12.3 Sectors in Mexico contributing to Mexico’s Bioeconomy
A crucial element of Mexico’s economy is its agricultural sector, employing around 14% of the workforce but contributing only about 4% to the GDP (World Bank, 2022). Over time, this sector’s relative importance has decreased, echoing trends observed in other OECD nations. From 1993 to 2010, agricultural employment in Mexico dropped by 28%, declining from 8 million to 5.8 million individuals . This significant decline led to a reduction of agriculture’s GDP contribution by half over two decades. In comparison to other middle-income countries like Brazil, Chile, Malaysia, and Turkey, Mexico experienced a more pronounced decrease in agricultural employment. The percentage of people employed in agriculture in Mexico declined by 45% between 1990–95 and 2005–10, surpassing declines seen in similar economies within the upper-middle income group, which averaged 29%. Additionally, Mexico’s current 14% share of employment in agriculture ranks lower compared to an average of 33% in other developing nations within this income bracket. Mexico’s agricultural landscape displays diversity across regions. Larger, commercially-oriented farms are common in the northwestern areas, while smaller, subsistence-focused farms operate in central and southern regions. The emphasis on specific products varies among these farm sizes, with fruits and vegetables being more significant for smaller farms, while larger ones prioritize maize. The average farm size in Mexico is around 8 hectares, with both small and large farms increasing while medium-sized ones decline. Small farms constitute approximately 73% of total production units, employing a substantial majority of the agricultural workforce. However, various constraints, such as the land tenure system, limit the productivity of these smaller operations.
The overall production value and quantity of major agricultural products have increased between 1990 and 2010. Meat products have the highest production value, followed by sugar, maize, and fruits/vegetables . Conversely, wheat and rice production values remain relatively lower, at approximately $600 million and $200 million, respectively.
In 2023, the food market will generate US$234.80 billion in revenue. The market is anticipated to expand at 5.99% a year (CAGR 2023-2028). Meat is the market’s largest segment, with a projected market value of US$53.41 billion in 2023. When compared globally, China generates the largest revenue ($1,493 billion in US dollars in 2023). Per capita income in 2023 is estimated to be US$1,768.00, based on population totals. Online sales will account for 2.2% of the Food market’s overall revenue by 2023. By 2028, the food market is projected to reach a volume of 72.87 billion kilogrammes. In 2024, the food market is anticipated to rise by 3.2% in volume. In the food market, an average volume per person is projected to reach 485.20 kg in 2023.
The biotechnology sector in Mexico is witnessing significant growth and development, contributing to advancements in various industries such as agriculture, healthcare, and industry. This burgeoning sector is evolving rapidly, propelled by innovation, research, and government initiatives. Biotechnology has a substantial impact on agriculture in Mexico. It plays a pivotal role in enhancing crop productivity, developing genetically modified organisms (GMOs) for improved resilience against pests and diseases, and promoting sustainable farming practices. Despite regulatory challenges, advancements in biotech crops like maize and soybeans have been notable. Mexico’s biotech sector is making strides in healthcare, particularly in pharmaceuticals, vaccines, and diagnostics. Biotechnology is revolutionizing drug development, precision medicine, and the production of vaccines, contributing significantly to the country’s healthcare landscape. The use of biotechnology in industry is also gaining momentum in Mexico. Enzymes, biofuels, and bio-based materials are among the key areas of focus. Moreover, the country is exploring the potential of bioprospecting and bioremediation to address environmental challenges. Mexico has established various regulations governing biotechnological activities. Laws concerning biosafety, intellectual property, science, and technology play a pivotal role in ensuring responsible and ethical biotech practices. However, there are ongoing efforts to streamline and improve regulations to foster innovation and growth in the sector. Despite advancements, the Mexican biotech sector faces challenges such as communication gaps between regulatory bodies, a predominant focus on agriculture, and limited attention to other biotech applications. Enhancing inter-agency coordination, diversifying regulatory focus, and promoting innovation across industries are key opportunities for further growth and development in the sector.