Mexico Lime Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Mexico Lime Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Mexican lime market is projected to register a CAGR of 4.1% during the forecast period.

• Mexico is one of the major countries producing and consuming citrus fruits. Both Persian and Key limes are economically important for Mexico. Key limes mostly remain in the Mexican domestic market for consumption. However, recently, there has been an increase in the exports of this variety. Key limes are grown mostly on the Southern Pacific Coast of Mexico.
• The lime industry in Mexico is largely comprised of small-scale farmers who grow the fruit on small plots of land. To increase production, the Mexican government has launched programs to promote the adoption of new technologies and practices that can increase yields and reduce environmental impact.
• Lime is used as an ingredient for the production of citric acid, lime oil, lime juice, and other products that are used in household food items, as well as chores. Many small-scale farmers sell their lime to processing companies that extract the juice and produce other lime-based products. In addition to its culinary and cleaning uses, lime is also used in a variety of other industries, such as paper, textiles, and construction materials. Therefore, the growing demand for the products is eventually increasing the demand for lime, and as a result, the growing interest in health benefits and cleaning applications is a major force driving the market.

As per the Food and Agriculture Organization of the United Nations (UNFAO), Mexico and Brazil are the world’s largest producers of lime. However, because of the lack of refrigeration, key limes are preferred in Mexico as they have a longer shelf life. Mexico accounts for 14.3% of the global lime production in 2021, where lime yields an average of 15,253 kg per hectare. The major regions producing almost 67% of limes in Mexico are Colima, Michoacan, Jalisco, and Oaxaca. On the other hand, Veracruz accounts for about 27% of the production of lime/lemons, which are mostly concentrated in the Yucatán Peninsula.

Lime production is also impacted by the effect of drug cartels in Mexico. When lime prices soar, the extortion of lime farmers by drug cartel members is common. There have been reports of armed cartel members robbing trucks of limes headed to the United States. The country is the major exporter to the United States, and therefore, the market value depends on consumption and demand from other countries. Soft drinks companies are majorly focusing on lime as it serves as an ideal ingredient for soft drinks. Increased awareness about the health benefits of lime among consumers is augmenting the demand for lime-based products in the market.

Lime is a commonly used ingredient in Mexican cuisine and is an essential component of many popular dishes such as guacamole, ceviche, and salsa. Additionally, lime juice is a popular ingredient in beverages such as margaritas and other cocktails. According to a report by the UN Comtrade, the export of Mexican limes and citrus fruit reached a record high of 690 million metric ton in 2020, up 36.2% from the previous year. The United States is the largest importer of Mexican limes, accounting for over 80% of the total exports.

This surge in demand for lime products has led to the expansion of the lime fruit processing industry in Mexico. Due to this, there have been various strategies adopted by the processing companies. For instance, the Mexican lime processing company, Grupo Maipo was acquired by the US-based company, Limoneira. The acquisition will allow Limoneira to expand its operations in Mexico and increase its capacity to process and distribute lime products. In recent years, there has also been an increasing trend toward the use of lime in non-food applications, such as cosmetics and cleaning products. This may also be contributing to the growing demand for lime fruit processing in Mexico. Therefore, the demand for lime fruit processing is expected to grow in Mexico as the country's cuisine and economy continue to develop.

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