The Mexican film industry not only provides entertainment but also serves as a significant catalyst for business in the national retail market. This industry generates income and commercial opportunities, ranging from ticket sales to cinema-related products and space occupancy in shopping centers, especially anchor stores. These activities boost visitor traffic and stimulate purchases at other establishments, thereby contributing to the growth of the retail sector throughout the country.

According to SiiLA, the film industry accounts for 9% of retail space in major Mexican cities' shopping centers. Typically, cinema chains occupy large spaces exceeding 4,500 square meters, including anchor stores and megastores, which comprise 92% and 6% of the dedicated space for the seventh art, respectively. The remaining 2% is divided among large, medium, and small-sized premises, ranging from 300 to 4,500 square meters.

It's worth noting that cinema companies control 18% of anchor store space in Mexico. This underscores the pivotal role of cinema chains in shaping shopping centers' configuration and appeal. Anchor stores often define the layout and foot traffic flow within malls, directly impacting the profitability and success of other business operations. Thus, the film industry isn't just a vital component of Mexico's retail market; it also exerts a significant influence on the planning and operation of shopping centers nationwide.

The history of Mexican cinema dates back to 1896 with the arrival of the Lumière brothers' concessionaires, who introduced silent films and short documentaries. The industry's heyday occurred between the 1930s and 1950s, known as the "Golden Age," following the advent of sound in film. Over time, new generations of directors and actors emerged, along with major cinema chains that became pillars of entertainment.

Currently, Cinepolis and Cinemex are the leading players in the Mexican film industry, occupying approximately 300,000 and 140,000 square meters in cities like Mexico City, Guadalajara, Monterrey, and Queretaro.

The national success of cinema chains is reflected in the economic impact they generate and their presence in shopping centers.

On the one hand, the National Chamber of the Film Industry (CANACINE) reports that Mexico ranked fourth globally in ticket sales in 2022, trailing only behind India, China, and the United States. With 7,537 cinemas across the country, the Mexican film industry generated 12,027 million pesos (around 670 million dollars) in box office revenue that year, marking a 60% increase compared to the previous year. However, sales have yet to reach pre-pandemic levels, as average sales between 2015 and 2019 exceeded 16,300 million pesos annually.

On the other hand, the presence of cinema chains in shopping centers has experienced growth over the past four years, despite temporary closures in 2020. Between the third quarter of 2022 and 2023 alone, the area occupied by cinema chains increased by 18%, with nearly 80,000 square meters absorbed in Mexico's primary real estate markets.

Since 2019, companies in the film industry have expanded their footprint in the commercial real estate market by 1.5 times. The industry's outlook is positive, with expectations of continued significant contributions to Mexico's retail market growth and the development of shopping centers nationwide.

For more information on the performance of these and other industries in the real estate sector, explore SiiLA REsource or contact us at contacto@siila.com.mx.