Food & Drink sector in Mexico

An Expert's View about Food and Beverage Services in Mexico

Last updated: 14 Mar 2011

Changes to eating habits in a country of over 107.5 million, rising living standards, the spread of large US style supermarkets have led to increases in the import of foreign foods.

Sector briefing Food and Drink Opportunities in Mexico Why Mexico? Changes to eating habits in a country of over 107.5 million, rising living standards and the spread of large US style supermarkets have led to an increase in the import of foreign foods. The US, France, Spain and Germany are doing well in this sector as are some British companies. Opportunities are there for more British companies to enter an increasingly profitable market. This is particularly true now that UK producers stand to benefit from the EU-Mexico free trade agreement which means tariffs on industrial goods, which include a number of processed foods, have been eliminated since the beginning of 2008. Opportunities exist both Mexico is becoming for investing in the retail sector and for selling increasingly dependant on to the market. imports of some products. Find general information on the Mexican Only in the last three years market conditions on UKTI?s website. The imports have raised 7% to Doing Business Guide for Mexico gives an reach a 42.7% of the overall overview of Mexico?s economy, business culture, potential opportunities and an products in Mexican introduction to other relevant issue. supermarkets. UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico Mexico is a big consumer of biscuits and Opportunities crackers. The main producer in Mexico is Gamesa-Quaker, a Pepsi Co company. Food & Drink Food & Drink products that reflect health Consumption per capita of biscuits and concerns, weight loss and a healthy way of life crackers in Mexico is close to 4 kg per year. are among the products with the highest rate of growth. Mexican consumers (similar to The last Food and Drink trade mission to consumers all over the world) are now worried Mexico was the largest organised by the local about diets and health, and the media is also UKTI network. More than 20 companies visited giving wide coverage to issues like diabetes nd both Mexico and Guadalajara where they had and obesity. Mexico is 2 most affected high level meetings with supermarkets and country in the world for obesity problems, just targeted potential clients or distributors. The behind the US. next ANTAD trade mission will take place in March 2011. The population is living longer, so there will be the need for products for people older than 50 Beverages (alcoholic and non-alcoholic): or 60 years, which cover their calcium requirements, help them to protect against During 2009 the non-alcoholic beverage sector diseases like osteoporosis; or products that maintained its growth. Soft drinks consumption provide energy and help them to improve grew 2%, compared to the previous year. digestion. nd Mexico is ranked 2 just after the US in terms of soda consumption and Mexicans consume In Mexican supermarkets, fresher, better circa 160 litres of soda every year, and each quality goods on many levels are in need, family spends $700 USD on soft drinks over although at an affordable price. Dairy products the same period. Mexico also has a strong are very popular in Mexico. manufacturing chain with 230 facilities that serve the Mexican and Latin-American market. Mexico is becoming increasingly dependant on They produce 300 million boxes, worth more imports of some products. Only in the last than $15,000 thousand million USD. three years imports have raised 7% to reach a 42.7% of the overall products in Mexican supermarkets. This represents a great area of In 2009, Tequila production was 249 million opportunity for British companies. litres and 45% percent of all drinks sold in Mexico have some kind of link with Tequila. Imported sweets now have a market share of 136 million litres were sold in international 25%. These products are cheaper than local markets. products due to lower sugar costs in the countries of origin. The most popular imported Rum represents 21% of the alcohol market in products are: sweets chocolates, hard sweets Mexico, in second place behind Tequila. which lollipops, gum, confectionery goods and accounts for 46% of sales. biscuits. 2 million litres of Mezcal were produced in Despite the current economic situation, ANTAD 2009. There are over 150 mezcal brands that (National Association of Supermarkets and export half a million litres to countries such as Department Stores) has reported an important New Zealand, Australia, China, Russia, USA growth of 7.7% for 2009 in the food sector, and other countries in Central and South including frozen and ready-to-eat food. America. There are 3000 jobs related to this industry which has grown more than 250% Older, wealthier Mexicans appreciate the finer during the last 5 years. foods, most of which are imported - smoked salmon, fine teas, jams and biscuits. Only quality shops stock foreign confectionery. UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico Beer consumption per capita in 2009 reached If you have any questions on the opportunities 59.6 litres. It is expected that consumption per above, contact the UKTI] contacts named in capita will reach 60 litres in 2010 reaches. this report. Business opportunities aimed Grupo Modelo and Femsa Cerveza have about specifically at UK companies are added daily to 97% of the beer market in Mexico. This has UKTI?s website. These leads are sourced by our limited the inclusion of foreign brands that only staff overseas in British Embassies, High have 2% to 3% of the Mexican Market. In the Commissions and Consulates, across all sectors imported beer category, there are about 25 and in over 100 markets. brands from different countries. Imported beers have a price up to 100% greater than You can be alerted to Mexico/Food and Drink national beers. The main sales channels for business opportunities on a regular basis by beer are convenience and retail stores as well registering on the UKTI website. Find out more as consumption centres. on UKTI?s business opportunities service on the UKTI website In Mexico there are about 63 million potential beer consumers and every year, a million more are added (from consumers that have reached the age to drink). Mexico is no longer a closed market for beer. FEMSA Cerveza is now owned by Heineken and Anheuser-Bush (now part of InBev) owns 50% of Grupo Modelo. Juices and bottled water sectors have been growing significantly (2% during 2009). Now those consumers are looking for healthier products. Mexico is the second largest consumer of bottled water. This means more than 22,700 million litres consumed every year, just after the US, accounting for $6,200 thousand million USD per year. The main companies selling bottled water in the Mexican market are Coca Cola, Pepsicola, Danone (Evian and Bonafont) and Nestlé. Currently the energy drinks market value is $1,500 million USD with more than 50 brands, including: Red Bull, Boost, Sobe Rush, Bomba, Café Olé, Monster, TAB Burn, Rockstar and Gladiatior. A new official rule is being proposed to reduce the maximum level of caffeine and taurine, not to exceed 33 mg per every 100 ml. In 2009 this niche grew 36%. More than 150 million cans of energy drinks were sold during 2009. Higher consumption of beverages with high sugar content are causing health problems within the population, for that reason non- carbonated drinks were the niche product that presented the highest growth, more than 100%. A rapid change in consumption habits is being observed. National coffee consumption has doubled in recent years, mainly caused by the opening of international and local coffee shops. UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico Major events and activities UKTI contacts Expo Gourmet Iván Ramírez/Alicia Zayas Director Centro Banamex, Mexico City UK Trade & Investment Office Guadalajara Time: 27 August 2010 Tel: +52 33 3630 4357 ext. 101 Fax +52 33 3616 2159 Gourmet Show Email: World Trade Centre, Mexico City Time: 02-04 September 2010 Carlos Montes de Oca/Yasmin Tlatilpa Trade & Investment Officer Abastur British Embassy Mexico City Tel: +52 55 1670 3242 Centro Banamex, Mexico City Fax: +52 55 1670 3222 Time: 21-23 September 2010 Email: ANTAD Expo Guadalajara, Jalisco Time: March 2011 Expopack Centro Banamex, Mexico City Time: 22-25 June 2010 Confitexpo Expo Guadalajara, Jalisco Time: 03-06 August 2010 New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Mexican market are advised to you to meet contacts and promote your undertake as much market research and company in the Mexican market planning as possible in the UK. UKTI?s team in Mexico, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Mexican market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Food and Drink opportunities in Mexico
Posted: 29 September 2010, last updated 14 March 2011

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