U.S. agricultural exports to Mexico grew over 32 percent from 2009 to 2018, per USDA. In 2018, Mexico was the top export destination for U.S. corn, dairy, poultry meat and eggs, sugar and sweeteners, distillers dried grains, and more. Additionally, the country is in the top three for shipments of U.S. soybeans, wheat, and fresh fruit, to name a few.
Total 2018 exports were valued at $19.1 billion, and that number is expected to rise in 2019 and beyond.
One factor contributing to greater U.S. export opportunities is the expansion of the middle- and upper-income segments of the Mexican population. The demographic encompassing middle- and high-income individuals was 30 percent of Mexico’s population in 2018, and it is expected to expand to 40 percent by 2025. Also, as USDA reports, Mexico’s population is younger than the U.S., with a median age of 29 years vs. 38 years in the U.S.
Younger buyers with more disposable income could mean higher demand for quality meats, produce, and processed foods according to standard consumer buying patterns.
A key agent contributing to Mexico’s growing middle- and upper-income demographic includes the country being the second-best manufacturing destination after Indonesia, per Boston Consulting Group.
Despite growing wealth among individuals, high levels of inequality still exist in Mexico, among other challenges like the violent drug cartels and a decline in natural resources, namely oil. However, Mexico’s population has responded to the latter of these challenges by becoming more educated and entrepreneurial, relying on human capital for continued growth, per Bloomberg.
Leave A Comment