Foodservice Profile Mexico 2012 Report
Executive Summary
Mexico is home to 113 million inhabitants (INEGI, 2011) and is Latin America's second-largest economy, behind Brazil. The country's proximity to the United States (U.S.), has allowed it to experience significant trade with this global superpower, accelerating Mexico's development. Since the implementation of the North American Free Trade Agreement (NAFTA), Mexico has seen consistent growth and a steady increase in purchasing power. Growing levels of education have led to higher-paying jobs for Mexican consumers, which has contributed to a growing consumer market.
However, as a result of the global recession, the country's dependence on trade with the U.S., together with the depreciation of the peso, have harmed the Mexican economy and hampered its growth. This has caused the country to suffer its deepest recession since the mid-1990s. In fact, the economic downturn has affected Mexico's economy so strongly that it is said to have suffered more than almost any other Latin American country.
Despite Mexico regaining a positive gross domestic product (GDP) in 2010, the consumer foodservice (CFS) industry continues to struggle. Lingering effects of the global recession and growing insecurity in the country have harmed the potential growth in Mexico's CFS industry. Consumers continue to be cautious with their spending, and while the industry is expected to return to pre-crisis levels, only certain channels, such as the fast food category, will see significant positive growth in the near future.
The tourism industry represents 15% of Mexico's GDP (Datamonitor), and in 2010, 22.4 million tourists from around the world visited Mexico, making it the world's 10th-largest tourist destination (World Tourism Organization). While this is a strong position, it is lower than in previous years, when Mexico ranked as high as 7th (2007). The recession and drug-related crime have contributed to a negative perception of Mexico, impacting tourist gains. The Mexican government has implemented the "Programa Mundo Maya" in an effort to strengthen and attract more tourists. The program aims to position Mexico as a top tourist destination by promoting cultural and ecological tourism in the country (Secretaria de Turismo). However, the economic climate and safety measures will decide the fate of many of Mexico's travel and tourism companies and thus, the foodservice operators that depend on them.
