Table of Contents
Packaged Food in Mexico - Industry Overview
EXECUTIVE SUMMARY
Childhood obesity concerns lead to further regulation regarding packaged food in public schools
Legal barriers to control retail outlet expansion could affect packaged food’s long-term performance
Packaged food remains diverse, with some categories highly fragmented and others highly concentrated
Modern retailers continue to win share from traditional channels
Uncertainty and the constant threat of recession cloud the horizon
KEY TRENDS AND DEVELOPMENTS
Headlines
Legal barriers controlling retail outlet expansion could impact performance
Retail sales resume expansion, boosting packaged food
Consumers are more cautious after economic crisis
Private label continues to expand
FOODSERVICE – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
CATEGORY DATA
IMPULSE AND INDULGENCE PRODUCTS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
CATEGORY DATA
NUTRITION/STAPLES – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
CATEGORY DATA
MEAL SOLUTIONS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
CATEGORY DATA
MARKET DATA
Table 35 Sales of Packaged Food by Category: Volume 2006-2011
Table 36 Sales of Packaged Food by Category: Value 2006-2011
Table 37 Sales of Packaged Food by Category: % Volume Growth 2006-2011
Table 38 Sales of Packaged Food by Category: % Value Growth 2006-2011
Table 39 GBO Shares of Packaged Food 2006-2010
Table 40 NBO Shares of Packaged Food 2006-2010
Table 41 NBO Brand Shares of Packaged Food 2007-2010
Table 42 Penetration of Private Label by Category 2006-2011
Table 43 Sales of Packaged Food by Distribution Format: % Analysis 2006-2011
Table 44 Sales of Packaged Food by Category and Distribution Format: % Analysis 2011
Table 45 Forecast Sales of Packaged Food by Category: Volume 2011-2016
Table 46 Forecast Sales of Packaged Food by Category: Value 2011-2016
Table 47 Forecast Sales of Packaged Food by Category: % Volume Growth 2011-2016
Table 48 Forecast Sales of Packaged Food by Category: % Value Growth 2011-2016
DEFINITIONS
SOURCES
Summary 1 Research Sources
Packaged Food in Mexico - Company Profiles
Distribuidora e Importadora Alsea SA de CV in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 3 Distribuidora e Importadora Alsea SA de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Gamesa SA de CV, Grupo in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Grupo Gamesa SA de CV: Competitive Position 2010
Gruma SAB de CV in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 8 GRUMA SAB de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Heinz México SA de CV in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 10 Heinz México SA de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 11 Heinz México SA de CV: Competitive Position 2010
Herdez SA de CV, Grupo in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 14 Grupo Herdez SA de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 15 Grupo Herdez SA de CV: Competitive Position 2010
Industrial Lala SA de CV, Grupo in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 18 Grupo Industrial Lala SA de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 19 Grupo Industrial Lala Sa de CV: Competitive Position 2010
La Moderna SA de CV, Grupo in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 22 Grupo La Moderna SA de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 23 Fábrica de Pastas Alimenticias La Moderna SA de CV: Competitive Position 2010
Nestlé México SA de CV in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 26 Nestlé México SA de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 27 Nestlé México SA de CV: Competitive Position 2010
Sabritas SRL de CV in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 30 Sabritas SRL de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 31 Sabritas S de RL de CV: Competitive Position 2010
Sigma Alimentos SA de CV in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 34 Sigma Alimentos SA de CV: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 35 Sigma Alimentos SA de CV: Competitive Position 2010
Unilever Food Solutions Mexico SA de CV in Packaged Food (Mexico)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Baby Food in Mexico - Category Analysis
HEADLINES
TRENDS
Despite the fact that birth rates continue to show a decrease and the elevated prices of associated products, in 2011 the Mexican market for baby food is set to register positive volume growth in 2011. This is mainly due to increased female participation in the workplace, a situation that makes it almost impossible for many mothers to breastfeed their children during early development stages and at the same time provides families with better income, allowing them to invest further in child nutrition.
COMPETITIVE LANDSCAPE
Measured as a GBO, Nestlé continued to be the market leader in baby food with 63% of total value sales in 2010. Nestlé has two local businesses/companies in Mexico, Nestlé México offering baby milk formulas and Productos Gerber offering the highly popular prepared baby food. Nestlé offers prestige brands such as Nan, Nido and Gerber, whilst strong distribution muscle allows the company to have nationwide coverage in almost every retail outlet. Also in 2010, Bristol-Myers Squibb de Mexico and Wyeth achieved 12% and 10% of total value sales, respectively, gaining popularity amongst consumers thanks to the development of advanced formulas.
PROSPECTS
Mexicans who have fewer children and higher income levels will be willing to purchase more high-end products which are perceived to be the best choices for their babies, such as special or follow-on baby formula. Mexican parents will want their children to have the best nutrition in order to stimulate proper development; it is possible that this trend will result in greater penetration of baby formula for infants older than three years.
CATEGORY DATA
Table 49 Sales of Baby Food by Category: Volume 2006-2011
Table 50 Sales of Baby Food by Category: Value 2006-2011
Table 51 Sales of Baby Food by Category: % Volume Growth 2006-2011
Table 52 Sales of Baby Food by Category: % Value Growth 2006-2011
Table 53 Soy-based Vs Dairy-based Special Baby Milk Formula % Breakdown 2010
Table 54 Baby Food Company Shares 2006-2010
Table 55 Baby Food Brand Shares 2007-2010
Table 56 Sales of Baby Food by Distribution Format: % Analysis 2006-2011
Table 57 Forecast Sales of Baby Food by Category: Volume 2011-2016
Table 58 Forecast Sales of Baby Food by Category: Value 2011-2016
Table 59 Forecast Sales of Baby Food by Category: % Volume Growth 2011-2016
Table 60 Forecast Sales of Baby Food by Category: % Value Growth 2011-2016
Baked Goods in Mexico - Category Analysis
HEADLINES
TRENDS
After a strong recovery in volume terms in 2010, 2011 is expected to see the pace of growth slowed, with a rise of 1%. During 2010, a rebound after the 2009 crisis in addition to strong promotions and a surge caused by the FIFA World Cup all served to drive up sales. No such events apply to 2011 however, while the initial base was higher, which explains why growth decelerated. Thus, with the exception of pastries, no category saw a substantial increase in volume sales.
COMPETITIVE LANDSCAPE
Grupo Bimbo SAB de CV, GBO of Panificación Bimbo SA de CV and Productos Marinela SA de CV is the leading operator in the fragmented baked goods category, although it accounted for just 16% of value sales in 2010. The majority of the sales correspond to artisanal/unpackaged products, carried out by small independent producers. However, the company clearly dominates the packaged/industrial bread category due to its large distribution network, its wide variety of brands and extensive product portfolio. Grupo Bimbo has been present in the Mexican market for decades and has established a distribution network that allows it to reach virtually every corner of the country. In addition, it is present in all baked goods categories with its subsidiaries.
PROSPECTS
The baked goods category is expected to observe a 1% CAGR in retail volume and 2% CAGR in constant value terms over the forecast period. Both rates are similar to those observed in previous years. These growth rates are consistent with population growth, which is one of the main drivers of bread consumption, together with income. Although a decrease in income could impact sales of the less essential products within baked goods (when budgets are tight, consumers can reduce consumption of cakes, pastries or some bread substitutes), an improvement of economic conditions would not necessarily imply strong growth, as these products have a natural per capita consumption ceiling. Thus, a key threat to growth comes from an economic perspective, with either a further economic slowdown or higher commodity prices seeing similar results.
CATEGORY DATA
Table 61 Sales of Baked Goods by Category: Volume 2006-2011
Table 62 Sales of Baked Goods by Category: Value 2006-2011
Table 63 Sales of Baked Goods by Category: % Volume Growth 2006-2011
Table 64 Sales of Baked Goods by Category: % Value Growth 2006-2011
Table 65 Packaged/Industrial Bread by Type: % Value Breakdown 2006-2011
Table 66 Unpackaged/Artisanal Bread: In-store Bakery Sales 2006-2011
Table 67 Pastries by Type: % Value Breakdown 2006-2011
Table 68 Packaged/Industrial Cakes: Single Portion vs Multi-pack % Breakdown by Type 2006-2011
Table 69 Baked Goods Company Shares 2006-2010
Table 70 Baked Goods Brand Shares 2007-2010
Table 71 Sales of Baked Goods by Distribution Format: % Analysis 2006-2011
Table 72 Forecast Sales of Baked Goods by Category: Volume 2011-2016
Table 73 Forecast Sales of Baked Goods by Category: Value 2011-2016
Table 74 Forecast Sales of Baked Goods by Category: % Volume Growth 2011-2016
Table 75 Forecast Sales of Baked Goods by Category: % Value Growth 2011-2016
Biscuits in Mexico - Category Analysis
HEADLINES
TRENDS
After much discussion, in 2011 a new law was put into effect to restrict the consumption of high-calorie products in schools following reports that Mexico has one of the highest rates of childhood obesity. Although in its initial state the law forbade the sale of any product considered to be “junk food”, the lobbying of enterprises managed to approve a list of allowed products as long as they did not exceed a certain calorie level. In response, many companies simply introduced smaller versions of their products to comply with the legislation. However, as of June, the law had not been completely enforced and a large number of schools continued to sell the proscribed products in their cafeterias.
COMPETITIVE LANDSCAPE
Grupo Gamesa SA de CV and Productos Marinela SA de CV led the category with value shares of 34% and 16% respectively in 2010. Gamesa’s strategy consists of being present in every biscuits category, with a wide product portfolio that responds to a range of consumer needs. Distribution also plays a crucial role, since in both cases the products of Gamesa and Marinela are available throughout a range of retailers, including independent small grocers, convenience stores and supermarkets/hypermarkets, etc.
PROSPECTS
Over the forecast period, positive growth in volume and constant retail value sales is expected, showing CAGRs of 2% and 3% respectively. Retail volume growth will be slower than those observed in the review period. This slowdown is expected as a consequence of the gradually stricter enforcement of the new regulations designed to reduce the consumption of high-calorie foods in schools, as more parents take measures to help their children. The health and wellness trend is making consumers more aware of their calorie intake and as many products in the biscuits category contain a high level of carbohydrates, salt, sugar and fat, consumers are likely to be cautious in their purchases.
CATEGORY DATA
Table 76 Sales of Biscuits by Category: Volume 2006-2011
Table 77 Sales of Biscuits by Category: Value 2006-2011
Table 78 Sales of Biscuits by Category: % Volume Growth 2006-2011
Table 79 Sales of Biscuits by Category: % Value Growth 2006-2011
Table 80 Biscuits Company Shares 2006-2010
Table 81 Biscuits Brand Shares 2007-2010
Table 82 Sales of Biscuits by Distribution Format: % Analysis 2006-2011
Table 83 Forecast Sales of Biscuits by Category: Volume 2011-2016
Table 84 Forecast Sales of Biscuits by Category: Value 2011-2016
Table 85 Forecast Sales of Biscuits by Category: % Volume Growth 2011-2016
Table 86 Forecast Sales of Biscuits by Category: % Value Growth 2011-2016
Breakfast Cereals in Mexico - Category Analysis
HEADLINES
TRENDS
The breakfast cereals category sees one of the highest rates of innovation of all packaged food categories. Innovation relates to two different strategies: meeting demand for products with a health and wellness positioning and better segmentation. The breakfast cereals category saw steady growth over the review period as a consequence of increasing per capita consumption.
COMPETITIVE LANDSCAPE
Kellogg de México SA de CV and Nestlé México SA de CV are the leading players within the breakfast cereals category in Mexico, accounting for 44% and 19% of retail value sales respectively in 2010. These companies lead due to three main factors: their brand positioning, their extensive distribution networks and their diversified product portfolios. The brands offered by these companies are by far the most well-known and both have strong reputations among consumers, due to a longstanding presence and their employment of strong advertising campaigns that allow them to better position their products. Furthermore, both Kellogg and Nestlé are able to distribute their products across a range of distribution channels, which means their products are widely available to consumers. Included in the portfolios of both companies are products designed to meet the everyday demands of consumers, such as children’s breakfast cereals, fibre cereals, whole grain cereals and common popular products such as corn flakes and crisped rice.
PROSPECTS
Mexicans tend to perceive products within the breakfast cereals category as a relatively healthy option (with a few exceptions, such as Kellogg’s Zucaritas, which some concerned consumers consider to have too much sugar). As a result, the category stands to benefit from the developing health and wellness trend. For example, manufacturers should be able to leverage sales from the banning of high-calorie products in schools, driving up per capita consumption of breakfast cereals among children. However, the volume CAGR of each category within breakfast cereals is expected to be slower than those observed during the review period. This will be a consequence of a weak economic environment, as growth in consumer budgets is expected to be limited. If the economy were to slow down or if cereal prices were to rise at a faster pace, demand could be curbed, in turn threatening sales growth.
CATEGORY DATA
Table 87 Sales of Breakfast Cereals by Category: Volume 2006-2011
Table 88 Sales of Breakfast Cereals by Category: Value 2006-2011
Table 89 Sales of Breakfast Cereals by Category: % Volume Growth 2006-2011
Table 90 Sales of Breakfast Cereals by Category: % Value Growth 2006-2011
Table 91 Breakfast Cereals Company Shares 2006-2010
Table 92 Breakfast Cereals Brand Shares 2007-2010
Table 93 Sales of Breakfast Cereals by Distribution Format: % Analysis 2006-2011
Table 94 Forecast Sales of Breakfast Cereals by Category: Volume 2011-2016
Table 95 Forecast Sales of Breakfast Cereals by Category: Value 2011-2016
Table 96 Forecast Sales of Breakfast Cereals by Category: % Volume Growth 2011-2016
Table 97 Forecast Sales of Breakfast Cereals by Category: % Value Growth 2011-2016
Canned/Preserved Food in Mexico - Category Analysis
HEADLINES
TRENDS
Growth within canned and preserved food remained moderate in 2011. However, total volume sales increased at a slightly faster rate than in 2010. Unlike other packaged foods areas, some canned and preserved food segments such as canned and preserved beans and canned and preserved fish are popular amongst consumers from all income groups. Indeed, it is estimated that over two-thirds of Mexican households regularly consume canned and preserved food products.
COMPETITIVE LANDSCAPE
Only three companies recorded a retail value share of over 10% within highly fragmented canned and preserved food in 2010. Grupo Herdez led sales with a retail value share of 15% and was followed by Conservas La Costeña (10%) and Pescados Industrializados (10%). All three companies have a national presence that dates back decades and their major brands (Herdez, La Costeña and Dolores respectively) enjoy a high level of popularity and awareness amongst consumers. The three companies target low and middle income consumers and offer reasonably priced products. In addition, all three companies have notable distribution networks which cover the entire country and have good reputations for quality. Most importantly, the producers are active within the largest canned and preserved food areas: canned and preserved beans (La Costeña and Grupo Herdez), canned and preserved fish and seafood (Pescados Industrializados and Grupo Herdez) and canned and preserved vegetables and fruit (Grupo Herdez and La Costeña).
PROSPECTS
Over the forecast period, canned and preserved food is expected to keep growing at a healthy rate, with the area having a CAGR of 5% in total volume terms and 7% in retail value terms. Many canned and preserved food manufacturers are already part of the daily lives of millions of Mexican households. As a mature area, innovation is relatively limited within canned and preserved food and developments are quickly replicated by competitors if successful.
CATEGORY DATA
Table 98 Sales of Canned/Preserved Food by Category: Volume 2006-2011
Table 99 Sales of Canned/Preserved Food by Category: Value 2006-2011
Table 100 Sales of Canned/Preserved Food by Category: % Volume Growth 2006-2011
Table 101 Sales of Canned/Preserved Food by Category: % Value Growth 2006-2011
Table 102 Canned/Preserved Food Company Shares 2006-2010
Table 103 Canned/Preserved Food Brand Shares 2007-2010
Table 104 Sales of Canned/Preserved Food by Distribution Format: % Analysis 2006-2011
Table 105 Forecast Sales of Canned/Preserved Food by Category: Volume 2011-2016
Table 106 Forecast Sales of Canned/Preserved Food by Category: Value 2011-2016
Table 107 Forecast Sales of Canned/Preserved Food by Category: % Volume Growth 2011-2016
Table 108 Forecast Sales of Canned/Preserved Food by Category: % Value Growth 2011-2016
Summary 37 Other Canned/Preserved Food: Product Types
Cheese in Mexico - Category Analysis
HEADLINES
TRENDS
During 2011 cheese in Mexico continues to show positive growth rates in volume terms in all of its categories; however, the increase in unit prices remains a major constraint for the category that hinders it from showing greater dynamism. Cheese remains an important element in Mexican cuisine and it contains a significant amount of products and brands. The economic situation over the review period and mainly the increase in raw material prices led into many consumers looking for cheaper product options as an alternative to continue having cheese as part of a daily diet. On the reverse end of the spectrum there is a significant amount of national and international artisanal brands having good performance in semi-premium retail outlets such as Superama and City Market.
COMPETITIVE LANDSCAPE
In 2010 Sigma Alimentos continues to lead in cheese sales with an 18% value share. This company has a wide market presence with an extensive product portfolio including several cheese types aimed at different socioeconomic segments whilst taking advantage of its strong manufacturing and distribution capabilities. Grupo Industrial Lala ranked second with 12% of total value sales; this 100% Mexican company holds a strong reputation amongst consumers and its mother brand Lala is commonly associated with quality and as well as a synonym with dairy products.
PROSPECTS
Cheese is expected to continue posting a moderate but constant positive performance, mainly driven by improvement in disposable income of Mexican households and strong marketing activity from market players. A volume CAGR of 3% is expected over the 2011-2016 forecast period.
CATEGORY DATA
Table 109 Sales of Cheese by Category: Volume 2006-2011
Table 110 Sales of Cheese by Category: Value 2006-2011
Table 111 Sales of Cheese by Category: % Volume Growth 2006-2011
Table 112 Sales of Cheese by Category: % Value Growth 2006-2011
Table 113 Spreadable Processed Cheese by Type: % Value Breakdown 2006-2011
Table 114 Unprocessed Cheese by Type: % Value Breakdown 2009-2010
Table 115 Cheese Company Shares 2006-2010
Table 116 Cheese Brand Shares 2007-2010
Table 117 Sales of Cheese by Distribution Format: % Analysis 2006-2011
Table 118 Forecast Sales of Cheese by Category: Volume 2011-2016
Table 119 Forecast Sales of Cheese by Category: Value 2011-2016
Table 120 Forecast Sales of Cheese by Category: % Volume Growth 2011-2016
Table 121 Forecast Sales of Cheese by Category: % Value Growth 2011-2016
Chilled Processed Food in Mexico - Category Analysis
HEADLINES
TRENDS
Chilled processed food continues to record slow but steady growth. The area had already recovered from the 2009 crisis by 2010 and is very mature, with leading brands having been available for decades. As a result, only extreme events such as the economic crisis of two years ago can seriously disrupt sales. Indeed, the main factor influencing sales within the area is population growth.
COMPETITIVE LANDSCAPE
Chilled processed food in Mexico is highly concentrated, with only three companies accounting for two-thirds of total retail value sales. Leading player Sigma Alimentos recorded a retail value share of 43% in 2010 and benefits from a multi-branding strategy which covers the demands of high, middle and low income consumers, with the company offering over 20 different brands. Sigma Alimentos also benefits from the fact that it has been operating in Mexico for decades and its strong distribution network, which comprises 144 distribution centres and over 5,000 vehicles. Grupo Bafar ranked second in 2010 with a retail value share of 13% and offers nine brands including the famous Parma, Bafar, Sabori and Campestre products. Qualtia Alimentos offers seven brands including Zwan, Kir and Alpino and ranked third in 2010 with a retail value share of 11%. Whilst both Grupo Bafar and Qualtia Alimentos offer large products ranges, they offer less brands than Sigma Alimentos and also have smaller distribution forces.
PROSPECTS
Chilled processed meat is very mature and will record slow but steady growth over the coming years. Growth will mainly be fuelled by Mexico’s increasing population. For sales to increase any more rapidly, there will have to be an improvement in the economy and consumer disposable incomes in order to allow for a rise in demand for expensive processed meats like ham, bacon and salami cuts. Overall, chilled processed food is expected to perform well, with the area having a CAGR of 3% in total volume terms. Chilled fish and seafood also has a total volume CAGR of 3%. However, the area remains so small that its performance will hardly affect overall sales.
CATEGORY DATA
Table 122 Sales of Chilled Processed Food by Category: Volume 2006-2011
Table 123 Sales of Chilled Processed Food by Category: Value 2006-2011
Table 124 Sales of Chilled Processed Food by Category: % Volume Growth 2006-2011
Table 125 Sales of Chilled Processed Food by Category: % Value Growth 2006-2011
Table 126 Chilled Processed Meat by Type: % Value Breakdown 2006-2011
Table 127 Chilled Processed Meat: % Share of Chilled Meat Substitute 2006-2011
Table 128 Chilled Processed Food Company Shares 2006-2010
Table 129 Chilled Processed Food Brand Shares 2007-2010
Table 130 Sales of Chilled Processed Food by Distribution Format: % Analysis 2006-2011
Table 131 Forecast Sales of Chilled Processed Food by Category: Volume 2011-2016
Table 132 Forecast Sales of Chilled Processed Food by Category: Value 2011-2016
Table 133 Forecast Sales of Chilled Processed Food by Category: % Volume Growth 2011-2016
Table 134 Forecast Sales of Chilled Processed Food by Category: % Value Growth 2011-2016
Chocolate Confectionery in Mexico - Category Analysis
HEADLINES
TRENDS
Since late 2010, commodities have seen a sharp increase in price. In the case of chocolate confectionery, rather than cocoa, which saw a milder increase, sugar saw further incremental rises, affecting production costs. However, unit prices in the category have not yet reflected these changes since, for most categories, variations in unit price remain below wider inflationary rises. This can be attributed to a relatively sensitive demand, which could see consumers adversely respond to a rapid price rise.
COMPETITIVE LANDSCAPE
Nestlé México SA de CV, Hershey México SA de CV, Effem México SA de CV and Ferrero de México SA de CV are the leaders of the category, with shares of 19%, 14%, 13% and 13% respectively in 2010. Their position is a consequence of their strong brands and well-established distribution networks, which allow them to reach a larger share of the population.
PROSPECTS
Over the forecast period, the chocolate confectionery category is expected to observe a CAGR of 1% in volume and constant value terms. This behaviour will be due to two main factors, a trend to reduce the consumption of high-sugar products (as part of the wider trend to consume healthier food), alongside the fact that most products within the category are approaching maturity. A third variable affecting the performance of the category is the increasing competition coming from other products that are also sold as indulgence items.
CATEGORY DATA
Table 135 Sales of Chocolate Confectionery by Category: Volume 2006-2011
Table 136 Sales of Chocolate Confectionery by Category: Value 2006-2011
Table 137 Sales of Chocolate Confectionery by Category: % Volume Growth 2006-2011
Table 138 Sales of Chocolate Confectionery by Category: % Value Growth 2006-2011
Table 139 Chocolate Tablets by Type: % Value Breakdown 2006-2011
Table 140 Chocolate Confectionery Company Shares 2006-2010
Table 141 Chocolate Confectionery Brand Shares 2007-2010
Table 142 Sales of Chocolate Confectionery by Distribution Format: % Analysis 2006-2011
Table 143 Forecast Sales of Chocolate Confectionery by Category: Volume 2011-2016
Table 144 Forecast Sales of Chocolate Confectionery by Category: Value 2011-2016
Table 145 Forecast Sales of Chocolate Confectionery by Category: % Volume Growth 2011-2016
Table 146 Forecast Sales of Chocolate Confectionery by Category: % Value Growth 2011-2016
Summary 38 Other Chocolate Confectionery: Product Types
Dried Processed Food in Mexico - Category Analysis
HEADLINES
TRENDS
The most important recent development within dried processed food was the bankruptcy of Cía Arrocera Covadonga, which accounted for some 23% of rice retail value sales in 2010. After a couple of years of questionable management practices, Cía Arrocera Covadonga went bankrupt at the end of 2010 and of the company’s three large and successful brands (Covadonga, Mexica and Morelos) only one, Morelos, remains available. After the fall of Cía Arrocera Covadonga, other leading brands such as San Lázaro, La Merced, Valle Verde and SOS increased their rice sales. It is important to note that rice imports from the US and some Asian countries also increased significantly.
COMPETITIVE LANDSCAPE
Cía Arrocera Covadonga SA de CV still led the rice and dessert mixes category sales in 2010, recording a retail value share of 14%. The fact that the company faced severe difficulties and legal action at the end of the year meant that its sales were relatively normal for most of 2010 but fell in the last quarter of the year. Productos Verde Valle SA de CV ranked second in 2010, recording a retail value share of 10% and consolidating its place as the second largest rice company in the country. Digrans SA de CV comes in third place with 9% retail value share in 2010. Kraft Foods de México SA de CV is the leader in the dessert mixes category (20%) and comes in fourth place in the combined rice and dessert mixes rankings behind the afreomentioned rice companies with a 7% share.
PROSPECTS
The bankruptcy of Cía Arrocera Covadonga will change the entire competitive environment within rice. The company was the largest rice distributor in the country and accounted for 23% of rice retail value sales in 2010. Although the company’s Morelos brand is still available, all of its other brands were withdrawn at the beginning of 2011 – a development which significantly reduced its sales share and benefited other rice producers, most notably Productos Valle Verde, Digrans and private label products.
CATEGORY DATA
Table 147 Sales of Dried Processed Food by Category: Volume 2006-2011
Table 148 Sales of Dried Processed Food by Category: Value 2006-2011
Table 149 Sales of Dried Processed Food by Category: % Volume Growth 2006-2011
Table 150 Sales of Dried Processed Food by Category: % Value Growth 2006-2011
Table 151 Dried Processed Food Company Shares 2006-2010
Table 152 Dried Processed Food Brand Shares 2007-2010
Table 153 Sales of Dried Processed Food by Distribution Format: % Analysis 2006-2011
Table 154 Forecast Sales of Dried Processed Food by Category: Volume 2011-2016
Table 155 Forecast Sales of Dried Processed Food by Category: Value 2011-2016
Table 156 Forecast Sales of Dried Processed Food by Category: % Volume Growth 2011-2016
Table 157 Forecast Sales of Dried Processed Food by Category: % Value Growth 2011-2016
Drinking Milk Products in Mexico - Category Analysis
HEADLINES
TRENDS
The current stagnation in volume growth of drinking milk products in recent years, due to economic conditions and low levels of population growth, have encouraged market leaders to seek higher sales through product portfolio diversification in order to achieve niche segments such as lactose intolerant, low levels of cholesterol, female gender, over 40s, etc. In 2011 the Mexican market shows a wider amount of options that meet specific consumer needs in terms of fat content, lactose tolerance and different degrees of pasteurisation.
COMPETITIVE LANDSCAPE
In 2010 Grupo Industrial Lala continues to be the market leader with a 32% value share, followed by Ganaderos Productores de Leche Pura (Alpura) with a 21% share. Both companies have a strong manufacturing capability allowing them to constantly innovate and also a large distribution network nationwide. Ranking third, Nestlé México held an 11% value share, mainly achieved through its popular powder milk brand for children, Nido. All three companies have a wide product portfolio to meet the increasingly diversified consumer requirements.
PROSPECTS
Drinking milk products is expected to post a constant value CAGR of 2% over the forecast period. Value growth rates could be higher, however, due to an unforeseen price increase in milk. Drinking milk products will continue to face strong competition from substitute products such as juices, nectars and ready-to-drink yoghurts that also offer notable health benefits.
CATEGORY DATA
Table 158 Sales of Drinking Milk Products by Category: Volume 2006-2011
Table 159 Sales of Drinking Milk Products by Category: Value 2006-2011
Table 160 Sales of Drinking Milk Products by Category: % Volume Growth 2006-2011
Table 161 Sales of Drinking Milk Products by Category: % Value Growth 2006-2011
Table 162 Chilled Vs Ambient Flavoured Milk Drinks: % Volume Analysis 2007-2010
Table 163 Milk by Type: % Value Breakdown 2007-2010
Table 164 Drinking Milk Products Company Shares 2006-2010
Table 165 Drinking Milk Products Brand Shares 2007-2010
Table 166 Sales of Drinking Milk Products by Distribution Format: % Analysis 2006-2011
Table 167 Forecast Sales of Drinking Milk Products Products by Category: Volume 2011-2016
Table 168 Forecast Sales of Drinking Milk Products Products by Category: Value 2011-2016
Table 169 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2011-2016
Table 170 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2011-2016
Frozen Processed Food in Mexico - Category Analysis
HEADLINES
TRENDS
Frozen processed was hit hard by the 2009 economic crisis in Mexico. Indeed, such was the impact that two years later sales have still not returned to pre-crisis levels. This sluggish recovery can be attributed to the low penetration of frozen food in Mexican households.
COMPETITIVE LANDSCAPE
Two international companies, American Beef and McCain lead frozen processed food sales in Mexico, recording respective retail value shares of 15% and 10% in 2010. American Beef leads sales within frozen processed red meat, which will account for some 25% of overall frozen processed food retail value sales in 2011. McCain competes within frozen desserts and leads sales within frozen processed potatoes, which will account for some 23% of frozen processed food retail value sales in 2011. Frozen processed potatoes, frozen processed fish and seafood and frozen processed red meat dominate frozen processed food sales in Mexico and will account for a combined retail value share of 73% in 2011. Demand within other areas remains limited.
PROSPECTS
Frozen processed products is highly likely to remain underdeveloped due to the fact that products within the area are expensive, continue to be perceived as less nutritious, are less convenient to prepare and to store and are also less tasty. As a result, frozen processed products will remain a niche area, especially since most consumers even prefer canned or chilled processed food. Growth will thus be limited over the forecast period, with the area having a projected CAGR of 4% in both total volume and constant retail value terms.
CATEGORY DATA
Table 171 Sales of Frozen Processed Food by Category: Volume 2006-2011
Table 172 Sales of Frozen Processed Food by Category: Value 2006-2011
Table 173 Sales of Frozen Processed Food by Category: % Volume Growth 2006-2011
Table 174 Sales of Frozen Processed Food by Category: % Value Growth 2006-2011
Table 175 Frozen Processed Fish/Seafood by Type: % Value Breakdown 2006-2011
Table 176 Frozen Processed Poultry by Type: % Value Breakdown 2006-2011
Table 177 Frozen Processed Red Meat by Type: % Value Breakdown 2006-2011
Table 178 Frozen Processed Vegetables by Type: % Value Breakdown 2006-2011
Table 179 Other Frozen Processed Food by Type: % Value Breakdown 2006-2011
Table 180 Frozen Processed Food Company Shares 2006-2010
Table 181 Frozen Processed Food Brand Shares 2007-2010
Table 182 Sales of Frozen Processed Food by Distribution Format: % Analysis 2006-2011
Table 183 Forecast Sales of Frozen Processed Food by Category: Volume 2011-2016
Table 184 Forecast Sales of Frozen Processed Food by Category: Value 2011-2016
Table 185 Forecast Sales of Frozen Processed Food by Category: % Volume Growth 2011-2016
Table 186 Forecast Sales of Frozen Processed Food by Category: % Value Growth 2011-2016
Summary 39 Other Frozen Processed Food: Product Types
Gum in Mexico - Category Analysis
HEADLINES
TRENDS
Although innovation continues, its pace is expected to slow significantly in 2011 compared with the previous year. Growth is set to be somewhat slower than that observed in 2010, that year having benefited from a rebound following the previous year’s decline. In this context, 2011’s growth is expected to be slightly slower than rates seen over the review period, indicating a degree of stabilisation after the economic crisis observed in 2009.
COMPETITIVE LANDSCAPE
Cadbury Adams Mexico S De RL De CV dominates the gum category with a 67% value share in 2010. The company has accomplished such a degree of penetration thanks to its very popular Trident, Clorets and Chiclets brands, which combined, account for 56% of value sales. These brands owe their position to very strong advertising campaigns, as well as access to a wide range of distribution channels. They can be found virtually everywhere across the country, from supermarkets/hypermarkets to convenience stores and independent small grocers, even street sellers, which gives the company a clear advantage over its closest competitor, Chicles Canel’s SA de CV.
PROSPECTS
Gum is expected to observe a CAGR of 3% in constant value terms over the forecast period, a stronger rate than that seen over the review period. This growth is expected as a consequence of stable prices and continued volume growth. Volume sales are expected to keep growing due to a broadening of the consumer base and greater advertising efforts. Per capita consumption is less than 700 g per year, which implies less than one pack of 20g (five units) every ten days, signalling significant scope to grow in this regard.
CATEGORY DATA
Table 187 Sales of Gum by Category: Volume 2006-2011
Table 188 Sales of Gum by Category: Value 2006-2011
Table 189 Sales of Gum by Category: % Volume Growth 2006-2011
Table 190 Sales of Gum by Category: % Value Growth 2006-2011
Table 191 Leading Flavours for Gum 2006-2011
Table 192 Gum Company Shares 2006-2010
Table 193 Gum Brand Shares 2007-2010
Table 194 Sales of Gum by Distribution Format: % Analysis 2006-2011
Table 195 Forecast Sales of Gum by Category: Volume 2011-2016
Table 196 Forecast Sales of Gum by Category: Value 2011-2016
Table 197 Forecast Sales of Gum by Category: % Volume Growth 2011-2016
Table 198 Forecast Sales of Gum by Category: % Value Growth 2011-2016
Ice Cream in Mexico - Category Analysis
HEADLINES
TRENDS
In 2011 all ice cream categories are expected to post positive volume growth whilst a slow economic recovery in Mexican households occurs. However, the overall performance of ice cream continues to be affected by strong unit price increases that occurred in 2010, resulting in a moderate overall volume growth of 2% in 2011.
COMPETITIVE LANDSCAPE
During 2010 Helados Holanda accounted for a 50% total value share in ice cream. The company has a strong distribution network with nationwide presence and a wide range of brands and flavours. Nestlé México ranked second with a 29% value share, taking advantage of popular brands such as Nesquik and Crunch. Both companies benefit from a long experience in the Mexican market that dates back for decades.
PROSPECTS
Ice cream is expected to start seeing a more dynamic performance in the forecast period; other types of snacks and desserts will likely become less popular due to obesity concerns, making more room for ice cream, especially for all-natural and low-fat versions.
CATEGORY DATA
Table 199 Sales of Ice Cream by Category: Volume 2006-2011
Table 200 Sales of Ice Cream by Category: Value 2006-2011
Table 201 Sales of Ice Cream by Category: % Volume Growth 2006-2011
Table 202 Sales of Ice Cream by Category: % Value Growth 2006-2011
Table 203 Leading Flavours for Ice Cream 2006-2011
Table 204 Ice Cream Company Shares 2006-2010
Table 205 Ice Cream Brand Shares 2007-2010
Table 206 Impulse Ice Cream Company Shares 2006-2010
Table 207 Impulse Ice Cream Brand Shares 2007-2010
Table 208 Take-home Ice Cream Company Shares 2006-2010
Table 209 Take-home Ice Cream Brand Shares 2007-2010
Table 210 Sales of Ice Cream by Distribution Format: % Analysis 2006-2011
Table 211 Forecast Sales of Ice Cream by Category: Volume 2011-2016
Table 212 Forecast Sales of Ice Cream by Category: Value 2011-2016
Table 213 Forecast Sales of Ice Cream by Category: % Volume Growth 2011-2016
Table 214 Forecast Sales of Ice Cream by Category: % Value Growth 2011-2016
Meal Replacement in Mexico - Category Analysis
HEADLINES
TRENDS
Although during the early part of the review period the category observed very high value growth rates, since 2008 the growth rate has registered a slowdown, mainly as a consequence of worsening economic conditions. In 2010 the category observed a strong recovery with growth of 11%, however in 2011, the rate is set to return to a single-digit rise, mainly as consumers grow more concerned about the country’s economic performance. Products within the meal replacement category are considered to be expensive, thus whenever consumers think their budgets may be facing increased pressure they tend to lower their consumption of high-cost, non-essential products, which is the main factor behind the slowdown in growth.
COMPETITIVE LANDSCAPE
Abbott Laboratorios de México SA de CV dominates the convalescence category with a 57% share of retail value sales in 2010. Its two main brands are Ensure and Glucerna. However, Ensure by itself accounts for 53% of sales.
PROSPECTS
Over the forecast period, meal replacement is expected to observe a CAGR of 4% in volume terms. This rate is above the 2% seen during the review period and comes as a result of the rebound the category will experience after a poor 2009 when the economy slumped. Also, the direct selling force will help spread brand and product awareness to more consumers who are increasingly interested in taking better care of their health through reduced calorie meals.
CATEGORY DATA
Table 215 Sales of Meal Replacement by Category: Volume 2006-2011
Table 216 Sales of Meal Replacement by Category: Value 2006-2011
Table 217 Sales of Meal Replacement by Category: % Volume Growth 2006-2011
Table 218 Sales of Meal Replacement by Category: % Value Growth 2006-2011
Table 219 Meal Replacement Slimming by Type: % Value Breakdown 2006-2011
Table 220 Meal Replacement Company Shares 2006-2010
Table 221 Meal Replacement Brand Shares 2007-2010
Table 222 Sales of Meal Replacement by Distribution Format: % Analysis 2006-2011
Table 223 Forecast Sales of Meal Replacement by Category: Volume 2011-2016
Table 224 Forecast Sales of Meal Replacement by Category: Value 2011-2016
Table 225 Forecast Sales of Meal Replacement by Category: % Volume Growth 2011-2016
Table 226 Forecast Sales of Meal Replacement by Category: % Value Growth 2011-2016
Noodles in Mexico - Category Analysis
HEADLINES
TRENDS
Mexico is one of the most important markets for instant noodles (no chilled or plain noodles are sold), which has expanded its sales very significantly since 2000. This growth is driven by consumers looking for convenient products to eat on the go as working schedules in cities are more complicated every day and time for cooking and eating at home is almost non-existent. Moreover, also in rural areas an important demand increase has been observed: academic research has documented a change in feeding habits from fresh foods to packaged alternatives that has significantly favoured noodles because of its tasty flavour and low costs. Noodles are consumed either as a meal or as a treat in between meals; moreover, it is common for Mexicans to use noodles to reduce the effects of a hangover after drinking alcohol.
COMPETITIVE LANDSCAPE
Toyo Suisan Kaisha Ltd with the Maruchan brand is the absolute leader of the category with 75% share of market value in 2010. This is a result of being the first company in Mexico, along with important marketing campaigns in mass media and distribution by different channels. Convenience stores’ expansion during the review period contributed very much to boosting sales, as that was the first retail format with microwave ovens to prepare the soup at the premises and hence allowing it to be consumed on the go. In 2011 many retailers, even small independent ones and street kiosks, have microwaves due to the importance of Maruchan. In Mexico it is normal for many people to colloquially call any brand of cup instant noodles Maruchan.
PROSPECTS
The trade press mentions that four million cups of instant noodles are imported every day to Mexico. However, as health concerns rise asserting the high caloric content as well as the low nutrition properties of these products, it is a good opportunity for producers to reformulate their products to make them better for health and hence avoid the forecast slowdown in growth rates that will occur due to the mentioned health concerns and the market maturity. Only Cía Arrocera Covadonga, through its popular and recognised brand Morelos, has such a product, launched in 2007 but with limited impact. The company claimed that its product is healthier, as it features a higher content of rice, reduced fat and less sodium than the instant noodles from competitors.
CATEGORY DATA
Table 227 Sales of Noodles by Category: Volume 2006-2011
Table 228 Sales of Noodles by Category: Value 2006-2011
Table 229 Sales of Noodles by Category: % Volume Growth 2006-2011
Table 230 Sales of Noodles by Category: % Value Growth 2006-2011
Table 231 Leading Instant Noodle Flavours 2006-2011
Table 232 Noodles Company Shares 2006-2010
Table 233 Noodles Brand Shares 2007-2010
Table 234 Sales of Noodles by Distribution Format: % Analysis 2006-2011
Table 235 Forecast Sales of Noodles by Category: Volume 2011-2016
Table 236 Forecast Sales of Noodles by Category: Value 2011-2016
Table 237 Forecast Sales of Noodles by Category: % Volume Growth 2011-2016
Table 238 Forecast Sales of Noodles by Category: % Value Growth 2011-2016
Oils and Fats in Mexico - Category Analysis
HEADLINES
TRENDS
Oils and fats in 2011 continues to post positive volume growth rates. Slow recovery of the Mexican economy has allowed more consumers to incorporate oils and fats into their regular purchasing and also to attend more frequently foodservice outlets, which account for approximately 30% of total volume sales of oils and fats. Most oils and fats products have already developed health and wellness formulations, also contributing to a better performance of the category.
COMPETITIVE LANDSCAPE
During 2010 ACH Foods, represented in Mexico by Alimentos Capullo, leads oils and fats with more than 23% of total value sales, mainly through traditional brands such as Mazola and Capullo in vegetable and seed oils, and Inca in cooking fats. Ranking second with 19% of total value sales is Fábrica de Jabón La Corona, featuring a wide product portfolio of different types and blends of economic vegetable and seed oil.
PROSPECTS
In Mexico oils and fats are likely to face a challenging period over the forecast period whilst public health organisations might continue to create awareness campaigns against obesity and to promote healthier nutrition; therefore, most players will have to respond not only by developing products and formulations which are aligned with this trend but also by communicating to consumers that their products have no health repercussions whatsoever.
CATEGORY DATA
Table 239 Sales of Oils and Fats by Category: Volume 2006-2011
Table 240 Sales of Oils and Fats by Category: Value 2006-2011
Table 241 Sales of Oils and Fats by Category: % Volume Growth 2006-2011
Table 242 Sales of Oils and Fats by Category: % Value Growth 2006-2011
Table 243 Vegetable and Seed Oil by Type: % Value Breakdown 2006-2011
Table 244 Oils and Fats Company Shares 2006-2010
Table 245 Oils and Fats Brand Shares 2007-2010
Table 246 Sales of Oils and Fats by Distribution Format: % Analysis 2006-2011
Table 247 Forecast Sales of Oils and Fats by Category: Volume 2011-2016
Table 248 Forecast Sales of Oils and Fats by Category: Value 2011-2016
Table 249 Forecast Sales of Oils and Fats by Category: % Volume Growth 2011-2016
Table 250 Forecast Sales of Oils and Fats by Category: % Value Growth 2011-2016
Other Dairy in Mexico - Category Analysis
HEADLINES
TRENDS
In 2011 other dairy products remains almost flat in terms of volume performance. Lack of innovation and strong consumer preference for substitutes amongst the dairy category, such as drinking yoghurts and the wide milk portfolio options, have a strong influence in the stagnation of the category. Furthermore, many of these products are not considered by Mexicans as basic goods and slow economic recovery is insufficient for these categories to achieve a more dynamic performance. Traditional dairy-based desserts like jelly and puddings were less affected by described conditions.
COMPETITIVE LANDSCAPE
In 2011 Nestlé Mexico continues to be the market leader of other dairy products achieving 47% of total value sales. The former is practically the only player in some categories such as condensed/evaporated milk and coffee whiteners. Danone de Mexico ranks second, mostly driven by the popular brand of fromage frais and quark Danonino.
PROSPECTS
The coming years’ performance of other dairy products will probably continue to be highly related to the status of the Mexican economy, finding in the foodservice category the main driver for growth, as many consumers consider these products as non-essential. Except for flavoured, functional condensed milk, which is a category that has lost popularity amongst consumers, the rest of other dairy categories might show stagnant to moderate volume CAGRs, ranging between -0.1% and 3%, whilst in constant value terms the category as a whole might achieve a CAGR of 2%, both for 2011-2016 period.
CATEGORY DATA
Table 251 Sales of Other Dairy by Category: Volume 2006-2011
Table 252 Sales of Other Dairy by Category: Value 2006-2011
Table 253 Sales of Other Dairy by Category: % Volume Growth 2006-2011
Table 254 Sales of Other Dairy by Category: % Value Growth 2006-2011
Table 255 Cream by Type: % Value Breakdown 2006-2011
Table 256 Sales of Other Dairy by Distribution Format: % Analysis 2006-2011
Table 257 Forecast Sales of Other Dairy by Category: Volume 2011-2016
Table 258 Forecast Sales of Other Dairy by Category: Value 2011-2016
Table 259 Forecast Sales of Other Dairy by Category: % Volume Growth 2011-2016
Table 260 Forecast Sales of Other Dairy by Category: % Value Growth 2011-2016
Pasta in Mexico - Category Analysis
HEADLINES
TRENDS
International prices of wheat are showing an increasing trend since 2009. This is causing increasing costs for pasta producers, which in the beginning tried to not increase their selling prices in 2009 and 2010 to not lose consumers. However, in 2011 Fábrica de Pastas Alimenticias La Moderna SA de CV announced that this year it will adjust prices to maintain operating margins. The impact in unit prices is an expected increase of 5% in current terms.
COMPETITIVE LANDSCAPE
Fábrica de Pastas Alimenticias La Moderna SA de CV is the absolute leader in pasta in Mexico with 60% value share in 2010. This position was consolidated through the significant presence of dried pasta to prepare soup, as well as dried pasta for dry meals at low prices, being significantly inferior to competitors from premium segments which are mostly imported.
PROSPECTS
Pasta will increase its market value at a 3% CAGR in both constant value and volume between 2011 and 2016. Dried pasta will continue to dominate the category, whereas chilled/fresh pasta is anticipated to remain a gourmet product for affluent urban Mexicans. New emerging fashion trends, such as gourmet restaurants and cooking schools presenting new recipes and teaching consumers how to make them at home, might also hinder forecast sales of pasta.
CATEGORY DATA
Table 261 Sales of Pasta by Category: Volume 2006-2011
Table 262 Sales of Pasta by Category: Value 2006-2011
Table 263 Sales of Pasta by Category: % Volume Growth 2006-2011
Table 264 Sales of Pasta by Category: % Value Growth 2006-2011
Table 265 Pasta Company Shares 2006-2010
Table 266 Pasta Brand Shares 2007-2010
Table 267 Sales of Pasta by Distribution Format: % Analysis 2006-2011
Table 268 Forecast Sales of Pasta by Category: Volume 2011-2016
Table 269 Forecast Sales of Pasta by Category: Value 2011-2016
Table 270 Forecast Sales of Pasta by Category: % Volume Growth 2011-2016
Table 271 Forecast Sales of Pasta by Category: % Value Growth 2011-2016
Ready Meals in Mexico - Category Analysis
HEADLINES
TRENDS
Ready meals continue to grow in popularity due to the increasingly hectic pace of modern life in Mexico and consequent rise in demand for convenience. Volume sales have already recovered from the economic crisis of 2009 and are increasing at a reasonable rate due to rising demand. Ready meals are generally relatively expensive and consequently unaffordable for many lower income consumers. For ready meals total volume growth rates to reach a higher level than the current 3-4% middle and lower income consumer disposable incomes will have to rise, the pace of modern life will have to continue to increase and convenience grocery stores will have to continue to expand throughout the country.
COMPETITIVE LANDSCAPE
Sigma Alimentos and Grupo Bimbo lead sales within ready meals and recorded respective retail value shares of 20% and 14% in 2010. Despite having a number of brands in this area such as El Cazo and Del Chef, Sigma Alimentos’ success can be attributed to the popularity of its chilled pizzas Fud and San Rafael and its leading Guten range. Sigma Alimentos dominates sales within chilled pizza, where it recorded a retail value share of 88% in 2010. There are no other major competitors in this area, with private label brands and small and local producers accounting for the remaining 12% of retail value sales. The Guten pre-cooked meat range was launched in 2007 and already records monthly sales of over 1,000 tonnes. Grupo Bimbo’s success is due to the popularity of its Lonchibon brand, which accounted for 14% of ready meals retail value sales in 2010. This product has been so successful that a number of small manufacturers are now distributing chilled sandwiches, croissants and burritos in similar packaging and at a similar price, most notably Productos Chata. Bimbo relies on its powerful distribution force, one of the largest in the country, in order to ensure the freshness of all of its products at over half a million sales points. The Lonchibon range included a chilled pizza product until 2009. However, the brand was removed, leaving Sigma Alimentos’ pizza range as the only major contender in the area.
PROSPECTS
The fact that ready meals are expensive means that the area suffers during economic downturns such as that of 2009. In addition, an increase in middle and lower income consumer disposable incomes will be necessary if the area is to grow more strongly – a development which is unlikely in the immediate future. As the economic recovery is still weak and slow, ready meals growth will be uneven and concentrated in the least expensive products and areas, with sales not expected to increase at an average annual rate of more than 3-4% in most cases.
CATEGORY DATA
Table 272 Sales of Ready Meals by Category: Volume 2006-2011
Table 273 Sales of Ready Meals by Category: Value 2006-2011
Table 274 Sales of Ready Meals by Category: % Volume Growth 2006-2011
Table 275 Sales of Ready Meals by Category: % Value Growth 2006-2011
Table 276 Ready Meals: Vegetarian Vs Non-vegetarian % Breakdown by Type 2011
Table 277 Frozen Ready Meals % Breakdown by Ethnicity 2006-2011
Table 278 Chilled Ready Meals % Breakdown by Ethnicity 2006-2011
Table 279 Ready Meals Company Shares 2006-2010
Table 280 Ready Meals Brand Shares 2007-2010
Table 281 Sales of Ready Meals by Distribution Format: % Analysis 2006-2011
Table 282 Forecast Sales of Ready Meals by Category: Volume 2011-2016
Table 283 Forecast Sales of Ready Meals by Category: Value 2011-2016
Table 284 Forecast Sales of Ready Meals by Category: % Volume Growth 2011-2016
Table 285 Forecast Sales of Ready Meals by Category: % Value Growth 2011-2016
Sauces, Dressings and Condiments in Mexico - Category Analysis
HEADLINES
TRENDS
Changing eating habits of Mexicans towards convenience, health and wellness and impulse consumption put pressure on sauces, dressings and condiments producers to meet requirements of more demanding consumers. Mexicans are great consumers of spicy chili/pepper sauces as Mexican cuisine is typically spicy and full of strong flavours derived from a complex mix of ingredients and lengthy cooking processes. However, as the working population increases and competence required for labour positions strengthens, people have less time to cook. However, Mexicans are not likely to resign their typical tasty food and packaged sauces and particularly salsa casera, which has been recently introduced in the market, are good alternatives to comply with both requirements (time and flavour). Spicy chili/pepper (including casera) sauces is expected to record a very positive performance in 2011, growing 4% in constant value. In addition, producers are rapidly increasing exports to Central America but especially the US as the Hispanic population there is eager to eat food from home.
COMPETITIVE LANDSCAPE
Grupo Herdez SA de CV is the leader in sauces, dressings and condiments thanks to its long presence in the Mexican market, as well as its wide array of products in different categories such as tomato pastes and purées, pickled products, table sauces, mayonnaise and mustard under own brands and licensed ones such as McCormick. In 2010, the company accounted for 20% of sauces, dressings and condiments’ overall retail value.
PROSPECTS
In the forecast period, sauces, dressings and condiments is expected to record similar rates of growth in volume compared to the review period with both periods posting a 3% CAGR. Since sauces, dressings and condiments are a large part of Mexican cuisine and daily eating habits and relatively stable even throughout the shaky economy during the review period and even into 2011, namely pickled products (jalapeño chili peppers), mayonnaise and spicy chili/pepper sauces.
CATEGORY DATA
Table 286 Sales of Sauces, Dressings and Condiments by Category: Volume 2006-2011
Table 287 Sales of Sauces, Dressings and Condiments by Category: Value 2006-2011
Table 288 Sales of Sauces, Dressings and Condiments by Category: % Volume Growth 2006-2011
Table 289 Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2006-2011
Table 290 Wet/Cooking Sauces by Type: % Value Breakdown 2006-2011
Table 291 Sauces, Dressings and Condiments Company Shares 2006-2010
Table 292 Sauces, Dressings and Condiments Brand Shares 2007-2010
Table 293 Sales of Sauces, Dressings and Condiments by Distribution Format: % Analysis 2006-2011
Table 294 Forecast Sales of Sauces, Dressings and Condiments by Category: Volume 2011-2016
Table 295 Forecast Sales of Sauces, Dressings and Condiments by Category: Value 2011-2016
Table 296 Forecast Sales of Sauces, Dressings and Condiments by Category: % Volume Growth 2011-2016
Table 297 Forecast Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2011-2016
Snack Bars in Mexico - Category Analysis
HEADLINES
TRENDS
Snack bars manufacturers continue to position their products as a healthy option in terms of snacking. Consumers consider snack bars as a good substitute for less healthy products such as biscuits, sweet and savoury snacks, and pastries or even confectionery. Even for people who do not consume any such items, products within the snack bars category are widely considered an acceptable option for a mid-afternoon snack, with the base of consumers broadening for snack bars over the review period. The snack bars category may benefit from new legislation targeting youth obesity, as some parents and schools may promote these products as healthier options for children.
COMPETITIVE LANDSCAPE
Grupo Bimbo SAB de CV leads the category with a 43% value share in 2010, followed distantly by Kellogg de México SA de CV and Productos Quaker de México SA de CV, with shares of 24% and 16% respectively. Grupo Bimbo is only present within breakfast bars, but as this is the largest category within snack bars, the company has been able to successfully sustain its overall share. The main reason for Grupo Bimbo’s success is its brand positioning. Although the brands of Kellogg de México SA de CV are also popular, two of its key snack bars, Kellogg’s Special K and Kellogg’s All Bran, are better known for their presentations in breakfast cereals. These particular brands target specific consumer segments – people who require higher levels of fibre and women respectively – which is not the case for Grupo Bimbo’s Multigrano or Bran-Frut breakfast bar brands, which focus on a wider consumer base.
PROSPECTS
The snack bars category is expected to grow at a CAGR of 2% in volume terms, which is a slower rate than that seen in the review period. Consumers generally see little differential between most snack bars products, which is contributing to the slowdown in growth in the number of consumers who regularly buy the product. Furthermore, some consumers still consider snack bars to be non-essential and, in the case of some products, a luxury, which is serving to prevent faster growth.
CATEGORY DATA
Table 298 Sales of Snack Bars by Category: Volume 2006-2011
Table 299 Sales of Snack Bars by Category: Value 2006-2011
Table 300 Sales of Snack Bars by Category: % Volume Growth 2006-2011
Table 301 Sales of Snack Bars by Category: % Value Growth 2006-2011
Table 302 Snack Bars Company Shares 2006-2010
Table 303 Snack Bars Brand Shares 2007-2010
Table 304 Sales of Snack Bars by Distribution Format: % Analysis 2006-2011
Table 305 Forecast Sales of Snack Bars by Category: Volume 2011-2016
Table 306 Forecast Sales of Snack Bars by Category: Value 2011-2016
Table 307 Forecast Sales of Snack Bars by Category: % Volume Growth 2011-2016
Table 308 Forecast Sales of Snack Bars by Category: % Value Growth 2011-2016
Summary 40 Other Snack Bars: Product Types
Soup in Mexico - Category Analysis
HEADLINES
TRENDS
Soup in Mexico is expected to maintain positive performance in 2011 as it is a category with a long tradition that serves for saving both money in ingredients and time for cooking. Hence, convenience and economy are the main supports for sales, which serves as protection in times of economic uncertainty. On the other hand, Mexicans are not very important soup eaters, in part because of the warm weather that prevails in most of the country throughout the year, and hence sales of soup do not have important increases either. It is a stable category with no important events occurring for long periods. The growth predicted in 2011 (4% in volume and 7% in current value) is mostly a result of a general good performance of packaged food categories.
COMPETITIVE LANDSCAPE
Knorr (Cocina Productos de Maiz) is the leading brand in 2010 with 43% value share derived from its dominant position in dehydrated soup, which is the most important category of soup. The success factor for this brand is the incorporation of traditional Mexican flavours based on tomato, onion, garlic and chili peppers that deliver a convenient way to prepare a familiar meal to Mexicans. Knorr also is the most important brand in UHT and instant soup, in which it offers mainly creams of mushroom, corn and poblano chili pepper, although these categories’ importance is far behind that of dehydrated soup.
PROSPECTS
In the forecast period, growth of soup is expected to maintain levels similar to 2011 as chained retailing’s expansion, search for convenience and price-seeking consumers will continue supporting sales increases. The forecast constant value 4% CAGR during 2011-2016 reflects this healthy performance for the overall soup category.
CATEGORY DATA
Table 309 Sales of Soup by Category: Volume 2006-2011
Table 310 Sales of Soup by Category: Value 2006-2011
Table 311 Sales of Soup by Category: % Volume Growth 2006-2011
Table 312 Sales of Soup by Category: % Value Growth 2006-2011
Table 313 Leading Soup Flavours 2006-2011
Table 314 Soup Company Shares 2006-2010
Table 315 Soup Brand Shares 2007-2010
Table 316 Sales of Soup by Distribution Format: % Analysis 2006-2011
Table 317 Forecast Sales of Soup by Category: Volume 2011-2016
Table 318 Forecast Sales of Soup by Category: Value 2011-2016
Table 319 Forecast Sales of Soup by Category: % Volume Growth 2011-2016
Table 320 Forecast Sales of Soup by Category: % Value Growth 2011-2016
Spreads in Mexico - Category Analysis
HEADLINES
TRENDS
Higher awareness of calorie consumption and the health and wellness trend are gaining presence in Mexico, leading towards shifts in consumption patterns. This is leading to the reduced consumption of products with high contents of sugar, such as jams and preserves, or chocolate spreads, which explains why the category is expected to observe a slowdown in its growth rate during 2011. However, brands such as Smucker’s (JM Smucker de México SA de CV), Great Value (the private label offered by Wal-Mart de México S de RL de CV) and McCormick (Grupo Herdez Sa de CV) in jams and Cajeta Coronado (Barcel México SA de CV) have seen the introduction of low-calorie variants in an attempt to respond to consumer demands and thus profit from the emerging trend.
COMPETITIVE LANDSCAPE
Grupo Herdez SA de CV leads the spreads category, followed by JM Smucker de México SA de CV, with value shares of 30% and 21% respectively in 2010. The third place is occupied by Conservas La Costeña SA de CV, which accounts for 10% of retail sales. The remaining share is divided amongst a number of companies, each with a small share. The leading companies enjoy strong brand positioning for their products, particularly for the McCormick, Smucker’s and La Costeña brands, as well as Carlota honey from Miel Carlota SA de CV (GBO Herdez). These brands have been present for a long time, which has allowed them to gain the confidence of the public.
PROSPECTS
The spreads category is expected to observe a 2% CAGR in volume terms over the forecast period, in line with that seen over the review period. As health and wellness trends continue to develop in Mexico, consumers are shifting towards products that offer reduced fat and sugar content. Low calorie spreads will help the category maintain dynamism to attract new consumers while holding on to current ones.
CATEGORY DATA
Table 321 Sales of Spreads by Category: Volume 2006-2011
Table 322 Sales of Spreads by Category: Value 2006-2011
Table 323 Sales of Spreads by Category: % Volume Growth 2006-2011
Table 324 Sales of Spreads by Category: % Value Growth 2006-2011
Table 325 Leading Flavours for Jams and Preserves 2006-2011
Table 326 Spreads Company Shares 2006-2010
Table 327 Spreads Brand Shares 2007-2010
Table 328 Sales of Spreads by Distribution Format: % Analysis 2006-2011
Table 329 Forecast Sales of Spreads by Category: Volume 2011-2016
Table 330 Forecast Sales of Spreads by Category: Value 2011-2016
Table 331 Forecast Sales of Spreads by Category: % Volume Growth 2011-2016
Table 332 Forecast Sales of Spreads by Category: % Value Growth 2011-2016
Sugar Confectionery in Mexico - Category Analysis
HEADLINES
TRENDS
At the beginning of 2011 a new regulation came into effect aiming to reduce the consumption of some products that are considered to foster childhood obesity (Mexico has one of the highest rates of childhood obesity in the world and it is estimated that health expenses amount to Mx$67 billion a year). However, the regulation did not entirely forbid the sale of such products within schools. Instead, a list of over 600 permitted products was published, including some sugar confectionery products. However, the accepted size of the portions has been reduced in order to limit calorie consumption.
COMPETITIVE LANDSCAPE
Sugar confectionery is a highly fragmented category, with 30 companies holding measurable shares and only two companies holding a double-digit share in 2010, namely Cadbury Adams Mexico S De RL De CV and Ricolino SA de CV with 13% and 12%, respectively. Brands show a further degree of fragmentation, with no particular brand holding a substantial share. It is important to note, however, that Grupo Bimbo SAB de CV held a 16% GBO share in 2010 through its subsidiaries Ricolino SA de CV and Barcel México SA de CV.
PROSPECTS
Although a new regulation has been put into effect to limit children’s consumption of high-calorie products, it has not yet been completely enforced and such products are still available in most schools. However, it is likely that the restriction will become more stringently applied, since concern has been raised and parents may become more involved in trying to change their children’s dietary habits. The new regulation, together with the wider trend of looking for healthier options, is expected to put pressure on the sugar confectionery category. As a consequence the category is expected to see a slower CAGR in volume and constant value terms than observed during the review period.
CATEGORY DATA
Table 333 Sales of Sugar Confectionery by Category: Volume 2006-2011
Table 334 Sales of Sugar Confectionery by Category: Value 2006-2011
Table 335 Sales of Sugar Confectionery by Category: % Volume Growth 2006-2011
Table 336 Sales of Sugar Confectionery by Category: % Value Growth 2006-2011
Table 337 Sugarised Vs Sugar-free Sugar Confectionery % Breakdown by Type 2011
Table 338 Pastilles, Gums, Jellies and Chews by Type: % Value Breakdown 2006-2011
Table 339 Sugar Confectionery Company Shares 2006-2010
Table 340 Sugar Confectionery Brand Shares 2007-2010
Table 341 Sales of Sugar Confectionery by Distribution Format: % Analysis 2006-2011
Table 342 Forecast Sales of Sugar Confectionery by Category: Volume 2011-2016
Table 343 Forecast Sales of Sugar Confectionery by Category: Value 2011-2016
Table 344 Forecast Sales of Sugar Confectionery by Category: % Volume Growth 2011-2016
Table 345 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2011-2016
Summary 41 Other Sugar Confectionery: Product Types
Sweet and Savoury Snacks in Mexico - Category Analysis
HEADLINES
TRENDS
Sweet and savoury snacks is struggling against being called by the term “junk food” which has become popular in colloquial conversations due to its mention in the media, as these products have been claimed to be an important cause of obesity rate increases in Mexico, particularly in children. Snacks manufacturers have responded with academic research that suggests even if all products were withdrawn at once, the obesity problem would not be solved because it is caused by a very complex mix of factors. Moreover, they argue that problems related to snacks consumption come from wrongly using them to replace meals, given that they are available at nearly all retail channels at affordable prices. To combat this bad image, producers have reduced the potentially harmful ingredients such as fat and sodium, as well as increasing natural ingredients. For instance, the leader company Sabritas has reduced by 10% the quantity of salt used to manufacture its savoury snacks, replaced the frying with a baking process and used wholegrain flour from 2010 as part of a broad campaign towards portraying a more health-conscious image.
COMPETITIVE LANDSCAPE
The absolute leader in sales of sweet and savoury snacks is Sabritas SRL de CV, a company of Pepsico Inc. Sabritas led the category with 60% of overall value in 2010 and also, its different brands position the company at the top of five snacks categories. This leading position in the category has a long tradition of decades and it has been maintained by constant evolution of the company’s portfolio towards the new demands from the dynamic main target group: children. In a distant second place is Barcel México SA de CV SA de CV (a subsidiary of Grupo Bimbo, one of the most important Mexican food companies), which accounted for 14% value of the category in 2010. Both companies benefit from the large production, transportation and logistics infrastructure of their controlling companies and hence they reach all the distribution channels with a nationwide coverage and no important competition in mass consumption.
PROSPECTS
In the forecast period 2011-2016, sweet and savoury snacks will post 4% CAGR in constant value terms as convenience and low prices will continue driving sales amongst Mexicans. The players will continue moving towards healthier products and presentations. For instance, new presentations of Twistos (Sabritas) in other sweet and savoury snacks are to be launched in 2011 in 18-gram presentations with only 70 calories.
CATEGORY DATA
Table 346 Sales of Sweet and Savoury Snacks by Category: Volume 2006-2011
Table 347 Sales of Sweet and Savoury Snacks by Category: Value 2006-2011
Table 348 Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2006-2011
Table 349 Sales of Sweet and Savoury Snacks by Category: % Value Growth 2006-2011
Table 350 Popcorn by Type: % Value Breakdown 2006-2011
Table 351 Sweet and Savoury Snacks Company Shares 2006-2010
Table 352 Sweet and Savoury Snacks Brand Shares 2007-2010
Table 353 Sales of Sweet and Savoury Snacks by Distribution Format: % Analysis 2006-2011
Table 354 Forecast Sales of Sweet and Savoury Snacks by Category: Volume 2011-2016
Table 355 Forecast Sales of Sweet and Savoury Snacks by Category: Value 2011-2016
Table 356 Forecast Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2011-2016
Table 357 Forecast Sales of Sweet and Savoury Snacks by Category: % Value Growth 2011-2016
Summary 42 Other Sweet and Savoury Snacks: Product Types
Yoghurt and Sour Milk Drinks in Mexico - Category Analysis
HEADLINES
TRENDS
Yoghurt is one of the most dynamic categories within the dairy category in Mexico, mainly driven by drinking yoghurt, which is expected to see double-digit (11%) current value growth in 2011. Mexican consumers in urban areas are developing new hectic lifestyles that require them to spend much time outside their homes. Most of these types of consumers are middle-class workers that find it hard to sustain daily healthy nutrition due to lack of time available to prepare home dishes and also because the foodservice market is too expensive for them, especially when it comes to a high-quality breakfast or lunch meal. Therefore, functional drinking yoghurt has become a real alternative for a considerable number of people within this segment, which is in line with the current health and wellness trend amongst Mexican society. Another important socioeconomic segment contributing to functional drinking yoghurt growth comprises high school and college students, who have been effectively addressed by advertising from companies such as Danone de México de CV, meeting their needs for a quick and healthy breakfast substitute.
COMPETITIVE LANDSCAPE
During 2010 Danone de Mexico and Yakult led yoghurt and sour milk drinks with a 24% value share each. Danone has effectively developed a strong market presence by creating aging and gender segmentation through brands like Dan’Up, Vitalinea and Activia, whilst Yakult is one of the pioneers in the functional drinks market having strong brand awareness amongst Mexican consumers. For their part, Ganaderos Productores de Leche Pura de CV, Grupo Industrial Lala and Sigma Alimentos have intensified competition taking advantage of strong manufacturing and distribution capabilities whilst placing high-quality products under well-recognised brands.
PROSPECTS
The Mexican market for yoghurt is expected to sustain a dynamic performance over the next years; a rising middle class and changing lifestyles in urban areas will act as key drivers for future growth. National health organisations are likely to continue to encourage the population to create consciousness about obesity, and as result more Mexicans might continue to develop health and wellness consumption habits where spoonable and functional drinking yoghurts will likely play an important role over this trend.
CATEGORY DATA
Table 358 Sales of Yoghurt and Sour Milk Drinks by Category: Volume 2006-2011
Table 359 Sales of Yoghurt and Sour Milk Drinks by Category: Value 2006-2011
Table 360 Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2006-2011
Table 361 Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth 2006-2011
Table 362 Soy-based vs Dairy-based Yoghurt % Breakdown 2010
Table 363 Leading Flavours for Flavoured Spoonable Yoghurt 2006-2011
Table 364 Leading Flavours for Fruited Spoonable Yoghurt 2006-2011
Table 365 Yoghurt and Sour Milk Drinks Company Shares 2006-2010
Table 366 Yoghurt and Sour Milk Drinks Brand Shares 2007-2010
Table 367 Sales of Yoghurt and Sour Milk Drinks by Distribution Format: % Analysis 2006-2011
Table 368 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Volume 2011-2016
Table 369 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: Value 2011-2016
Table 370 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2011-2016
Table 371 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth 2011-2016