Latin America Pet Food Market

Latin America Pet Food Market (2023 to 2028)

The pet food market in Latin America is estimated to grow at a CAGR of 7.11% from 2023 to 2028 and the Latin American market size is predicted to be worth USD 13.41 billion by 2028 from USD 9.51 billion in 2023.

MARKET DRIVERS:

The increasing trend of pet humanization is due to increased interaction between pets and owners, allowing the owners to spend more on quality and healthy food. There is increasing awareness regarding the health measures of pets, where the supplement of grains, nutrient sources, vitamins, and minerals is essential for animal health. Increasing incorporation of functional ingredients in food products is driving the market growth. Clean-labeled pet food products and the increasing launch of vegan foods to attract pet owners are fuelling the growth of the market size. The rising premiumization trend is surging high-quality pet food with fresh, organic, and premium ingredients, propelling the market growth. The presence of leading companies for pet food manufactured in Latin America influences the market in a wide variety of raw materials, increasing the market value. According to International Trade Center Data, pet food imports to South America increased by 30.6% from the past years. Chile and Mexico are the significant importers of pet food, propelling the market value.  

MARKET RESTRAINTS:

The major hampering factor for the pet food market is the microbial contamination and safety issues. Contaminated pet foods result in food poisoning in the pets. High pet food prices for premium goods are hindering the market value. With pet food inflation in central countries such as Brazil and Mexico, people prefer unpacked food due to cost-effectiveness, as the premium packaging demands higher prices. 

MARKET OPPORTUNITIES:

The increasing adoption of e-commerce retailing among people is estimated to create opportunities for market expansion. Pet food sales from online retail stores are rising due to the diverse availability of food products. The market players are increasingly focusing on research and development activities to introduce innovative products regarding flavor, shape, and color. 

MARKET CHALLENGES:

The quality of pet food is the main challenge for the market's growth. As pet owners are highly obsessed with quality food, most of the natural fluctuations in temperature and humidity impact the food quality. The stringent government regulations for pet adoption are decreasing the adoption rate, which impacts the growth of the pet food market. 

COVID-19 Impact on the Latin America Pet Food Market:

The impact of COVID-19 is high on pets due to the owners' central giving up on pets, as observed in the pandemic. Due to the spread of the virus through the animals, many pet owners thought of giving up on their pets. Post-pandemic significantly impacted the people, which increased the adoption of pets across the region. The countries like Brazil and Mexico held the largest share of the pet adoption rate. Many people vaccinated their pets to prevent the spread of COVID. 

REPORT COVERAGE:

This market research report on the Latin American market is segmented and sub-segmented into the following categories.

Latin America Pet Food Market - By Ingredients:

• Animal Derivatives
• Fish Derivatives
• Fruits and Vegetables
• Cereals and Cereal by-products
• Fats and Oils
• Vitamins and Minerals
• Additives

The animal-derived segment dominates the pet food market, including beef, chicken, and pork, which dogs prefer, whereas cats mostly prefer fish derivatives. Plant-based products such as cereals have been preferred in recent years due to increased demand for organic and healthy pet foods by pet parents. The increased trend of pet humanization demands highly nutritious food with vitamins and minerals for pets' good health. 

Latin America Pet Food Market - By Animal:

• Dogs
• Cats
• Birds
• Other Animals

Dogs dominated the pet food market due to the higher adoption of dogs in the region. The increasing focus of pet parents on dog health and fitness drives the demand for healthy and nutritious pet food. The surging demand for clean-labeled food, irrespective of the artificial flavors and preservatives, is expanding the pet food market. The cat segment is expected to grow significantly over the forecast period due to the demand for healthy and grain-free cat food, which is highly required for healthy cat growth. The availability of cat and dog foods with various flavors, such as tuna, salmon, chicken, and others, is driving the market growth. 

Latin America Pet Food Market – By Country:

• Brazil
• Argentina
• Mexico
• Chile
• Rest of Latin America

Brazil dominated the Latin America Pet Food market due to increasing innovative launches in pet food ingredients. Brazil is the largest pet food market in the region due to the companies relying on the US market for the broad spectrum of markets. According to Instituto Pet Brazil, the share of pet food in Brazilian pet care comprises 50%, making it a famous country with the largest pet food market share. The Brazilian pet food market exports pet food to other countries, where, according to ITC data in 2021, a 35% increase has been observed in exports from Brazil in recent years. The Brazilian market often tries to attract foreign customers to increase the export business, focusing on meeting the global standard requirements with increasing quality and introducing innovations into the market with high health benefits. 

Mexico's pet food market is projected to thrive due to increasing dog and cat food production. The increasing sales through e-commerce is propelling the market growth in Mexico. The increasing collaborations and investments by the market players are driving the growth in market value. 

The Chilean pet care industry stated that they benefitted from pet humanization and recorded 5% growth in 2021 compared to the previous year. The Chilean government authorized 147 new imported pet food products in the local market in 2021, where 69% are dog food products. 

Argentina and the rest of Latin America are expected to have a decent growth rate in the forecast period due to increased awareness of the health measures for good health among pet owners. 

KEY MARKET PLAYERS:

The Latin American pet food industry is highly concentrated, with ten major players together accounting for more than 50% of the market share and the remaining market share distributed among a large number of small manufacturers. Mars, Inc., Del Monte Foods, Hills Pet Nutrition, INC, Unicharm Corporation, Nippon Formula Feed Manufacturing Company LTD, Pet Center, Incorporated (PCI), Nestle Purina PetCare, Nisshin Saifun Group INC. Natural Dog Food Company, Halo, Purely for Pets, Marukan CO. LTD., Nutrena, and Spectrum Brands, INC. are the major companies in the market.