The food industry in Central America remains active with the development of large investments that promise to generate significant changes in a sector that is adopting technology and seeking to trigger more efficiencies, key strategies to gain more space in the shopping carts of increasingly demanding consumers and become the kings of Central American plates.
The protagonists in the food industry in Central America moved their pieces in 2024 and are preparing for a market reconfiguration in 2025. Expansions, new investments, and incursions have characterized the development of this dynamic sector.
These strategies are reflected in the investment plans of large companies in the sector, such as Bimbo, Nestlé, Corporación Multi Inversiones, Cargill, Vitali Alimentos, and Castillo Hermanos, which take advantage of the potential of serving an integrated regional market with a diverse commercial proposal that seeks to conquer more tables and plates.
The investments underway range from increasing the geographical footprint and developing new products to installing new production plants, as in the case of the Mexican company Bimbo (the world’s largest bakery group), which is investing US$200 million in the construction of a new factory in El Salvador (which is expected to be operational in the second half of 2025) and with which it plans to meet the growing demand for its products in the food industry in Central America.
However, investments are not limited to an increase in capacity per se. They also include improvements in efficiencies and technology. The Swiss multinational Nestlé inaugurated its Data Analysis and Artificial Intelligence Center (CADIA) in February, a technological complex in zone 12 of Guatemala City, where the company invested US$5 million and which promises to create synergies between data analysis and commercial management through the use of AI and machine learning to optimize sales, marketing, and service processes.
“CADIA represents a qualitative leap in how we utilize technology to enhance our impact on the industry and people’s lives,” said Patricio Astolfi, General Director of Nestlé Guatemala.
Meanwhile, at the start of the year, the Guatemalan company Castillo Hermanos inaugurated the expansion of its La Italiana ice cream production plant in Panama, in the town of Pacora, as part of reinforcing its broad product portfolio in the indulgence segment and its growth strategy in that market.
NEW TRENDS
Juan Pablo Mancilla, executive director of the Food and Beverage Guild (GREMAB) attached to the Chamber of Industry of Guatemala, explains that the regional panorama is marked by a growth pattern driven by a market evolution enhanced by the adoption of new consumer trends.
“Regional consumption shows a trend of openness to a diversity of lifestyles, driven by various factors such as age, habits, socioeconomic levels, and culture, among others,” said Mancilla, who believes this has generated a demand for varied products aligned with emerging consumer preferences.
In recent years, companies in the food industry in Central America have taken a step forward in developing innovative products that cater to a new consumer eager for modern and practical solutions, benefiting partly from the opening of supply in other latitudes.
This is evident in developing proposals, such as the Guatemalan company Vitali Alimentos, which launched the SOMOS brand last year, aiming to consolidate itself as a leading player in the food service market.
In November 2024, Andrés Barrios, the company’s business manager, emphasized that the company’s objective with this development is not only to offer protein-based products but also to provide all the foods that comprise a dish, from side dishes to sauces.
Mancilla of GREMAB emphasizes that, in general, the food industry in Central America exhibits greater sophistication. The regional and extra-regional supply has evolved with greater diversification and innovation, adapting products to meet the different needs of the market. This has enabled it to enhance the consumer experience, facilitating its integration into various lifestyles.
MORE CONSCIOUS CONSUMERS
Rafael Murillo, senior manager of Strategy and Transactions at EY Central America, Panama, and the Dominican Republic, explains that one of the most marked trends in the region is the intention to adopt healthier lifestyles. This leads to a greater demand for fresh, high-nutrient-value, and even organic foods, which are gaining prominence in the portfolios of companies in the sector.
The specialist notes that, in parallel, consumers are concerned about making “more conscious” price selections and managing their household budgets, a trend that balances business bets.
“In summary, it is the search for a good quality-price ratio. Although each market in Central America and outside the region has its particularities, these trends are highly generalized globally,” says the EY specialist.
Xavier Vargas, CEO of Cargill Food Latin America, offers insights into this search for efficiency. They have recently expressed that they are advancing in consolidating their units, a strategy to increase their presence and business with the final consumer across a large region, from Mexico to Brazil. Central America stands out as a region that provides high returns.
The company’s objective is to consolidate its Central American operation (where its businesses in Honduras, Nicaragua, and Costa Rica stand out) but with a commitment to the development of the Guatemalan and El Salvadoran markets, where they are already considering the development of new investments, options that include the possibility of acquiring companies in the food industry in Central America or building their units from scratch.
IN SEARCH OF MORE EFFICIENCIES
Murillo believes that the business environment is key. Among the primary challenges facing the food industry in Central America are cost volatility and deficiencies in regional infrastructure, which sometimes limit performance in production processes and the supply chain.
However, he values that this is compensated— in part —by a vision of scale, something that, while generating opportunities, also represents challenges. “The size of individual markets in Central American countries introduces an additional complexity, as it requires addressing multiple factors for each of them while simultaneously achieving a reasonable scale at the regional level,” says the analyst.
He adds that other emerging factors also pose challenges, highlighting global geopolitical dynamics that introduce uncertainty.
At the start of the year, the Trump administration’s tariff policy generated concerns about its impact on productive activities, which could affect food manufacturing.
However, Murillo maintains that, in the sum of factors, the region continues to be full of opportunities, as there are countries and regions with untapped potential that can benefit from the arrival of foreign investment and the expansion in dynamic sectors such as technology and financial services.
“One of the main opportunities in our region is to exploit adaptive innovation, with products that offer alternatives to traditional consumption such as fortified or nutritionally beneficial products, the implementation of sustainable or more economical packaging, ‘sachetization’—with economical versions of premium products or smaller presentations—and the use of waste or automation,” he reiterates.
MULTILATINAS IN EXPANSION
The incursion of the Guatemalan company CMI into the US market in 2024 was one of Central America’s most ambitious business moves, but it is not entirely a surprise.
The company announced in November an agreement to acquire a majority stake in Del Real Foods, which gives it control of a leading Hispanic food brand. In addition, in February of this year, it celebrated the opening of the 122nd restaurant of its Pollo Campero chain in New York, USA.
Murillo, of EY, maintains that both CMI’s move in the United States and Bimbo’s case in El Salvador are clear examples of the dynamism characteristic of the food industry in Central America in recent years, as well as how multilatina companies continue to expand rapidly.