Mexico’s dairy sector is entering a period of adjustment following the inflationary peak that impacted global markets. According to FAO data, the dairy price index fell from its record highs in June 2022 through much of 2023, later stabilizing as prices for butter and skimmed milk powder realigned.
For industry players across Mexico and Latin America, this global scenario opened tactical opportunities — particularly for optimizing import contracts, input sourcing, and adjusting price-pack strategies. The UHT milk, yogurt, and mass-market cheese segments have been at the forefront of these strategic recalibrations.
Consumer behavior also reflects a notable shift in brand and channel dynamics. By late 2024, research by Kantar showed that smaller brands were gaining shopping occasions while some major players lost ground. This trend has been driven by consumers’ pursuit of better prices, convenience, assortment variety, and a growing willingness to explore both physical and digital retail channels.
Health and wellness narratives have become central to dairy consumption. Recent epidemiological studies in Mexico continue to highlight the link between obesity and cardiometabolic risk, prompting the industry to reformulate portfolios with less added sugar, higher protein content, and fortified nutrients such as vitamins and minerals.
Today’s consumer is more informed and discerning. Shoppers increasingly value clear front-of-pack labeling, functional portion sizes, and tangible benefits like digestibility and satiety. In categories such as yogurt and fermented milk, perceptions of naturalness and clean-label claims have become decisive purchase drivers.
According to the Consumer Insights report by Worldpanel by Numerator for the second quarter of the year, Mexican shoppers remain highly adaptive — focusing on value, managing their budgets carefully, and driving the expansion of private labels, which are becoming a key volume growth engine.
The report also highlights a growing interest in premium products, with these brands increasing their share of spending from 18% to 18.8% in 2024 and contributing to a third of total growth in fast-moving consumer goods.
Ultimately, the consultancy concludes that brands capable of adapting their value proposition to current consumer expectations — balancing affordability, functionality, and trust — will be best positioned to win loyalty and capture greater wallet share in Mexico’s evolving dairy market.
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