Mexico’s Beer Industry Navigates Slower Growth

Mexico’s beer industry is experiencing slower production, sales, and export growth as inflation and global trade uncertainty weigh on demand, but high domestic sourcing has helped limit exposure to supply chain disruptions and tariffs. Despite the slowdown, Mexico remains the world’s leading beer exporter and continues attracting major investments from brewers including Heineken and Grupo Modelo in sustainability, infrastructure, and local supply chains, reinforcing the sector’s strategic role in manufacturing, agribusiness, and international trade.

On International Beer Day, Mexico’s brewing industry is navigating a period of slower growth while reinforcing its long-term commitment to sustainability, local sourcing, and investment. Despite declining production, exports and domestic sales, the sector remains the world’s leading beer exporter and one of the country’s most important agroindustrial value chains.

Mexico’s brewing industry is experiencing a period of contraction. In 2025, both production and sales returned to negative territory. By the end of the year, beer sales volume in Mexico had fallen 3.3%, according to data from INEGI. Moreover, despite the boost provided by the FIFA World Cup, this trend has continued into 2026. From January through April, beer exports declined 4.8% year-over-year to US$1.9 billion, according to data cited by Grupo Consultor de Mercados Agrícolas (GCMA).

Regarding production, Karla Siqueiros, CEO, Cerveceros de México, tells reporters that output reached 136.9 million hectoliters in 2025, representing a 3.5% decline compared to the previous year. Production has remained on a similar trajectory this year. As of May 2026, breweries had produced 55.3 million hectoliters, down 2.7% year-over-year.

Siqueiros also noted that beer consumption in Mexico, as well as globally, has been affected by inflation. "We have faced many issues related to geopolitics. It started with Iran, tariffs and other external factors that caused a decline in production. Later, shortages of raw materials and global inflation also affected us," she explains.

However, Siqueiros emphasizes that despite these challenges, Mexico’s brewing industry has been able to weather much of the pressure because between 73% and 75% of the inputs required to produce beer in Mexico are sourced domestically. This operating model allows changes in international trade rules or the imposition of border tariffs to have only a limited impact on production costs and supply chains.

"We purchase 100% of the malting barley produced in Mexico that meets the quality standards required for brewing. That protects us to a certain extent. Strengthening our local supply chain is extremely important. If we could source even more of our required inputs domestically, we would. We are proudly Mexican," Siqueiros says.

Local Supply Chain Strengthens the Industry

This direct purchasing model not only cushions the industry from fluctuations in international trade but also supports more than 5,000 farming families dedicated to barley cultivation across different regions of the country. Furthermore, its economic benefits extend to the retail sector, as roughly 800,000 neighborhood convenience stores generate between 30% and 40% of their daily income from beer sales.

Nationwide, the brewing industry is linked to 168 different economic activities within the Mexican economy, supports at least 715,000 direct and indirect jobs, and contributes 1.5% of the country’s GDP, according to the Chamber of the Beer and Malt Industry’s report Mexico’s Brewing Agroindustry.

Mexico is also the world’s fourth-largest beer producer, accounting for 7.5% of global production, behind Brazil with 8%, the United States with 9.8% and China with 18.2%. In the short term, the industry aims to move into third place.

"We are currently fourth on the podium, and we want to become number three. The industry is committed to maintaining quality. The percentage gap is small, but the difference in production volume is significant, so we will likely remain in fourth place for the coming years," Siqueiros says.

The popularity of Mexican beer has also made the country the world's leading beer exporter. According to 2024 data from the World Bank’s World Integrated Trade Solution (WITS) platform, the United States remains the largest buyer of Mexican beer, importing US$6.26 billion worth of products. It is followed by the Dominican Republic with US$68.4 million, Spain with US$31.8 million, Panama with US$29.1 million and the Netherlands with US$27.6 million.

According to the Minister of Agriculture and Rural Development’s (SADER) Agri-Food Trade Balance Report, beer was also Mexico’s highest-value agri-food export in 2025, totaling US$6.48 billion.

Similarly, at the regional level, beer represents one of the most important productive value chains in Latin America and the Caribbean. The industry generates 3.9 million jobs and contributes 1.3% of the region’s GDP, underscoring its broad economic and social impact.

Sustainability Becomes a Strategic Pillar

As part of its sustainability agenda, Mexico’s brewing agroindustry launched the initiative "The C Side of Beer" a platform designed to showcase the beverage’s economic, social, and environmental value through six core pillars: Responsible Consumption, Contribution, Environmental Stewardship, Community, Culture, and Commitment.

"The C Side of Beer tells the story of the thousands of people who make this industry possible and who create real value for Mexico, from farming families to those involved in brewing, distribution and service. It is a story of commitment, innovation and responsibility that we want to share with society," says Siqueiros. 

Mexico’s brewing industry uses an average of 1.6 L of water for every liter of beer produced, significantly below the global average of four to six liters. Additionally, 43% of beer is sold in returnable containers, more than 75% of industry operations run on clean energy, and the sector has set a goal of achieving carbon neutrality by 2040.

On the social responsibility front, the industry has invested more than MX$1 billion (US$58.3 million) in programs to prevent underage drinking, promote responsible retail practices and expand alcohol-free beer options.

Grupo Modelo reported growth of more than 30% in its alcohol-free beer segment and released a new report in collaboration with AB InBev showing evolving consumer drinking habits. According to the report, 92% of consumers who purchase alcohol-free beer also buy regular beer. "It is not about giving up enjoyment, but about enjoying it in moderation," the company says in a statement.

Looking ahead, Mexico’s largest brewers are expected to continue investing heavily in infrastructure, modernization, innovation, sustainability, circular economy initiatives and strengthening domestic supply chains. Heineken plans to invest US$2.75 billion between 2025 and 2028, while Grupo Modelo has announced US$3.6 billion in investments for the 2025-2027 period.