Growing Affordability of Dairy Products and age-specific benefits will drive consumption by Mexican Consumers

Tuesday 27 August 2013, Amsterdam

The growing disposable income and the development of new products such as drinkable yogurts has driven the Dairy sector’s growth in Mexico, along with the distribution of Dairy Foods in convenience stores. The Dairy Food market in Mexico is expected to grow at a CAGR of 4.3%during 2012-2017, according to leading consumer specialist Canadean’s latest report: ‘The Market Focus: Trends and Developments in the Dairy Food Sector in Mexico’. In order to take full advantage of this vast market potential, those involved the in the Dairy Food sector must remain sensitive to consumer demand, and the relationship between this demand and trends and developments.


Convenient Stores dominate the Mexican Dairy Food Market.

Hypermarkets & Supermarkets are the leading retailer of Food in Mexico, accounting for 35% of Food retails sales in the country, followed by Food & Drink Specialists and Convenience Stores, with a 31% share each.

In contrast, Convenience Stores are more important in Dairy Food distribution, with a 44.4% share of retail sales in Mexico in 2012, while Food & Drinks Specialists and Hypermarkets & Supermarkets are the next important channels with a share of 27.5% and 24.9% respectively.
The importance of Hypermarkets & Supermarkets and Convenience stores is likely to increase as Mexico’s growing young and urban population drive the expansion of modern retail chains in the country.


The Demand for Dairy products is driven by health-conscious consumers.

The Demand for Dairy products in Mexico is driven by two conflicting consumer trends: providing health and wellness products is paramount for health-conscious customers, yet the same consumers often see products such as Flavored Milk and Frozen Yogurt s as special treats.
          
Rising numbers of overweight and obese Mexicans means consumers are increasingly evaluating their diets. Growing health-consciousness among Mexicans and an increase in dietary awareness will result in the growing demand for reduced-fat and reduced or “no sugar” Dairy Food versions. An example of a healthy, yet tasty treat would be Yakult Mexico, which offers the Sofúl set yogurt and drinkable yogurt in its line-up.


Age-specific dairy products are a growing phenomenon in Mexico

Age-specific dairy products are a growing phenomenon in the Mexican Dairy market because of different health concerns among different age groups. Products targeting older consumers provide them with the required calcium, vitamin D and other nutrients needed as a preventative health measure as they age, while products targeting the younger generation provide them with taste and flavor with added vitamins and nutrients to help them grow strong and healthy. These diverse requirements among different age-groups will provide new challenges and opportunities for dairy producers.

An example of a popular age-specific dairy product is Alpura, a diary product manufacturer in Mexico, offers 40ytantos –fortified milk with omega3 and various other antioxidants to help avoid heart related and premature ageing problems among the people with over 40 years of age.

The company also offers special products for children, like Alpura Kids Honey Cereal. Though these products are still niche products, their volumes are expected to register higher growth as they offer age-specific benefits.

The report is a result of an extensive research covering the Dairy Food market.

It offers:

•Analysis of consumer behaviour, economic conditions, and demography reveals emerging opportunities in the Dairy Food Sector.
•Key growth categories by analysing the market dynamics of major Dairy Food categories.
•Market shares for the leading brands and private labels across Dairy Food categories.
•An overview of packaging trends in the Mexican Dairy Food, including primary packaging material and type, packaging closures, and outer packaging.
•The relationship between consumer Dairy Food demands and the dynamics between different Dairy Food types.
•Understanding of trends and the key drivers behind recent market changes.

This will facilitate:

•Clear identification of promising areas for future growth, both in terms of innovative products and lucrative geographies.
•Proper understanding of shifting market dynamics to ensure maximum sales.
•An insight into the complex picture of consumption’s variation between product categories.
•Explicit understanding of the relationship between key drivers of consumer demand in the Ice Cream market.