Baked Goods in Mexico

PROSPECTS

Unpackaged bread to continue to outsell packaged due to lower prices and a reputation for freshness

Sales of unpackaged bread were far higher than packaged alternatives in both the flat and leavened formats in 2019. A wide range of products are available within artisanal bread, with many options offering lower prices than packaged bread.

Expansion of forecourt retailers to support growth

Forecourt retailers are expanding rapidly in Mexico, with many private retailers and convenience stores partnering with petrol companies to open stores in these outlets. Although sales of baked goods through forecourt retailers remained low in 2019, the channel recorded strong growth towards the end of the review period and this is set to continue over the forecast period.

Tortillas set to remain the most popular staple

Mexican cuisine is rich and varied – with a wide range of dishes that mix different types of sauces and proteins. However, tortillas are used in most dishes, either as part of the dish or as a complement.

COMPETITIVE LANDSCAPE

Grupo Bimbo retains its lead and is active in launches

Although baked goods is a highly fragmented category due to the large number of artisanal bakeries, the offer of packaged baked goods is led by a strong competitor. In 2019, Grupo Bimbo was the indisputable leader in packaged baked goods.

Grupo Bimbo focuses on smaller formats of packaged cakes

Over the forecast period, growing health awareness is likely to inspire consumers to pursue healthier lifestyles. This is expected to encourage companies to develop healthier alternatives within baked goods, focusing on leaner recipes and added benefits.

New formats are supported by the growth of refrigerated spaces in modern grocery retailers

The major modern grocery retailers have increased their refrigerated spaces in stores, which has encouraged new brands to offer frozen and refrigerated baked goods, such as bagels and Ezequiel bread. Although this remains a nascent development, it is expected to achieve interesting growth over the forecast period as modern grocery retailers continue to expand and invest in refrigerated shelves in their outlets.

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