Investor Presentaiton
October 12, 2021
GBM
MEXICO'S FUNDAMENTALS: DEMOGRAPHICS AND POPULATION GROWTH
A country's population demographics play a fundamental role in the future of its floor covering industry.
And in Mexico, the vast majority of the population corresponds to young adults, which should favor
the housing sector, as more units would be needed to meet the increased demand. Furthermore, the
prospects of the construction segment in Mexico are quite favorable in light of the housing conditions
that prevail in the country, as the current family dynamics are giving rise to pent-up demand. For
instance, according to the National Statistics Agency (INEGI), -87% of households in Mexico consist of a
family plus other relatives or even non-relatives living in the same dwelling.
Household Dynamics in Mexico
87%
Family Household
At least one member is related to
the head of the household
13%
Non-Family Household
Population growth coupled with government efforts to tackle current housing deficits may continue to
drive demand for new homes and floor covering materials. The combination of reduced housing deficits,
a demand that is boosted by current family dynamics along with the young and growing population, will
keep the industry's favorable fundamentals intact in the years to come. Those fundamentals have made
the floor covering and ceramic tiles market grow above our country's GDP over the past two decades,
and we see no reason why this could change in the short to medium term.
Mexican Population Growth
-Million of Inhabitants
160
CAGR: 1.7%
140.9
140
135.3
128.9
121.9
120
114.1
106
98.9
There is no relation
among members
100
91.7
80
60
40
20
0
1995
2000
2005
2010
2015
2020
2025e
2030e
Source: INEGI
71% are nuclear households, consisting of the father, mother, and
children, or only the mother or father, with children. A couple with
no children living in the same household also constitutes a nuclear
household.
Mexico's Favorable Demographics
100+
0.0%
0.0%
95-99
0.0%
0.0%
90-94
0.1%
0.1%
85-89
0.3%
0.2%
80-84
0.5%
0.4%
75-79
0.7%
0.6%
70-74
28% are extended households and consist of a nuclear household
plus other relatives (aunts, cousins, etc.).
1.0%
0.9%
65-69
1.5%
1.3%
60-64
1.9%
1.7%
55-59
2.4%
2.1%
50-54
2.9%
2.5%
45-49
3.3%
2.9%
40-44
3.5%
3.1%
35-39
3.7%
3.4%
30-34
3.9%
3.7%
88.8%
25-29
4.2%
4.2%
of population
1% is a composite household, consisting of a nuclear or extended
household and at least one person unrelated to the head of household.
20-24
4.2%
4.3%
15-19
4.3%
4.4%
10-14
4.2%
4.4%
5-9
4.2%
4.4%
0-4
4.2%
4.3%
6.0%
4.0%
2.0%
0.0%
2.0%
4.0%
6.0%
LAMOSA/CERAMIC: THE ROAD TO GROWTH IS PAVED WITH TILES. | 10View entire presentation