Pet food continues to record dynamic growth
Pet food recorded dynamic growth over the review period. New companies have entered the market while existing ones have launched several product extensions and even new brands to participate in different segments. Changing lifestyles, an increase in average income per household and a growing awareness of pet care and well-being amongst pet owners has greatly contributed to the expansion of this area, which is still in its developing phase.
New tax regulation has strong impact on pet food
The new tax regulations approved by the Mexican Congress in November 2013 entered into force on 1 January 2014. As a result, sales of pet food products that were previously exempt from value added tax (VAT) are now subject to a new tax of 16%. The immediate effect was a significant increase in average unit prices of pet food products which resulted in different responses amongst manufacturers, retailers and consumers. Movements amongst price platforms, in store promotion and new product development were some of the reactions observed over the review period.
New brands and companies enter pet food
Dynamic growth within pet food has encouraged companies to launch new brands in order to participate in several segments. During 2013, several companies participating in the mid-price segment launched economy and premium brands to increase their sales shares. In addition, companies with similar manufacturing capacities and producers that offer products related to the pet industry entered pet food with their own brands.
Pet specialist retailers continue to increase presence
In 2013, there was a noticeable expansion of pet specialist retailers that contributed to the growth of pet food sales. The leading player Maskota opened several new outlets throughout the country and the American pet specialist chain PetCo entered the Mexican market through a strategic alliance with Grupo Gigante. In 2013, PetCo opened two stores at some of the major cities in the country and the company has already announced its plans to open more outlets over the next five years.
Dynamic growth expected over forecast period
Sales of pet food and pet food products are expected to continue to increase over the forecast period, with growth set to mainly be fuelled by changing lifestyle and demographic trends. Urbanization is likely to have a positive impact on the area as people who live in increasingly smaller places tend to spend more on their pets. Growing awareness of animal rights and well-being is also likely to drive sales of pet care products as consumers make an effort to take better care of their pets.
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Discover the latest market trends and uncover sources of future market growth for the Pet Care industry in Mexico with research from Euromonitor's team of in-country analysts.
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The Pet Care in Mexico 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 Mexico?
- What are the major brands in Mexico?
- 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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This industry report originates from Passport, our Pet Care market research database.