Food and Drink sector

An Expert's View about Food , Beverages and Tobacco in Mexico

Posted on: 25 Nov 2011

17.8 million tons of food were consumed by 2010 in the country and despite the current economic status, Mexican food consumption is expected to continue growing (in the next five years the consumption is predicted to rise by 33.5% according to Mexico: Food and Drink Report” Q3 2011 of Business Monitor International), due to the 25 million new customers that will be having buying power in the coming years.

Food and Drink sector in Mexico Changes to eating habits in a country of 112 million inhabitants with an expanding middle class, rising living standards and the spread of large US style supermarkets, represent substantial opportunities for British companies to enter an increasingly profitable marketChanges to eating habits in a country of 112 million inhabitants with an expanding middle class, rising living standards and the spread of large US style supermarkets, represent substantial opportunities for British companies to enter an increasingly profitable market. Market overview The Mexican food industry has grown rapidly over recent years, fuelled by the establishment of the North American Free Trade Agreement (NAFTA) and the spread of its retail model leading to an increase in the import of foreign foods. International operators are seeking to extend their product portfolios and new producers looking to enter into this profitable market. A fact is that Mexico is becoming increasingly dependant on imports of some products. Key opportunities 17.8 million tons of food were consumed by 2010 in the country and despite the current economic status, Mexican food consumption is expected to continue growing (in the next five years the consumption is predicted to rise by 33.5% according to Mexico: Food and Drink Report? Q3 2011 of Business Monitor International), due to the 25 million new customers that will be having buying power in the coming years. ? Healthier and Low sugar Products - The incorporation of more women to the labour market, the higher level of education and the decrease in the size of families has changed consumption habits, making Mexicans shop more healthily and selectively. ? Ready to Eat Meals - A transition from traditional cooking habits to more modern attitudes about food, have triggered a growing demand for pre-prepared or easy-to-prepare foods. Newer, more mainstream and snack and fast foods are increasing in popularity. ? Dairy Industry - Popular and growing sector in Mexico. Its expansion based on domestic demand from both consumers and processors. ? Confectionary - With a young population (55% of Mexicans are under 24 years old) and a spread of convenience stores around the country are the two main driving forces creating the growth in the confectionery Mexican market.. Customer purchasing behaviour presents a ?premiumisation trend? as individuals slowly tend to purchase higher-value products. Beverages (alcoholic and non-alcoholic): ? Non -Alcoholic Market - Mexico has one of the world?s largest markets for soft drinks, followed just by the US. Per capita consumption of carbonated soft drinks (CSDs) in Mexico is the highest in Latin America and among the highest in the world. The hot climate is a major driver of sales and the average Mexican drinks three or four servings of CSDs every day. ? Alcoholic Beverages Market - Alcoholic drinks production consists mainly of beer, tequila and mezcal, brandy, rum, distilled spirits and wine. With 478 registered producers; the leading players in the spirits sector are Pernod Ricard, Bacardi and Cuervo. Latest export opportunities ? Food & Drink Latest export opportunities - Mexico Getting into the market British companies wishing to develop their business in the Mexican market are advised to undertake as much market research and planning as possible in the UK. The food and drink sector is changing constantly and companies have to be aware of new opportunities. UKTI?s team in Mexico, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Mexican market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Mexican market More about doing business in Mexico Contacts Market intelligence is critical when doing business overseas and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists based overseas - or contact your local international trade team. ? Jose Luis Rodriguez, UK Trade & Investment Office Guadalajara +52 33 3630 4357 ext. 101 or email: jlrodriguez@ukconsulate.org , ? Cristina Hernandez UK Trade & Investment Office Guadalajara Tel: +52 33 3630 4361 or email: chernandez@ukconsulate.org Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events ? Food & Drink Major Events ANTAD Date: 9th-13th March 2012 Website address: www.antad.org.mx Useful links More about OMIS and other UKTI services for exporters
Posted: 25 November 2011

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