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.
- 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.
- 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.
GDP and Consumer Price Index
Population and demographic highlights
Annual household income distribution
Introducing the Consumer Segments
Consumer segment profiles and key identification metrics
Segment engagement overview in four key profit sector channels
Profit Sector Metrics
Key metric highlights
Value share and growth by channel
Outlets and transactions growth by channel
Operator buying volumes and growth by channel
Channel historic and future growth dynamics
Outlet type and type of ownership growth dynamics
Profit Sector by Channel
Quick Service Restaurants (QSR)
Summary and key take-out
Full Service Restaurants (FSR)
Summary and key take-out
Coffee and Tea Shops
Summary and key take-out
Cost Sector Metrics
Cost operator trends - historic and future growth
Data and channel share breakdown