Mexico Cake Market Report and Forecast 2024-2032

Mexico Cake Market Outlook

The Mexico cake market size reached approximately USD 1.56 billion in 2023. The market is further projected to grow at a CAGR of 5.2% between 2024 and 2032, reaching a value of USD 2.50 billion by 2032.

Key Takeaways

• Mexico's pastry and cake market is highly fragmented.

• Around 84% (4,200) of all pastry and cake businesses in Mexico are micro businesses. They account for less than 40% of total production value.

• Classic flavours like vanilla, chocolate, and fruit in sponge cakes are well-received in the Mexican market.

Cakes are available on the Mexican market in a wide variety of flavours, including chocolate, strawberry, black forest, and red velvet. The cake market in Mexico shows a continuous progression due to the increasing demand for cakes, cupcakes, and other high-quality confectionery products. Cakes are often considered an important sweet dish in many celebrations. Spending by consumers on occasion-specific cakes has increased, which is broadening the market.

Some of the factors driving the Mexico cake market growth are the availability of different types of cakes, the growth of artisanal bakers, consumers willing to spend on occasion-specific cakes, and the incorporation of healthier ingredients in cakes.

Key Trends and Developments

Rising demand for cakes and desserts in restaurants, consumer adopting gluten-free and plant-based diets, and local and artisanal ingredients drive the Mexico cake market growth.

Mexico Cake Market Trends

The trend of consumers favouring a wider range of desserts has led to a rise in the sales of cake products in restaurants, artisan bakeries, hypermarkets, and catering services in Mexico, influencing the Mexico cake market. Mexico's urbanisation and busy lifestyles have led to a surge in the popularity of convenience foods, such as frozen desserts and cakes. Local and international customers are increasing the demand for traditional cakes, such as the Tres Leaches Cake.

The cake market in Mexico is also embracing veganism and plant-based diets, offering gluten-free options, innovative flavours, sustainable packaging, local and artisanal ingredients, customisation, online presence, and collaborations.

Market Segmentation

Mexico Cake Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Sponge cakes holds a significant Mexico cake market share as they are primarily offered within the traditional Tres Leaches Cake

The traditional cake “Tres Leches Cake” is a moist sponge cake soaked in a mixture of three types of milk—condensed milk, evaporated milk, and heavy cream that epitomises the fusion of flavours and culinary traditions. The versatility of sponge cakes, allowing customisation caters to a vast audience from home bakers to bakery professionals in Mexico.

Cupcakes are popular for offering a variety of flavours, such as chocolate chip, blueberry, banana muffin and Mantacadas, a sweet and buttery Mexican sugar muffin. Mexican bakery chains and cafes offer seasonal and themed cupcake offerings during holidays and special occasions to boost demand. Cupcakes are a fast-moving confectionery item combined with easy accessibility and affordability.

Dessert cakes have a reputation for having elaborate, extravagant appearances. It typically has several layers, fillings, and toppings that combine to create an eye-catching visual. Mexican dessert cake manufacturers frequently incorporate local flavours and ingredients. According to Mexico cake market analysis, dessert cake demand is driven by Mexican consumers' appreciation of fine, artisanal cakes made with premium ingredients and decorative items.

The demand for cheesecakes in Mexico is supported by the introduction of different flavours by international food chains and the influence of Western cuisine. Post-meal desserts and weekend events among millennials and Generation Z customers across Mexico are also aiding the Mexico cake market development. Pastel de Tres Quesos, or Three-Cheese Cake, is a unique dessert that showcases the versatility of Mexican desserts and has been one of the most popular sweet delights in the region. Key producers of cheesecakes include Cheesecake Factory and Pepperidge Farm Store.

Bakeries are a prominent distribution channel for cakes in Mexico as they specialise in producing a variety of cakes

In Mexico, bakeries play a significant role in preserving and promoting traditional Mexican flavours and recipes. These stores often specialise in producing classic Mexican pastries, such as conchas, pan dulce, and cuernitos.

According to the Mexico cake market report, the trend of consumers favouring a wide range of desserts has led to a rise in the sales and availability of cake products in hypermarkets and supermarkets. Packaged cakes have a longer shelf life and can be stored for a longer period by consumers. A growth in the number of supermarkets and hypermarkets aids the consumption of cakes in Mexico. Further, customers are also encouraged to make purchases through e-commerce platforms due to their convenience and fast delivery.

Competitive Landscape

The market players are increasing their customer base by differentiating their products by offering innovative flavours, using locally sourced raw materials, and using clean-label ingredients.

Figure: Top Leading Companies (associated brands) of cake products in Mexico; 2021

Mexico Cake Market Analysis by Region

Central Mexico is expected to hold a significant market share due to changing customer demands

In Central Mexico, the most popular cakes are traditional Mexican pastries like empanadas, conchas, and tres leches cake. A diversifying customer demand and a rise in cake shops and bakeries in prominent cities, like Mexico City are contributing to the Mexico cake market development.

Some notable cake companies in Northern Mexico include both international and local brands, such as “Pastelería Suspiros” in Monterrey, and “La Esperanza Panadería y Pastelería” in Ciudad Juárez. Their presence underscores the region's rich culinary tradition and the demand for high-quality baked goods that cater to various tastes and preferences. According to the Mexico cake market report, the Bajío region, encompassing states like Guanajuato, Querétaro, Aguascalientes, and portions of Jalisco and Michoacán, is renowned for its thriving food sector and the presence of a wide range of food-related enterprises. Further, the robustly growing tourism sector in various regions of the country, including the Bajío and the Pacific Coast stimulates the demand for cakes in Mexico.

Key Highlights of the Report

Mexico Cake Market Report Snapshots

Mexico Cake Market Size

Mexico Cake Market Trends

Mexico Cake Market Regional Analysis

Mexico Cake Companies