Market Research Logo

Food and Grocery Retailing in Mexico – Market Summary & Forecasts

Food and Grocery Retailing in Mexico – Market Summary & Forecasts

Summary

Food and grocery is by far the largest product sector in Mexico in terms of share of total retail sales. This sector is expected to witness a healthy CAGR of 5.1% over the forecast period to reach MXN3,537 billion by 2019. Modern retailing is gaining increasing importance in Mexico, and convenience stores command the majority of sales, having accounted for 35.4% of sales in 2014. However, hypermarkets, supermarkets, and hard discounters closely follow convenience stores, accounting for 30.9% of sales in the food and grocery sector. An increasing number of retailers are expanding their footprint and offerings, backed by increased consumer interest in modern stores. Food and grocery retailers are trying new marketing strategies and click and collect services to reach more customers, and are focusing on new store formats and remodeling existing stores, to strengthen their presence in the market and to drive sales.

Key Findings

Food and grocery is expected to grow at a CAGR of 5.1%

Convenience Stores (including Independents) and Gas Stations command a major share in country’s overall food and grocery retail market

Retailers have been focusing more on new store formats and remodelling their existing stores to strengthen their presence in mid-sized destinations

Demand for healthy food on a rise with increasing concerns over obesity. Mexico turns out to be an early adopter of taxes on sugary beverages (10% per litre) and calorie rich junk foods (8% VAT)

Drinks segment is expected to be the most promising market during the forecast period, with a CAGR of 5.9% over the next five years.

Synopsis

“Food and Grocery Retailing in Mexico – Market Summary & Forecasts” is a detailed sector report providing a comprehensive analysis of the emerging trends, forecasts and opportunities to 2019.

What else does this report offer?

A thorough analysis of consumer trends changing economic and population factors

Both qualitative and quantitative insights and analysis of the shifting food and grocery retail dynamics for drinks, household products, packaged food, tobacco and unpackaged food from 2009 to 2019

Sales of food and grocery products through the following channels from 2009 to 2019: Hypermarkets, supermarkets and hard-discounters; food and drinks specialists; convenience stores (including Independents) and gas stations; cash and carries and warehouse clubs; other general and non-specialist direct retailers; value, variety stores and general merchandise retailers; online; drug stores and health and beauty stores; vending machines; duty free retailers; department stores; other specialist retailers

An overview of key food and grocery retailers operating across Mexico and their presence across distribution channels

Reasons To Buy

Gain a comprehensive knowledge on food and grocery sector in the Mexican retail market and develop a competitive advantage from the start of your supply chain

Investigate current and forecast behaviour trends in food and grocery category to identify the best opportunities to exploit

Analyze the recommended actions to align your marketing strategies with the crucial trends influencing the consumer behavior

Understand the fastest growing categories including drinks, household products, packaged food, unpackaged food and tobacco in the market, with insights on performance across key channels from 2009, with forecasts until 2019

Explore novel opportunities that will allow you to align your product offerings and strategies to meet demand by analyzing the vital economic and population trends, key consumer and technology trends influencing the food and grocery market

Analysis of key international and domestic players operating in the food and grocery market – including store counts and revenues that give you a competitive edge - identify opportunities to improve your market share


1 Introduction
1.1 What is this Report About?
2 Executive Summary & Outlook
3 Market Context
3.1 A steadily growing economy with opportunities for retailers
3.1.1 A modest recovery in the economy, indicates a gradual improvement in retail spending
3.1.2 Declining savings rate shows a revival in retail consumption
3.1.3 Service remains the dominant sector for employment
3.1.4 Improving labor market set to drive retail spending
3.1.5 A stable and low inflation level may influence retail sales growth
3.1.6 Household consumption expenditure is set to grow with a rise in middle –income households
3.2 Swelling workforce and social upliftment in the economy will favor retail market
4 Mexican Shoppers
4.1 Demand for healthy food on a rise with increasing concerns over obesity
4.2 Luxury market continues to perform well with low tariffs and improving credit facilities
4.3 Working women and middle income households driving retail sales
4.4 Cash on delivery is the most preferred payment option among consumers
4.5 Increasing inbound tourists offering growth opportunities in retail sector
5 Doing Business in Mexico
5.1 Summary
5.1.1 Bureaucracy
5.1.2 Business culture
5.1.3 Geography
5.1.4 Infrastructure and logistics
5.2 The North American Free Trade (NAFTA) Agreement:
5.3 Key taxation policies
5.4 Renewed guidelines for the labelling of processed packed foods
5.5 Products need to be NOM certified prior importing into Mexico
6 Retail – Product Sectors
6.1 Product Sector Analysis
6.1.1 Food and Grocery
6.2 Food and Grocery Category Overview
6.2.1 Food and Grocery by Channel
6.2.2 Food and Grocery by Category
6.3 Food and Grocery Category Analysis
6.3.1 Drinks
6.3.2 Household Products
6.3.3 Packaged Food
6.3.4 Tobacco
6.3.5 Unpackaged Food
6.4 Major Retailers
6.4.1 Food and Grocery
7 Appendix
7.1 Definitions
7.1.1 This report provides 2014 actual sales; while forecasts are provided for 2015 – 2019
7.2 Summary Methodology
7.2.1 Overview
7.2.2 The triangulated market sizing method
7.2.3 Industry surveys in the creation of retail market data
7.2.4 Quality control and standardized processes
7.3 About Conlumino
7.4 Disclaimer
List of Tables
Table 1: Mexico Food and Grocery Retail Sales (MXN mn), by Channel Group, 2009–2014
Table 2: Mexico Food and Grocery Retail Sales Forecast (MXN mn), by Channel Group, 2014–2019
Table 3: Mexico Food and Grocery Retail Sales (US$ mn), by Channel Group, 2009–2014
Table 4: Mexico Food and Grocery Retail Sales Forecast (US$ mn), by Channel Group, 2014–2019
Table 5: Mexico Food and Grocery Retail Segmentation (% value), by Channel Group, 2009–2019
Table 6: Mexico Food and Grocery Retail Sales (MXN mn), by Category 2009–2014
Table 7: Mexico Food and Grocery Retail Sales Forecast (MXN mn), by Category 2014–2019
Table 8: Mexico Food and Grocery Retail Sales (US$ mn), by Category, 2009–2014
Table 9: Mexico Food and Grocery Retail Sales Forecast (MXN mn), by Category 2014–2019
Table 10: Mexico Food and Grocery Retail Segmentation (% value), by Category, 2009–2019
Table 11: Mexico Drinks Retail Sales (MXN mn), by Channel Group, 2009–2014
Table 12: Mexico Drinks Retail Sales Forecast (MXN mn), by Channel Group, 2014–2019
Table 13: Mexico Drinks Retail Sales (US$ mn), by Channel Group, 2009–2014
Table 14: Mexico Drinks Retail Sales Forecast (US$ mn), by Channel Group, 2014–2019
Table 15: Mexico Drinks Retail Segmentation, by Channel Group, 2009–2019
Table 16: Mexico Household Products Retail Sales (MXN mn), by Channel Group, 2009–2014
Table 17: Mexico Household Products Retail Sales Forecast (MXN mn), by Channel Group, 2014–2019
Table 18: Mexico Household Products Retail Sales (US$ mn), by Channel Group, 2009–2014
Table 19: Mexico Household Products Retail Sales Forecast (US$ mn), by Channel Group, 2014–2019
Table 20: Mexico Household Products Retail Segmentation, by Channel Group, 2009–2019
Table 21: Mexico Packaged Food Retail Sales (MXN mn), by Channel Group, 2009–2014
Table 22: Mexico Packaged Food Retail Sales Forecast (MXN mn), by Channel Group, 2014–2019
Table 23: Mexico Packaged Food Retail Sales (US$ mn), by Channel Group, 2009–2014
Table 24: Mexico Packaged Food Retail Sales Forecast (US$ mn), by Channel Group, 2014–2019
Table 25: Mexico Packaged Food Retail Segmentation, by Channel Group, 2009–2019
Table 26: Mexico Tobacco Retail Sales (MXN mn), by Channel Group, 2009–2014
Table 27: Mexico Tobacco Retail Sales Forecast (MXN mn), by Channel Group, 2014–2019
Table 28: Mexico Tobacco Retail Sales (US$ mn), by Channel Group, 2009–2014
Table 29: Mexico Tobacco Retail Sales Forecast (US$ mn), by Channel Group, 2014–2019
Table 30: Mexico Tobacco Retail Segmentation, by Channel Group, 2009–2019
Table 31: Mexico Unpackaged Food Retail Sales (MXN mn), by Channel Group, 2009–2014
Table 32: Mexico Unpackaged Food Retail Sales Forecast (MXN mn), by Channel Group, 2014–2019
Table 33: Mexico Unpackaged Food Retail Sales (US$ mn), by Channel Group, 2009–2014
Table 34: Mexico Unpackaged Food Retail Sales Forecast (US$ mn), by Channel, 2014–2019
Table 35: Mexico Unpackaged Food Retail Segmentation, by Channel Group, 2009–2019
Table 36: Key Food and Grocery Retailers in Mexico
Table 37: Mexico Exchange Rate MXN–US$ (Annual Average), 2009–2014
Table 38: Mexico Exchange Rate MXN–US$ (Annual Average), 2015–2019
Table 39: Conlumino Retail Channel Definitions
Table 40: Conlumino Retail Category Definitions
List of Figures
Figure 1: GDP Values (Current US$) billion, 2008–2014
Figure 2: Growth Rate of GDP (Constant US$), 2008–2014
Figure 3: GDP Value and Growth (MXN billion, %), 2008–2014
Figure 4: Forecasts for GDP Value and Growth (MXN billion, %), 2014–2019
Figure 5: Personal Savings (%), 2004–2014
Figure 6: Share of Employment by Sector (%), 2004 and 2014
Figure 7: Unemployment Rate (%), 2005–2014
Figure 8: Inflation Growth Rates (%), 2004–2014
Figure 9: Household Consumption Expenditure of Mexico (MXN Billion), 2004 and 2014
Figure 10: Household Consumption Expenditure of Major Countries (US$ Billion), 2014
Figure 11: Growth of Household Consumption Expenditure (%), 2004–2014
Figure 12: Total Population and Growth Rate (Millions, %), 2004–2019
Figure 13: Population Split by Gender (%), 2014 and 2019E
Figure 14: Population Split by Age Group (%), 2014 and 2019E
Figure 15: Per Capita Spend on Retail (MXN), 2006 and 2014
Figure 16: Per Capita Spend (MXN) on Retail by Age Group (%), 2006 and 2014
Figure 17: Rural and Urban Populations (% of total population) 2004, 2014 and 2019E
Figure 18: Favorable Demographic Structure of Mexico
Figure 19: Online Payment Methods in Mexico
Figure 20: Number of international arrivals to Mexico (Thousands), 2009 and 2014
Figure 21: Major Cities with High Spend on Retail
Figure 22: Doing Business in Mexico
Figure 23: Share of Food and Grocery in overall Retail 2014 and 2019
Figure 24: Retail Sales Value and Growth (MXN billion, %) of Food and Grocery 2014–2019
Figure 25: Spend-per-Head on Food and Grocery 2014 and 2019
Figure 26: Online Spend in Food and Grocery 2014–2019
Figure 27: Online Share of total Food and Grocery Spend 2014 and 2019
Figure 28: Spending per Channel in Food and Grocery (%) 2014 and 2019
Figure 29: Mexico Food and Grocery Retail Sales and Forecast (MXN mn), by Channel Group, 2009–2019
Figure 30: Mexico Food and Grocery Retail Market Dynamics, by Channel Group, 2009–2019
Figure 31: Mexico Food and Grocery Retail Sales and Forecast (MXN mn), by Category 2009–2019
Figure 32: Mexico Food and Grocery Retail Market Dynamics, by Category 2009–2019
Figure 33: Mexico Drinks Retail Sales and Forecast (MXN mn), by Channel Group, 2009–2019
Figure 34: Mexico Household Products Retail Sales and Forecast (MXN mn), by Channel Group, 2009–2019
Figure 35: Mexico Packaged Food Retail Sales and Forecast (MXN mn), by Channel Group, 2009–2019
Figure 36: Mexico Tobacco Retail Sales and Forecast (MXN mn), by Channel Group, 2009–2019
Figure 37: Mexico Unpackaged Food Retail Sales and Forecast (MXN mn), by Channel Group, 2009–2019
Figure 38: The Triangulated Market Sizing Methodology

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report