Food Industry In Mexico Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Food Industry In Mexico Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Mexico Foodservice Market size is estimated at USD 83.13 billion in 2023, and is expected to reach USD 138.80 billion by 2029, growing at a CAGR of 8.92% during the forecast period (2023-2028).

Key Highlights

• The growth of the food service market in Mexico is being driven by an increasing consumer preference for convenient and on-the-go food options. With changing food consumption patterns and the growing influence of international cuisines, consumers are exploring different types of food services. Cafes and bars have become popular choices among millennials for socializing and celebrating special events with friends and family. Additionally, the expansion of infrastructure and urbanization is facilitating the penetration of chain food services in the country.
• Foodservice sales in Mexico are on the rise due to the increasing popularity of cafes and restaurants, as well as the growing demand for home delivery services. The rapid growth of the fast-food sector has led to the expansion of more fast-food chains, which offer convenient and affordable food options compared to independent full-service restaurants. Many food service chains have shifted their focus to franchising and sub-franchising, such as McDonald's and Domino's. Home delivery food services are becoming increasingly popular among people with busy work lives, offering convenient and on-demand food options.
• Furthermore, the market is expanding due to an increase in tourism, greater internet usage, and higher disposable income. With the ability to search for food services online and order food through home delivery or visit the nearest outlet, internet users are driving the growth of the foo service market.
• Additionally, the rapid growth of tourism in Mexico is benefiting food service markets. According to the Ministry of Tourism in Mexico, the arrival of international tourists in 2022 was 38.3 million, which is 6 million 467 thousand more tourists than compared to the previous year, representing an increase of 20.3% from 2021.
• Overall, the food service market in Mexico is experiencing significant growth, driven by changing consumer preferences, urbanization, expanding infrastructure, and increasing disposable income, among other factors.

Mexico Foodservice Market Trends

Rising Popularity of Online Food Delivery Apps

• Mexico's online food delivery market is currently experiencing rapid growth, thanks to the increasing number of internet users and improved internet connectivity in the country. According to the latest data from Instituto Federal de Telecomunicaciones (IFT) and Instituto Nacional de Estadística y Geografía (INEGI), the number of internet users in Mexico grew by 4.1 percentage points to 88.6 million by the end of 2021, which represents 75.6% of the population over the age of six.
• One of the key factors driving the popularity of online food delivery services in Mexico is the convenience they offer. Consumers can order food from their favorite restaurants with just a few clicks or taps without having to leave their homes or offices. Additionally, the user-friendly interface of the websites and mobile applications of food delivery companies is attracting more consumers to these services.
• The launch of apps like Uber Eats has made it even easier for busy consumers to order food on the go. These apps offer introductory offers and discount codes, which have further incentivized consumers to use online food delivery services. In addition to the online presence of quick service restaurants, consumers in Mexico are also looking for gourmet meals and unique dishes, which they can order through apps like Kitzen.
• Kitzen is a food delivery app that caters to consumers looking for gourmet dining experiences. It primarily serves restaurants in central areas of the city, such as Roma, Condesa, and Juárez, and allows consumers to order exotic and unique dishes from popular social media hotspots like the French-style bakery La Bohême. As a result, apps like Kitzen are driving the growth of Mexico's online food delivery market as more and more consumers look to access a wider range of dining options from the comfort of their own homes.

Chained Consumer Foodservice is Witnessing the Fastest Growth

• Independent restaurants currently dominate the consumer food service market in the country, but chained restaurants are rapidly growing in popularity. Global and local chains are expanding their branches in the country, and chained restaurants are relying on effective marketing, advertising, and product campaigns to create awareness about their offerings. In addition, these restaurants are offering options for dine-in, drive-through, and home delivery to cater to their customers' needs. The companies are also implementing strategic initiatives to capture the market share and expand their regional presence.
• For instance, in 2020, Arby's, a sandwich chain, entered the Latin American market by debuting its first restaurant in Guadalajara, Mexico. The chain plans to adapt 20% to 30% of its menu to suit local tastes by introducing pork belly and pulled pork sandwiches and adding lettuce, tomato, and cheese as toppings. It will also offer beer, selling Modelo Especial and Negra Modelo in the market.
• Apart from traditional expansion strategies like product launches and expansion, food service operators are focusing on gaining consumer trust and interest by offering unique services such as discounts and schemes. For example, in March 2021, Popeyes announced an exciting new agreement with JK Capital, an association of a group of seasoned investors and business developers, to bring hundreds of new Popeyes restaurants to Mexico over the coming years.
• The country is gaining traction from various chained food service brands, and this is expected to shape the market for the segment in the future.

Mexico Foodservice Industry Overview

The Mexican foodservice industry is highly competitive, with many local and international players vying for a share of the market. Some of the leading players in the market include Mcdonald's Corporation, Alsea SAB De CV, Grupo Gigante SAB de CV, Yum! Brands Inc., and Starbucks Corporation, all of whom hold significant market shares. This growth can be attributed to their strong market penetration, which reflects a strong industry grip through their subsidiaries and brands.

In the pizza consumer foodservice and fast-food sectors, international fast-food chains dominate the market. In the review year, there was a higher prominence of brands such as KFC, Burger King, Subway, Little Caesar's Pizza, and Domino's Pizza. These brands have a strong presence in the market, and their popularity is a result of their consistent quality and service. Overall, the Mexican foodservice industry is highly competitive, and companies need to have a strong brand and market presence to succeed.

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