The processed food industry is constituted by the sub sectors of grain and seed milling; oil and fat sourcing; candy with and without cocoa; fruit and vegetable preserves and prepared foods; dairy; cattle and poultry meat processing; fish and seafood preparation and packaging; bread and tortillas, among others.
In Mexico, the processed food industry has reported significant growth in recent years, mainly due to its productivity and inputs availability, as well as the country's macroeconomic solidity, competitiveness to attract foreign investment and capacity to be an export platform to more than 40 countries with which it has trade agreements.
In 2014, Mexico's processed food industry produced 137.737 billion dollars, which represented 24% of the country's manufacturing GDP and 4% of its total GDP.
The main export destinations in 2014 were the United States, Japan and Canada, with shares in total Mexican exports from this industry of 67.6%, 5.5% and 2.5%, respectively.
In 2014, Mexico was ranked:
•Second exporter of powdered cocoa with sugar.
•Second largest exporter of frozen cooked strawberries.
•Fourth largest exporter of pickled fruits and vegetables.
•Fifth largest exporter of candy without cocoa.
•Fifth largest cookie exporter.
The following are some of the leading Mexican companies in the processed foods industry:
•Grupo Industrial Lala
•Ganaderos Productores de Leche Pura
•Grupo la Moderna
Investment in Mexico has increased thanks to the country's cost competitiveness compared to other countries, its geographic location and specialized workforce.
In 2014, FDI summed 433 million dollars, reaching an accumulated value of 16,392 billion dollars during the 2004-2014 period.
The growth of foreign direct investment of the industry in Mexico is believed to extend from increased consumption, health trends and the country's capacity to produce a wide variety of foods.
According to the National Association of Universities and Higher Education Institutions information, more than 60,000 higher-education students in Mexico are enrolled in agriculture, forestry and fisheries; and agro-industrial engineering and food technology programs.
In the processed foods industry, Mexico offers 9.1% savings in manufacturing costs when compared to the United States.
Mexico has access to the Atlantic and Pacific oceans and is an intermediary in the North and South American markets, where growth is increasing.