Market Trends of Fruits & Vegetables Industry in Mexico
This section covers the major market trends shaping the Mexico Fruits & Vegetables Market according to our research experts:
Oranges and Tomatoes Dominate the Sector
- According to the Food and Agriculture Organization, primary fruits and vegetables in 2021 were 23.7 million metric tons and 14.7 million metric tons, respectively. Oranges and tomatoes are the leading commodities in the fruits and vegetable sector. The country produced 4.6 million metric tons of oranges and 4.1 million tons of tomatoes in 2021.
- Tomatoes are produced in Mexico year-round, with a fall/winter cycle and a spring/summer cycle stretching over 18 months an agricultural year (AY), from October to March (plus one year). Protected agriculture is increasingly prevalent throughout the country, especially among the farms and enterprises that rely on the export market.
- Tomato production in Mexico is highly concentrated, with Querétaro, Coahuila, Nuevo León, and Puebla having the highest tomato yields due to increased adoption of protected agriculture technologies, like green and shade houses and irrigation systems. For instance, Sinaloa, which grows Roma tomatoes (saladette) in an open field with yields of about 37 MT/ha, can grow the same tomato varieties under protected agriculture with yields ranging from 87 to 200 MT/ha.
- Climate variation in the country, from tropical to temperate, allows growers to produce various fruits and vegetables. About 20% of Mexico's fruit and vegetable production is exported, while the vast majority goes to the growing domestic market.
- While non-citrus fruits are produced in the more temperate states of Michoacan, Chihuahua, Durango, Zacatecas, and Sonora, citrus production occurs in Veracruz, Colima, Michoacan, San Luis Potosi, Oaxaca, and Sonora. Thus, favorable Mexican weather, expanding cultivation of protected agriculture, and high export demand for those commodities, especially from the United States, are reasons for high production in Mexico.
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United States - Major Exporting Partner
- The United States is the top exporting partner of Mexico, whose main competitive advantage is climate. Three-fourths of the US fresh vegetable imports are from Mexico. Most fresh Mexican vegetables arrive in the United States during the winter, when there is little production of the same commodities except in Florida. In 2021, the top categories were fresh fruits (USD 9.8 billion) and fresh vegetables (USD 8.4 billion).
- Mexican farmers invest in protected culture structures, including greenhouses that protect plants from erratic weather and pests, facilitating the production of organic produce and extending crop seasons, enabling the year-round supply of fresh vegetables. Americans are willing to pay a premium for greenhouse-grown and often organic vegetables, and Mexican farmers are investing in protected culture structures to exploit this high-value market.
- Avocadoes, limes, strawberries, raspberries, and grapes are some fruits exported to the United States, whereas bell peppers and tomatoes are the main vegetables exported. The trade agreement, USMCA, and Mexico's proximity to the United States are prime reasons for such huge exports to the United States. Other prominent trade partners include Canada, Chile, Argentina, and Spain.
- During the 2020-2021 season, tomatoes led the export at about USD 2.5 billion, with most of the exports going to the United States. Avocados were the most exported fruit at about USD 2.8 billion, while walnuts at around USD 48 million.
- Therefore, the high demand for Mexico-produced fresh fruits and vegetables has helped the market to grow during the study period and is expected to witness high growth during the forecasted period.
