Even though Mexican consumers are feeling somewhat more optimistic about both the economy and their finances, the positive sentiment isn’t apparent in their shopping habits. In a survey, 67 percent of respondents reported cutting spending in the past 12 months, an increase of 20 percentage points from prepandemic levels. Partner Fernando Hiraoka and colleague find that 23 percent of respondents—up from 20 percent in 2021—say that they’re trading down across their entire shopping basket, with household cleaning products, laundry supplies, rice, pasta, and bottled water seeing the most change.
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A horizontal bar graph reveals a shift in spending habits among consumers in Mexico over the past 12 months, based on survey data. The graph illustrates whether respondents plan to “trade up” to more expensive brands or “trade down” to more cost-effectives ones across 21 product categories. Overall, consumers opting for trading down significantly outweigh those favoring trading up. Product categories are arranged based on net difference, calculated by subtracting the percentage of those trading up from those trading down. The top 8 product categories most impacted by down-trading, from highest to lowest, are household cleaning products, laundry products, rice, pasta, bottled water, dairy milk, salty snacks, and cookies.
Footnote: Net difference is defined as the percentage point difference between respondents reporting trading up and those indicating trading down.
Source: McKinsey Mexico 2023 Consumer Sentiment Survey.
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To read the article, see “Mexican consumers seek value and convenience—and find it online,” June 28, 2023.