November 14, 2023
It often seems that the only news Americans see coming out of Mexico are the darkest headlines. Whether it’s cartel violence, natural disasters like the recent damage from Hurricane Otis, or the economic or social conditions that inspire some Mexicans to uproot their lives for an often risky and typically illegal trip across the U.S. border, the story we hear is rarely uplifting.
But the truth is that not all the news from the south is negative. The Mexican economy is expected to easily outperform the U.S. economy in 2023, with GDP growth projected at 3.2%, well ahead of the 2.1% annual GDP growth predicted for the U.S. As we approach the 25th anniversary of the North American Free Trade Alliance, incomes have increased and the middle class has expanded.
The good news for the supplement industry is that those improved economic conditions have translated into strong sales. Indeed, Mexico looks to be the fastest-growing international market in Nutrition Business Journal’s 2023 projections. We expect Mexico’s supplement sales to grow 10.8%. That gain may be down from the 15.3% jump supplement brands rang up in the 2020 boom, but to put it in perspective, U.S. sales are expected to grow 2.6% this year, a sliver of the 14.5% spike NBJ tracked in 2020.
Looking into 2024, Mexico remains among the top-performing markets with 6.6% growth projected. This data and more are available in NBJ's newly released Global Supplement Business Report.
Some of the most encouraging news for the supplement industry in all of this is that the sales growth extends across categories: NBJ predicts the combined sports nutrition/meal-replacement/homeopathic/specialty categories to do well with its projected 14.7% gain. There is no shortage of trends in that grouping to drive growth. But the 10.2% growth expected for vitamins and minerals shows us how well grounded the supplement industry is in Mexico.
All this comes despite cumbersome regulations and a business infrastructure that has been challenging in the past. While industry insiders acknowledge the difficulties, many still point to Mexico as a market with a bright future.
The clear takeaway for supplement makers is that the news from the south isn’t all bad and if the economic conditions continue to improve for a broader reach of income classes, it could get even better.
Learn more about the Nutrition Business Journal Global Supplement Business Report at the NBJ store.
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