English Version: Psyma Worldwide: Mexico

In our “Psyma worldwide” series, we introduce you to growth markets in which Psyma has been actively conducting market research for years. Here we focus on Mexico.

Mexico in focus: opportunities and challenges in a changing geopolitical environment

Geopolitical tensions and the USA's efforts to decouple itself economically from China are having a far-reaching impact on global markets. In the midst of these dynamic developments, Mexico is increasingly coming into the spotlight as an attractive location for companies. This will also boost the local markets, which we want to discuss in this article.

Geopolitics and the "decoupling" of the USA from China

Political tensions between the US and China have increased in recent years. Trade wars, technology conflicts and geopolitical rivalries are forcing companies to diversify their supply chains and tap into new markets. Mexico, as the USA's immediate neighbor, benefits from its geographical proximity, a comprehensive free trade agreement (USMCA) and competitive production costs, and could become the USA's most important foreign trade partner in 2023. This geopolitical shift offers Mexico a unique opportunity to establish itself as a central hub for production and trade.

Mexico's youth: the fuel for future growth

With a population of over 130 million people and a relatively young demographic, Mexico offers enormous growth potential. The working-age population is growing and urbanization is progressing rapidly. By 2050, half of the population is expected to live in urban centers, which will lead to increased demand for healthcare, mobility solutions and consumer goods.

Health, mobility and consumption: Mexico's future markets

 "Primero la Salud" - Health is the highest good

The Mexican healthcare market is facing significant changes. The ageing population and rising life expectancy are increasing the demand for medical services and products. Although telemedicine is still in its infancy, it will grow dynamically in the coming years. In addition, the COVID-19 pandemic has increased awareness of health and prevention, leading to higher demand for innovative healthcare solutions. Companies investing in this market must adapt to local requirements and offer customized solutions. The self-payer market is particularly relevant here, as the public healthcare system suffers from barriers to entry and underfunding.

Mobility: Mexico as a playground for new car brands

The mobility market in Mexico is on the brink of a revolution. Urbanization and increasing environmental awareness are driving demand for sustainable mobility solutions. New car brands are recognizing the potential of this market and are increasingly entering the competition. Electric vehicles, car-sharing services and the expansion of public transportation are just some of the trends that are changing the face of Mexican cities.

New car brands: Innovation and diversity

The dynamism of new car brands in Mexico is particularly striking. In particular, Chinese brands such as BYD, GAC, GWM, Omoda, are expanding rapidly, offering a wide range of electric and hybrid vehicles that are both energy efficient and aggressively priced. These new entrants are bringing a breath of fresh air to the automotive industry and offering Mexican buyers innovative alternatives to traditional brands.

Consumption: the new wave of shopping

With a growing middle class and rising incomes, the consumer market in Mexico is experiencing an upswing. Shopping centers and malls continue to be popular and highly relevant. Annual sales in Mexican shopping centers are considerable and show strong growth. By 2024, the retail market in Mexico is expected to reach a value of around USD 94.4 billion and could rise to around USD 122.7 billion by 2029. But consumer habits are changing and the e-commerce sector in particular is growing strongly, driven by high internet penetration and a young population. Companies that strengthen their brand presence in Mexico and optimize their digital distribution channels will be able to expand their market share.

 Dynamic regions of Mexico

Mexico is a country of diversity, with numerous dynamic regions, each offering their own economic strengths and opportunities. Mexico City, the capital, is a major economic and financial center with a vibrant cultural scene. Monterrey in the north is known for its strong industry and manufacturing, while Guadalajara in the west is a center of technology and innovation. The regions of Bajío and Querétaro are also experiencing rapid growth, particularly in the automotive and aviation sectors. These regional differences offer a wide range of opportunities for companies to position themselves in different sectors and markets.

 Now is the time: Why you should position yourself in Mexico

In view of these developments, it is crucial for companies to position themselves strategically in Mexico at an early stage. A strong brand presence and a deep understanding of local market conditions are crucial to securing competitive advantages and guaranteeing long-term success. Mexico offers numerous opportunities, but also challenges that need to be overcome. Sound market research and an adapted entry strategy can be essential to market success.

With Psyma at your side: operating successfully in Latin America

Psyma has decades of experience in market research in Latin America and Mexico in particular. Our specialized teams know the local conditions and trends and can help companies make informed decisions. We offer customized research approaches tailored to the specific needs and objectives of our clients.

With Psyma by your side, you can ensure that your market strategies are based on solid data and deep insights. Our goal is to help you make the best decisions and successfully achieve your business goals in Mexico.

The healthcare, mobility and consumer markets in Mexico will grow significantly over the next few years. Sound market research and an adapted strategy are the key to success. With Psyma as your partner, you can make the best decisions for your business in Mexico and Latin America.

We are constantly conducting research in more than 40 countries and also know your market and your industry.
You can find your local contact here >>>

You can find the Mexican newsroom article here >>>