Pet care volumes decline slightly
For the first time since 2002, pet care is showing a slight decrease in dog food volume sales, which unfortunately also affects the bulk of pet care, as dog food is such an important part of the market. Manufacturers face sharp cost increases in 2014, which is in turn affecting both profits and product retail prices. Both the loss of consumer purchasing power and Argentina’s high inflation rate have a very deep impact on sales, which is particularly affecting local companies as they don’t have the same resources as the multinationals, especially when it comes to negotiating with suppliers.
In spite of a difficult market context, manufacturers launched important new products
Despite this being a rather tough year for manufacturers, important new products have been appearing since late 2013. Without doubt, the main innovator was Nestlé Argentina S.A., with the launch of Fancy Feast in October 2013, described as a premium ‘gourmet-style’ wet cat food, and Nestlé’s first launch in the category. Until this time, Mars Inc’s Whiskas was the only other wet cat food brand available, dominating the market. Other important launches included Royal Canin’s Calm line, a therapeutic pet product to help cats and dogs overcome stressful situations. Another was Mars Inc’s Pedigree Vital Protection, an age-specific dog food strongly advertised on Argentinian television.
Nestlé continues to lead the market
Undisputedly, Nestlé was the number one company in Argentinian pet food in 2013. The company increased its share throughout the review period and showed the biggest increase in dog and cat food during 2013. Nestlé’s broad portfolio of brands allows it a presence in every price category and sales channel, with the launch of Fancy Feast in wet cat food. In 2014, Nestlé announced an important investment of ARS325 million to increase its production capacity. When finished, this investment will make Nestlé’s facility in Argentina the company’s biggest production site in Latin America.
Sales in veterinary clinics keep rising
In 2014, sales through veterinary clinics are continuing to grow at the expense of other non-grocery retailers, especially in Buenos Aires, where industry sources claim 50% of Argentina’s veterinarians are located. Part of the wider trend for pet humanisation involves a greater concern for pet health and more frequent visits to the vet. Veterinary recommendations are taken to the letter, especially in the case of nutritional advice. Veterinary clinics focus on selling premium highly specified pet food, and many also offer delivery services. These delivery services are highly attractive, saving consumers time and allowing them the option of buying bigger packs of pet food, at the most economical unit price.
Good performance expected for pet care products
Pet care is expected to register a good performance over the forecast period, despite the slight sales decline in 2013, since the Argentinian market has a lot of potential. Due to Argentina’s economic situation, the estimated future growth is likely to be at a rate below that in the review period, which is not as favourable as in previous years and is affecting pet care.
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Discover the latest market trends and uncover sources of future market growth for the Pet Care industry in Argentina with research from Euromonitor's team of in-country analysts.
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The Pet Care in Argentina market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Pet Care in Argentina?
- What are the major brands in Argentina?
- How did the downturn affect pet care spending?
- Which is the best-performing category within pet care?
- Which is the fastest-growing pet food manufacturer?
- How have pet specialists fared in recent years?
- What are growth prospects for pet care in the next 5 years?
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- Gain competitive intelligence about market leaders
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This industry report originates from Passport, our Pet Care market research database.