The micro-brewery industry is growing rapidly in Mexico and the U.S. Grains Council is exploring opportunities for U.S. malt in this new emerging market. The industry has had more than 100 small craft brewers popping up in Mexican cities, which are expected to grow and take market share from the two dominant brewers in Mexico.

The microbrewery industry in Mexico is still in its infant stages, importing 2,666 metric tons (122,448 bushels) of malt valued at $1 million. Current annual craft beer production ranges between 12 and 13 million liters (3.2 to 3.4 million gallons) per year, which is less than 0.1 percent of total beer production in Mexico. However, the Brewers Association of the Mexican Republic feels that by 2017 the craft beer industry will reach 70 million liters (18.5 million gallons).

A recent Council assessment identified several constraints that make growth difficult for Mexican micro-brewers. In particular, the tight control of the malt market by the big breweries is inhibiting growth of the new, relatively small competitors. The Council sees this as an opportunity to educate microbrewers about developing contacts and business relationships to conduct direct purchases of U.S. malt.

“Growth is occurring in the Mexican micro-brewery industry and should increase relatively rapidly, although the two large commercial companies will continue to dominant this sector,” said Julio Hernandez, USGC director in Mexico. “However, there is still room for small companies to grow. Using the results of the survey, the Council will explore opportunities to engage the sector and expose the micro-brewers to U.S. exporters of malt.”