Private Label food strategies that deliver results in Mexico
By Norma Brito
February 11, 2026
6 MIN READ
This article is featured in the Magazine “Private Label and National Brands: Decoding Food Retail”, created in collaboration with Global Retail Brands. You can find more insights about the Magazine and additional articles here.
Private labels have evolved from being mere cost-effective alternatives to becoming strategic assets for retailers. In Mexico, this transformation is particularly significant, offering brands and manufacturers a unique opportunity to innovate and expand.
As someone who spent nearly two decades as a buyer, and now develops health-forward food products for private labels in Mexico and Asia, I’ve seen this transformation up close. This article draws on this dual perspective to offer a practical guide for manufacturers and retailers looking to thrive in Mexico’s evolving private label landscape.
The Mexican Food Retail Landscape: A Blend of Tradition and Modernity
As someone who spent nearly two decades as a buyer, and now develops health-forward food products for private labels in Mexico and Asia, I’ve seen this transformation up close. This article draws on this dual perspective to offer a practical guide for manufacturers and retailers looking to thrive in Mexico’s evolving private label landscape.
Private Labels in Food: From Generic to Gourmet
In Mexico, private labels have moved far beyond their early image as lower-tier options. Today, they’re recognized for quality, reliability, and value, and in many cases, they’re outperforming national brands in growth. Retailers are expanding private label offerings beyond basic goods to include premium, organic, and health-forward products. In 2023, private label products held approximately 28% of the market share in Mexico, making it one of the leading markets in Latin America. This growth is driven by consumers seeking cost-effective options without compromising quality, especially amid economic uncertainties.
Key Players in the Mexican Food Retail Sector
Understanding the major retailers is crucial for private label success. Mexican consumers are increasingly open to private labels (PLs), particularly in food, household goods, and wellness categories.
Walmart: Mexico’s market leader, Walmart blends smart product segmentation with supply chain strength. The company is also investing heavily in digital transformation and e-commerce innovation.
Costco: A club-format retailer with few SKUs and deep supplier partnerships. Costco is trusted for its quality-value ratio and selective product curation.
Soriana/Chedraui: These national chains are ramping up investment in store brands, often tying product development to regional preferences and consumer insights.
FEMSA Comercio (OXXO): With over 20,000 convenience stores, OXXO has significantly contributed to private label growth across Latin America.
Think Like a Buyer: Insights for Food Manufacturers
From a buyer’s point of view, building successful food products for private labels means balancing performance, reliability, and consumer appeal. Here are key elements to focus on:
Flavor First: No matter how functional or innovative, a product that doesn’t taste good won’t last. In Mexico, taste is king, even in wellness categories.
Local Palate, Global Standards: Combine authentic Mexican flavor profiles with high-quality ingredients and international certifications like USDA Organic, Non-GMO Project, or Halal.
Margin and Velocity: Buyers look for products that offer strong margins and strong sales performance.
Differentiation: Products that stand out for their health benefits, local sourcing, or innovation are far more likely to be picked up.
Consistency and Reliability: A great product is only as good as its supply chain. Buyers value manufacturers who can deliver consistent quality and meet production timelines.
Strategic Partnerships: Buyers seek long-term collaborations with manufacturers who can align with their brand vision and customer needs.
Act Like a Developer: Building a Successful Private Label Food Strategy
To develop effective private label food products that resonate, focus on:
• Consumer Insights: Base product decisions on real consumer data and emerging trends, not assumptions.
• Product Innovation: Create products that meet specific or growing consumer needs, such as health-conscious or environmentally friendly options.
• Packaging and Branding: Invest in appealing packaging that resonates with the target audience and communicates the product’s value.
• Regulatory Compliance: Ensure products meet all local regulations and standards, particularly in labeling and safety.
Understanding the dynamics between national and imported goods is crucial for sourcing and pricing strategies.
• Imports: In 2023, Mexico’s consumer goods imports were valued at approximately $158 billion, representing 26.13% of total imports (WITS).
• Trade Relations: Over 40% of Mexico’s total goods imports are from the United States, highlighting the importance of cross-border trade (United States Trade Representative).
• Tariffs and Regulations: Recent tariffs on low-cost imports from countries without free-trade agreements aim to protect local industries and may influence sourcing decisions.
From Transactional to Transformational Partnerships
Winning in Mexico’s private label food sector isn’t about short-term wins, it’s about long-term collaboration. Success requires a dual mindset: think like a buyer to understand retail needs and act as a developer to create compelling products. By aligning with retailer strategies, prioritizing innovation, and staying attuned to market dynamics, companies can build private label offerings that truly connect with Mexican consumers.
Share on
