Mexico’s Bread of the Dead Industry Sees 3.5% Growth Amidst Informal Competition

Web Editor

October 23, 2025

a display case filled with lots of different types of cakes and pastries on display in a bakery stor

Background on Julián Castañón and the Canainpa

Julián Castañón, president of the Cámara Nacional de la Industria Panificadora y Similares de México (Canainpa), has been a significant figure in Mexico’s baking industry. As the owner of the panadería Tahona, Castañón’s insights carry weight in understanding both the challenges and opportunities within this sector.

The Importance of the Bread of the Dead Tradition

The Bread of the Dead, or “Pan de Muerto,” is an essential part of Mexico’s rich cultural heritage. Castañón emphasizes that this tradition continues to grow, fueling expectations of increased commercialization in the baking industry. He acknowledges rising costs for ingredients like eggs and sugar but highlights that businesses have absorbed some of these expenses to prevent price hikes for consumers.

Impact on Employment and Local Entrepreneurship

The baking industry in Mexico is a substantial job creator, employing over 530,000 people directly and generating numerous indirect jobs throughout the value chain. Moreover, it plays a crucial role in fostering local entrepreneurship. According to the Consejo de la Comunicación, most of Mexico’s 54,000 registered panaderías are small family businesses.

The Challenge of Informal Competition

Castañón laments the informal commercialization of Bread of the Dead, which creates unfair competition for formal businesses. He explains that consumers may not understand why a product costs differently depending on whether it’s sold in a formal or informal setting, due to the additional costs associated with compliance and taxes for formal businesses.

Innovation in the Baking Industry

To counteract this unfair competition, the baking industry has embraced innovation. Panadería Tahona, under Castañón’s leadership, offers 11 varieties of bread, including the Bread of the Dead made from wheat flour and carbonized corn leaves, along with unique fillings like nut cream, purple cheese, and pastry cream. This blending of indigenous and European influences showcases the industry’s adaptability.

Key Questions and Answers

  • What is the expected growth in the baking industry for Bread of the Dead? The Mexican baking industry anticipates a 3.5% growth in Bread of the Dead sales, which could reach 1,000 million pesos during the Day of the Dead season.
  • Who is Julián Castañón and why is he relevant? Julián Castañón is the president of Canainpa and owner of panadería Tahona. His insights are crucial in understanding the challenges and opportunities within Mexico’s baking industry.
  • How does the baking industry impact employment in Mexico? The baking industry directly employs over 530,000 people and generates numerous indirect jobs throughout the value chain. It also fosters local entrepreneurship, with most panaderías being small family businesses.
  • What challenges does the baking industry face due to informal competition? Informal businesses create unfair competition for formal bakeries, which incur additional costs related to compliance and taxes. This disparity can confuse consumers unfamiliar with these industry-specific expenses.
  • How has the baking industry responded to these challenges? The industry has embraced innovation, with panaderías like Tahona offering diverse bread varieties and unique fillings that blend indigenous and European influences.