Machinery for food, beverage and tobacco processing in Mexico – Analysis

Machinery for nutrient, drink and baccy processing in Mexico – Analysis

Headlines

• Gross saless of machinery for nutrient, drink and baccy saw current value growing of 13.0 % , to make Mx $ 14.6 billion in 2013
• Food processing machinery saw the strongest growing in 2013, lifting by 22.7 % , spurred by an impressive enlargement of foodservice ironss across the state and the uninterrupted launch of new packaged nutrient merchandises
• The Mexican local provider base for machinery for nutrient, drink and baccy remained comparatively little in 2013, as showed by the increasing incursion of foreign merchandises into Mexico
• The machinery for nutrient, drink and baccy industry is expected to see a CAGR of 1 % over 2015-2019 encouraged by the growing of nutrient and drink every bit good as nutrient service industries.

Market Tendencies

• The machinery for nutrient, drink and baccy market in Mexico was valued at Mx $ 14.6 billion, following an impressive 13.0 % slope in gross revenues in 2013. Despite a gradual diminution in production and ingestion degrees of baccy, the nutrient processing and drink industries remained comparatively strong [ 1 ] , entering steady growing over recent old ages.

  The strong development of nutrient processing and drink industries in Mexico was attributed to several factors such as the increasing production capacity, the comparatively low fabrication costs, an spread outing in-between category and altering life styles. [ 2 ]

• Food processing machinery – the largest market class – saw the strongest growing in 2013, lifting by 22.7 % to Mx $ 8.0 billion. Mexican consumers indirectly encouraged nutrient makers to put in engineering with their increasing demand for nutrient quality, good presentation and hygienic considerations. Besides, as Mexicans progressively do their nutrient shopping at supermarkets/hypermarkets instead than on smaller mercantile establishments, this has led to increased demand for new formats, greater distinction and extended shelf life.

  For case, frozen processed unbroken turning in volume footings, supported by taking retail merchants that invest in more aisle infinite with more deep-freezes. [ 3 ]

• The market growing was further encouraged by the turning demand for nutrient processing machinery from foodservice companies. For the 3rd back-to-back twelvemonth [ 4 ] consumer foodservice industry continued to turn at a rate far above that of the overall economic system. The enlargement of chained mercantile establishments clearly contributed for the healthy development of the foodservice industry. For case, the Little Caesar ‘s Pizza concatenation reached 91 mercantile establishments by the terminal of 2013, up from merely 12 mercantile establishments in 2012. [ 5 ] Leading foreign companies besides continued to put in Mexico, throughout the debut of their trade names either via franchising or by working with strong Mexican operators such as Alsea or Corporacion Mexicana de Restaurantes. 2013, for illustration, saw new high-end FSRs open such as the Capital Grille and the expected gap of the celebrated trade name The Cheesecake Factory ( Alsea ) with low-cost monetary values like other Alsea trade names such as California Pizza Kitchen or Italianni’s. [ 6 ]
• Milk and drinks treating machinery continued to make good, and grew by 8.0 % in 2013. The increasing gait of life has made consumers look for merchandises that do non necessitate much clip to fix, and companies tried to react by establishing merchandises with the extra benefit of ingredients that are perceived to be healthier. [ 7 ] Examples of this included Del Valle Bits, a milk and fruit juice drink from Jugos Del Valle and Jumex Fresh, a joint venture with Jumex and Pepsi-Cola Mexicana, which offers a combination of juice and carbonated bottled H2O. The dairy industry’s investing into the development of new merchandises supported its disbursement on milk and drink machinery.
• Contrasting with the overall market tendency, passing on baccy processing machinery declined by 9.9 % in 2013, to make Mx $ 1.5 billion. The production of baccy contracted from high 21,700 metric tons in 2004 to less than 12,000 metric tons in 2008 and 7,000 metric tons in 2010, partially due to climate alterations discernible in the provinces of Nayarit and Veracruz. Similarly, the figure of cultivated hectares, harmonizing to SAGARPA ( the Ministry of Agriculture ) , fell from 22,674 hectares in 2000 to merely 4,247 hectares in 2011. From the demand side, a similar state of affairs was discernible, as baccy ingestion has been falling over recent old ages. As a consequence, falling ingestion and production of baccy merchandises negatively wedged capital disbursement on baccy processing machinery.
• In 2013, Mexico’s machinery for nutrient, drink and baccy imports reached Mx $ 8.4 billion in 2013, after registering a growing of 26.3 % . Such growing form offers farther grounds of the attraction of Mexico for capital investing undertakings within the nutrient processing and drink industries. [ 8 ] Besides, of import factors lending to the strong growing of imports were increased demand for Latin-flavoured nutrients in the US and abroad.

Production TrendS

• The Mexican production turnover posted an 8.4 % diminution in 2013, to make Mx $ 4.8 billion. The slack recorded by the machinery for nutrient, drink and baccy industry was driven by the crisp bead of baccy processing machinery’s end product. In add-on, the industry was farther hindered by a ferocious competition from machinery imports into Mexico. [ 9 ]
• The Mexican local provider base for machinery for nutrient, drink and baccy remained little. Although entire exports rose by a rapid 31.2 % in 2013, with exports’ value at Mx $ 2.0 billion, the state maintained a monolithic trade shortage. [ 10 ]
• Despite entering a diminution of 6.8 % in value footings in 2013, the fabrication of nutrient processing machinery remained the largest gross subscriber within the Mexican industry, accounting for 51.0 % of entire turnover ( or Mx $ 2.4 billion ) . The fabrication of milk and drinks treating machinery ranked 2nd in importance, with merely 44.7 % of the turnover of domestic manufacturers in 2013 ( or Mx $ 2.1 billion ) . Although local nutrient processing and drink industries continued reacting to increased demand for specialised merchandises, Mexico’s engineering remained slightly weak, easing the entree of foreign companies [ 11 ] .
• As of 2013, 80.2 % of the industry’s costs were business-to-business provider payments. Business-to-business costs nevertheless decreased by 9.4 % during the twelvemonth, due to worsening production degrees. Meanwhile, wage and related disbursement increased by 17.5 % , reflecting a certain degree of inefficiency within the machinery for nutrient, drink and baccy industry. Unsurprisingly, mean profitableness reached 17.4 % of turnover in 2013, down by three per centum points over the old twelvemonth.

Competitive Landscape

• As of 2013, the taking companies in the industry in Japan included Middleby Marshall Inc, Tecno Maize SA de CV, Cafeteras Internacionales SA de CV, SPX Corp and Bizerba Slicers Mexico SA de CV.
• Middleby Marshall Inc is an US-based fabrication subordinate of Middleby Corp. The company manufactures and distributes a scope of cookery and warming equipment used in all types of commercial eating houses and institutional kitchens. The company ‘s porfolio includes convection ovens, baking ovens, proofers, broilers, friers, charbroilers, steam equipment, pop-up and conveyer wassailers, amongst others. It owns 19 fabrication installations in the US and 11 more internationally, located in Brazil, China, Italy, Denmark, Canada, Mexico, Philippines, Germany and France. As of 2013, Middleby Marshall employed over 4.800 workers worldwide. [ 12 ] During the twelvemonth, the company acquired the assets of Celfrost Innovations Pvt. Ltd, a preferable commercial foodservice equipment provider in India, every bit good as of Automatic Bar Controls Inc, a maker of drink distributing systems for the foodservice industry. [ 13 ]
• Tecno Maize SA de CV is a subordinate of Gruma SAB de CV, a Mexico-based prima manufacturer of maize flour and maize tortillas [ 14 ] . The company is engaged in fabrication of nutrient processing equipment, particularly for fabricating tortillas and tortilla french friess. The company distributes merchandises domestically.
• Cafeteras Internacionales SA de CV is a 100 % Mexican company, which engages in fabrication of nutrient processing machinery and equipment. The company ‘s merchandise scope includes liquidizers, java shapers, bite equipment, ranges, lubricating oil traps and ovens. It distributes merchandises domestically and exports to the US, Central America and the Caribbean.
• SPX Corp is an US-headquartered fabrication company, which manufactures nutrient processing equipment, equipment for proving and mensurating and thermic equipment. The company distributes merchandises domestically and exports over 50 % of merchandises internationally, out of which about 30 % went to emerging markets [ 15 ] . [ 16 ] . It owns 151 production installations in the US and another 21 fabrication sites across the universe, including Germany, Italy, China, Sweden, Mexico and the UK. As of 2013, the company had operations in over 35 states and employed 14,000 workers worldwide. [ 17 ]
• Bizerba Slicers Mexico SA de CV is a Mexico-based subordinate of Bizerba Group. The company specializes in fabrication of nutrient processing equipment, peculiarly slicers. Bizerba Slicers Mexico has one fabrication site in Mexico, located in San Luis Potosi.

Prospects

• The machinery for nutrient, drink and baccy industry is expected to see a farther diminution of 11.1 % in 2014, with grosss making up about Mx $ 4.3 billion. Nevertheless, some outlooks of a turnaround in the Mexican industry’s end product is anticipated for 2015-2019 as industry expected to turn by CAGR of 1.2 % , driven by Mexico’s turning appetite for healthy merchandises and advanced nutrient experiences.
• Although the market is likely to stay dependent on imports, Mexican manufacturers will easy better their places, particularly in the industry of nutrient processing equipment. This sector will stay the largest and fastest development, with CAGR of 2 % over 2015-2019
• Approved at the beginning of 2014, the new financial reform that revenue enhancements high Calorie content merchandises ( e.g. ice pick, condensed milk, and freshnesss ) is expected to bring forth new chances of growing for the machinery for nutrient, drink and baccy industry, as it is estimated to take to technological invention and new investings from big nutrient processing makers. [ 18 ]
• The foodservice industry will go on to enter healthy growing in Mexico. For case, Froots, a Florida-based fast-service wellness eating house concatenation, is expected to come in the state shortly. In 2014, the concatenation signed a trade with a group of enterprisers, which aims at opening 50 locations across the state over the following 10 old ages. [ 19 ]
• The baccy industry is besides expected to drive up grosss of the machinery for nutrient, drink and baccy industry over the forecast period. The baccy processing machinery sector’s grosss are expected to see a farther diminution in 2014, but it will bounce in 2015-2019 at a CAGR of 1 % . As baccy merchandises manufactured in Mexico can come in Canada with zero revenue enhancement due to NAFTA ( North American Free Trade Agreement ) , baccy companies such as Philip Morris and British American Tobacco are expected to put in bettering reaping techniques to increase productiveness to hold the diminution production tendency.