Mexican Bakeries Face Rising Costs, Slow Modernization

Bread consumption in Mexico rose to 35.7 kilograms per capita annually in 2025, up from 33 kilograms reported since 2017, according to the National Chamber of the Bakery Industry (CANAINPA).

Despite the higher demand, bakeries have faced rising costs for key inputs, including wheat flour, fresh milk, butter and eggs, which saw inflation of up to 39% between 2022 and 2025.

Julián Castañón Fernández, president, CANAINPA, said the industry has worked to maintain prices for traditional bread while absorbing part of the cost increases. He noted that global grain price pressures, particularly following Russia’s invasion of Ukraine in 2022, contributed to the rise in input costs.

In 2022, bread prices increased by up to 30%, but over the past year, they have remained relatively stable, according to the chamber.

To offset higher costs, bakeries have limited investment in technology and modernization efforts. “We have to adjust to higher input prices, but that affects maintenance and modernization processes. It is a matter of survival versus evolution,” Castañón said.

The industry is focusing on expanding offerings of sweet bread and personalized styles, which command higher prices that consumers are willing to pay. Mexico currently has about 55,000 bakery businesses operating nationwide, according to CANAINPA.