The consumer goods market in Mexico is evolving rapidly, and the key to growth for brands lies in a robust Route-to-Market (RTM) strategy. With a value added projected to amount to US$38.1bn in 2025 and an expected growth of 1.32% (CAGR 2025–2029), the opportunity is immense. However, without an optimized distribution strategy, many brands risk losing market share to competition.
If you’re part of Mexico’s CPG ecosystem, you know the challenge isn’t just reaching the end consumer but doing so efficiently, profitably, and with a real impact on sales. How can you ensure your product is in the right place, at the right time, and at the best cost? This is where an intelligent and digitized RTM strategy makes all the difference.
Overview of Mexico’s CPG industry
1. A fragmented retail landscape
Mexico has a mixed retail ecosystem: while chains like OXXO (with over 21,000 stores nationwide) dominate modern retail, traditional trade still accounts for over 40% of retail sales.
- Tienditas (mom-and-pop stores) are still the backbone of Mexican retail. They account for a large percentage of CPG sales, especially in smaller towns and rural areas.
- Many lack digital tools, leading to inefficiencies in ordering, stock management, and promotions.
- Brands that support tienditas with mobile ordering apps, real-time stock insights, and digital incentives such as SFA Software can significantly boost secondary sales.
2. The role of wholesale markets (Central de Abasto)
- Mexico City’s Central de Abasto is one of the largest wholesale markets in the world, handling 80% of the capital’s food distribution.
- Many small retailers and distributors source products from here instead of directly from brands.
- Brands that integrate wholesale market partnerships into their RTM strategy can strengthen their presence in urban and semi-urban areas.
3. Supply chain inefficiencies & stock-outs
- Retailers are navigating a complex landscape marked by shifting regulatory environments, economic uncertainty, and ongoing supply chain disruptions.
- Stock-outs can cause significant annual revenue loss.
- Brands leveraging real-time data intelligence reduce stock-outs by up to 30%, ensuring availability and preventing lost sales.
4. Rising logistics & distribution costs
- Logistics costs in Mexico are increasing by 7-10% annually, impacting profit margins.
- Optimizing last-mile delivery and route planning can cut distribution costs by >20%.
5. Slow, reactive planning and execution
- Many brand still depend on wholesales and distributor feedback rather than real-time data, making planning a slow, manual process.
- Approval cycles can be long, especially in large organizations where multiple teams need to sign off, delaying execution.
- Most brands react to demand shifts rather than proactively forecasting trends.
How to optimize Route-to-Market in Mexico
1. Use data intelligence for real-time decision-making
- Predictive analytics help brands forecast demand more accurately, avoiding overproduction or stock shortages.
- Real-time tracking tools enable faster responses to market shifts.
- Brands leveraging AI-powered insights see up to a 20% increase in sales.
2. Maximize last-mile efficiency
- Mexico’s vast geography presents logistical challenges, but optimized routes can lead to 25% faster deliveries.
- Brands with efficient distribution networks improve sales force productivity by 15%.
3. Address the informal economy with flexible payment solutions
- Over 55% of Mexico’s workforce operates in the informal sector, which impacts CPG distribution.
- Many distributors and small retailers prefer cash transactions, making digital payment adoption slower.
- Brands that support cash-on-delivery, mobile wallets, or local credit systems like tandas can expand reach and improve retailer engagement.
4. Empower distributors & retailers—especially Tienditas
- Over 80% of Mexican consumers prefer shopping at physical stores rather than online.
- Brands that provide smart, digital tools like mobile order-taking apps and SFA powered ERP solutions and DMS platforms help mom-and-pop stores stock the right products and improve availability.
- Gamifying distribution (offering digital incentives for better sales) can significantly boost secondary sales.
5. Align RTM strategies with regional & seasonal trends
- Northern Mexico has a stronger preference for U.S. brands and modern retail formats, while Central & Southern Mexico rely more on traditional trade (tienditas, street vendors, and open-air markets).
- Differentiating distribution approaches across these regions can improve efficiency and market penetration.
- Aligning RTM strategies with Buen Fin (Mexico’s Black Friday), Día de los Muertos, and Independence Day promotions can significantly boost seasonal sales.
FieldAssist: Your trusted partner in Route-to-Market optimization
At FieldAssist, we help CPG brands power their RTM planning and execution, from HQ to on-ground, with AI-driven, real-time insights. Our platform enables you to:
✅ Enhance distributor efficiency with mobile-first tools.
✅ Reduce stock-outs and ensure availability through intelligent forecasting.
✅ Lower logistics costs with optimized route planning and real-time tracking.
Our solutions are designed for dynamic and fragmented markets like Mexico, helping brands achieve sustainable and profitable growth.
Success story: Transforming RTM for industry leaders
One of our clients, a global leader in the F&B industry, struggled with distribution challenges, especially in mid-sized and small cities. With FieldAssist, they achieved:
✔ 20% increase in outlet coverage
✔ 25% reduction in travel time
✔ >5X boost in execution compliance
This is just one example of how an optimized Route-to-Market strategy can drive exponential growth in Mexico.
Let’s talk!
If your brand wants to refine its RTM strategy and unlock new growth opportunities in Mexico, FieldAssist is the right partner for you. From sales force digitalization to last-mile delivery optimization, we offer tailored solutions for Mexico’s evolving CPG market.
🔗 Contact us today to see how we can take your Route-to-Market strategy to the next level.
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