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Market Focus: Trends and Developments in the Bakery and Cereals Sector in Japan

Published By :


Published Date : Jul 2013

Category :

Bakery Products

No. of Pages : 42 Pages

Product Synopsis:

This report provides a concise overview of the Bakery and Cereals market in Mexico. After reading this report, you will understand the size of the market, the economic, demographic and behavioral trends which will drive its evolution, and the leading players within the market, allowing you to plan effectively for the future. 

Introduction and Landscape

Why was the report written?

This overview of the consumer and market dynamics of the Mexican Bakery and Cereals sector allows new entrants and established players to gain rapid and comprehensive insight into the current state of the market and identify the key trends which will drive growth in the coming years.

What is the current market landscape and what is changing?

Mexico\'s growing population will drive strong future growth in Bakery and Cereal categories, particularly for staple foods such as Bread and Rolls and Morning Goods, which together account for almost half of the sector by value. However, the devaluation of the Mexican Peso in 2009 caused a substantial drop in the value of the Bakery and Cereals sector measured in US dollars, even as volumes increased. Improving economic conditions will drive growth in the sector\'s value, though some categories have recovered faster than others.

What are the key drivers behind recent market changes?

A large, young and rapidly growing population and rising living standards makes Mexico a key emerging market for consumer packaged goods companies. However, the rising price of staple foods is damaging the ability of the country\'s young middle class to purchase packaged goods. Meanwhile, convenience is of growing importance in Mexican food culture, as consumers look for quick and easy meals as a result of long working hours, the loss of women at home to cook meals as they enter the workforce, or as consumers replace traditional meal times with other leisure activities.

What makes this report unique and essential to read?

This report brings together consumer insight and market data to provide a comprehensive brief of the Mexican Bakery and Cereals sector. This allows for the rapid identification of key growth opportunities across 11 Bakery and Cereal categories and their packaging.

Key Features and Benefits

  • Analysis of consumer behavior, economic conditions and demography reveals emerging opportunities in the Bakery and Cereals sector.
  • Key growth categories are highlighted by analyzing the market dynamics of 11 Bakery and Cereal categories.
  • Market shares are provided for the leading brands and private label across Bakery and Cereals categories.
  • An overview of packaging trends in the Mexican Bakery and Cereals sector is provided, including primary packaging material and type, packaging closures and outer packaging.

Key Market Issues

  • Food and Grocery sales in Mexico will increase across all channels; however, the majority of this growth will occur in modern retail chains as they expand beyond core urban centers and into smaller towns. The Food and Grocery market will consolidate as consumers continue to be attracted by the \"all under one roof\" offer and price advantage held by retailers such as Wal-Mart and Soriana.
  • Mexican consumers are increasingly looking for quick and easy meals. This is a result of long working hours, the loss of women at home to cook meals as they enter the workforce (over 40% of Mexican women are now economically active, as opposed to 32% in 1995), or as consumers replace traditional meal times with other leisure activities.
  • The value of Breakfast Cereals is growing quickly in Mexico, at a CAGR of 2.1% during 2007-2017, as a result of a combination of demand for a healthier breakfast, the influence of US culture, and the marketing power of large manufacturers.
  • Evolving consumption habits will affect demand in the Cakes, Pastries and Sweet Pies and Cookies (Sweet Biscuits) categories, where health-concerns will limit future growth, and in Cereal Bars, which are growing in popularity among busy consumers as a healthy stop-gap until they can eat a meal at a later time.
  • Bread and Rolls accounted for three-fifths of the total number of packs used in Mexico\'s Bakery and Cereals sector in 2012, driving significant demand for Flexible Packaging Bags/ Sachets with Plastic Tie closures.

Key Highlights

  • Strong macroeconomic growth is creating a large middle class with considerable buying power, particularly in urban centers such as Mexico City, Guadalajara and Monterrey. Meanwhile, over 40 million Mexicans are less than 20 years old; they have more disposable income than their parents did at their age, and have greater access to national retail chains.
  • The fragmented nature of Mexican retail, where the five leading Food and Grocery retailers account for less than half of the market, limits Private Label penetration in most sectors, including Bakery and Cereals. Furthermore, retailers in Mexico haven\'t pursued private label programs as aggressively as retailers in other regions.
  • Breakfast Cereals and Morning Goods will record the fastest growth rates in Mexico\'s Bakery and Cereals sector. This rapid growth is driven by the growing adoption of these categories as breakfast meals or as light evening meals.
  • The growing consumption of Bakery and Cereals in Mexico means demand for all pack materials and types will increase between 2012 and 2017. However, demand for Flexible Plastic packaging, often with Paper and Board outers, will rise particularly quickly as a result of the steadily rising consumption of Breakfast Cereals and rapid growth in consumption of Energy Bars.
  • The demand for Baking Ingredients will decline as busy consumers will increasingly seek out ready-made cakes and pastries. Baking Ingredients and Baking Mixes will record the lowest growth rates within the Bakeryand Cereals sector between 2012 and 2017.
Table of Content

Country context 
  • Japan presents a lucrative grey market because of its fast growing ageing population 
  • Food price inflation set to rise after several years of deflation 
  • Hypermarkets and Supermarkets account for majority of Food and Grocery sales 
  • Busy lives and the increasing number of single person households is driving change in Japanese eating habits 

Sector Analysis 
  • Changing demographics and busy lives are driving growth in Japan\'s Bakery and Cereals sector 
  • New product development is targeting women and addressing health concerns 
  • Breakfast Cereals and Cereal Bars are driving growth in the Bakery and Cereals market 
  • Bakery and Cereals sales in Japan is likely to record lower growth in US dollar terms during 2012-2017 because of the weaker Yen 
  • Increased demand for family packs and private label biscuits to drive growth in the Cookies category 

Brands and Private Labels 
  • Private label penetration is highest in the Bread and Rolls category 
  • Private label brands promoted by the major retailer chains are driving growth in the Cookies and Bread and Rolls categories 

Packaging Insight 
  • Bakery products are driving demand for Flexible Packaging Bags and Sachets 
  • Sustainable packaging to remain in major focus in Japan; Bag/ Sachet to increase its share as the most preferred packaging type for Bakery and Cereals 

Future Outlookfour key trends in Japan\'s Bakery and Cereals sector 
  • Continued volatility in commodity prices is impacting profitability 
  • Japan\'s aging population driving new product formulation 
  • Demand for smaller and re-sealable packaging is on the rise 
  • Cereals are a key opportunity to provide nutritional benefits 

Data Appendix and Summary Methodology 

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