Strong economy boosting sales
Historically low unemployment as well as strong consumer confidence continued to fuel pet care current value growth in Chile in 2013. Chileans increasingly feel comfortable treating their pets to not only higher quality food but also snacks and accessories as their financial situations strengthen. Rising demand has prompted investment in the market by both domestic and multinational firms as these players try to ride the wave of growth. In addition, the percentage of Chileans that serve prepared food to their pets instead of table scraps continues to grow. Furthermore, the economy has also fuelled pet population growth as young professionals are increasingly putting-off having children to focus on their careers.
Economy brands rapidly losing market share
Economy brands and their manufacturers continue to suffer from the premiumisation trend in Chile. The sales share of dog and cat food in the cheapest price segment has declined since 2006 and is not expected to rebound 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 path to maintaining or increasing sales share based around innovation and marketing. While multinationals were ready for the surge in demand for mid-priced products, domestic companies have had to evolve. As of 2014, results are mixed. For example, Champion has struggled but both Cannes and Nutripro have been able to reformulate their strategies as well as their products in order to better adapt to the new reality.
Space limitations and urban lifestyles affecting consumer pet preferences
Rising urbanisation, increasingly busy lifestyles, and demographic trends such as shrinking household sizes have all bolstered the development and evolution of the Chilean pet care market. Other pet food continued to record faster total volume and current value sales growth than dog and cat food in 2013. While this was partly due to the area’s on-going emergence from a relatively low base, performance was also bolstered by increasing demand for these pets. Chileans are more likely to adopt smaller pets that are easier to care for such as birds, fish, hamsters, rabbits etc. In addition, smaller animals, especially small mammals, are also growing in popularity as ‘first pets’ for families with young children. Furthermore, smaller breeds of dogs are increasingly preferred over larger ones while the cat population in general is growing more quickly than the dog population.
Nutripro strengthens position as leading player within pet care
Nutripro continued to lead pet care in Chile in 2013. The company has been able to successfully 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.
More moderate growth expected after period of dynamism
The outlook for pet care in Chile is broadly positive. However, a more general economic slowdown would undoubtedly dampen the dynamic growth seen over the review period. While various social and demographic trends will be factors behind the growing pet population, constant 2014 price value growth is projected to be slightly 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?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Pet Care market research database.