Market Dynamics
Mexico non-alcoholic beverages market can be classified into four distinct product categories, namely- carbonated beverages, packaged water, juice and concentrates, and RTD tea and coffee. Of these, carbonated beverages have been ruling Mexico’s non alcoholic beverages market in terms of value sales due to their easy accessibility, wide variety, and affordability. This market is expected to witness a steady CAGR of 2.3% over the study period of 2018 to 2023. Turning to a detailed analysis of contribution of individual product categories, carbonated beverages- the largest segment in Mexico non-alcoholic beverage market, is further divided into three major categories, namely- soft drinks, flavored drinks, and energy drinks. Soft drinks such as colas hold the lion’s share due to their acceptance and affordability; followed by flavored drinks. On the other hand, the less costly juice concentrates and home-prepared juices form an important part of the nonalcoholic beverage market in Mexico due to its affordability among core consumers in rural areas. Moreover, Mexico non-alcoholic beverages market has been witnessing the emergence of RTD tea and coffee as key drivers of market growth.
With the growing health trend, manufacturers have been innovating in terms of formulation of beverages with low sugar content and natural ingredients. As such, RTD coffee is expected to be the fastest growing product category in the non-alcoholic beverage market in the forecasted timeframe on account of increasing health consciousness among the consumers. In sum, when it comes to Mexico non-alcoholic beverages market, manufacturers are expected to focus on growing health and wellness trend in the country, and formulate their beverages with fewer sugar content, and using natural ingredients. It has been predicted that by 2032, RTD tea and coffee will emerge as key beverage categories in Mexico non-alcoholic beverage market, owing to the health concerns among core consumers of the country.
