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Mexico Foodservice Market Size

The Mexico Foodservice Market is experiencing significant growth, with the quick service restaurant segment holding the largest market share due to its affordability. However, this segment faces challenges such as state-imposed bans on fast-food sales to minors and taxes on sugary beverages aimed at reducing obesity rates. Meanwhile, the cloud kitchen market is rapidly expanding, driven by substantial investment from venture capitalists and a highly fragmented landscape. This growth trajectory highlights the dynamic nature of the foodservice industry in Mexico, characterized by evolving consumer preferences and regulatory challenges.

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Market Size of mexico foodservice Industry

Mexico Foodservice Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Size (2024) USD 90.43 Billion
svg icon Market Size (2029) USD 138.81 Billion
svg icon Largest Share by Foodservice Type Quick Service Restaurants
svg icon CAGR (2024 - 2029) 8.95 %
svg icon Fastest Growing by Foodservice Type Cloud Kitchen
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Mexico Foodservice Market Analysis

The Mexico Foodservice Market size is estimated at 90.43 billion USD in 2024, and is expected to reach 138.81 billion USD by 2029, growing at a CAGR of 8.95% during the forecast period (2024-2029).

90.43 Billion

Market Size in 2024 (USD)

138.81 Billion

Market Size in 2029 (USD)

10.48 %

CAGR (2017-2023)

8.95 %

CAGR (2024-2029)

Largest Segment by Foodservice Type

56.96 %

value share, Quick Service Restaurants, 2023

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The demand for convenient, affordable food options and product innovations based on trends among younger generations who are constantly on the go led to the market's growth.

Largest Segment by Outlet Type

57.25 %

value share, Independent Outlets, 2023

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A rise in tourism and the increasing number of immigrants in Mexico led to independent restaurants serving a wide range of cuisines from all over the world.

Fastest-growing segment by Foodservice Type

13.31 %

Projected CAGR, Cloud Kitchen, 2024-2029

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The rising demand for food delivery and the scalability offered by cloud kitchens have led to several investments, making it the fastest-growing segment in the Mexican market.

Fastest-growing segment by Outlet Type

9.75 %

Projected CAGR, Chained Outlets, 2024-2029

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Chained restaurants focus on increasing the number of outlets, marketing, and advertising to increase customer footprint and boost their growth.

Leading Market Player

0.68 %

market share, Arcos Dorados Holdings Inc., 2022

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The company is the world's largest McDonald's franchisee, and it operates over 2,200 McDonald's outlets in Latin America and the Caribbean, including 400 locations in Mexico.

Quick service restaurants are dominating the market due to their affordable price ranges

  • Quick service restaurants held the largest market share in the Mexican foodservice market in 2022. The segment registered a CAGR of 9.19% by value during the study period. This is because fast food options are considered more affordable meal-purchasing options in Mexico. The average order value in Mexican quick service restaurants was USD 5.15, while the same value was USD 9.51 and USD 10.43 in cafes & bars and full service restaurant segments, respectively.
  • A major challenge for the quick service restaurants segment in Mexico is the ban on fast-food sales to minors imposed by various state governments in the country. For instance, more than 50 jurisdictions in Mexico have imposed taxes on sugar-sweetened beverages during the past ten years, discouraging consumers from purchasing hazardous items. This strategy is aimed at and expected to stop 239,000 cases of obesity, almost 40% of which will occur in children. The states of Oaxaca and Tabasco passed restrictions on the sale of sugary bottled drinks and high-carbohydrate snacks in 2020, and many more states are expected to follow.
  • The Mexican cloud kitchen market is projected to grow and register a CAGR of 13.41% by value during the forecast period. The market is expected to continue its rapid growth due to continual funding by venture capitalists, private equity firms, and angel investors toward the new entrants in the market. Unlike other markets in the region, the Mexican cloud kitchen market is highly fragmented, with the top 10 chains holding only around 5% share of the market. Therefore, chained cloud kitchens are projected to register a CAGR of 15.58% by value during the forecast period.
Mexico Foodservice Market

Mexico Foodservice Industry Segmentation

Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants are covered as segments by Foodservice Type. Chained Outlets, Independent Outlets are covered as segments by Outlet. Leisure, Lodging, Retail, Standalone, Travel are covered as segments by Location.

  • Quick service restaurants held the largest market share in the Mexican foodservice market in 2022. The segment registered a CAGR of 9.19% by value during the study period. This is because fast food options are considered more affordable meal-purchasing options in Mexico. The average order value in Mexican quick service restaurants was USD 5.15, while the same value was USD 9.51 and USD 10.43 in cafes & bars and full service restaurant segments, respectively.
  • A major challenge for the quick service restaurants segment in Mexico is the ban on fast-food sales to minors imposed by various state governments in the country. For instance, more than 50 jurisdictions in Mexico have imposed taxes on sugar-sweetened beverages during the past ten years, discouraging consumers from purchasing hazardous items. This strategy is aimed at and expected to stop 239,000 cases of obesity, almost 40% of which will occur in children. The states of Oaxaca and Tabasco passed restrictions on the sale of sugary bottled drinks and high-carbohydrate snacks in 2020, and many more states are expected to follow.
  • The Mexican cloud kitchen market is projected to grow and register a CAGR of 13.41% by value during the forecast period. The market is expected to continue its rapid growth due to continual funding by venture capitalists, private equity firms, and angel investors toward the new entrants in the market. Unlike other markets in the region, the Mexican cloud kitchen market is highly fragmented, with the top 10 chains holding only around 5% share of the market. Therefore, chained cloud kitchens are projected to register a CAGR of 15.58% by value during the forecast period.
Foodservice Type
Cafes & Bars
By Cuisine
Bars & Pubs
Cafes
Juice/Smoothie/Desserts Bars
Specialist Coffee & Tea Shops
Cloud Kitchen
Full Service Restaurants
By Cuisine
Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants
By Cuisine
Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
Outlet
Chained Outlets
Independent Outlets
Location
Leisure
Lodging
Retail
Standalone
Travel
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Mexico Foodservice Market Size Summary

The Mexico foodservice market is experiencing significant growth, driven by various segments such as quick service restaurants, full service restaurants, and cloud kitchens. Quick service restaurants dominate the market, appealing to consumers with affordable meal options and convenience. Despite challenges like government-imposed restrictions on fast food sales to minors, this segment continues to thrive, with major players like Burger King and McDonald's leading the charge. Full service restaurants also hold a substantial share, with Middle Eastern cuisine emerging as a fast-growing segment due to the increasing Lebanese community in Mexico. The cloud kitchen market is rapidly expanding, fueled by investments from venture capitalists and the shift towards technology-driven dining solutions, especially post-pandemic.

The market landscape in Mexico is highly fragmented, with numerous players contributing to its dynamic nature. Companies like Alsea SAB de CV, Arcos Dorados Holdings Inc., and Yum! Brands Inc. are key participants, but the market remains open for new entrants and innovations. The average order values vary across segments, with full service restaurants offering a more upscale dining experience, while quick service restaurants cater to the demand for quick and affordable meals. The rise of e-commerce and changing consumer behaviors are further propelling the demand for quick service options and cloud kitchens, which provide restaurant-quality food in the comfort of home. This evolving market is characterized by strategic partnerships and expansions, as seen with Alsea's collaboration with Uber Direct and Papa John's new product offerings.

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Mexico Foodservice Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 Foodservice Type

      1. 1.1.1 Cafes & Bars

        1. 1.1.1.1 By Cuisine

          1. 1.1.1.1.1 Bars & Pubs

          2. 1.1.1.1.2 Cafes

          3. 1.1.1.1.3 Juice/Smoothie/Desserts Bars

          4. 1.1.1.1.4 Specialist Coffee & Tea Shops

      2. 1.1.2 Cloud Kitchen

      3. 1.1.3 Full Service Restaurants

        1. 1.1.3.1 By Cuisine

          1. 1.1.3.1.1 Asian

          2. 1.1.3.1.2 European

          3. 1.1.3.1.3 Latin American

          4. 1.1.3.1.4 Middle Eastern

          5. 1.1.3.1.5 North American

          6. 1.1.3.1.6 Other FSR Cuisines

      4. 1.1.4 Quick Service Restaurants

        1. 1.1.4.1 By Cuisine

          1. 1.1.4.1.1 Bakeries

          2. 1.1.4.1.2 Burger

          3. 1.1.4.1.3 Ice Cream

          4. 1.1.4.1.4 Meat-based Cuisines

          5. 1.1.4.1.5 Pizza

          6. 1.1.4.1.6 Other QSR Cuisines

    2. 1.2 Outlet

      1. 1.2.1 Chained Outlets

      2. 1.2.2 Independent Outlets

    3. 1.3 Location

      1. 1.3.1 Leisure

      2. 1.3.2 Lodging

      3. 1.3.3 Retail

      4. 1.3.4 Standalone

      5. 1.3.5 Travel

Mexico Foodservice Market Size FAQs

The Mexico Foodservice Market size is expected to reach USD 90.43 billion in 2024 and grow at a CAGR of 8.95% to reach USD 138.81 billion by 2029.

In 2024, the Mexico Foodservice Market size is expected to reach USD 90.43 billion.

Mexico Food Service Market Report Snapshots

Mexico Foodservice Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029