The COVID-19 pandemic accelerated ongoing demographic trends in the Mexican home gardening sector, as more Mexican households sought sustainable sources of vegetables and fruits and explored new low-contact hobbies during confinement. Growth in the retail seeds sector in the last decade has been driven by demographic changes among buyers. While the traditional target market for home gardening has been elderly women, younger generations are increasingly becoming more interested in urban gardening to improve self-sufficiency, health, and well-being.
In this context, PC Capital identified Rancho Los Molinos as an attractive investment opportunity for the firm’s debut fund. In addition to a growth trajectory driven by an increasing consumer base, the company also aligned with PC Capital’s focus on sustainability and social impact. From an environmental perspective, household gardens contribute to climate change mitigation targets through the reduction of both food losses in the supply chain and greenhouse gas emissions associated with the transportation of fruits and vegetables to end consumers.