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Food Processing in Mexico Final Customers Identification

Customers Categorization

Based on the analysis of the value chain in the Mexican food processing industry, the final customers can be categorized into two primary segments: Business-to-Business (B2B) and Business-to-Consumer (B2C).

The B2C segment primarily interacts with the Commercialization/Retail stage of the value chain. This segment consists of individual consumers who purchase processed food products for personal or household consumption. They access these products through various retail channels.

The B2B segment primarily interacts with the Food Service (HRI - Hotels, Restaurants, and Institutions) stage of the value chain, and also includes some interactions with the Commercialization/Retail stage (e.g., processors selling to smaller independent stores). However, the Food Service segment is the most direct B2B final customer group described, comprising businesses that purchase processed food products as ingredients or ready-to-serve items to then sell meals or food services to their own customers (the final consumers).

Detailed report on final customers categorized into B2B and B2C segments.

B2C Customers

The B2C customers in the Mexican food processing value chain are the general public, individual consumers across various demographics and geographic locations within Mexico. They are the ultimate recipients of processed food products after they have moved through the primary production, processing, distribution, and retail stages.

Characteristics and Demographics:

  • Diverse Demographics: Mexico has a large and diverse population, resulting in a wide range of consumer preferences, dietary habits, and purchasing powers.
  • Geographic Distribution: Consumers are located across urban, suburban, and rural areas, with varying levels of access to different retail channels. Traditional markets and small 'tienditas' are particularly important in local communities, while supermarkets and convenience stores have a strong presence in urban and suburban areas.
  • Purchasing Behavior: Purchasing decisions are influenced by factors such as price, brand recognition, product availability, convenience, health considerations, and cultural preferences. The growing demand for healthier options, natural and organic products, and convenient ready-to-eat meals reflects evolving consumer trends. [Context]
  • Access Points: B2C customers access processed food products through a variety of channels including large Supermarkets and Hypermarkets (like Walmart, Soriana), numerous Traditional Stores ('tienditas'), Public and Open-Air Markets ('mercados' and 'tianguis'), and Convenience Stores (such as OXXO).
  • Volume and Value: The food retail industry, which directly serves the B2C segment, reached $82.2 billion in sales in 2023, indicating the significant aggregate purchasing volume and value of this customer segment.

B2B Customers

The primary B2B customers at the final stages of the food processing value chain are the businesses within the Food Service (HRI) sector. These entities purchase processed food products as inputs for their own operations.

Characteristics and Demographics:

  • Segments within HRI: The B2B customers in this segment include a wide range of establishments:
    • Restaurants: This is a broad category encompassing Quick-Service Restaurants (QSRs) like fast-food chains (e.g., those operated by Arcos Dorados and Alsea) as well as casual dining and fine dining establishments. Their needs vary based on their menu, volume, and operational complexity.
    • Hotels: Hotels with food and beverage services, including restaurants, room service, and banquet facilities, are also significant B2B customers.
    • Institutions: This includes entities like schools, hospitals, corporate cafeterias, and other organizations that provide meals on a large scale, often through catering services.
  • Purchasing Needs: B2B customers in the HRI sector typically require processed food products in bulk packaging, specific formulations (e.g., ready-to-use sauces, pre-portioned items), and consistent quality to ensure uniformity in their own offerings. Adherence to strict food safety standards and reliable delivery schedules are crucial.
  • Commercial Relationships: Relationships with B2B customers, especially large restaurant chains or hotel groups, often involve negotiated contracts, customized product offerings, and dedicated sales and distribution channels from processors or specialized food service distributors.
  • Market Size: The food service market in Mexico, which represents the spending by these B2B customers on food products (both processed and fresh), was valued at $83.13 billion in 2023 and is projected to grow. This highlights the substantial demand from this B2B segment.
  • Influence on Processors: The demands and specifications of the HRI sector can influence product development and packaging formats within the food processing industry.

In addition to the HRI sector, other B2B customers at the "final customer" end of the processed food spectrum could include smaller, independent retailers or institutions that purchase directly from processors or wholesalers rather than exclusively through large retail chains or specialized food service distributors. However, the provided text focuses more on the distinct HRI sector as a final consumption point outside of household retail.

References:

  • Industria Alimentaria: Salarios, producción, inversión, oportunidades y complejidad | Data México. (https://datamexico.org/es/profile/subsector/food-manufacturing)
  • Inside Mexico's Processed Food Industry - MEXICONOW. (https://mexiconow.mx/article/inside-mexicos-processed-food-industry)
  • Mercado de Servicios de Alimentos de México ANÁLISIS DE TAMAÑO Y PARTICIPACIÓN TENDENCIAS DE CRECIMIENTO Y PRONÓSTICAS HASTA 2029 - Mordor Intelligence. (https://www.mordorintelligence.com/es/industry-reports/mexico-food-service-market)
  • Mexico Foodservice Market Size & Share Analysis - Industry Research Report - Growth Trends - Mordor Intelligence. (https://www.mordorintelligence.com/industry-reports/mexico-foodservice-market)
  • Report Name: Food Processing Ingredients Annual - USDA Foreign Agricultural Service. (https://www.fas.usda.gov/data/mexico-food-processing-ingredients-annual-14)
  • Report Name: Food Processing Ingredients Annual. (https://www.fas.usda.gov/data/mexico-food-processing-ingredients-annual-15)
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  • Mexico's Top 10 Food & Beverage Companies - EssFeed. (https://essfeed.com/business/mexicos-top-10-food-beverage-companies/)
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  • Report Name: Food Processing Ingredients Annual. (https://www.fas.usda.gov/data/mexico-food-processing-ingredients-annual-16)
  • Cosechando Números del Campo 02: Registra industria alimentaria de México crecimiento de 2.49% en el cuarto trimestre de 2024 | Secretaría de Agricultura y Desarrollo Rural | Gobierno. (https://www.gob.mx/agricultura/prensa/cosechando-numeros-del-campo-02-registra-industria-alimentaria-de-mexico-crecimiento-de-2-49-en-el-cuarto-trimestre-de-2024)