South America Pet Care (Food, Grooming, Accessories & Healthcare) Market Outlook, 2027

As urbanization continues and disposable income rises in the South America region, more consumers are turning towards pet companionship. As South American people shifted from pet ownership to pet parenthood, opportunities in every pet care segment have increased for any company that wants to capitalize on it. The rise of e-commerce and other technologies has pushed the market on the path of growth. As the ownership of pets is increasing, the segments associated with the pet care market like pet accessories, pet grooming, and pet healthcare are also rising, as people are becoming more aware of pet health, well-being, and comfort. According to the report, "South America Pet Care Market Outlook, 2027" published by Bonafide Research, the South American pet care market stands at fourth place, which has generated a revenue of above USD 13 billion in 2021. Further, the market is expected to expand with a 7% CAGR for 2022–2027. The pet care market is still at a growing stage but has posted the fastest growth when compared to the top three regions globally. In certain countries, the grooming and accessories market are not explored to their maximum potential, thus providing opportunities to companies. The pet food market has the largest share in the South American pet care market, as people are becoming more aware and responsible for what they are feeding their pets. The pet food market is followed by pet services, which include accessories, healthcare, and grooming. The overall market trend related to pet grooming products has been observed with both the economy and premium quality being in demand. In countries like Brazil and Argentina, people are spending more on the health and well-being of their pets, which has led to significant growth in the pet grooming service segment. Brazil has established itself among the top five pet care markets globally in terms of the retail value of sales over the past few years, achieving tremendous growth even during the economic recession the country has faced. In addition to that, demand for the pet food segment witnessed steady growth in many parts of the world as people adopted more pets with 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.

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. 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. The Chilean pet care industry benefited from the humanization of pets and downward birth rate trends and recorded year-on-year growth of over 5% in 2020. 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 Brasil are the most active companies, registering 32 new prescription products in the first quarter of 2021, including the VHN veterinary line. However, Brazilian pet food companies rely on US companies for the ingredients for their formulations. According to Instituto Pet Brasil, the share of pet food in the Brazilian pet care market comprises 50%, making the pet food market. The large dog and cat population in the country spurs a sizeable network of retail outlets across the country, supporting the pet food market as a resilient and profitable business. Unlike in some European markets, Latin Americans prefer dogs over cats. The estimated pet population in the region is 120 million dogs and 45 million cats. Therefore, of the 7 million tones of pet food consumed every year, nearly 79% is dog food. With the Brazilian pet care market growing and a rise in the demand for innovative pet products, the ingredient suppliers are required to be registered at the MAPA’s Department of Animal Production Inspection and Development (DFIP) as a prerequisite for exporting to Brazil. Specialized pet stores are gaining popularity in the country due to the consistent price range offered by these small outlets, compared to the price volatilities of large-scale outlets of major brands. These stores are often involved in producing innovative and ethically sourced materials, and hence, their dedicated pet food product lines are capturing consumer interest. Another trend that is arising but not yet a market force is pet adoption. Latin America, which has the highest number of street dogs and cats in the world, is raising awareness about pet adoption.

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Manmayi Raval

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Recent Developments: • In 2022, Baires SA, a market leader in Argentina, launched a new premium brand called Fawna: Patagonic Taste, a dry dog and cat food product resembling local flavours and recipes from Argentinian Patagonia. • In 2021, Nestle launched a new cat food, "Purina One Visible Nutrition," in Brazil, containing real chicken and salmon. The new launch is aimed at cat owners who are keen to feed premium products to their cats and also address the growing obesity problem in cats. • In 2020, Nestlé Purina started a pilot for an innovative bulk delivery system for its Purina Dog Chow products in Chile. In partnership with Algramo, a social company focusing on reusable packaging, Nestlé Purina offers a new shopping experience in which a mobile app and electric tricycles are at the core of the service. COVID-19 Impacts: 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 care 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.