Market Trends of Mexico Cold Chain Logistics Industry
Growing Agriculture Product Exports
- In February 2024, the value of agri-food exports, a category that includes big-earning beverages such as beer and tequila, hit a record high of USD 51.87 billion in 2023, a 3.9% increase compared to 2022. Thus, the Mexican agri-food industry recorded export growth for the 14th consecutive year, even as drought afflicted a large portion of the national territory. Agri-food exports accounted for 8.7% of Mexico’s total exports in 2023, which exceeded USD 593 billion.
- Meanwhile, agri-food imports declined ever so slightly (0.07%) to USD 44.29 billion, leaving Mexico with an agri-food trade surplus of just under USD 7.58 billion in 2023, a 35.3% increase compared to the 2022 surplus. It was the ninth consecutive year that Mexico had an agri-food trade surplus.
- According to the sources, the agri-food trade surplus was clear from the agri-food export data, which generated revenue of USD 6.16 billion in 2023, more than any other product in the category. The value of beer exports rose by 2.2% compared to 2022. The next biggest earner was tequila/mezcal, with the two agave spirits lumped together in the Bank of Mexico data, bringing in just under USD 4.3 billion in export revenue, an increase of 1.6% compared to the previous year.
- The Ministry of Agriculture and Rural Development noted that the value of live beef cattle exports rose by 63.1% in 2023, the highest percentage terms increase of any agri-food product. The total value of such exports was USD 1.11 billion. The biggest market for Mexican agri-food exports is the United States, but Mexico sends its products worldwide.
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Increasing Meat Consumption Drives the Market
- In 2023, as per the US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) study, Mexico's chicken meat consumption is witnessing strong growth.
- Mexico is the world's 5th largest consumer of chicken meat, and demand remains high. Mexico's most significant animal protein consumption is chicken meat, with an expected increase of 3% to 4.9 million tonnes in 2024 from the previous year. Moreover, the demand is driven by increased demand for processed chicken meat, such as cold cuts and frozen breaded chicken meat. Furthermore, consumers continued to buy chicken meat at a relatively higher level than pork when the price gap between chickens and pigs closed in May 2023.
- Meanwhile, in 2023, the logistics company Brado, a subsidiary of Rumo, witnessed a 16% increase in the transport of frozen meat by rail, reaching a historic mark of 8,346 containers in Q1 2023. thus, the rising meat consumption drives the country's unprecedented demand for cold chain networks.
