South America Pet Food Market Overview, 2022-2027

The trend of adopting and caring for pets such as cats, dogs, birds, rabbits, and reptiles has increased, and the manufacturers try to meet the unique dietary requirements of all breeds. With favorable economic conditions and the increasing awareness of people regarding healthy pet food, the demand for food of premium quality has witnessed huge growth in recent years. Homemade food often fails to meet these distinct nutrition demands, thus creating a wide market of specialized pet food in South America. It has made researchers focus on developing pet food with high nutritional and dietary benefits. According to the report, "South America Pet Food Market Overview, 2022-2027," published by Bonafide Research, the market stood at around USD 13 billion in 2021. Further, the market is projected to grow at a more than 7% CAGR for the 2022–2027 period. The top countries contributing to the share of South America's pet food market are Brazil, Argentina, and Chile. With pet owners becoming more conscious about what they feed their pets, they have developed a detailed knowledge of the ingredients used. The pet food market can be classified vastly into two categories: plant derived and animal derived, out of which animal derived (that includes meat, beef, pork, etc.) currently makes up more than half of the market. Slowly, the demand for organic and natural ingredients is increasing among pet owners, which is proving to be a threat to animal-derived pet food.

Brazil dominates the market. Brazil is one of the largest markets worldwide for pet products, only behind the United States and China. During the initial months of the pandemic, thousands of Brazilian households acquired pets. Demand for pet food, especially packaged in packaging that stands out for its sustainability, functionality, and food safety guarantees, is expanding. Manufacturers are capitalizing on this situation and differentiating their products on these lines, with natural and ethically sourced products being a major hit in this regard. The region's market relies on local brands like Biobase Animal Feed and Laboratorio Pro Agro. With quality products at a reasonable rate, these companies can hold their market share for a long time. The pet parents in the region would surely welcome customization in the pet food since it would give them a sense of involvement in their pet's diet. The rapid economic and social changes in these countries are leading to increased urbanization, high-income growth, and a strong aesthetic sense among the consumers. Due to this trend of humanization, owners are becoming increasingly aware of pet health, nutrient uptake, and overall wellness. In addition to that, the growing bond between pet owners and their pets shapes consumers’ willingness to spend more on pet food. Consumers are now becoming aware of their pets' health and are buying mostly premium pet foods with rich nutritional value for the betterment of their beloved pets. Nowadays, pet owners are not just looking for basic food products but also for pet consumables that are locally produced and natural or have specific health benefits. Further, as per the Agriculture and Livestock Service of Chile, the Chilean government has authorized and registered 147 new imported pet food products in the local market in 2021. Of those, about 69% are dog food products, and the remaining are cat food products. Within the premium segment in Chile, Royal Canin Argentina and Royal Canin Brazil are the most active companies, registering 32 new prescription products in the first quarter of 2021, including the VHN veterinary line. For South America, the market’s appeal lies in its steady development and potential for further growth. The average combined penetration of commercial dog and cat food into the pet population is relatively low, at around 111 grammas of complete and balanced food per day. It is worth mentioning the wide variations among South American pet food markets, as economic conditions also vary across countries.

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Manmayi Raval

Research Consultant

Based on the currently low penetration of commercial pet food compared to developed markets, South America has potential for further development. The growth dynamic of the dog and cat populations mirrors and even surpasses that of the human population. However, pet abandonment is still a problem that arises within fragile economies. Therefore, pet adoption and affordability of products are two necessary conditions for pet food manufacturers to address to increase volume consumption, especially to reach remote semi-rural areas with millions of street dogs and cats. On the plus side, South America is self-sufficient in the production of corn and other raw materials, such as the proteins often used in pet food. Thus, from the supply side, the industry is strong and guarantees continuity. COVID-19 Impact: COVID-19 exerted a negative impact on the supply chains. The pet food industry suffered initially due to the restrictions on the movement of raw materials, and cash flow was affected as well. On the other hand, demand for the pet food segment witnessed a steady growth in many parts of the world as people adopted more pets due to the growing desire for companionship during the lockdown. To address this demand, the players in the market have shifted their focus from retail stores to e-commerce platforms by increasing their investments in developing their own websites. Major companies present in the market Nestle SA, Mars Incorporated , Colgate-Palmolive , United Pet Group, a Spectrum Brands Company, PLB International , Unicharm Corporation, Nicoluzzi Industria de Racoes Ltda

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Considered in this report • Geography: South America • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • South America pet food market with its value and forecast along with its segments • Country-wise pet care market analysis • Various divers and challenges • Ongoing trends and developments • Five force models • Top profiled companies • Strategic recommendation Countries covered in the report • Brazil • Argentina • Chile Segment covered in the report • Pet foods • Pet healthcare • Pet accessories • Pet grooming By Pet Type in the report •Dog Food •Cat Food •Fish Food •Bird Food •Others By Food Type in the report •Dry Food •Wet or Canned •Snacks and treats •others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering, the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started, verifying the details obtained from secondary sources. Intended audience This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to pet care products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.