Mexico's Food Delivery Industry on the Rise
Mexico's food delivery market is experiencing significant growth, projected to reach 165 billion Mexican pesos by 2029. This growth is accompanied by an increase in consumer behavior trends such as take away and food delivery services.
Riley Harper
- 2024-01-06
- Updated 12:00 AM ET
(NewsNibs) - The food delivery sector in Mexico is seeing an uptick in competition, with various companies vying for a larger share of the market. This surge is driven by a combination of factors, including the rising demand for convenience among consumers and the increasing penetration of digital platforms facilitating these services. The industry's growth trajectory indicates a wider acceptance and reliance on food delivery options, fundamentally reshaping the landscape of food service in the country. Beyond the convenience for consumers, these services are becoming a vital component of restaurant revenues. The Director of Research and Development at Napse emphasized the critical nature of food delivery services, which Canirac reports can account for 20 to 80 percent of a restaurant's income.
Cultural Celebrations Boost Food Services
Marker events in the Mexican calendar, such as Día de Reyes on January 6th, showcase the potential for seasonal spikes in the food delivery and take away sectors. During these observances, specialty items like the "rosca de Reyes" become sought-after products, offering opportunities for businesses to cater to these culturally ingrained demands. In turn, customers increasingly turn to take away services to partake in the traditions from the comfort of their homes.
As users become more accustomed to digital convenience, expectations from digital services, including speed and efficiency of payment processes, are also escalating. This sensitivity towards payment experiences is prompting companies within the food delivery industry to continuously innovate and improve their digital transaction systems. Additionally, user engagement with food delivery platforms has shown a remarkable increase, as evidenced by a 156 percent user growth from 2017 to 2022. Mexico's position as the second most valuable market for food delivery services in Latin America, according to data from Statista, further cements the importance of the industry in the region.
The bolstered growth of Mexico's food delivery industry is reshaping consumer habits and the dynamics of the restaurant sector. With the substantial market valuation and user growth, along with its significant contribution to restaurant revenues, it is evident that the industry will continue to play an essential role in Mexico's economy, particularly in the culinary service sector. The intertwining of convenience, technology, and cultural habits suggests a sustained upward trajectory for food delivery services in Mexico.
