Processed foods industry in Mexico
The processed food market is constituted by dehydrated, frozen and refrigerated food; canned food; cereals; ice cream; pasta; sauces and dressings; snacks and other packaged products such as meat, fish, bread, dairy, candies, etc.
The Mexican processed food industry has grown steadily in recent years, mainly due to its productive capacity and agricultural resources, economic growth, competitiveness in attracting foreign companies and Mexico's capability to perform as an export platform to more than 40 countries with which the country has trade agreements.
In 2011 Mexico's processed food industry produced 119.707 billion dollars, 22.7% of the manufacturing GDP and 3.9% of the national GDP.
Mexico's exports from this industry reached 7.785 billion dollars in 2011, a 32% growth over 2010.
The main destinations were the United States, Japan and Guatemala, respectively representing 71.3%, 5.0% and 2.1%, of Mexican exports from this industry.
In 2010 Mexico was:
•The 1st sugar-free powdered cocoa exporter.
•The 3th exporter of pickled vegetables and fruits and cooked frozen strawberries.
•The 5th exporter of candies without cocoa.
•The 7th exporter of cereal-based products and cookies
Companies established in Mexico
Some of the main processed food companies established in Mexico include:
•Grupo Industrial Lala
•Grupo la Moderna
Attraction of Foreign Direct Investment
Investment in Mexico has increased due to its cost competitiveness over other countries, its privileged geographic location and skilled workforce.
In 2011, FDI reached 1.968 billion dollars, bringing the accumulated value to 21.722 billion, during the 2002-2011 period.
The processed food industry is growing in Mexico due to increased consumption, health trends and the ability to produce a wide variety of foods.
Strengths of the Mexican Processed Food Industry
According to ANUIES, there are more than 790 thousand students in engineering and technology programs in Mexico. In addition to this around 115 thousand students graduate each year from these programs.
Industry and academia have established alliances in Mexico that enable the continuous incorporation of new technologies into the food production chain.
There are more than 750 thousands engineers qualified for working in the industry which means there is a talented an experienced labor force in the processed food industry.
According to Alix Partners' study 2011 US Manufacturing Outsourcing Index , Mexico is the most competitive country in manufacturing costs, which are approximately 21% below the US, 11% below China and 3% below India.
In the processed food industry, our country offers 14.1% savings on manufacturing costs, compared to the US.
Mexico has access to the Atlantic and Pacific Oceans and is an intermediary between the North and South American markets, where growth is increasing.