Prepared Meals See Strong Growth In Mexico
16 May 2013
The Prepared Meals sector of Mexico is forecast to witness a steady value Compound Annual Growth Rate (CAGR) of 1.5% in 2012-2017 and a robust volume CAGR of 2.6% for the same period, driven by a strong volume CAGR of 3.0% in the Ready Meals category.
The Ready Meals category is by far the largest in the Mexican Prepared Meals sector, with a value share of 66.9% and volume share of 56.6% in 2012, followed by the Meal Kits category with a 2012 value share of 19.9% and volume share of 32.0%, with the Pizza category in third place with a value share of 13.2% and volume share of 11.4% in 2012.
This pattern of Ready Meals standing out ahead of Meals Kits, followed by Pizza, is also true in terms of the forecast CAGR for 2012-2017 for each category in the Mexican Prepared Meals sector. Ready Meals will have a value CAGR of 1.8% and a strong volume CAGR of 3.0%, Meals Kits will witness a value CAGR of 1.4% and a volume CAGR of 2.3%, and Pizza is projected to have a smaller value CAGR of 0.5% and a volume CAGR of 1.6%.
While opportunities exist to provide time-saving meals to busy Mexican consumers with growing disposable incomes, the Prepared Meals sector actually has one of the slowest value and volume growth rates of the Food industry in Mexico. Marketers of Prepared Meals face a difficult task in convincing Mexican consumers that their products are convenient, tasty and healthy.
Convenience Stores are still the most valuable and have continued to grow
Among the Distribution Channels of the Mexican Prepared Meals sector, Convenience Stores have continued to grow and retain first place in terms of share, with Hypermarkets & Supermarkets growing at a similar rate and remaining in second place in terms of share of the Prepared Meals sector.
Food & Drinks Specialists grew at a slightly slower rate than Convenience Stores and Hypermarkets & Supermarkets, and remain in third place with less than half the Prepared Meals sector share of Hypermarkets & Supermarkets and a quarter the share of Convenience Stores.
The sector share of the Cash & Carries & Warehouse Clubs Distribution Channel witnessed little change and continues to hold a minimal share of the Mexican Prepared Meals sector.