What: McKinsey’s latest consumer sentiment survey in Mexico reveals the lasting effects of the pandemic on consumer behavior.

Why it is important: The survey results show that the pandemic has had lasting effects on consumer behavior in Mexico. As optimism about the economy rises, businesses need to maintain their agility and respond quickly to meet the changing demands of consumers.

Consumers in Mexico are feeling more optimistic about the country’s economy and their ability to meet financial commitments in the coming year, but are still persistently looking for ways to spend less.

Looking forward to better days

30% of Mexican consumers expect their finances to be in better shape this year than last year. Unemployment rates have returned to pre-pandemic levels and real growth in consumption was significant at 6.5%. Additionally, the percentage of Mexican consumers who are optimistic about the country’s economics has increased to 46%.

In search of cheaper options

67% of respondents reported cutting their spending in the past year, which is 20 percentage points above pre-pandemic levels. 23% of respondents are trading down across their entire shopping basket, especially in commoditized categories. The trade-down trend has become more pronounced across all economic segments.

The pros and cons of e-commerce

While online shopping is no longer the main purchasing channel, its share is still higher than before the pandemic. Consumers report looking to e-commerce for better prices and convenience but worry about receiving faulty items.

Buying low-risk categories online

Mexican consumers are increasingly comfortable buying cosmetics, electronics and toys online.

Opting for home-cooked meals

Consumers are engaging in healthier eating habits such as eating at home, cooking from scratch, and buying locally sourced products.

Mexican consumers seek value and convenience