• Herdez SAB de CV Grupe leads the organic segment in Mexico with a value share of 33.6% in 2019, followed by Nestle’ SA with a share of 5.7% and Grupo Industrial Cuadritos Biotek, SA de CV with a value share of 4.6%.
• Mexico ranks 35th globally in terms of market size, with a value of US$51.2 mn in 2019, despite being the second-largest consumer market in Latin America, which indicates that the demand for organic products in Mexico is still small.

• Organic products in Mexico represent roughly 0.1% of global demand and approximately 1.0% of the market in the Latin American region, recording a per capita expenditure of US$0.41 in 2019.
• With demand for organic products expected to grow as a result of more companies entering the market, the market for organic products is expected to grow with a value CAGR of 6.4% for the forecast period 2019-2024, reaching a value of US$69.8 mn by 2024.

• Organic packaged food and beverages in Mexico witnessed a value growth of 10.8% over 2018-2019 to record a market size of US$51.2 mn in 2019.
• Growth in organic packaged food was led by organic baby food, which recorded current value growth of 19.0% in 2019.
• Organic instant coffee led growth for organic beverages, recording current value growth of 11.0% in 2019.

• Organic products in Mexico have benefitted from broader product availability, particularly within packaged food. The wider product availability is helping drive volume growth, catering to increasingly specific consumer requirements such as organic milk brand Bové, which has expanded its product portfolio with lactose-free and semi-skimmed versions of organic cow’s milk. However, currently, organic products are mainly produced for export purposes, as the high prices are a barrier for local consumption with the Mexican economy witnessing sluggish GDP growth and a reduction in consumer expenditure.
• Organic products market remain a niche with a limited consumer base of the high-income and health aware who are keen on the value and benefits offered by the organic varieties.

• Aires De Campo (a subsidiary of the larger firm Grupo Herdez SAB de CV) led organic beverages in 2019, leveraging its resources to increase its product availability and utilize a more extensive distribution network for organic offerings. In addition to organic fruit/vegetable juice and organic herbal infusions, the company launched organic fresh eggs, organic fresh meat and organic honey. Over the forecast period, Aires de Campo SA is expected to remain an important player within organic beverages, retaining its share, which stood at 28.3% in organic beverages and 33.5% in organic packaged food in 2019.
• With the demand for organic packaged food increasing in Mexico, several major brands are launching products within organic packaged food. Some examples include mayonnaise brand Hellmann’s, pasta brand De Cecco, and the evaporated milk brand Carnation. This has led to an increasing level of competition, with more brands set to enter the category in the forecast period 2019-2024.

• Rising awareness on the benefits of organic products, coupled with a decline in prices to make organic products more affordable can help boost demand and cater to a diverse number of consumers’ requirements. For example, the dominant organic milk brand Bové has expanded its product portfolio by including lactose-free and semi-skimmed as well as flavored organic milk.
• The increasing number of households where both parents are working, particularly in urban areas is driving demand for organic baby food, that is ready to eat, and easy to transport, but is also healthy and clean. Furthermore, with the Mexican economy expected to recover and disposable income expected to grow further, organic baby food is expected to witness a steady increase in demand over the forecast period 2019-2024.
• There is a growing trend of brands innovating within categories that are witnessing maturity or saturation, in an attempt to sustain demand. For example, Grupo Lala SAB de CV launched an organic milk offering for its Lala brand in 2018, following Kraft Heinz launch of its Heinz organic ketchup in 2017. Other popular categories such are also witnessing the launch of organic offerings, including Campo Vivo' chilli sauce. This trend presents an opportunity for other organic players to enter into these categories and leverage their positioning.

• Organic products in Mexico are struggling to gain high volumes, as they are only popular among high-income consumers. The higher unit price, compared to non-organic variants, makes organic products a luxury among consumers.
• Brands operating in premium categories such as coffee pods are witnessing positive demand with organic launches appealing to high-income consumers. Nescafé, for example, has launched a collection of Dolce Gusto Absolute Origins capsules, which features a variety of organic coffee from Central and South America.

Economy:

• The economy of Mexico is expected to record slow growth in 2020, with a GDP growth of 0.8% expected, post a fall of 0.1% in 2019. While investment has been weak, it is expected to increase gradually on the back of lower interest rates.
• Private final consumption witnessed an increase of 0.5% in 2019, with gains of 1.2% expected in 2020.  
• GDP growth is expected to rise in the coming years, with growth expected to hit 1.5% in 2021, averaging about 2.3% annually through 2027.

 Population demographics:

• The population of Mexico has recorded a strong increase. In 2019, the population totalled 126 million, up from 101 million in 2000. However, population growth has decelerated over time.
• The median age in Mexico was recorded at 28.7 years in 2019, an increase of 5.7 years from in 2000. The number of those over the age of 65 years has jumped from its 2000 value of 5.2 million to 9.4 million in 2019, with the indicator expected to reach 13.9 million by 2030.
• Fertility fell by more than 50.0% between 1980-2018 and presently stands at 2.1 births per female. The primary driver behind the declining family size is the rise in smaller family households in metropolitan areas, with more couples preferring to have at most, one child. However, fertility is expected to remain at 2.1 births per female through 2030.
   

Income & expenditure:

• The savings ratio in Mexico was 12.0% of disposable income in 2019, with the indicator rising to 12.1% in 2020.
• Consumer expenditure per capita was recorded at US$6,605 in 2019, with the indicator expected to increase by 0.2% in 2020. For the period 2020-2030, expenditure is expected to be highest in medical services and transportation.
• Disposable income per capita was US$7,424 in 2019. The indicator is expected to grow by 0.3% in 2020. For the period 2020-2030, disposable income is expected to increase by a cumulative value of 28.3% in real terms, recording an annual average rate of 2.5%.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To Mexico

Authorized Government Agency(s):

Ministry of Agriculture and Rural Development (SADER)

Agency(s) Contact Information:

National Health Service, Food Safety and Food Quality (SENASICA)
Guillermo Perez Valenzuela 127, Primer Piso
Col. Del Carmen, Del. Coyoacan
Mexico, DF 04100
Telephone: 52 (55) 5090-3000 or 52 (55) 5905-1000, Ext. 51511
Website

M.C. Aurora Josefina Lobato Garcia
Assistant Director of Control of Organic Agriculture and Aquaculture
Aurora.lobato@senasica.gob.mx

MSc. Erandi Valdovinos Romero
Department of Control of Organic Animal Products
Erandi.valdovinos@senasica.gob.mx

Name(s) of Regulation and/or Standard:

The Law of Organic Products (in English)
Download .pdf (in Spanish)
Download .doc (in Spanish)

Regulations to the Organic Products Act (.pdf in Spanish)
Download .doc (in Spanish)

Guidelines for the Operation of Organic Agricultural Activities (.pdf in Spanish)

Amendment for Imported Organic Products (in English)

Date of Implementation: Pending

Regulation and/or Standard Scope:

The Guidelines contain detailed crop, livestock and processing standards and require written organic plans, as well as contain detailed record keeping and livestock feed standards.  In addition, specific standards are included for wild plants, wild animals, non-traditional capture (larvae, insects), and beekeeping.  While aquatic animals are mentioned in the definition of Animal Production, there are no standards that specifically address aquaculture.  Hydroponic production is not allowed.

The expressions organic, ecological, biological, and denominations with prefixes such as bio and eco used on labels are considered equivalent synonyms and terms in national or international trade.

Organic agricultural imports entering Mexico must be certified by the Ministry of Agriculture and Rural Development (SADER) to Mexico’s organic standards under the Organic Products Law (LPO) starting on June 26, 2021, unless an equivalency agreement is in place. During recent years, the United States has been working with Mexico to make an equivalency agreement for organic products.  In an April 27, 2017 meeting with Mexican retailers, SENASICA outlined its regulatory plans, including removing the requirement that organic certifiers must have a physical office in Mexico, revising the regulations to allow products from third countries that are certified to the SENASICA standard to display Mexico's organic seal, and developing new inspection procedures to implement the requirement for SENASICA to verify the organic certificate and document of control. Until new regulations are published in the Diario Oficial, there will be no change to the current procedures to import U.S. organic products. Representatives from the Federal Attorney's Office for the Consumer (PROFECO) confirmed that they only conduct enforcement based on the Spanish language version of the label.

Organic agricultural imports entering Mexico must be certified by the Ministry of Agriculture and Rural Development (SADER) to Mexico’s organic standards under the Organic Products Law (LPO) starting on June 26, 2021. Imported products may be marketed in national markets as organic and with equivalent terms if they comply with the Mexican Organic Regulations and certified by a certifier accredited by Mexico or from a country with organic regulations and control systems recognized as equivalent by Mexico. Imports must be accompanied by an organic inspection document, or its equivalent, granted by the competent authority or body.

Imported seeds or vegetative material will be treated with methods or treatment including the use of hot water, copper sulfate pentahydrate, Trichoderma Spp, or Bacillus Subtilis.

Certification:

All organic operations in Mexico must become certified to the Mexican standard by a certifying agent approved by the Mexican government.

For a list of certification agencies approved to operate in Mexico, download the list (Padrón de Organismos de Certificación Orgánica).

SAGARPA offers free certification through FIRCO (see below):

SAGARPA New Organic Law – 08/27/2018

Accreditation:

Ministry of Agriculture and Rural Development (SADER) -

Certification bodies must apply to the Secretary of Agriculture and must be accredited by an accreditation body in terms of the Federal Law on Metrology and Standardization and/or to ISO Guide 65 or an equivalent country. 

Reference Standards:

CODEX, IFOAM Basic Standards, EU organic regulations.

Additional Information:

OTHER Agencies:

FIRCO: The Shared Risk Trust FIRCO is a parastatal entity, created by presidential decree and operates as a sector in the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), to promote agribusiness, rural development and acting as micro- technical staff in programs of agricultural and fisheries sector.

National Council for Organic Production (CNPO) (website; in Spanish): established by Law to be a consultative body of the SAGARPA, inclusive and representative of the interests of producers and stakeholders in the field of organic products.

USDA's GAIN Report Organic Exports to Mexico Must be Certified to Mexican Organic Standards by June 2021 (2020)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA's GAIN Report Mexico Food and Agricultural Import Regulations and Standards - Narrative (2017)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA's GAIN Report Modifications to the Mexican Foreign Trade Law Removes Prior Exemptions to Front-of-Package Labeling (2020)
USDA's GAIN Report Mexico Officially Extends Deadline to Comply with Organic Regulation (2015)
USDA's GAIN Report Mexico Exporter Guide (2020)
USDA's GAIN Report Mexico Food Processing Ingredients (2020)
USDA's GAIN Report Mexico’s Food Service Hotel, Restaurant and Institutional Report (2020)
USDA's GAIN Report Mexico Hotel Restaurant and Institutional Guide 2018 (2018)
USDA's GAIN Report Mexico Retail Foods (2020)
USDA's GAIN Report Implementation of the New Mexican Regulation for Front-of- Package Nutrition Label (2020)