meats, soybeans andby-products (e.g. soybean meal and oil), dairy products, wheat, poultry meat, cotton, sugar and sweeteners, feedsand fodder, processed fruits and vegetables, animal fats, fresh fruit, snack foods, and wood products.24 Consumer-ready U.S. exports to Mexico reached record sales in many product categories, such as poultry meat, dairy, freshvegetables, processed fruit and vegetables, breakfast cereals and mixes, processed meat, wine, and beer. In 2012,top processed food exports from the U.S. to Mexico included red meats and poultry, sweeteners, concentrated milk,fats and oils, red meat offal, oilseed flour, cheese, beans and lentils, flavorings, soup and chocolate candy.25 Inaddition, the United States leads in supplying apples, pears and grapes to the Mexican market, and is expected tocontinue to do so.26

The markets for wine, beef and food preparations are expected to grow, and Mexico is expected to continue toimport dairy products since Mexico does not produce enough milk to meet demand, despite steady growth in thedomestic dairy industry.27

GO TO MARKET REPORT: MEXICO 8

SELECT U.S. ORGANIC EXPORTS TO MEXICO, 2011–2013

Values in thousands of dollars, quantities in metric tons Period/Period

2011 2012 2013 % ChangeORGANIC PRODUCT Value Qty Value Qty Value Qty Value Qty

Apples, fresh 25,834 22,861.90 74,790 61,561.50 108,480 89,991.50 45 46

Grapes, fresh 8,312 5,991.70 19,915 10,526.00 27,542 17,716.00 38 68

Pears, fresh 5,987 6,402.30 16,447 15,186.10 15,323 12,401.50 -7 -18

Coffee, roasted, not decaffeinated 2,721 294.1 7,978 680.3 9,155 818.4 15 20

Onion sets, fresh or chilled 2,002 6,043.00 3,168 7,478.30 8,378 17,019.70 164 128

Strawberries, fresh 408 202 520 288.7 3,993 1,530.40 668 430

Lettuce, except head lettuce 99 54.8 132 168.3 3,470 2,399.10 2,521 1,326

Cherry tomatoes, fresh or chilled 305 272.6 443 452.4 1,843 542.4 316 20

Spinach, fresh or chilled 20 9.6 0 0 1,479 493.5

Tomato sauces, 796 715 1,063 1,049.30 948 943.2 -11 -10excluding tomato ketchup

Lettuce, head, fresh or chilled 385 895.8 1,047 2,588.80 835 1,744.20 -20 -33

Cherries, fresh 413 84.1 1,382 601.8 571 106.9 -59 -82

Tomatoes, roma/plum, 603 581 395 392.6 544 414.9 38 6fresh or chilled

Oranges, fresh or dried, 214 816.1 133 284.3 541 1,890.00 307 565excluding temple oranges

Cauliflower, fresh or chilled 360 889.1 589 1,677.00 538 1,271.00 -9 -24

Cabbage, fresh or chilled 0 0 248 365.7 402 620.4 62 70

Carrots, fresh or chilled 60 105.4 316 464 374 624.3 19 35

Celery, fresh or chilled 67 68.2 190 378.4 279 549.5 47 45

Lemons, fresh or dried 180 203.7 163 189.7 272 277.2 67 46

Peppers, fresh or chilled 13 9.6 79 65 261 224.3 229 245

Tomatoes, except plum or cherry, 510 279.9 334 325 216 176.3 -35 -46fresh or chilled

Potatoes, fresh or chilled 0 0 300 861.6 103 316.6 -66 -63

Grapefruit, including pomelos, 0 0 11 36.4 80 200.6 636 451fresh or dried

Broccoli, fresh or chilled 97 58.8 124 139.1 72 113.1 -42 -19

Blueberries, cultivated, fresh 0 0 0 0 45 17.6

Cucumber and gherkins, 0 0 5 3 9 7.9 82 161fresh or chilled

Data Source: U.S. Census Bureau Trade Data; Data on organic exports for organic products without a separate export code is notavailable.

GO TO MARKET REPORT: MEXICO 9

Market trendsDemographics: With over 120 million people, Mexico is the world’s most populous Spanish-speaking country. Percapita income is $15,000, with 10 percent of the population considered wealthy, 45 percent in the middle class, and45 percent in poverty earning less then $10 per day.30 Despite the 2009 world economic crisis, Mexican consumershave begun to increase consumption of foods and beverages as their disposable income levels have improved. Inaddition, several currents in the culture might be of interest to food exporters:

Youthful populace: One-third of Mexico’s population is between the ages of 20 and 40;31 and 64 percent is under the age of35.32 The median age is 27. More young professionals and college students are driving up sales of products like beer,snacks, fast-food and dining out.33

Smaller households: the number of single-person households keeps rising, and higher divorce rates and lower marriagerates have also served to reduce household size over the past decade or so.

Primarily urban: 78 percent of Mexico’s population lives in urban areas.34 Urbanization has been a factor in pushing up salesof packaged food and ready-to-eat meals, and expanded markets for catering and fast-food services.

Obesity: According to the Encuesta Nacional de Salud y Nutrición 2006, approximately 26 percent of children, 31 percent ofadolescents, and 70 percent of adults were either overweight or obese.35 Mexican consumers are seeking healthiereating habits: 60 percent of the Mexican population is trying to lose weight, and of those, 70 percent are changing theirdiets to do so.36 Reversing the trend toward obesity, especially among children, is a priority for Mexico’s governmentwhich has initiated education campaigns and nutrition laws prohibiting the sale of unhealthy food in public schools.

More women at work: As more women work outside the home, demand for consumer-ready products has gone up.Additional disposable income from women in the workforce has enabled the purchase of some products previouslyseen as too expensive.

Food attitudes/preferences:Food preferences are changing: Urban women are shifting to healthier lifestyles for themselves and their children.

Supplies of health and wellness packaged foods, such as cereals, processed fruits and vegetables and yoghurt, areexpected to increase.

U.S. brands viewed favorably: Mexican consumers generally associate U.S. brands and labels with consistent high qualityand value.

Price sensitivity: Although price remains a major factor in purchasing decisions for Mexico’s consumers, who tend to beprice sensitive, Mexican consumers are brand loyal, and will buy the preferred brand even if the price is higher. Inaddition, Mexicans will treat themselves to affordable products for special occasions. The market for healthy foods,especially better-for-you packaged foods, is often limited to higher-income consumers. Chicken is the most-consumedmeat, primarily due to price.

Convenience: Mexicans are seeking out more convenient food and food service options. Options might include productschildren can handle on their own, smaller packages, easy-to-prepare foods and prepared or ready-to-eat mealsubstitutes, especially those for younger consumers and the less affluent.

Wine is becoming more popular: Wine consumption is projected to grow at 12 percent annually in the coming years, due inpart to a thriving middle class and increased interest in wine from women and young adults.37

Retail market trends: Rapid change for traditional retail and marketing chains: More and more, supermarkets are bypassing traditional

distributors and buying directly from suppliers.

Rural expansion: By expanding in both rural and small communities, retailers are creating new markets for consumerproducts; restaurants and entertainment services are following.

Organic market trends: Citing perceived health benefits and support for farmers and the environment, moreconsumers are buying organic products. According to the Asociación Impulso Orgánico, consumer demand fororganic products is rising 10 percent annually.38

GO TO MARKET REPORT: MEXICO 10

Because prices of organic fruits, vegetables, meat and milk are higher than non-organic products, Mexico’s organicproduct users tend to be in medium and upper socioeconomic classes. Retailers target those with more purchasingpower and higher levels of education. Meanwhile, the number of consumers who make purchasing decisions basedon whether or not the food is grown in environmentally-friendly and sustainable ways is growing. In the personalcare category, females aged 19-35 are the best prospects for natural and organic personal care products. Youngerconsumers—those aged 19-25—are most open to new personal care products due to higher disposable income,reduced price sensitivity, higher level of brand loyalty, interest in new trends and use of social networks andinformation technology to learn about organic products. Personal care products for men have also grown inpopularity with products like lotions, cleansing products, soaps and cosmetics.

Organic sales channelsSpecialty stores, internet sales and small sections in supermarkets are the primary outlets for organic products.Packaged organic products can primarily be found in major supermarket chains, such as Wal-Mart, Superama,Soriana, Comercial Mexicana and City Market. Small independent specialty stores, such as the Green Corner andAires de Campo, are also an important channel for organic products. In addition, farmers markets, such as theMexican Tianguis and Organic Markets Network (REDAC), have tapped into demand for organic products.

Some examples:Aires de Campo, a leader in commercializing and distributing organic foods in Mexico, operates approximately 20 BioCentros

distribution warehouses across the country. Capable of serving between 500 to 750 regular clients, the warehouses linkbuyers and producers of organic foods.41 They distribute to retail outlets, specialty stores and via home delivery. Inaddition, Aries de Campo makes the Via Verde brand private label products for Wal-Mart’s Mexican stores.

Challenges for continued growth in the organic sector include:• Price: Organic products are priced 20-40 percent higher than comparable non-organic products.40

• Low understanding of the organic category• Low availability of organic products• Inadequate differentiation of organic products compared to non-organic products• Concern about the integrity of organic products• Little investment in promoting the organic sector

RETAIL SALES OF HEALTH AND WELLNESS FOODS IN MEXICO–U.S. $ MILLIONS

2005 2006 2007 2008 2009 2010

Organic 0.81 62.1 73.7 103.1 130.24 163.98

Food Intolerance 60.97 105.56 200.96 272.82 416.73 611.39

Better for You 2,406.41 3,016.69 3,533.60 3,805.12 4,167.07 4,662.77

Naturally Healthy 2,912.36 3,255.81 3,271.17 4,164.35 4,800.35 5,311.10

Fortified/Functional 7,591.77 8,490.87 9,573.97 10,607.63 11,010.02 11,741.22

Health and Wellness 12,887.25 14,850.58 17,037.50 18,884.20 20,433.47 22,410.54

Source: USDA Foreign Agriculture Service, based on information from Euromonitor International39

GO TO MARKET REPORT: MEXICO 11

El Buen Campo, new in 2014, provides organic food staples and pantry items via home delivery in theMexico City area. They expect to grow from between 100 and 500 regular clients to 1000 to 2000. They are anticipating a 15-20 percent annual growth in the organic market there.42 Other home delivery services with organic products include: Mercado Orgánico de Tepoztlán Ameyalli, Pro-ductos de la Chinampa, and Tierra Sana y Granja San Francisco.

Organicos enlinea, an online retailer, specializes in organic and natural imported products, and sells toindividuals and wholesale to small businesses.

How to find potential business partnersIN MEXICO

United States Department of Agriculture (USDA):Foreign Agriculture Service: http://www.mexico-usda.com.mx/home/U.S. Agricultural Trade Office in Mexico City Liverpool #31, Col. Juarez Mexico, DF 06600 Tel: +52 (55) 5140-2671 Fax: +52 (55) 5535- 8357 E-Mail: atomexico@fas.usda.gov

U.S. Agricultural Trade Office in Monterrey Blvd. Gustavo Diaz Ordaz #140 Torre 2 - Piso 7, Col. Santa Maria Monterrey, NL 64650 Tel: +52 (81) 8333-5289 Fax: +52 (81) 8333-1248 E-Mail: atomonterrey@fas.usda.gov

TRADE SHOWSAlimentaria México (http://www.alimentaria-mexico.com/en) is an international food and drinks exhibition that addresses

both the distribution and the food service sector in Mexico. Usually held in late May/early June.

The Gourmet Show (http://www.tradex.mx/gourmet/index.php/english-info) showcases products geared to the gourmetand specialty sectors. In addition to gourmet foods, the show focuses on food items with strong Mexican roots such ascoffee, chocolate, and tequila. Visitors include buyers from the trade as well as consumers:

International Natural Products Expo (www.anipron.org.mx), known as Anipron, held every February in Mexico City, is aleading trade event in Mexico for natural supplements and personal care products.

GO TO MARKET REPORT: MEXICO 12

LOCAL IMPORTERS/DISTRIBUTORSWorking with local importers/distributors in Mexico is an important early step for success in the Mexican market. Import

procedures and documentation requirements can change, so close contact with the importer/distributor is essential.Furthermore, a good distributor will promote sales and ensure products are available at the point of sale. Keyimporters/distributors specializing in organic foods:

Aires de Campo Contact: Roberto Latapi Address: Av. San Antonio 16 Int. 2 San Pedro De Los Pinos Tel: 011-52-55-2614-0122 E-Mail: rlg@airesdecampo.com Website: www.airesdecampo.com

Campo Vivo Contact : Mateo Dornier Address: Cuauthemoc 11 Urbana Ixhuatepec C.P. 55349 Ecatepec Tel: 011-52-55-2733-0088 Ext. 103 E-Mail: m.dornier@campovivo.com.mx Website: http://www.campovivo.com.mx/

Food Solutions S.A. De C.V. Contact: Raymundo Cid del Prado Address: Carr. a Huinalá KM 1.5-A. Col. El Milagro Apodaca, N.L. 66634 Tel: 011-52-81-8321-3636 ext. 211 E-mail: raymundo@nutribits.com Website: http://www.nutribits.com/

Distribuidora Promesa – Dipro Contact: Eliette Orozco Address: Av. Madero 1590 Col. Nueva, Mexicali 21100, Baja California Tel: 011-52-686-555-7105 Fax: 011-52-686-555-7116 E-mail: info@diproworldorganic.com Website: http://www.deltausmex.com/

For a list of supermarkets and specialty stores that offer organic products, see:http://www.impulsoorganicomexicano.com/#!dnde-comprar/c3wr

IN THE UNITED STATESUSDA Foreign Agriculture Service Mexico http://www.fas.usda.gov/regions/western-hemisphere/mexico

Regional trade groups can provide assistance for entering the Mexican market. Midwest: http://www.foodexport.org/ West: http://www.wusata.org/ Northeast: http://www.foodexportusa.org/ South: http://www.susta.org/

Visit United States Organic Export Directory (http://www.usorganicproducts.com) and The Organic Pages Online(http://www.theorganicpages.com/topo/index.html) to search for organic businesses that may be able to assist US exporters.

Of note: The United States Department of Agriculture (USDA) has several export programs that can help support promotion and training.

GO TO MARKET REPORT: MEXICO 13

Notes1. Mexico. Office of the United States Trade Representative, May 1, 2014.

http://www.ustr.gov/countries-regions/americas/mexico

2. Mexico Exporter Guide 2013. United States Foreign Agricultural Service. Global Agricultural Information Network. December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

3. Alcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014.http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html

4. Alcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014.http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html

5. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, November 5, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

6. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, November 5, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

7. Organic in Mexico. Impulso Orgánico Mexicano, A.C. http://www.impulsoorganicomexicano.com

8. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network,December 31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

9. Mexico’s Food Processing and Ingredients Report, United States Foreign Agricultural Service, Global Agricultural InformationNetwork, December 31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO_Mexico_12-31-2013.pdf

10. Mexico Retail Foods Mexico Retail Sector Report CY2012, United States Foreign Agricultural Service, Global AgriculturalInformation Network, October 18, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Mexico%20City%20ATO_Mexico_10-18-2013.pdf

11. Mexico country profile, Food Export Association of the Midwest USA and Food Export USA Northeast, 2011.https://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1018

12. Ibid.

13. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, November 5, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

14. Mexico Food Service – Hotel, Restaurant, Institutional; United States Foreign Agricultural Service, Global AgriculturalInformation Network, March 8, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20%20Hotel%20Restaurant%20Institutional_Mexico%20City%20ATO_Mexico_3-8-2013.pdf

GO TO MARKET REPORT: MEXICO 14

15. Mexico Food Service – Hotel, Restaurant, Institutional; United States Foreign Agricultural Service, Global AgriculturalInformation Network, March 8, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20%20Hotel%20Restaurant%20Institutional_Mexico%20City%20ATO_Mexico_3-8-2013.pdf

16. Mexico country profile, Food Export Association of the Midwest USA and Food Export USA Northeast, 2011.https://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1018

17. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

18. Mexico’s Food Processing and Ingredients Report, United States Foreign Agricultural Service, Global Agricultural InformationNetwork, December 31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO_Mexico_12-31-2013.pdf

19. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

20. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

21. Mexico’s Food Processing and Ingredients Report, United States Foreign Agricultural Service, Global Agricultural InformationNetwork, December 31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO_Mexico_12-31-2013.pdf

22. Organic Personal Care Products Market in Mexico, U.S. Department of Commerce’s International Trade Administration, U.S.Commercial Service.http://export.gov/mexico/static/Organic%20Personal%20Care%20Products%20Market%20in%20Mexico_Latest_eg_mx_056253.pdf

23. Mexico, Office of the United States Trade Representative, May 1, 2014. http://www.ustr.gov/countries-regions/americas/mexico

24. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’sInternational Trade Administration, U.S. Commercial Service.http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

25. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

26. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’sInternational Trade Administration, U.S. Commercial Service.http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

GO TO MARKET REPORT: MEXICO 15

27. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’sInternational Trade Administration, U.S. Commercial Service.http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

28. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’sInternational Trade Administration, U.S. Commercial Service.http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

29. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, November 5, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

30. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’sInternational Trade Administration, U.S. Commercial Service.http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

31. Mexico Food Service – Hotel, Restaurant, Institutional; United States Foreign Agricultural Service, Global AgriculturalInformation Network, March 8, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20%20Hotel%20Restaurant%20Institutional_Mexico%20City%20ATO_Mexico_3-8-2013.pdf

32. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

33. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December31, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

34. Mexico Exporter Guide 2013, United States Foreign Agricultural Service, Global Agricultural Information Network, December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

35. Niche Products in the Perceived-Healthy Food Market in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, August 23, 2012.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20PerceivedHealthy%20Food%20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf

36. Niche Products in the Perceived-Healthy Food Market in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, August 23, 2012.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20PerceivedHealthy%20Food%20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf

37. Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies, U.S. Department of Commerce’sInternational Trade Administration, U.S. Commercial Service.http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

38. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, November 5, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

GO TO MARKET REPORT: MEXICO 16

ReferencesAlcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014.

http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html

Doing Business in Mexico: 2014 Country Commercial Guide for U.S. Companies. U.S. Department of Commerce’s InternationalTrade Administration. U.S. Commercial Service.http://export.gov/mexico/static/CCGFINAL2014_Latest_eg_mx_076936.pdf

Health and Wellness in Mexico. Euromonitor International, May 2014. http://www.euromonitor.com/health-and-wellness-in-mexico/report.

Heinze, Karin. Mexico’s green niche expanding. www.organic-market.info, May 3, 2012. http://www.organic-market.info/web/Continents/Latin_America/Mexico/201/206/0/12316.html (Accessed October 13, 2014)

Mexico. Office of the United States Trade Representative, May 1, 2014. http://www.ustr.gov/countries-regions/americas/mexico

Mexico country profile, Food Export Association of the Midwest USA and Food Export USA Northeast, 2011https://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1018

Mexico Exporter Guide 2013. United States Foreign Agricultural Service. Global Agricultural Information Network, December31, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Mexico%20City%20ATO_Mexico_1-8-2014.pdf

Mexico’s Food Processing and Ingredients Report. United States Foreign Agricultural Service. Global Agricultural InformationNetwork, December 31, 2013http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Processing%20Ingredients_Mexico%20City%20ATO_Mexico_12-31-2013.pdf

Mexico Food Service – Hotel, Restaurant, Institutional. United States Foreign Agricultural Service. Global AgriculturalInformation Network, March 8, 2013. http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Service%20-%20Hotel%20Restaurant%20Institutional_Mexico%20City%20ATO_Mexico_3-8-2013.pdf

39. Niche Products in the Perceived-Healthy Food Market in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, August 23, 2012.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20PerceivedHealthy%20Food%20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf

40. New Organic Certification and Product Labeling Program in Mexico, United States Foreign Agricultural Service, GlobalAgricultural Information Network, November 5, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

41. Organic Foods Find Growing Niche in Mexico, United States Foreign Agricultural Service, Global Agricultural InformationNetwork, February 11, 2011.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Organic%20Foods%20Find%20Growing%20Niche%20in%20Mexico_Mexico%20ATO_Mexico_2-11-2011.pdf

42. Alcantara, Claudia. 5 SMEs to ‘germinate’ with organic products. El Financiero. July 5, 2014.http://www.elfinanciero.com.mx/empresas/pymes-que-germinan-con-productos-organicos.html

GO TO MARKET REPORT: MEXICO 17

Mexico Retail Foods Mexico Retail Sector Report CY2012. United States Foreign Agricultural Service. Global AgriculturalInformation Network, October 18, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Retail%20Foods_Mexico%20City%20ATO_Mexico_10-18-2013.pdf

New Organic Certification and Product Labeling Program in Mexico. United States Foreign Agricultural Service. GlobalAgricultural Information Network, November 5, 2013.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Organic%20Certification%20and%20Product%20Labeling%20Program%20in%20Mexico_Mexico%20ATO_Mexico_11-5-2013.pdf

Niche Products in the Perceived-Healthy Food Market in Mexico. United States Foreign Agricultural Service. GlobalAgricultural Information Network, August 23, 2012.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Niche%20Products%20in%20the%20Perceived-Healthy%20Food%20Market%20in%20Mexico%20_Mexico%20ATO_Mexico_8-23-2013.pdf

Organic Foods Find Growing Niche in Mexico. United States Foreign Agricultural Service. Global Agricultural InformationNetwork. February 11, 2011.http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Organic%20Foods%20Find%20Growing%20Niche%20in%20Mexico_Mexico%20ATO_Mexico_2-11-2011.pdf

Organic in Mexico. Impulso Orgánico Mexicano, A.C.. http://www.impulsoorganicomexicano.com

Organic Personal Care Products Market in Mexico. U.S. Department of Commerce’s International Trade Administration. U.S.Commercial Service.http://export.gov/mexico/static/Organic%20Personal%20Care%20Products%20Market%20in%20Mexico_Latest_eg_mx_056253.pdf

Villagran, Lauren. Growers, grocers satisfy ripening taste for organic in Mexico. SmartPlanet, Issue 21, January 13, 2012.http://www.smartplanet.com/blog/global-observer/growers-grocers-satisfy-ripening-taste-for-organic-in-mexico/

AcknowledgementGo To Market Report: Mexico 2014 prepared by Wolf, DiMatteo + Associates (www.organicspecialists.com) forOrganic Trade Association