How Mexico Became the Worlds' Top Beer Exporter

In the first half of this year, Mexico's beer export value exceeded that of the next three markets — Belgium, the Netherlands, and Germany — combined!

Belgium and Netherlands are behind most of the country's exports, however. Heineken (Dutch) and AB InBev (Belgian) own the two most significant beer companies in Mexico — Cerveceria Cuauhtemoc-Moctezuma and Grupo Modelo, respectively. What factors drove these companies across the Atlantic to make Mexico the most prominent beer market in the world?

Mexico's history of beer production dates back to the 16th century when European settlers first established breweries in the country. Europe has the world's top beer drinkers, but labor and production costs are high. In Mexico, where labor is much cheaper, beer consumption per person is about the same as in Finland or the US — 70L per year. This provides a strong foundation for the industry and allows Mexican breweries to produce a large volume of beer that can be sold domestically and then exported.

There are other advantageous production conditions: with an abundant water supply, Mexico has a favorable climate for growing barley, the primary ingredient in beer. Additionally, the country's ports are well-developed and well-connected, making it easy for transportation to other parts of the world.

Lastly but importantly, Mexico's immediacy to the biggest market in the world (the US), where 85% of its beer exports go, means an enormous demand and opportunity.

This year, the beer production boom in Mexico shows no signs of slowing down; Heineken announced the development of yet another plant with a $90M investment.