ProMéxico MIM


 

Processed food industry in Mexico

The processed food industry is constituted by the sub sectors of grain and oilseed milling; sugar and confectionery products; fruit and vegetable preserving and specialty food; dairy products; animal slaughtering and processing; fish and seafood product preparation and packaging; bakeries and tortillas; animal food; and other food manufacturing.

In Mexico, the processed food industry has grown in recent years, mainly due to its productivity and inputs availability, as well as the country's macroeconomic solidness, competitiveness to attract foreign investment and capability to be an export platform to more than 40 countries with which it has free trade agreements.

In 2016, Mexico's processed food industry produced 104.1 billion dollars, which represented 16.1% of the country's manufacturing production and 5.8% of its total production.


The main export destinations in 2016 were the United States, Venezuela, and South Africa, with shares in total Mexican exports from this industry of 64.9%, 3.0% and 2.6% respectively.



In 2016, Mexico was ranked:

• Second exporter of powdered cocoa with sugar;

• Third exporter sweet cookies and decaffeinated non-toasted coffee;

• Forth exporter of confectionery products.

Companies Established in Mexico

The following are some of the leading companies in the processed food industry located in Mexico:

• Bimbo;

• Sigma Alimentos;

• Gruma;

• Lala;

• Bachoco;

• Nestlé Mexico;

• SuKarne;

• Pilgrim's Pride Mexico;

• Danone Mexico;

• Mondeléz Mexico.

Foreign Direct Investment Attraction

Investment in Mexico has increased due to the country's cost competitiveness compared to other countries, its geographic location and skilled workforce.

According to the Secretariat of Economy, in 2016, FDI summed 790 million dollars, summing 6.4 billion dollars during the 2010-2016 period.

The attraction of foreign direct investment of the industry in Mexico is the result of the evolution on consumption, health trends and the country's capability to produce a wide variety of food products.

Strengths of the Industry in Mexico

• Skilled Workforce: According to the National Association of Universities and Higher Education Institutions (ANUIES) information, in 2016 more than 11 thousand students graduated from programs related to agronomy, forestry and fishing, as well as food industry manufacturing and processing. In Mexico, during the 2016-2017 school year, more than 82 thousand students were enrolled in such programs.

• Competitive Costs: In the processed food industry, Mexico offers 11.1% savings in manufacturing costs when compared to the United States.



• Geographic Location: The country has access to the Atlantic and Pacific oceans and is an intermediary in the North and South American markets, where growth is increasing.