Mexico Beer Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Mexico Beer Market Growth

The Mexico beer market is driven by the growing popularity of ready-to-drink alcoholic beverages and the increasing demand for convenience and affordability, especially among young customers. Customers are also willing to pay more for premium beer consumed on the go. The growing tourism industry in Mexico boosts the beer market as travellers increasingly seek local, authentic beers. This trend has led to an increase in brewery tours and beer-tasting events across the country.

In 2022–23, Latin America imported barley from Australia valued at USD 170.22 million, with USD 163.84 million of this being malting barley. This influx of high-quality malting barley bolsters beer production capacity, allowing breweries to meet the increasing consumer demand and explore new product innovations. 

Barley grain plays a crucial role in strengthening the beer market by providing a reliable and high-quality supply of primary raw materials in beer brewing. Barley grain production rises, aiding the beer production capacity, and enabling breweries to cater to growing consumer demand.

In 2017, total barley grain production surged to 1,008.16 KMT, up from 487.45 KMT in 2011, reflecting the growing demand. Efficient malt production helps breweries manage raw material costs, leading to more competitive beer pricing, which in turn boosts sales.

Figure: Production of Barley Grain in Mexico, 2011-2021, Production (KMT)

Mexico is witnessing a significant growth in malt production, marking a direct impact on the increasing production of beer. Consistent and sufficient malt production ensures a steady supply of this essential ingredient, which is crucial for breweries to maintain production levels and meet market demand.

According to Unión Cervecera Independiente (UCI, formerly ACERMEX), production for craft beer has risen from 11,943 hectoliters (about 315.5k gallons) in 2017 to 336,016 (about 8.8m gallons) in 2022. This shows a whooping CAGR of 94.9% increase in production of craft beer in Mexico.

Figure: Mexico Craft Beer Production, 2017 and 2022; Hectoliters

Approximately 5% of Mexican craft beer production is exported, with brands like Colima, Minerva, Ocho Reales, and others available in the US.

The growth of the industry is reflected in the increasing number of craft beer events across Mexico. Notable events include the Ensenada Beer Fest, Tijuana Expo Cerveza Artesanal, Festival de la Cerveza. 

Key Trends and Developments

Rising domestic beer consumption; an expanding tourism sector; a large number of beer producers; and the popularity of craft beer are the key trends impacting the Mexico beer market demand

Jul 2024

Grupo Modelo, a company with nearly a century of brewing history in Mexico, expanded its portfolio with the introduction of Corona Golden Light. This new addition is a light lager with a well-balanced flavor, designed for consumers who appreciate the authentic taste of beer while preferring a lighter drinking experience.

Sept 2023

Grupo Modelo announced an investment of 300 million USD in a corn processing facility to bolster local brewing and support farmers in Mexico. The company uses corn in its brewing process to balance the beer’s profile and achieve the smoother flavors that are favored by Mexican consumers.

Apr 2023

Constellation Brands, a U.S. brewery and distillery conglomerate, announced that it would invest around USD 1.2 billion in its facilities in Mexico during its 2024 fiscal year. The company holds the rights to Grupo Modelo brands in the United States, including Corona, Modelo Especial, and Modelo Negra.

Mar 2023

A new alcohol-free beer was launched in Mexico by the master brewers at Monterrey-based Cervecería Cuauhtémoc. Tecate 0.0, designed to replicate the taste of the regular Tecate, joined the company’s Heineken 0.0 as a leading product in Mexico’s rapidly growing nonalcoholic beer market.

Strong domestic consumption of beer in Mexico

Domestic consumption of beer in Mexico stands at an annual per capita rate of 75.9 liters. The market is driven by a robust local supply chain, with 73% of production inputs sourced within Mexico, ensuring greater domestic economic impact. 

Large number of beer production facilities in Mexico

The Mexico beer market exhibits significant strengths, highlighted by the extensive variety and widespread availability of domestic brands such as Tecate, Sol, and Corona, produced by major breweries like Cervecería Cuauhtémoc Moctezuma and Grupo Modelo. Additionally, the growth of microbreweries enhances Mexico's position as a key player in the global beer industry.

Growth in domestic tourism drives the demand for beer in Mexico

With 60% of domestic tourism, consumers planning vacations in Mexico, and a strong preference for on-premise dining, the beer market in Mexico has significant growth opportunities. Beer is the top drink choice for 70% of these consumers, indicating a robust demand. 

Increasing popularity of craft beer

The Mexican craft beer market is driven by increasing consumer interest in innovative and locally inspired flavours, such as those incorporating piloncillo, chocolate, and mole. With an 11% growth in 2023 compared to early 2022, craft beer is becoming more accessible through various channels, including restaurants and online platforms.

Mexico Beer Market Trends

The rise of pubs, restaurants, cafes, and events boost beer consumption in Mexico by creating casual social spaces for gatherings. According to the Government of Mexico Dietary Guidelines 2023, it is estimated that the average person in the country consumes approximately 4.4 litres of pure alcohol annually, which equates to more than 270 cans of beer or 110 shots of tequila.

In August 2023, Grupo Modelo and Millfoods invested USD 300 million to construct a corn processing facility in central Guanajuato for beer production, as announced by Mexico's economy ministry. The plant generated more than 1,000 jobs and benefited approximately 20,000 corn farmers in central Mexico. Further, the popularity of craft beer is growing at a rapid pace. The production of craft beer increased from 11,943 hectoliters (approximately 315,500 gallons) in 2017 to 336,016 hectoliters (around 8.8 million gallons) in 2022.

Mexico Beer Industry Segmentation

“Mexico Beer Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Lager
• Ale
• Others

Market Breakup by Category

• Standard Beer
• Premium Beer

Market Breakup by Distribution Channel

• On Trade
• Off Trade

Market Breakup by Region

• Northeast (Noreste) 
• Northwest (Noroeste) 
• Central Mexico 
• Southeast (Sureste) 
• ZMDF

Mexico Beer Market Share

Based on product type, lager accounts for a significant share of the Mexico beer market

Lager, a bottom-fermented beer is predominantly brewed in Mexican cities such as Monterrey, Nuevo León, Mazatlán, and Sinaloa. Some of the popular lager beers in Mexico are Clara, Dos Equis Ambar, and Montejo Dorada. Dos Equis special lager beer and Tecate lager beer have an alcohol content of 4.45% and 4.64%, respectively. 

Ale, made from Saccharomyces cerevisiae are sweeter and fuller-bodied in nature. Typically, ale beers ferment at 62-75 °F (17-24 °C). Ale beers are widely available in a variety of styles including brown ale, pale ale, India pale ale (IPA), Belgian ale, and stout.

Based on category, standard beer is a major contributor to the Mexico beer market revenue

Standard beers are being significantly consumed by the Mexican population as it caters to a broad consumer base, and also due to its consistent flavour profiles. Standard beers are widely available, and factory beer stores called depositors offer lower beer prices, further increasing their adoption.

Typically, premium beers have fewer adjuncts or can be all-malt. Premium beers have two- or six-row barley with a high percentage (up to 40%) of rice or corn as adjuncts. Consumers across Mexico are increasingly willing to pay a premium for high-quality and exclusive ready-to-drink (RTDs), further supporting the demand for premium beers. In June 2024, Michelob Ultra launched a premium light beer with superior flavour, honouring Lionel Messi. The premium beer was made available in 355 ml, 710 ml, and 473 ml formats.

Leading players in the Mexico Beer Market

The market players are focusing on providing products at competitive prices and high quality, while simultaneously expanding their market reach.

Heineken Holding N.V.

Heineken is recognised as the world's most international brewer and stands out as one of the leading developer and marketer of premium beer and cider brands. Its beer brands in Mexico include, Heineken, Heineken Silver, Tecate, Dos Equis, Amstel, Sol, Indio, and others.

Anheuser-Busch Inbev SA

Anheuser-Busch InBev SA is a leading global brewer, known for its extensive portfolio of over 500 beer brands, including Budweiser, Stella Artois, and Corona. The company’s Mexican brands include Budweiser, Corona, Victoria, Modelo, and others.

Diageo Plc

Diageo PLC is a global leader in premium drinks, with a strong presence across the spirits and beer sectors. Diageo PLC has a significant market presence, selling its brands in nearly 180 countries. The company’s Mexican beer products include Guinness Clear, Guinness Draught, Guinness Hop House 13, and others.

Constellation Brands, Inc.

Constellation Brands has operations in Mexico, where it manufactures many of its beer products for export. The company's wine and spirits portfolio is distributed globally, with a presence in markets across North America, Europe, Asia, and Australia.

Other notable players operating in the Mexico beer market are Grupo Cuauhtémoc Moctezuma, SA de CV, Baja Brewing Co., Cerveza Minerva, S.A. de C.V. Cervecería de Colima, Beer Factory de México, SA de CV, Cerveceria Allende, Cervecería Aguamala, and others.

Mexico Beer Market Analysis by Region

Northwest (Noroeste) is expected to hold a significant share of the market as companies are increasing their production capacity in the region. In December 2022, Constellation Brands announced a USD 1.5 billion investment to expand its annual production capacity in Sonora, from 8.5 million hectolitres to over 11 million hectolitres, with a medium-term goal of 17 million hectolitres per year. This follows a USD 900 million expansion in 2018.

In Northwest (Noroeste), Baja California is among the leading beer producers in Mexico. As of 2022, Baja California held 17% of the country's artisanal breweries. Key breweries in Baja California include Tecate Brewery, Norte Brewing Co., and Bajer Brewing. Guanajuato and Hidalgo in Central Mexico are key regions for barley production, a crucial raw material in beer making. From 2019 to 2021, these regions contributed 33% and 22%, respectively, to Mexico's total barley output.