Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Breakdown by health and wellness category; Breakdown by packaged food sector
Executive summary
2. EXECUTIVE SUMMARY
Health and wellness food gains share in packaged foods
The rising awareness of health and wellness food in Mexico contributed to a
value sales decline of 1% in the overall packaged foods industry between 2002
and 2005. A wider array of better-for-you products and relative stability in
the country drove a good performance especially in dairy, bakery and spreads.
Reduced-fat and reduced-sugar became the most sought-after products by
consumers concerned with their weight. Organic foods still stir confusion, as
they are a fairly new concept in the market.
Obesity and diabetes are now serious problems
Obesity has reached epidemic proportions in Mexico. Nowadays many people are
diagnosed as overweight or obese regardless of age and income level. Current
lifestyles full of stress, long commutes, and lack exercise contribute to an
increasing demand for convenience, resulting in dietary problems.
Unfortunately, many children in urban areas are affected. They have easy
access to food low in nutritional value and high in fat and sugar. To make
matters worse, playtime consists of sedentary activities such as watching
television and playing video games.
The government, the food industry and private institutions are joining forces
to fight obesity in the form of awareness campaigns on healthy eating,
education programmes, grants and the introduction of better-for-you foods in
the market.
The rise of functional ingredients
The current health and wellness trend has provided opportunities for food
innovation in the form of added ingredients with functional claims. Fibre and
linseed are now popular in milk, yoghurt, cereals, biscuits and sweet snacks.
Producers highlight these ingredients to grab the attention of consumers and
to build a position as providers of healthy foods. Other ingredients making
their way into health and wellness foods are nopal (cactus) and aloe vera.
Fortification becoming stronger than ever
Fortification of some foods, such as flour, has been practiced for at least 20
years to meet the nutritional needs of low-income populations and of children.
Consequently, fortified bread, cereals, powder milk and biscuits have been
present on shelves for some time, as they are made from fortified flour. The
recent global trend towards health and wellness foods motivated many food
producers to make fortification claims on their packaging. This is evident,
for example, in cereals where most brands bear a prominent logo listing the
vitamins and minerals added.
Several brands of pasta, milk, yoghurt, powder flavoured milk and snack bars
are now strongly advertising their fortification claims. This trend is likely
to spread to other packaged food subsectors in the coming years.
Consumer education and lower prices are important factors for success
Health and wellness foods are becoming widely accepted among younger
population groups. One reason for this is novelty, another is the high level
of exposure young people have to global health and wellness trends via the
mass media and the internet. A large number of gyms and sports centres have
opened around the country. The media now increasingly portrays young men and
women engaged in sports, leading healthy lifestyles. Older generations, in
contrast, are very traditional and have difficulty accepting health and
wellness foods unless they are explicitly positioned to relieve ailments, such
as high cholesterol, diabetes or heart disease.
Unfortunately, most of the better-for-you and organic products are only
affordable to consumers with higher disposable incomes. The unprivileged do
not have easy access to healthier foods. The government is working closely
with low-income and rural communities to create awareness on healthy eating
and to provide them with nutritious food options. However, it is an arduous
task, requiring high investment in terms of monetary resources and time. It
will take years before consumers from this segment will benefit from health
and wellness foods.