Packaged Food in Mexico

Moderate but accelerating retail volume growth for packaged food

In 2018, the Mexican economy underwent a slowdown in growth resulting from the uncertainty of the Presidential elections held in July and the ongoing renegotiation of the trade agreement between Mexico, the US and Canada. These uncertainties led to lower retail volume growth for sales of packaged food in 2018.

Packaged products continue to gain share as consumers seek convenience

Although unpackaged flat and leavened bread remained by far the most popular in Mexico in 2019 as these formats are regarded as fresher as they are baked daily, packaged versions continued to gain share from unpackaged. This was also noticeable in sales of chilled meat and cheese.

Major players in staples focus on adding value

Many of the major companies in staples focused on developing more valuable and sophisticated products in 2019, such as ready meals. Ready meals are attractive for companies as they contribute to value growth, enabling them to use their well-established staple products to create whole recipes and meals which can be sold for higher prices.

Modern grocery retailers begin to favour packaged products

Over the review period, modern grocery retailers adjusted their offer and display of products to become more efficient and to attract consumers. A relevant change during this time was the shift from favouring unpackaged products in specific categories, such as cheese or chilled meat, towards favouring the offer of pre-packaged products.

Positive performance expected

Packaged food is expected to record accelerating growth over the forecast period compared to that witnessed over the review period. Positive indicators include an increase in domestic consumption as the uncertainty of the elections passes.

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