Dairy products and alternatives in 2025: The big picture
Value sales of dairy products and alternatives rose in Mexico in 2025. Despite this positive result, the year was challenging for Mexico’s broader economic growth. The Bank of Mexico (Banxico) projected real GDP growth to slow to 0.6% in 2025, while inflation was expected to ease to 3.9% and the central bank interest rate was to remain at 8%. Moderate export activity and domestic demand offered some support, yet rising public debt and a narrowing fiscal deficit highlighted ongoing fiscal pressures. Geopolitical tensions with the US, including elevated trade barriers, resulted in tariffs of 25% on more than half of Mexico’s exports. These tariffs generated economic headwinds, limiting growth opportunities. Additionally, persistent security concerns posed risks to investment, trade, and overall economic stability, further constraining growth throughout the year.
Key trends in 2025
Due to an increase in retail sales prices rising above inflation for meat particularly beef, pork, and chicken along with growing consumer awareness that excessive meat consumption is unhealthy, Mexican dietary habits shifted significantly during the 2024–2025 period. As a result, overall meat consumption declined notably, and cheese consumption emerged as a key alternative source of protein. This trend strongly benefited both hard and soft cheese categories.
Competitive Landscape
Grupo Lala SAB de CV was the leading company within dairy products and alternatives overall in 2025, although the player lost share during the year. The company produces the Lala, Lala Vita, Lala100, Los Volcanes, Mi leche, Leche Queen, Borden, Fiorelo, Nutri, Monarca, and ART brands, present in cow’s milk, cream, butter, cheese, yoghurt, margarine and spreads, and frais and quarks. The players lead is also supported by its extensive distribution network, broad product range, strong brand recognition and consumer trust, with a firm commitment to innovation and sustainability in its production processes.
Channel developments
Small local grocers remained the leading distribution channel for dairy products and alternatives in Mexico in 2025, with stable value share throughout the year. The majority of dairy sales were driven by tienditas or tiendas de abarrotes (independent small grocers), which have a widespread presence in both urban centres and rural areas. Consumers typically purchase dairy alternatives in convenience stores, favouring mid-priced or premium brands, while most households continue to rely on small local grocers for their daily essentials. These traditional outlets remain relevant due to their practice of offering goods on credit to known customers and sourcing supplies from outdoor markets.
What next for dairy products and alternatives?
Value sales of dairy products and alternatives are expected to rise over the forecast period. Despite being a traditional category, dairy still holds room for innovation. Consumers will continue to seek products that offer convenience and functionality, as well as health and taste. Striking the right balance between flavour and health remains a key challenge for the dairy industry in Mexico. Both consumers and government regulations are increasingly demanding healthier products, particularly those with reduced sugar, sodium, and fat content. However, Mexican consumers still expect appealing and indulgent products, making it a difficult task to maintain consumer interest while complying with health-driven standards. Innovation in product formulation and consumer education around ingredients will be essential over the coming years.
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Overview:
Understand the latest market trends and future growth opportunities for the Dairy Products and Alternatives industry in Mexico with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
If you're in the Dairy Products and Alternatives industry in Mexico, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Dairy Products and Alternatives in Mexico report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Dairy Products and Alternatives in Mexico?
- Which are the leading brands in Dairy Products and Alternatives in Mexico?
- How are products distributed in Dairy Products and Alternatives in Mexico?
- How is the rise of e-commerce and/or the expansion of modern grocery retail impacting traditional retail?
- What are the key health and wellness concerns driving, or challenging, sales in Dairy Products and Alternatives?
- How significant are vegan and vegetarian dietary requirements in determining sales growth in Mexico?
- How has COVID-19 impacted consumer demand? To what extent have lockdown, home seclusion and stockpiling boosted sales? Will the longer term economic repercussions of the pandemic stimulate or suppress future growth?
- Where is future growth expected to be most dynamic?
- How significant will values-based claims, such as sustainability and ethical labelling, be in supporting future growth and brand equity?
Dairy Products and Alternatives in Mexico
Dairy products and alternatives in 2025: The big picture
Key trends in 2025
Competitive Landscape
Channel developments
What next for dairy products and alternatives?
DISCLAIMER
Baby Food in Mexico
KEY DATA FINDINGS
Falling birth rates and health trends impact sales of baby food in 2025
Nestlé México SA leads with Nido and Nan, while Royal FrieslandCampina NV gains ground
Pharmacies hold the strongest share as the channel invests in intense promotional advertising campaigns
The declining birth rate is expected to challenge future development of baby food
Inflation may encourage further shrinkflation across the forecast period
Baby snacks offer growth opportunities while consumers focus on transparency
Butter and Spreads in Mexico
KEY DATA FINDINGS
Butter leads value growth while dairy-free brands highlight their health credentials
Upfield México S. de R.L. de C.V leads while Sigma Alimentos focuses on its expansion
Small local grocers lead sales while warehouse clubs record growth with the entry of Smart & Final
Health regulations and reformulation will impact growth in butter and spreads
Texture, flavour and convenient formats will be key to growth over the forecast period
Health, sustainability and dietary restriction may shape performance and innovation
Cheese in Mexico
KEY DATA FINDINGS
Cheese consumption surges as meat prices rise and consumer habits shift
Sigma Alimentos retains the lead while Ganaderos Productores de Leche Pura drives growth
Small local grocers sales lead, while hypermarkets gain ground following investments
Inflationary pressures and the expansion of discount stores may add competition across the forecast period
Plant-based cheese is set to gain ground as consumer focus on gut health and lactose free products
Innovation in cheese is expected to focus on new consumption occasions
Drinking Milk Products in Mexico
KEY DATA FINDINGS
Flavoured milk drives growth while demographic and climatic challenges dampen sales
Grupo Lala SAB de CV maintains its leadership in drinking milk while Nestlé gains ground in powdered milk sales
Small local grocers lead drinking milk sales while retail e-commerce becomes the fastest-growing channel
Private label is set to gain momentum as drinking milk grows in a cost-conscious market
Sustainability in cheese is set to evolve into a broader value chain approach
Innovation will be essential for drinking milk products to remain competitive
Yoghurt and Sour Milk Products in Mexico
KEY DATA FINDINGS
Yoghurt drives value growth as plant-based alternatives gain ground in Mexico
Grupo Lala maintains its leadership in yoghurt while Yakult drives innovation through functional health claims
Retail e-commerce sales continue to rise in 2025, driven by main retailers
Yoghurt and sour milk products are expected to record growth despite regulatory challenges
Sugar reduction, high protein options and probiotics may increase notably across the forecast period
Marketing and innovation will be key to helping dairy brands stand out during rising health and environmental pressures
Other Dairy in Mexico
KEY DATA FINDINGS
Fromage frais and quark lead growth as other dairy benefits from expanding retail space
Nestlé México SA de CV retains its lead while Alpura drives growth through cream innovation
Small grocers lead sales while convenience stores drive dynamic growth in 2025
Indulgence and lifestyle alignment is expected to drive growth in other dairy
Gut health and protein enrichment opens new avenues for innovation in other dairy
Health scrutiny urges reformulation and balance in indulgent other dairy products
Plant-Based Dairy in Mexico
KEY DATA FINDINGS
Plant-based cheese drives value growth despite slowing volume momentum in plant-based dairy
GIFAN Internacional S de RL de CV leads, while local innovator Heartbest drives growth
Small local grocers drive sales while hypermarkets lead growth through promotions and wider access
High prices limit growth potential of plant-based dairy despite rising consumer interest
Plant-based cheese is set to experience fast growth, although it will remain a niche due to limited investment
Innovation is set to expand beyond plant-based milk, however, formulation remains a challenge
The following categories and subcategories are included:
Dairy Products and Alternatives
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- Dried Baby Food
- Prepared Baby Food
- Other Baby Food
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- Liquid Standard Milk Formula
- Powder Standard Milk Formula
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- Liquid Follow-on Milk Formula
- Powder Follow-on Milk Formula
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- Liquid Growing-Up Milk Formula
- Powder Growing-Up Milk Formula
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- Liquid Special Baby Milk Formula
- Powder Special Baby Milk Formula
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- Butter
- Cooking Fats
- Margarine and Spreads
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- Spreadable Cheese
- Processed Cheese excl Spreadable
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- Packaged Hard Cheese
- Unpackaged Hard Cheese
- Soft Cheese
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- Dairy Only Flavoured Milk Drinks
- Flavoured Milk Drinks with Fruit Juice
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- Fat-free Fresh Milk
- Semi Skimmed Fresh Milk
- Full Fat Fresh Milk
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- Fat-free Shelf Stable Milk
- Semi Skimmed Shelf Stable Milk
- Full Fat Shelf Stable Milk
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- Goat Milk
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- Powder Milk
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- Sour Milk Products
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- Drinking Yoghurt
- Flavoured Yoghurt
- Plain Yoghurt
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- Chilled Dairy Desserts
- Shelf Stable Dairy Desserts
- Chilled Snacks
- Coffee Whiteners
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- Flavoured Condensed Milk
- Plain Condensed Milk
- Evaporated Milk
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- Cream
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- Flavoured Fromage Frais and Quark
- Plain Fromage Frais and Quark
- Savoury Fromage Frais and Quark
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- Soy Drinks
- Other Plant-based Milk
- Plant-based Yoghurt
- Plant-based Cheese
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This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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