4 Billion-Dollar Products Driving Record Mexico Exports | Biz Latin Hub

Mexico exports of agrifood merchandise hit a 29-year excessive within the first 5 months of 2021, highlighting the sturdy funding alternatives out there in food and drinks manufacturing within the North American nation. 

Avocados are a key export product for Mexico

Agrifood merchandise — together with each contemporary produce and processed items — introduced in $18.7 billion between January and May this yr, whereas imports of such items stood near $14.5 billion, representing a surplus of greater than $4.2 billion, which Mexico’s Agriculture Ministry was reported to have stated is the fourth highest in 27 years (all figures in USD).

The earnings from such exports for the interval reportedly exceeded these generated by both petroleum exports or overseas tourism, pointing to the importance of the business to the Mexican financial system.

SEE ALSO: Starting a Business in Mexico: a How to Guide

Major development was seen in exports of sure merchandise, with flower exports reportedly growing 94% on the identical interval final yr, whereas pure honey exports grew 83.2%, tobacco elevated 60.7%, and citrus exports have been 57.5% increased.

The following 4 agrifood merchandise every introduced in additional than a billion {dollars} between January and May, and with extra development anticipated sooner or later, supply vital alternatives to traders. 

4 key Mexico exports driving report agrifood exports

  1. Beer ($2.2 billion)

Mexico is well-known for its giant beer business, with numerous manufacturers exported all over the world. The business was closely influenced by German and Austrian immigrants, who established the primary breweries within the nineteenth Century. Today, Mexico’s beer business sees more than $23 billion in annual revenues, whereas over 13,000 individuals are employed in beer manufacturing.  

While beer manufacturing is dominated by two main conglomerates — Cervecería Modelo/Grupo Modelo and Cervecería Cuauhtémoc-Moctezuma/FEMSA — the nation’s craft and artisanal beer market has been growing exponentially in recent times, providing major opportunities to investors

  1. Avocados ($1.3 billion)

Mexico is famed for being the primary producer of avocados globally, and is the source of approximately 45% of the provision of the tropical fruit offered on the worldwide market. Growing demand has seen avocado manufacturing more than double in less than a decade, from 1.11 metric tons in 2010 to 2.39 metric tons in 2020.

While the state of Michoacán is the most important producer of avocados, the neighboring state of Jalisco is a quick rising producer, whereas the fruit can be cultivated in states resembling Chiapas, Oaxaca, Nayarit, and Yucatan.

With avocados slated to be the most widely sold tropical fruit globally by 2030, manufacturing may be anticipated to proceed to develop and additional drive Mexico exports into the longer term. 

  1. Tequila and mezcal ($1.1 billion)
Tequila ageing in barrels in Mexico, where it is a one of the country's key exports
Tequila ageing in barrels in Mexico

Arguably one in all Mexico’s most well-known merchandise is tequila, a distilled spirit created from blue agave. Along with mezcal, an identical product that may be created from a greater variety of agave, exports of those distilled liquors exceeded $1.1 billion within the first 5 months of 2021.

Tequila is sort of completely produced within the state of Jalisco, though some manufacturing is seen in close by Guanajuato, Michoacan, Nayarit, and Tamaulipas. Meanwhile, roughly 70% of mezcal is made within the state of Oaxaca.

As effectively as being probably the most well-known merchandise produced by the nation, tequila has additionally witnessed growing demand in recent times, with Mexico exports of the liquor more than quadrupling between 1995 and 2020.

  1. Tomatoes ($1.1 billion)

The closing product amongst Mexico exports to generate greater than $1 billion in gross sales within the first 5 months of the yr is tomatoes, with the US Department of Agriculture earlier this month reporting that it expects Mexico to set its all-time record for tomato exports in 2021.

The states of Coahuila, Nuevo León, Puebla, and Querétaro see the highest yields from tomato manufacturing, whereas Sinaloa is the most important tomato producing state. Other key producers are the states of Baja California and Baja California Sur.

Tomatoes are produced year-round in Mexico, with a fall/winter cycle and a spring/summer time cycle. The key vacation spot for Mexican tomatoes is the United States, the place greater than 99% of Mexico exports of the fruit are destined for.  

Biz Latin Hub will help you doing enterprise in Mexico

At Biz Latin Hub, our multilingual group of company help specialists is prepared that can assist you coming into and doing enterprise within the Mexican market, or any of the opposite 17 markets round Latin America and the Caribbean the place we’ve got groups in place. With our full portfolio of back-office options, together with company formation, authorized, accounting, recruitment, and visa processing companies, we may be your single level of contact for doing enterprise within the area, in addition to elsewhere.

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