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Mexico’s growing sports drinks market

November 1, 2017
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Why this is important to Wisconsin businesses: Wisconsin companies can contribute ingredients, formulations, or final products to take advantage of this growth.

Sports drinks in Mexico have experienced sustained and strong growth over the past decade. As of 2015, it is estimated that Mexico’s per capita consumption of isotonic beverages amounts to 2.6 liters, accounting to an estimated total of 315 million liters, for a total value of nearly $600 million. This figure is expected to rise to 350 million liters by the end of 2019, according to market analysts. One trend influencing this notable growth is Mexicans’ increasing engagement in sports activities in response to the obesity epidemic. This trend has fueled an increase in the consumption of bottled water as well.

The sports drinks market in Mexico has long been dominated by two giant corporate players, not unlike the rest of the world: PepsiCo’s Gatorade brand, which has captured an estimated 57 percent of the market, and Coca-Cola’s Powerade, with an estimated 31 percent of the market. These two brands together account for nearly nine of ten isotonic beverages sold in Mexico. Given the fact that both PepsiCo and Coca-Cola have huge production operations in Mexico, the country’s imports of sports drinks are not significant.

The constant growth of this market has attracted a new set of local manufacturers looking to take a piece of the pie from the two leaders. Jumex Sports, launched by Mexican juice manufacturer Jumex, has been the most successful thus far, capturing close to 7 percent of the market. The remaining 5 percent is shared among smaller companies such as Ajegroup with the Sporade brand, the Epix product (which launched in 2007 and claims to be manufactured from natural ingredients), and Gym Water Sports, which is Mexican in origin despite its English brand name. The Mexican-made drinks are less expensive than the leading products, by anywhere between 20 and 35 percent. Interestingly, the Lucozade brand, though successful in other countries, failed in the Mexican market after its introduction in the late 1990s.

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