Beer is now cheaper than soda in Mexico

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The increase in the IEPS (Special Tax on Production and Services) implemented by the federal government is already being reflected in the prices of sugary drinks in various parts of the country.

Consumers have reported that, in some stores, a beer is cheaper than a soda of the same size, a situation that has surprised many.

This has sparked debate about taxes, consumption habits, and potential effects on public health.

Soft drink prices in Mexico are rising significantly in 2026

Due to a major increase in the Special Tax on Production and Services (IEPS) on sugary beverages, designed to curb high obesity rates. The tax increases to MX$3.08 per liter from the previous MX$1.64, leading to expected consumer price hikes of 10% to 15%. 

Key Details on 2026 Price Hikes:

  • Tax Increase: The tax per liter of sweetened beverages rises from 1.64 pesos to 3.08 pesos, an approximately 87% increase in the levy.
  • Affected Products: The tax applies to sodas, flavored drinks, and syrups.
  • Scope: The measure aims to combat high rates of diabetes, obesity, and hypertension, with the revenue (expected at 41 billion pesos) aimed at health programs.
  • Impact on Retail: Small local shops (“tienditas”) are expected to be heavily affected, as these drinks are popular high-volume items.
  • Other Goods: Other taxes on tobacco (to 200% ad valorem) and certain violent video games are also increasing as part of the 2026 fiscal package. 

The measure is part of the 2026 budget, designed to fight the high prevalence of obesity and sugar consumption in Mexico.

Source: OEM

Mexico Daily Post