General consumer goods include a wide variety of products purchased by the end user at retail outlets, whether physical stores or as eCommerce. As the Mexican economy continues to develop and its middle class grows, the consumption of goods and services by Mexicans increased by 6.5 percent in 2022, providing opportunities for exporters of these products.
Overview
Mexico’s private consumption indicator (IMCPMI) measures the evolution of expenses made by the Mexican household in goods and services in the country. According to this index, and despite the inflation experienced during 2022, consumption grew 6.5 percent that year and imported goods experienced 13 percent growth from the previous year.
Consumer goods in general include categories like processed foods, apparel, household products, personal care and cosmetics, household appliances, consumer electronics, toys, garden products, and several other categories that would make it too lengthy to cover in this guide. For this reason, this section will focus on two sectors that are booming in Mexico and where U.S. products have the greatest opportunity: personal care and pet sectors. For other sectors, please reach out to our offices.
Retail Sector
The revenue of the retail industry in Mexico is estimated to be USD 76 billion, according to statistics from the Mexican retailers’ association, ANTAD, which groups over 47,000 retail stores across Mexico. The retail sector in Mexico is dominated by Walmart de Mexico with 66.4 percent of all supermarket sales in 2021, followed by Grupo Chedraui (17%), Soriana and CityClub (14%), and La Comer (2.6%). These brands are the largest in size and presence at a national level. Other retailers of importance are better known on a regional level, such as HEB Mexico in the northeastern part of the country.
The channel share of retail sales in Mexico in 2022 was as follows:
hyper stores (15%), discount stores (11%), cash and carry (9%), convenience stores (7.5%), pharmacies (8%), supermarkets (6%), food service (4%), and eCommerce (12%).
eCommerce adoption accelerated during the COVID-19 pandemic and its momentum continues. Mexican consumers adopted the habit of purchasing consumer goods online during the pandemic. The Mexican Association of Online Sales (AMVO in Spanish) estimates that exponential growth will continue as consumers use more technology such as apps and as cybersecurity makes online transactions more secure and appealing to buyers.
Even though Mexican consumers still prefer to physically visit retailers to make purchases, the online portals for traditional retailers have also gained importance in the last three years. Walmart Mexico’s online store offers a wide array of products that are not typically found in their superstores. Other important Mexican chains such as Coppel, Liverpool, Sears México, and Sanborn’s are now investing in robust and secure portals to handle the increase in consumer demand.
Additionally, marketplaces like Mercado Libre and Amazon Mexico continue to expand. As an example, Mercado Libre’s estimated retail market share in 2016 was only 0.5 percent and increased to four percent in 2022.
In 2022, the top five product categories that the Mexican consumer purchased online were: electronics, household appliances, fashion, home furnishings, and games. Beauty and personal care are increasingly bought online, but it is still a challenge as these products rely heavily on the consumer´s perception and senses when making a purchasing decision. It is hard to convey an accurate description of a color or fragrance in electronic format.
Opportunities
Cosmetics and personal care products
The cosmetics and personal care products market in Mexico is estimated at USD 7.24 million in 2022, making it an important sub-sector of consumer goods in Mexico. The Mexican market is ranked among the top 10 in the world for cosmetics and personal care products, and it continues to be the second-largest market for beauty products in Latin America.
The United States continues to be Mexico’s number one trading partner in this sector. Mexico imported USD 1.4 billion in cosmetics and personal care products in 2022, of which 35 percent was made in the United States, 30 percent from Europe (France, Spain, and Italy), and one percent from South America (Colombia and Brazil). The main category imported into Mexico in 2022 was makeup and skincare, followed by perfumes and body splashes, shaving products, hair care, and soaps.
Mexico is an important manufacturer of these products in the region, which makes it very competitive in pricing when it comes to mass consumed personal care products by large international companies. The largest international companies with presence and manufacturing facilities in Mexico include Unilever, Colgate-Palmolive, Procter & Gamble, L’Oréal, Mary Kay Cosmetics, Natura&Co, and Avon Cosmetics. There are many other brands, but these represent over 55 percent of the market.
Exports of cosmetics and personal care products from Mexico in 2022 amounted to USD 2.2 billion and the top three destinations for these exports were the United States at over 55 percent and the rest to Central and South America. The main exports in this sector are deodorants and shaving products, hair care products, makeup and skincare, and oral hygiene products.
The market share distribution of the cosmetics and personal care market in Mexico by segment shows that in 2022, personal care products were the most popular category (28%), followed by fragrances (20%), makeup (15%), skincare (14%), hair care (13%), and body care (9%).
Sales channels still favor traditional physical retailers, especially since these products differentiate by appealing to the senses. Nevertheless, eCommerce sales of cosmetic and personal care products continue to increase, especially for refilling or trying new products of brands that are already known to the consumer. This eCommerce trend is true of both traditional retailers as well as marketplaces such as Amazon Mexico and Mercado Libre and has also spurred the creation of online stores focused exclusively on beauty products.
Cosmetics and personal care products do not require cumbersome health permits by the Mexican authorities. Nevertheless, all cosmetics and personal care products do require compliance with a labeling standard called NOM-141-SSA1/SCFI-2012 that outlines labeling requirements. Other standards may apply depending on the product and its intended use. The proper classification should be made with the assistance of a Mexican customs broker to assure products shipped from the United States will not be stopped by Mexican customs. It is important to mention that even though eCommerce shipments have increased, personal care products and cosmetics usually come in gels, liquids, or powders which need additional identification by Mexican authorities. Please refer to the Customs, Regulations, and Standards section of this guide for more information.
Pet products
Mexico is estimated to be the world’s fifth-largest consumer market for pet food and accessories. According to official government statistics from Mexico’s Institute of Statistics and Geography (INEGI), there are about 80 million pets in Mexico. However, an estimated 23 million of them live on the street without a formal owner to provide consistent care. In statistics from 2021, 70 percent of Mexican households had pets. The most popular pets are dogs (54.7%), cats (20.2%), birds and fish (25%), and others including snakes, reptiles, and rodents (0.1%).
Mexico is experiencing accelerated growth in the number of households that have pets, which represents opportunities to sell to pet owners anything related to their care, amusement, and well-being. Mexican pets consume over 1.6 million tons of pet food per year, and although there are no statistics on accessories or grooming products, it is thought that related products are increasing in demand as more households adopt and care for pets. Monthly Mexican consumer expenditure on pet care products is estimated to be less than USD 60 for 45 percent of pet owners, while only three percent spends USD 160 or more.
As is the case with other consumer goods, Mexico has its own pet food manufacturers, including foreign (counting the United States) producers and other international companies. There is still a longstanding tradition in Mexico of feeding human food to pets, although this trend is changing due to social media which makes it possible to advertise to the general population. Fifty-seven percent of Mexicans feed their pets balanced pet food, 32 percent of pet owners feed them a mix of pet food with human food, and nine percent feed their pets exclusively human food. Leading pet food companies in Mexico are Mars, Nestlé, and Archer Daniels Midland. There is an increase in demand for other brands that are considered niche, featuring more natural options, and geared towards the pet’s well-being, albeit by the smaller population segment that can afford imported premium products.
Mexico imported USD 129 million in dog and cat food from the United States, which is the preferred country of origin for imports of this kind. In second place was Canada with USD 18.8 million and France with USD 10.7 million in imports.
Opportunities are found in the treats segment. These include snacks, cookies, supplements and food additives, grass, chewing toys, and catnip. Accessories and related products represent a new wave of growth. Scratching posts, harnesses, litterboxes, toys, clothing, feeding accessories, litter, carriers, and collars will all be in higher demand in the future.
Sales channels vary greatly by purchasing preference. General retailers account for 60 percent of sales, while specialized pet stores only account for 15 percent of sales, and veterinaries clinics eight percent. Other products are sold through other channels such as traditional markets or alternative outlets and direct sales.
If interested in selling to Mexican retailers, keep in mind most of them do not deal directly and require a Mexican importer of record to handle all the associated standards and labeling requirements. One of the main standards related to this segment is NOM-012-ZOO-1993 which specifies the regulation of chemical, pharmaceutical, biological and food products for use in animals or animal food. The labeling includes minimum and maximum amounts of ingredients and nutrients as well as concentration of active ingredients. Depending on the product, a different standard might apply, so it is best to work closely with a Mexican customs broker to accurately identify the proper HS code and classification in compliance with Mexican requirements.
Resources
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Mexican Chemical Society (SQM) |
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Federal Commission for the Prevention of Sanitary Risks (COFEPRIS) |
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Mexican Institute of Statistics and Geography (INEGI) |
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Mexican National Chamber of the Cosmetics Industry (CANIPEC) Statista Mexican Retailers Association (ANTAD) |
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Euromonitor International |
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Events
Expo Can, September 21-24, 2023. Mexico City
EBS, Expo Beauty Show, October 22-24, 2023. Mexico City
The Mexican Healthy Products Summit, January 25-27, 2024. Puerto Vallarta, Jalisco
Expo Pet Care, February 10-11, 2024. Mexico City
Expo ANTAD y Expo Alimentaria México, March 12-14, 2024. Guadalajara, Jalisco, Mexico
Contacts
For more information on general consumer goods in Mexico, please contact:
YazmÃn Rojas
Commercial Specialist
U.S. Commercial Service —Monterrey
Tel.: +52 (81) 8047-3290