The consumption of tea in Mexico is steadily growing thanks to the country's ever-improving economics and the awareness of the local population in the health benefits of tea.
Since ancient times, tea consumption in Mexico has been directly related to medicinal aspects, while most locals preferred coffee. In general, Mexico is a country with a high consumption of coffee (up to 1.2 kg per capita per year), being also one of the world’s strong coffee producers. However, in recent years, the demand for tea has also increased with herbal teas enjoying the biggest demand.
According to an earlier study conducted by the Mexican School of Tea and some local analysts, one of the reasons for such growth is a significant expansion of the Mexican tea range in recent years and the appearance of new major players in the market. Prior to the pandemic, the growth rates of the Mexican tea sector were high, exceeding 20%, but in recent years, the growth has slowed.
Currently, the annual tea production in Mexico is estimated at about 2,000 tonnes, with the overall value of the sector at US$80 million. This is one of the lowest figures in Central and Latin America.
Chamomile is the herb most produced in the country, although 92% of the total planted area is in the State of Mexico, the rest is distributed territorially between the states of Morelos, San Luis Potosí, Jalisco, and Puebla.
According to recent forecasts of the Euromonitor International, the Mexican tea market will reach almost US$98 million by 2026, as the growth of the market is ongoing. The leading companies are those that reach mass consumption through large retailers, which includes La Pastora with 20.1% of the market; McCormick with 19.4%; and Therbal with 18.2%.
As for McCormick, from Grupo Herdez, the company is the dominant brand in the Mexican market. Its history began in the 1950s, when it introduced infusions, which it marketed under the name of tea.
In general, the country’s tea range is wide, from tea bags to the most premium and gourmet products. However, despite this the level of consumption, it remains still generally small. This is partly due to the lack of rich traditions of tea consumption in Mexico. According to statistics from Euromonitor and experts at the Mexican Goula business paper, Mexicans consume 12 grams of tea per year, which is the equivalent of six cups. In comparison, in Turkey, the country that drinks the most tea, the consumption per person per year is around three kilograms. Also, compared to Chile, which is the country with the most consumers in Latin America, Mexico consumes approximately three times less.
Still, most local analysts expect the ever-growing demand for herbal teas to become one of the main drivers for growth of the Mexican tea sector in years to come. According to research agency Kantar, Mexicans’ favorite flavors are chamomile (43.5%), lemon (19.4%), and mint (6.4%).
The biggest hopes for an increase in tea consumption lie with the younger generation. In recent years, the demand for tea from young people has significantly increased, with the biggest increase being observed in the case of foreign brands. As a rule, most local young people are looking for more sophisticated tea, such as matcha. There is also growing demand for tropicalized flavors of the various Asian concepts that have been recently launched on Mexico’s market and which continue to grow.
As the demand for premium teas remains generally high, most analysts expect the category will continue to grow primarily in terms of value instead of volume, as local people look for higher quality tea. They also believe the tea industry still has plenty of room for growth, as the tea market in Mexico has not yet reached the necessary maturity, since it has not managed to cover approximately 60% of the local population.
In general, analysts of the Mexican research agency Strategy Helix Group predict the tea market in Mexico will continue to grow until 2029 with the annual growth rates up to 8.5%. By this time, the market should reach US$109,9 million in value terms.
Analysts also expect that due to the small volume of production in the country, tea imports to Mexico will continue to grow over the next several years.
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