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Mexico - The Future of Foodservice to 2021

Mexico - The Future of Foodservice to 2021

Summary

Mexico is the second largest Latin American market. Stable economic growth over recent years has led the IMF to upgrade its 2017 and 2018 projections to a modest 1.7% and 2.0% respectively. This economic growth has fuelled an expanding middle class, with Mexico’s rural population decreasing as citizen’s move into the densely populated cities seeking better prospects. Unemployment stands at an impressive 4.1%, well below fellow Latin American countries such as Argentina (9.2%), Brazil (11.2%) and Chile (6.7%).

Mexico’s Quick Service Restaurants (QSR) channel is the country’s second largest profit sector channel in terms of sales value. Between 2014 and 2016, the channel saw a value growth at a CAGR of 3.7% which, while healthy, is below the profit sector average of 3.9%.

Currently, the channel is dominated by independent operators, which account for 72% of sales and 87% of outlets. However, consumers cite a general preference for chain operators, which have grown at a CAGR of 4.0% between 2014 and 2016. This growth has encouraged investment from international operators, with brands such as Subway announcing plans to open an additional 500 outlets across the country.

Full Service Restaurants (FSR) represents the largest foodservice channel in Mexico, generating revenue of MXN606.7 Billion in 2016 (or a 42.8% share of the overall profit sector). This is expected to reach MXN744.4 Billion in 2021, driven by accelerated growth over the next five years. To 2021, the FSR channel is expected to maintain its relatively strong value growth, with a CAGR of 4.2% forecast over the next five years.

The widespread availability of cheap coffee from both QSR and retail operators is likely to squeeze price-led operators, who will increasingly struggle to find a space where their value proposition can fit in the broader foodservice market. This will, in part, force incumbent players to introduce super-premium, limited-time items such as Starbucks’ 'Unicorn' Frappuccino in order to differentiate beverage offerings from what can be found inside McCafé, Oxxo and others.

The report Mexico - The Future of Foodservice to 2021 provides extensive insight and analysis of Mexico's foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following analysis -

  • Overview of Mexico’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on the Mexican foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR and Coffee & Tea Shops) within the Mexican foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer segmentation: identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Mexican population.
  • Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the Mexican foodservice market.
Companies mentioned in this report: Applebee’s, Burger King, Café Punta del Cielo, ComicX, DineEquity, Domino's Pizza, El Pollo Feliz, Finca Santa VeraCruz, Grupo Gigante, Italian Coffee Company, McDonald's, Pizza Hut, Starbucks, Subway, Teikit, Toks, Vips.

Scope
  • Mexico’s QSR channel is the country’s second largest profit sector channel in terms of sales value and saw a value growth at a CAGR of 3.7% from 2014-2016. The channel is dominated by independents, which account for 72% of sales and 87% of outlets. However, consumers cite a general preference for chains, which have grown at a CAGR of 4.0% from 2014-2016. This growth has encouraged investment from international operators, with brands such as Subway announcing plans to open additional outlets across the country.
  • The rise of casual dining outlets has driven rising visit frequency in the FSR channel. Casual dining outlets are expected to remain a popular dining solution for Mexico’s large young population, with under 29’s accounting for 53.3% of the population. These consumers’ growing interest in FSR is reflected in more visits and increased spending. The rising popularity of international cuisines and of takeaway delivery will further boost growth in FSR.
  • Mexico’s coffee and tea shop market is valued at MXN18.2, accounting for 1.3% of the overall profit sector. The channel has been one of the main beneficiaries of Mexico’s strengthening economy, with consumers finding themselves increasingly able to spend on non-essential foodservice occasions. As such, a number of operators including Tim Hortons and Dunkin’ Donuts have signalled plans to either enter or strengthen their positions in the market.
Reasons to buy
  • Specific forecasts of the Mexican foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR and Coffee & Tea Shops) will allow readers understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within the Mexican foodservice market.


  • Introduction
    • Report Guide: Main Sections
    • Report Guide: Sub-Sections
    • Executive Summary
    • Executive Summary: Consumer Trends
  • Macroeconomic context
    • Macroeconomic Overview
    • Demographic Overview: Population
    • Demographic Overview: Income Bands
  • Introducing consumer segments
    • Introducing Consumer Segments: Constructing the Segments
    • Introducing Consumer Segments
    • Introducing Consumer Segments: Frugal Convenience-Seekers
    • Introducing Consumer Segments: Time-Poor Experimenters
    • Introducing Consumer Segments: Sporadic Splurgers
    • Introducing Consumer Segments: Regimented Routiners
    • Introducing Consumer Segments: Inbetweeners
    • Introducing Consumer Segments: Key Channel Overview
  • Profit sector
    • Profit Sector Metrics
      • Table Growing consumer confidence and increasing tourism boost demand for out-of-home foodservice
    • Profit Sector: Value and Share by Channel
    • Profit Sector: Value Growth by Channel
    • Profit Sector: Outlets and Growth by Channel
    • Profit Sector: Transactions and Growth by Channel
    • Profit Sector: Operator Buying Volumes and Growth by Channel
    • Profit Sector: Channel Historic Growth Dynamics
    • Profit Sector: Channel Future Growth Dynamics
    • Profit Sector: Restaurant: Outlet-Type Growth Dynamics
      • Table Restaurant outlet types 2016 value growth
    • Profit Sector: Restaurant: Type of Ownership Growth Dynamics
      • Table Restaurant owner types 2016 value growth
  • Quick service restaurants (QSR)
    • QSR: Summary
    • QSR: Metrics: Growth Dynamics
      • Table Economic success allows families to upgrade foodservice occasions to FSR
    • QSR: Key Players
    • QSR: Key Consumers: Segment Overview
    • QSR: Key Consumers: Frugal Convenience Seekers
    • QSR: Key Consumers: Time-Poor Experimenters
    • QSR: Key Consumers: Sporadic Splurgers
    • QSR: Key Consumers: Regimented Routiners
    • QSR: Key Consumers: Inbetweeners
    • QSR: Key Consumers: Opportunity Areas
    • QSR: Why?
    • QSR: What?
    • QSR: What?: Food and Drink Splits
      • Table Carbonates maintain dominant as consumers continue to be led by indulgence
    • QSR: Where?
    • QSR: Where: Teikit Case Study
    • QSR: Where: Teikit: Trends Targeted
    • QSR: Where: Teikit: How
    • QSR: What Next?
  • Full service restaurants (FSR)
    • FSR: Summary
    • FSR: Metrics: Growth Dynamics
      • Table Growth of chains will drive slow consolidation of the highly fragmented FSR channel
    • FSR: Key Players
    • FSR: Key Consumers: Segment Overview
    • FSR: Key Consumers: Frugal Convenience Seekers
    • FSR: Key Consumers: Time-Poor Experimenters
    • FSR: Key Consumers: Sporadic Splurgers
    • FSR: Key Consumers: Regimented Routiners
    • FSR: Key Consumers: Inbetweeners
    • FSR: Key Consumers: Opportunity Areas
    • FSR: Why?
    • FSR: Why?: ComicX case Study
    • FSR: Why?: What trends did the company target?
    • FSR: Why?: What did the brand/company do to target this?
    • FSR: What?
    • FSR: What?: Food and Drink Splits
      • Table Alcoholic drinks see fastest growth as discretionary incomes rise
    • FSR: Where?
    • FSR: What Next?
  • Coffee & Tea Shops
    • Coffee & Tea Shops: Summary
    • Coffee & Tea Shops: Metrics: Growth Dynamics
      • Table Growing middle class facilitates coffee shop boom
    • Coffee & Tea Shops: Key Players
    • Coffee & Tea Shops: Key Consumers: Segment Overview
    • Coffee & Tea Shops: Key Consumers: Frugal Convenience Seekers
    • Coffee & Tea Shops: Key Consumers: Time-Poor Experimenters
    • Coffee & Tea Shops: Key Consumers: Sporadic Splurgers
    • Coffee & Tea Shops: Key Consumers: Regimented Routiners
    • Coffee & Tea Shops: Key Consumers: Inbetweeners
    • Coffee & Tea Shops: Key Consumers: Opportunity Areas
    • Coffee & Tea Shops: Why?
    • Coffee & Tea Shops: What?
    • Coffee & Tea Shops: What?: Food and Drink Splits
      • Table Alcohol trialled as operators seek to spread visits throughout the day
    • Coffee & Tea Shops: Where?
    • Coffee & Tea Shops: What Next?
  • Cost sector
    • Cost Operator Trends: Historic Growth
    • Cost Operator Trends: Future Growth
    • Cost Operators: Data Breakdown
      • Table Education leads Mexico's MXN62.8 billion cost sector
  • Appendix
    • Trade and Sectors Definitions
    • Channel Definitions
    • Other Definitions
    • Key Components - Market Intelligence

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