Opportunities for growth in Mexico’s On Premise

With spending in Mexico’s vibrant On Premise set to increase, precision-targeted strategies can help suppliers and brand owners generate significant growth in sales and share over the rest of 2024.

Click here to view this blog in Spanish/Ver este blog en español

 

Nearly three quarters (71%) of consumers in Mexico currently visit the bars, restaurants, and similar venues at least weekly. Nearly all of them plan to either go out more (32%) or maintain their frequency (62%), providing substantial opportunities for brands to capture increased spending.  

 

Beer remains by far the most popular choice in Mexico, with 65% of consumers typically choosing it—14 percentage points more than the global average. Among these and other drinkers, there is an appetite for premiumisation. Seven in ten say they are willing to pay extra for a better quality drink—11 percentage points more than the global average. Other insights into the Mexican On Premise market include: 

 

  • More than two in five consumers say high quality, good value and trustworthiness are more important to them now than a year ago—a sign of how guests’ expectations have risen 
  • Daypart dynamics are shifting, with a quarter (24%) of consumers going out to eat earlier—triple the number (8%) who are going out later.
     

CGA’s Outlet Index meanwhile reveals the intricacy of Mexico’s On Premise, with around 160,000 distribution points for suppliers to reach. Venues are heavily concentrated in city centres, and 81% of consumers say this is where they go to eat and drink. However, there are huge opportunities beyond Mexico City, and the Outlet Index helps businesses understand the On Premise landscape and the right regions and new venues to target. 

 

Mauricio Castellanos, CGA by NIQ’s client solutions manager, Mexico, said: “Mexico has an incredibly vibrant On Premise, but it’s a very complex landscape for suppliers to navigate. To map and increase distribution, businesses need an expert and localized understanding of the market, and It’s more important than ever to track how and why behaviours and need-states are changing. Precise and tailored strategies for different channels, regions and occasions can increase penetration and steal share—and our research is here to help all businesses achieve them.” 

 

CGA by NIQ’s best-in-class research solutions provide many more insights into consumers’ engagement and purchasing decisions across Mexico’s On Premise, delivering expert analysis of categories, channels, occasions and much more. To learn how the services help businesses craft winning strategies, and to explore opportunities for tailored analysis, contact Mauricio Castellanos here. 

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