Strong pet humanisation trend boosts sales in food and Other pet products
Despite the onset of a deceleration in the economy and GDP growth in Chile at the end of 2014, historically low unemployment and a strong pet humanisation trend in the Chilean public continued to fuel pet care current value growth in Chile in 2014. Chileans increasingly feel comfortable treating their pets to not only higher quality food but also snacks and accessories as pet humanisation was helped by wide and constant media coverage of government campaigns fighting street dog population through encouraging the public to act in a more responsible way with their pets, as well as coverage of animal rights issues. Rising demand prompted investment in the market by both domestic and multinational firms as these players try to exploit the growth. In addition, the percentage of Chileans that serve prepared food to their pets instead of table scraps continues to grow. Furthermore, demographic and lifestyle changes fuelled pet population growth as young professionals are increasingly postponing having children to focus on their careers.
Mid-priced and premium players take share from economy players
Manufacturers of economy brands continued to suffer from the premiumisation trend in Chile. The value share of dog and cat food in the cheapest price segment declined since 2006 and is not expected to recover in the near future. The trend is especially dangerous to manufacturers that have a large portion of their brands within the economy price band. Nevertheless, there is a way to maintain or increase sales share based on innovation and marketing. While multinationals were ready for the surge in demand for mid-priced and premium products, domestic companies had to evolve. As of 2015, results are mixed. For example, Champion struggled but both Cannes and Nutripro were able to reformulate their strategies as well as their products in order to adapt to the new reality.
Rapidly-changing lifestyles and urbanisation determine consumer pet preferences
Rising urbanisation, increasingly busy lifestyles and demographic trends such as shrinking household sizes bolstered the development and evolution of Chilean pet care. Premium segment food and small pets continued to record fast total volume and current value sales growth in 2014. While this was partly due to the increasing demand for small pets due to space constraints, full time employment and urban lifestyle meant less time to dedicate to care, determining a preference for pets that can stay long hours alone, such as cats. Chileans are also spending more on pets such as small mammals or fish as they make good first pets for families with young children in an urban context. Furthermore, smaller breeds of dogs are increasingly preferred over larger ones while the cat population is growing more quickly than the dog population.
Nutripro maintains its position as the leading player within a growing pet care market
Nutripro continued to lead pet care in Chile in 2013. The locally-owned company was able to navigate an evolving market that increasingly prefers higher quality and value added products as well as new product developments and innovations. The company has an early mover advantage in key areas as well as an extensive distribution network and a longstanding reputation for offering a range of products at competitive prices. Sustained investment in innovation as well as highly effective marketing activities helped to ensure that Nutripro remained Chile’s leading pet care player.
Moderate but healthy growth expected despite economic deceleration cycle
The outlook for pet care in Chile is positive. However, the economic slowdown which is expected to hamper GDP growth until 2017 in Chile will dampen the potential dynamic growth and moderate growth seen over the review period. At the same time, social and demographic trends will be factors behind the growing pet population, such as pet humanisation and new lifestyles, and therefore space for healthy growth is still expected. At constant 2015 prices, growth is projected to be slower than over the review period, mainly due to increasing price competition. Rates will remain positive, however, as the humanisation trend continues to bolster demand for higher quality and more expensive products that can improve the health and happiness of pets. Innovation and increased investment in promotional activities will also help to sustain the positive development of the entire market.
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Discover the latest market trends and uncover sources of future market growth for the Pet Care industry in Chile with research from Euromonitor's team of in-country analysts.
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The Pet Care in Chile 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 Chile?
- What are the major brands in Chile?
- 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.