LatAm Food & Beverages: MX survey – consumers shift to cheaper alternatives

Research evidence excerpt

LatAm Food & Beverages: MX survey – consumers shift to cheaper alternatives

Accessible version

LatAm Food & Beverages

MX survey – consumers shift to cheaper

alternatives

Industry Overview

Muted domestic consumption 08 June 2026

We conducted our 4th survey of ~1,100 Mexican consumers (May 26, 2026) to assess Equity

food and beverage (F&B) consumption trends over the past six months. Consumers are Latin America

trading down to cheaper products and channels, confirming that domestic consumption Food & Beverages

remains soft. Income growth slowed down as 86% reported flat or higher income (vs.

90% in 2024), pointing to fewer consumers seeing gains. We prefer Arca, KOF and

Sigma, rate Buy on Gruma and remain Underperform on Bimbo and Cuervo.

Inflation still high, but pressures are easing

Consumers continue to face elevated food prices both at home and away from home,

although pressures are easing. Seven out of ten respondents reported higher prices in FernandoResearch AnalystOlvera >>

the past six months (vs. eight out of ten in 2024). Across our coverage, pricing is Merrill Lynch (Mexico)

+52 55 5201 3473

decelerating at Arca, KOF, and Sigma, while Bimbo and Gruma have maintained stable folvera@bofa.com

pricing; Cuervo has seen price declines. Isabella Simonato >>

Research Analyst

Broad-based trading down Merrill+55 11Lynch2188 (Brazil)4243

Consumers are increasingly shifting to lower-cost brands and channels. Hard discount isabella.simonato@bofa.com

stores are gaining traction, with 45% of respondents reporting increased visits. Trading Julia Zaniolo >>

down is evident across all categories, particularly bread, deli meats, and salty snacks. Merrill Lynch (Brazil)

Notably, 76% of consumers are willing to switch to unbranded products. +55 11 2188 4367 julia.zaniolo@bofa.com