Executive Summary

Sep 2019
Prospects
Hard cheese most affected by tariff on US imports

In retaliation for US tariffs on Mexican aluminium and steel, in June 2018 Mexico began imposing a tariff of 25% on imported cheese products from the US. This tariff continued to drive up unit prices in 2019, which bolstered cheese current value sales but constrained growth in retail volume sales.

Packaged cheese increasingly favoured for its convenience, due to widening range

Packaged cheese products continued to gain ground at the expense of unpackaged varieties in 2019. This trend, which looks set to persist over the forecast period, is partly driven by increasing appreciation for the convenience of packaged cheese, particularly among consumers with busy lifestyles.

Lower prices and healthier image boost demand for soft cheese

2019 saw soft cheese outperform hard cheese in retail volume and current value growth terms for the second year in a row. This was partly explained by the fact that hard cheese was most affected by the tariff on US imports, and therefore experienced steeper price hikes.

Competitive Landscape
Sigma Alimentos and Grupo Lala remain at top but are likely to face growing competition

Sigma Alimentos maintained its overall lead in cheese in value terms in 2019 with a broad portfolio that spans several categories and includes the well-established brands Noche Buena, Fud and Franja. Noche Buena remained by far the most popular of these brands, maintaining a clear lead in hard cheese and placing fourth in soft cheese.

Consumers show growing interest in private label in wake of US tariff hikes

While their overall aggregate value share remained low, private label products continued to perform well in cheese in 2019. Consumer appreciation for the competitive prices of private label lines increased towards the end of the review period as tariffs drove up the cost of cheese brands imported from the US.

Several brands introduce more convenient products and pack types

Convenience was a focal point for innovation in cheese over 2018-2019, with many players introducing sliced and grated products. These included products with squared slices to fit sandwich bread and rounded slices to fit tortillas.

Prospects
New launches help to maintain rapid expansion of other milk alternatives

Other milk alternatives remained by far the most dynamic drinking milk category in Mexico in retail volume and current value growth terms in 2019. While this was partly because sales were emerging from a comparatively low base, the category’s performance was also bolstered by the launch of several new products towards the end of the review period.

Health-orientated fresh milk brand Lala 100 continues to gain popularity

Fresh milk continued to benefit from the positive performance of the Lala 100 brand in 2019. Introduced by Grupo Lala during the review period, this health-orientated brand is available in two varieties: Lala 100 Proteina, which contains 70% more protein and 30% more calcium than standard fresh milk products, and lactose-free variant Lala 100 Sin Lactosa.

Grupo Lala introduces lactose-free flavoured milk drinks

The flavoured milk drinks category in Mexico is mainly represented by products targeting children. Such products typically come in 250ml packs and have packaging designs that feature cartoon characters.

Competitive Landscape
Frequent innovation helps Grupo Lala maintain its overall lead

Grupo Lala continued to lead drinking milk products in value terms in 2019. The company maintains a broad portfolio that covers multiple categories, and its products are available nationwide in Mexico.

Milk products face growing competition from cheaper “producto lácteo”

The economy price segment in milk witnessed several new launches towards the end of the review period. These included products from brands such as Leche Yaqui, Leche Bell, and Forti Leche, as well as new variants added to Walmart’s Great Value private label line.

Lechera Guadalajara expands Sello Rojo range with new health-orientated product

Lechera Guadalajara SA de CV expanded its Sello Rojo drinking milk range in 2019 with a new product made from a mixture of milk and oats. Intended to compete with flavoured milk drinks and drinking yoghurt brands, this product is positioned as a nutritious choice that is also convenient for on-the-go consumption.

Prospects
Several players launch new health-orientated products over 2018-2019

Health and wellness was a central theme in terms of innovation in yoghurt and sour milk products over 2018-2019. Many brands introduced new probiotic, reduced sugar and reduced fat variants, as well as products made from milk alternatives.

Popular milk brands diversify into yoghurt

Recent years have seen a number of well-established milk brands in Mexico attempt to leverage their popularity by entering the yoghurt category. For example, the review period saw the launch of Nutri Yoghurt, an extension of Grupo Lala’s milk brand Nutri Leche.

Yoplait targets health-conscious consumers with Yoplait Cero Cero

In line with rising health-consciousness, many Mexican consumers are now paying closer attention to factors such as fat and sugar content when buying yoghurt products. Recent years have seen a number of brands address these concerns by introducing reduced fat and reduced sugar variants.

Competitive Landscape
Grupo Lala continues to lead a highly concentrated competitive environment

Yoghurt and sour milk products remained highly concentrated in 2019, with the top four players accounting for the lion’s share of total current value sales. Grupo Lala was the overall leader, closely followed by Danone de México and Yakult SA de CV.

Flavour is a key point of differentiation for new health-orientated yoghurt ranges

While health and wellness was a focal point for innovation in yoghurt over 2018-2019, several brands also sought to differentiate new ranges by offering more novel and exotic flavours. For example, the range of non-dairy drinking and spoonable yoghurt products launched under the Silk brand includes mango, pineapple, berries and apple flavour variants, among others.

Yoplait adds new flavours to its indulgent Yoplait Placer range

Following in the steps of other brands such as Lala, towards the end of the review period Yoplait expanded its Yoplait Placer range of indulgence-orientated yoghurt products. This range offers more luxurious flavours such as lemon pie, cookies and cream and crunchy vanilla.

Prospects
Health and wellness trend continues to stimulate innovation in other dairy categories

The health and wellness trend continued to have a major influence on new product development activity in other dairy categories in 2019. Several players introduced lactose-free and reduced fat products, for example.

Larger and more economical pack sizes gain popularity in cream

With maturity, increasing competition and rising health-consciousness among consumers limiting the potential for volume sales growth, towards the end of the review period a number of players in cream sought to stimulate demand for their products by introducing larger pack sizes that offer better value for money. The Alpura and Carranco brands were made available in 900g packs, for example, as were private label cream products in Walmart’s Aurrera range.

Multipacks continue to perform well in chilled dairy desserts

Similar to the case with larger pack sizes in cream, rising demand for multipacks helped to boost volume sales growth for the chilled dairy desserts category in 2019. These included 6- and 8-unit multipacks of flan (crème caramel) products offered under the Danette and Lala brands, respectively, as well as a 4-unit multipack of rice pudding (arroz con leche) products from Danette.

Competitive Landscape
Leading other dairy player Nestlé expands its Carnation range in 2019

Nestlé remained the overall leader in other dairy in value terms in 2019. The company’s portfolio covers several categories, and includes well-established and widely distributed brands such as Carnation, La Lechera and Coffee-mate.

Cottage cheese brand Lyncott introduces new functional products

Industrias Cor SA de CV expanded its Lyncott cottage cheese range in 2019 with the launch of two new functional products. One of these products is made with oats and amaranth, and positioned as having an energy-boosting effect.

Popular drinking milk and cheese brands expand into other dairy categories

The latter part of the review period saw several leading drinking milk brands in Mexico attempt to leverage their popularity by diversifying into other dairy categories such as cream and condensed milk. This strategy was pursued by the Sello Rojo and San Marcos brands, for instance, while Walmart’s Great Value private label range was also expanded via the addition of other dairy product types.

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Dairy in Mexico

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Overview

Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Mexico with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Dairy industry in Mexico, our research will save you time and money while empowering you to make informed, profitable decisions.

The Dairy in Mexico market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Dairy in Mexico?
  • What are the major brands in Mexico?
  • How has the economic downturn impacted sales performance given its staple food status?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Dairy in Mexico - Category analysis

Butter and Spreads

HEADLINES

PROSPECTS

Butter gains popularity as health concerns lead consumers to favour more natural foods
Margarine and cooking fats producers introduce healthier alternatives
Growing preference for eating out set to curb retail demand for cooking fats

COMPETITIVE LANDSCAPE

ACH Foods and Cremería Americana lead thanks to wide distribution and strong marketing
New health-orientated products added to Primavera margarine range in 2018
Traditional cooking fats face growing threat from coconut oil as PAM launches spray

CATEGORY DATA

Table 1 Sales of Butter and Spreads by Category: Volume 2014-2019
Table 2 Sales of Butter and Spreads by Category: Value 2014-2019
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2014-2019
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2014-2019
Table 5 NBO Company Shares of Butter and Spreads: % Value 2015-2019
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2016-2019
Table 7 Distribution of Butter and Spreads by Format: % Value 2014-2019
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2019-2024
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2019-2024
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2019-2024
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2019-2024

Cheese

HEADLINES

PROSPECTS

Hard cheese most affected by tariff on US imports
Packaged cheese increasingly favoured for its convenience, due to widening range
Lower prices and healthier image boost demand for soft cheese

COMPETITIVE LANDSCAPE

Sigma Alimentos and Grupo Lala remain at top but are likely to face growing competition
Consumers show growing interest in private label in wake of US tariff hikes
Several brands introduce more convenient products and pack types

CATEGORY DATA

Table 12 Sales of Cheese by Category: Volume 2014-2019
Table 13 Sales of Cheese by Category: Value 2014-2019
Table 14 Sales of Cheese by Category: % Volume Growth 2014-2019
Table 15 Sales of Cheese by Category: % Value Growth 2014-2019
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2014-2019
Table 17 Sales of Unprocessed Cheese by Type: % Value 2014-2019
Table 18 NBO Company Shares of Cheese: % Value 2015-2019
Table 19 LBN Brand Shares of Cheese: % Value 2016-2019
Table 20 Distribution of Cheese by Format: % Value 2014-2019
Table 21 Forecast Sales of Cheese by Category: Volume 2019-2024
Table 22 Forecast Sales of Cheese by Category: Value 2019-2024
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2019-2024
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2019-2024

Drinking Milk Products

HEADLINES

PROSPECTS

New launches help to maintain rapid expansion of other milk alternatives
Health-orientated fresh milk brand Lala 100 continues to gain popularity
Grupo Lala introduces lactose-free flavoured milk drinks

COMPETITIVE LANDSCAPE

Frequent innovation helps Grupo Lala maintain its overall lead
Milk products face growing competition from cheaper “producto lácteo”
Lechera Guadalajara expands Sello Rojo range with new health-orientated product

CATEGORY DATA

Table 25 Sales of Drinking Milk Products by Category: Volume 2014-2019
Table 26 Sales of Drinking Milk Products by Category: Value 2014-2019
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2014-2019
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2014-2019
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2015-2019
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2016-2019
Table 31 Distribution of Drinking Milk Products by Format: % Value 2014-2019
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2019-2024
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2019-2024
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2019-2024
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2019-2024

Other Dairy

HEADLINES

PROSPECTS

Health and wellness trend continues to stimulate innovation in other dairy categories
Larger and more economical pack sizes gain popularity in cream
Multipacks continue to perform well in chilled dairy desserts

COMPETITIVE LANDSCAPE

Leading other dairy player Nestlé expands its Carnation range in 2019
Cottage cheese brand Lyncott introduces new functional products
Popular drinking milk and cheese brands expand into other dairy categories

CATEGORY DATA

Table 36 Sales of Other Dairy by Category: Volume 2014-2019
Table 37 Sales of Other Dairy by Category: Value 2014-2019
Table 38 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 39 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 40 Sales of Cream by Type: % Value 2014-2019
Table 41 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 42 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 43 Distribution of Other Dairy by Format: % Value 2014-2019
Table 44 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 45 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Yoghurt and Sour Milk Products

HEADLINES

PROSPECTS

Several players launch new health-orientated products over 2018-2019
Popular milk brands diversify into yoghurt
Yoplait targets health-conscious consumers with Yoplait Cero Cero

COMPETITIVE LANDSCAPE

Grupo Lala continues to lead a highly concentrated competitive environment
Flavour is a key point of differentiation for new health-orientated yoghurt ranges
Yoplait adds new flavours to its indulgent Yoplait Placer range

CATEGORY DATA

Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2014-2019
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2014-2019
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2014-2019
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2014-2019
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2014-2019
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2015-2019
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2016-2019
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2014-2019
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2019-2024
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2019-2024
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2019-2024
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2019-2024

Packaged Food in Mexico - Industry Overview

EXECUTIVE SUMMARY

Moderate but accelerating retail volume growth for packaged food
Packaged products continue to gain share as consumers seek convenience
Major players in staples focus on adding value
Modern grocery retailers begin to favour packaged products
Positive performance expected

FOODSERVICE

Sales to Foodservice
More people eating outside of the home shapes the offer of products
Convenience an important factor for foodservice operators
Client service to stir competition within sales to foodservice
Consumer Foodservice
Foodservice sales through forecourt retailers to grow
Specialist coffee and tea shops are the leading players within cafés/bars
Good prospects for consumer foodservice
Category Data
Table 60 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 64 Sales of Packaged Food by Category: Volume 2014-2019
Table 65 Sales of Packaged Food by Category: Value 2014-2019
Table 66 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 67 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 68 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 69 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 70 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 71 Penetration of Private Label by Category: % Value 2014-2019
Table 72 Distribution of Packaged Food by Format: % Value 2014-2019
Table 73 Distribution of Packaged Food by Format and Category: % Value 2019
Table 74 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 75 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 76 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 77 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources