Dairy in Mexico

Dairy in Mexico

Prospects
Pre-packaged formats of cheese expected to gain share
Sales of pre-packaged cheese are expected to maintain dynamic growth over the forecast period as retailers favour these formats and consumers become used to the convenience they offer. Over the review period, it has been observed that major retail chains have either eliminated or significantly reduced the space they previously had for unpackaged cheese.

Product innovation to be driven by convenience
Over the forecast period, product innovation is expected to be observed mainly among pre-packaged cheese. This has been the case over the review period, with relevant innovations including improved resealable packs, and the offer of a wider range of sizes that run from 200g to 1kg.

Competitive Landscape
Sigma Alimentos leads sales of cheese in Mexico
In 2018, Sigma Alimentos led sales of cheese, closely followed by Grupo Lala. While Sigma Alimentos has a strong presence in hard cheese with brands such as Noche Buena, Fud and Franja, Grupo Lala offers the brands Lala, Los Volcanes and some of Nestlé’s cheese brands that Grupo Lala manufactures and distributes under licence.

Mexico sets import tariffs to cheese from the US
In May 2018, the US imposed tariffs on Mexican imports of steel and aluminium, under its national security strategy. In response to this measure, Mexico set tariffs on specific products from the US, including among others, pork legs and shoulders, sausages, apples, blueberries, and various cheeses.

The brand Carranco is expected to increase its presence
In the second half of 2017, the cheese manufacturer Carranco, a company located in San Luis Potosí, reached an investment agreement with Ganaderos Productores de Leche Pura (Alpura). The latter is one of largest groups of ranchers in the country and has a well-developed distribution network with national coverage.

Prospects
Shelf stable formats to increase their share
Over the forecast period, shelf-stable formats are expected to continue gaining share from fresh milk. Although in 2018, both shelf stable and fresh milk have a positive perception among consumers in terms of freshness and quality, shelf stable milk is perceived as more convenient for busy lifestyles.

Milk alternatives to sustain dynamic growth
Milk alternatives is expected to remain the fastest growing category over the forecast period. This category includes beverages explicitly positioned as milk substitutes that are not actually dairy-based, typically derived from grains or nuts, such as rice milk, oat milk or almond milk.

Competitive Landscape
Grupo Lala leads sales of drinking milk products
Sales of drinking milk products are led by Grupo Lala which offers a wide product portfolio through a well-developed distribution network. The company has national coverage and has a long tradition in the country offering well-positioned brands.

Drinking milk products to remain a priority within social programmes
Despite the uncertainty about the changes that might be observed in public policy, over the forecast period drinking milk products are expected to remain a strategic part of social programmes. The Mexican government runs a milk subsidy programme operated by Liconsa, a government-run company that reports to the Ministry of Social Development.

Prospects
Product innovation expected to continue driving category value
Sales of yoghurt are likely to observe further product innovation over the forecast period as companies develop more sophisticated products that might add value to the category. Examples of this observed over the review period include the premiumisation of products by focusing on protein content, and the inclusion of grains, honey, and healthy toppings that include nuts, seeds, chocolate and dried fruit, among other healthy ingredients.

Greek yoghurt gains share among other yoghurt alternatives
Over the review period, Greek yoghurt continued gaining share within sales of yoghurt, as it is widely perceived as healthier and tastier than other products. The good performance of Greek yoghurt, despite being higher priced than most alternatives, is explained by the noticeable increase in availability, as many companies launched their own Greek yoghurt brands.

Competitive Landscape
Grupo Lala leads sales of yoghurt
In 2018, sales of yoghurt were led by Grupo Lala SAB de CV, also the leading player in drinking milk products. The company has a well-developed distribution network with national coverage, and has a wide product portfolio that includes milk, yoghurt, cheese and cream among others.

Product differentiation is strongly determined by price
In 2018, the offer of yoghurt is clearly differentiated by price band. Premium positioning includes Greek yoghurt versions, imported brands, some fruited brands, and most yoghurts with a functional positioning.

Prospects
Health trends to drive innovation
Over the forecast period, sales of other dairy products are likely to be fuelled by product innovation mainly resulting from health trends. However, other dairy is already mature, and it is not expected to see dynamic growth resulting from minor innovations.

Product differentiation as a strategy for growth
In such mature categories, product differentiation is likely to become the main strategy of brands to stand out and increase their share. Differentiation might come from packaging, either by changing the formats, the labelling or by offering multipacks at more attractive prices.

Competitive Landscape
Nestlé Mexico leads sales of other dairy products
In 2018, sales of other dairy products were led by Nestlé México, which has a presence in several categories such as condensed milk, coffee whiteners, cream, and fromage frais and quark. The company owns well-positioned brands such as Carnation, La Lechera and Coffee-Mate, which dominate the condensed milk and coffee whiteners categories, respectively.

Companies leverage their brands and expand their product portfolios
As companies look to increase their share in mature categories, they explore the possibility of using their already positioned brands to launch new products. This was the case for several new launches observed over the review period within other dairy products.

Modern grocery retailers expected to gain share
Sales of other dairy products through modern retailers are expected to gain share over the forecast period as they continue to increase their presence in the country. Over the review period, modern retailers have observed faster development in terms of outlets, when compared to traditional grocery retailers.


Dairy in Mexico - Category analysis
Butter and Spreads
HEADLINES
PROSPECTS
Sales of margarine are expected to slow down
Butter to enjoy improved perception
Modern grocery retailers expected to gain share
COMPETITIVE LANDSCAPE
ACH Foods remains leader in sales of butter and spreads
Commercial uncertainty may impact price of butter
CATEGORY DATA
Table 1 Sales of Butter and Spreads by Category: Volume 2013-2018
Table 2 Sales of Butter and Spreads by Category: Value 2013-2018
Table 3 Sales of Butter and Spreads by Category: % Volume Growth 2013-2018
Table 4 Sales of Butter and Spreads by Category: % Value Growth 2013-2018
Table 5 NBO Company Shares of Butter and Spreads: % Value 2014-2018
Table 6 LBN Brand Shares of Butter and Spreads: % Value 2015-2018
Table 7 Distribution of Butter and Spreads by Format: % Value 2013-2018
Table 8 Forecast Sales of Butter and Spreads by Category: Volume 2018-2023
Table 9 Forecast Sales of Butter and Spreads by Category: Value 2018-2023
Table 10 Forecast Sales of Butter and Spreads by Category: % Volume Growth 2018-2023
Table 11 Forecast Sales of Butter and Spreads by Category: % Value Growth 2018-2023
Cheese
HEADLINES
PROSPECTS
Pre-packaged formats of cheese expected to gain share
Product innovation to be driven by convenience
COMPETITIVE LANDSCAPE
Sigma Alimentos leads sales of cheese in Mexico
Mexico sets import tariffs to cheese from the US
The brand Carranco is expected to increase its presence
CATEGORY DATA
Table 12 Sales of Cheese by Category: Volume 2013-2018
Table 13 Sales of Cheese by Category: Value 2013-2018
Table 14 Sales of Cheese by Category: % Volume Growth 2013-2018
Table 15 Sales of Cheese by Category: % Value Growth 2013-2018
Table 16 Sales of Spreadable Processed Cheese by Type: % Value 2013-2018
Table 17 Sales of Unprocessed Cheese by Type: % Value 2013-2018
Table 18 NBO Company Shares of Cheese: % Value 2014-2018
Table 19 LBN Brand Shares of Cheese: % Value 2015-2018
Table 20 Distribution of Cheese by Format: % Value 2013-2018
Table 21 Forecast Sales of Cheese by Category: Volume 2018-2023
Table 22 Forecast Sales of Cheese by Category: Value 2018-2023
Table 23 Forecast Sales of Cheese by Category: % Volume Growth 2018-2023
Table 24 Forecast Sales of Cheese by Category: % Value Growth 2018-2023
Drinking Milk Products
HEADLINES
PROSPECTS
Shelf stable formats to increase their share
Milk alternatives to sustain dynamic growth
COMPETITIVE LANDSCAPE
Grupo Lala leads sales of drinking milk products
Drinking milk products to remain a priority within social programmes
CATEGORY DATA
Table 25 Sales of Drinking Milk Products by Category: Volume 2013-2018
Table 26 Sales of Drinking Milk Products by Category: Value 2013-2018
Table 27 Sales of Drinking Milk Products by Category: % Volume Growth 2013-2018
Table 28 Sales of Drinking Milk Products by Category: % Value Growth 2013-2018
Table 29 NBO Company Shares of Drinking Milk Products: % Value 2014-2018
Table 30 LBN Brand Shares of Drinking Milk Products: % Value 2015-2018
Table 31 Distribution of Drinking Milk Products by Format: % Value 2013-2018
Table 32 Forecast Sales of Drinking Milk Products Products by Category: Volume 2018-2023
Table 33 Forecast Sales of Drinking Milk Products Products by Category: Value 2018-2023
Table 34 Forecast Sales of Drinking Milk Products Products by Category: % Volume Growth 2018-2023
Table 35 Forecast Sales of Drinking Milk Products Products by Category: % Value Growth 2018-2023
Other Dairy
HEADLINES
PROSPECTS
Health trends to drive innovation
Product differentiation as a strategy for growth
COMPETITIVE LANDSCAPE
Nestlé Mexico leads sales of other dairy products
Companies leverage their brands and expand their product portfolios
Modern grocery retailers expected to gain share
CATEGORY DATA
Table 36 Sales of Other Dairy by Category: Volume 2013-2018
Table 37 Sales of Other Dairy by Category: Value 2013-2018
Table 38 Sales of Other Dairy by Category: % Volume Growth 2013-2018
Table 39 Sales of Other Dairy by Category: % Value Growth 2013-2018
Table 40 Sales of Cream by Type: % Value 2013-2018
Table 41 NBO Company Shares of Other Dairy: % Value 2014-2018
Table 42 LBN Brand Shares of Other Dairy: % Value 2015-2018
Table 43 Distribution of Other Dairy by Format: % Value 2013-2018
Table 44 Forecast Sales of Other Dairy by Category: Volume 2018-2023
Table 45 Forecast Sales of Other Dairy by Category: Value 2018-2023
Table 46 Forecast Sales of Other Dairy by Category: % Volume Growth 2018-2023
Table 47 Forecast Sales of Other Dairy by Category: % Value Growth 2018-2023
Yoghurt and Sour Milk Products
HEADLINES
PROSPECTS
Product innovation expected to continue driving category value
Greek yoghurt gains share among other yoghurt alternatives
COMPETITIVE LANDSCAPE
Grupo Lala leads sales of yoghurt
Product differentiation is strongly determined by price
CATEGORY DATA
Table 48 Sales of Yoghurt and Sour Milk Products by Category: Volume 2013-2018
Table 49 Sales of Yoghurt and Sour Milk Products by Category: Value 2013-2018
Table 50 Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2013-2018
Table 51 Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2013-2018
Table 52 Sales of Flavoured Yoghurt by Flavour: Rankings 2013-2018
Table 53 NBO Company Shares of Yoghurt and Sour Milk Products: % Value 2014-2018
Table 54 LBN Brand Shares of Yoghurt and Sour Milk Products: % Value 2015-2018
Table 55 Distribution of Yoghurt and Sour Milk Products by Format: % Value 2013-2018
Table 56 Forecast Sales of Yoghurt and Sour Milk Products by Category: Volume 2018-2023
Table 57 Forecast Sales of Yoghurt and Sour Milk Products by Category: Value 2018-2023
Table 58 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Volume Growth 2018-2023
Table 59 Forecast Sales of Yoghurt and Sour Milk Products by Category: % Value Growth 2018-2023
Packaged Food in Mexico - Industry Overview
EXECUTIVE SUMMARY
Packaged food registers sustained growth
More people eating outside of the home shapes the offer of products
International trade policy is a source of uncertainty
Modern retailers favour packaged over unpackaged food
Positive performance expected
FOODSERVICE
Sales to Foodservice
Bread to remain the most important category in terms of volume
Leaders in retail sales of packaged food to dominate sales to foodservice as well
Client service to stir competition within sales to foodservice
Consumer Foodservice
Online ordering and delivery services gain relevance
Independent restaurants to remain tough competitors
Good prospects for consumer foodservice
CATEGORY DATA
Table 60 Foodservice Sales of Packaged Food by Category: Volume 2013-2018
Table 61 Foodservice Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 62 Forecast Foodservice Sales of Packaged Food by Category: Volume 2018-2023
Table 63 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2018-2023
MARKET DATA
Table 64 Sales of Packaged Food by Category: Volume 2013-2018
Table 65 Sales of Packaged Food by Category: Value 2013-2018
Table 66 Sales of Packaged Food by Category: % Volume Growth 2013-2018
Table 67 Sales of Packaged Food by Category: % Value Growth 2013-2018
Table 68 GBO Company Shares of Packaged Food: % Value 2014-2018
Table 69 NBO Company Shares of Packaged Food: % Value 2014-2018
Table 70 LBN Brand Shares of Packaged Food: % Value 2015-2018
Table 71 Penetration of Private Label by Category: % Value 2013-2018
Table 72 Distribution of Packaged Food by Format: % Value 2013-2018
Table 73 Distribution of Packaged Food by Format and Category: % Value 2018
Table 74 Forecast Sales of Packaged Food by Category: Volume 2018-2023
Table 75 Forecast Sales of Packaged Food by Category: Value 2018-2023
Table 76 Forecast Sales of Packaged Food by Category: % Volume Growth 2018-2023
Table 77 Forecast Sales of Packaged Food by Category: % Value Growth 2018-2023
DEFINITIONS
SOURCES
Summary 1 Research Sources

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