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Market Entry - Genetically Modified Food Market in Mexico: Analysis of Growth, Trends and Progress (2020 - 2025)

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About the Market

High nutritional content in food, greater production quantity and low requirement of pesticides drive the genetically modified food market. However, damage to beneficial insects, soil fertility coupled with genetic pollution, the absence of any centralized government regulation and lack of awareness about the benefits of GMO are restraining market growth. Rising demand for healthy food products, year round and easy availability of genetically modified food are the main trends in the global market. In 2014, the first world countries were the largest market for genetically modified food and are likely to remain so in terms of revenue, over the forecast period. China and India are expected to emerge as major markets for genetically modified food. Major players operating in this category are Monsanto US, DuPont US, Syngenta Switzerland, Bayer Crop Science Germany, Sakata Japan, BASF GmBH, and Group Limagrain France. These global giants are actively involved in collaboration with the Advanced Research Institutes (ARIs) in industrial countries such as Brazil, Argentina, China, India, Malaysia and the Philippines for significant R&D program in biotechnology and transgenic crops. Companies are also increasing their R&D in some of the African countries such as South Africa, Kenya, Zimbabwe, Mali, Nigeria, Egypt, and Uganda in order to cater to the growing demand for genetically modified food in Africa. The developers of the genetically modified food products are intensely involved in certifying their safety. For instance, FDA depends on consultative processes with developers, who voluntarily present their plans to the agency before marketing their products.

About the Geography

Mexico, a USD two trillion economy (15th largest in the world), is one of the emerging countries most open to FDI. Mexico’s current government, led by President Enrique Pena Nieto emphasized on financial reforms with a long-term aim to improve competitiveness and economic growth. However, mounting organized crime, corruption and administrative inefficiency are hampering development.

The Mexican government has taken on large-scale economic reforms that aim to help ensure the safety of investment operations. In 2000, Mexico signed a free trade agreement called the ‘Global Agreement’, which focuses on commercial liberalization, political dialogue, and cooperation with the EU. Since the NAFTA came into force 22 years ago, Mexico has served as a low manufacturing cost base with direct, duty-free access to the United States. In 2014, the government came up with a national infrastructure plan to improve infrastructure for future operations. SEZs were also created to provide various incentives, trade facilities, duty-free customs benefits and easier regulatory processes.

Despite liberal government policies, there are some unique challenges like comparatively high-interest-rate for a country with a growing banking sector. Mexico’s economic stability is directly tied to the well-being of the US economy. Some sectors are reserved exclusively for Mexican nationals or State and the large size of the country presents supply chain challenges. However, Mexico offers many advantages such as labor costs comparable to Asia-based manufacturing and a strategic location between North and South America, making it attractive to firms who want to break into any of these markets. A young and skilled labor workforce coupled with government support to FDIs makes Mexico a top choice for investors.

 

Component Name

Unit

From Site

GDP

USD billion

1144

GDP Annual Growth Rate

%

2.5

GDP Per Capita

USD

9517

Employment Rate

%

96

Wages

USD/Day

16.8742

Inflation Rate

%

2.97

Consumer Price Index (CPI)

Index Points

120

Interest Rate

%

4.75

Loans to Private Sector

USD million/billion

97,209 million

Balance of Trade

USD million/billion

-1913

Business Confidence

(No Units)

53.44

Manufacturing PMI

Index Points

51.9

Ease of Doing Business

(No Units)

38

Competitiveness Rank

(No Units)

51

Corruption Rank

(No Units)

95

Consumer Confidence

(No Units)

84.1

Consumer Spending

USD million/billion

504,395.50 million

Corporate Tax Rate

%

30

Sales Tax Rate

%

16

 

The Market Entry Series

Exploring global markets is now recognized as the shortest way to ensure high time to efficiency conversion, when trying to expand revenues past domestic markets, for firms both large and small. Our market entry series, priced suitably low contains the essentials of all the parameters (Refer: Table of Contents) you must be apprised of before you can have a well informed contemplation of a business opportunity in your choice of industry, in your choice of geography.

 

 

 

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