Mexican Liquor Market

The Mexican government does not regulate the sale and distribution of alcohol other than to collect an import tax for each bottle imported into Mexico. The sale (age for consumption, hours of operation) is regulated by each state. However, none sell and distribute alcohol as is the case in the rest of North America. Therefore, the distribution and sale of wines and liquor is controlled by numerous importers/distributors that vary in size. Some businesses only distribute and have the product imported by an independent company. Others combine both importation and distribution. 

The major distributors are also importers. They normally do not introduce new products in the market unless a smaller distributor or the distiller has tested it and will provide the logistics and sales support for the product in local markets. The smaller distributor will then act as a manufacturer’s representative in Mexico and markets and creates the demand for the product and resolves any issues with retailers. The major distributors/importers only import and distribute the product. Some have their own retail outlets which include supermarkets and the traditional liquor stores as those in Canada and the US.

The wine and spirits market in Mexico is booming:

• Mexicans are fond of new products, although they are major producers and consumers of Tequila, Mezcal and of beer (50 L per year/per person). Beer alone accounts for 71% of alcohol consumption in Mexico.
• Imports of alcoholic beverages doubled between 2010 and 2019.  In 2020, during the most restrictive months of isolation, sales of alcoholic beverages increased significantly, at the expense of water, sodas, coffee, and tea.
• In 2021, the pace of consumption growth resumed, +20.24% compared to 2020, and +13% than 2019, helped by the increase in social events and more mobility in general.  Also in 2021, the appearance on the market of «Hard Seltzer» drinks, sparkling water with low caloric content, gluten free and low alcohol (between 4 and 7%), with different flavors, was all the rage, due to their novelty and freshness. They are a new option to quench thirst and are relatively healthy. The Coca Cola Group has released on the market, the mineral water Topo Chico Seltzer and Grupo Modelo a Corona Seltzer.
• Pre-mixed drinks (RTDs) are also in high demand.
• The alcoholic beverage market was worth USD 30.90 billion in 2020, which is higher than the retail, luxury, personal care, and automotive markets. It is expected to reach USD 40 billion in 2024.
• An aspect to consider is that tourism is an essential activity of the economy (8.5% of GDP), Mexico being the most visited country in the world for tourism.  Luxury beach tourism, which was already highly developed on the southern coast of the Yucatán Peninsula, is now booming in Baja California and the Riviera Nayarit (on the Pacific). In all these luxury resorts, there is an increasing demand for wines, champagnes, and spirits in general.

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