Mexico's Agrifood Sector Struggles with Informal Competition and Changing Consumer Habits

Mexico's agrifood sector is navigating market changes, according to recent developments. The government's SADER agency expects tortilla prices to remain stable due to sufficient white corn inventories. However, industry representatives warn that operating costs, informal competition, changing consumer habits, and organized crime are putting pressure on profitability.

Approximately 65% of tortilla shops in Mexico operate informally, with direct counter sales declining sharply. Most tortilla shops now supply grocery stores. Industry representatives are calling for measures to address informality and improve business conditions.

Mexico's apple production has risen significantly, with a total of 433,235t produced from January to August 2026, a 50% increase over the same period in 2025. Chihuahua accounted for 85.7% of national output. Despite rising domestic production, US apples remain critical to the market, supplying most of Mexico's imports.

Antidumping investigation into US-origin apples is expected to reach a resolution in October, which could affect import conditions and the broader apple supply chain. Specialists from Red de Acción sobre Alcohol (RASA) are proposing an alcohol tax reform, replacing the current ad valorem system with a specific levy based on pure alcohol content.