Pet care growth rates spiked during the pandemic in Latin America, helped by consumers adopting pets for company during lockdowns. In spite of high inflation rates in the region, growth has remained strong post-pandemic, albeit down on the 2020-2021 period, with the premiumisation trend slowing slightly in some countries. Continued expansion of pet populations as well as the pet humanisation trend will help drive further positive growth for pet care in the region over the forecast period.
This report comes in PPT.
Growth rates have slowed in Latin American pet care since the peaks seen during the pandemic, but they remain at healthy levels in real value terms, particularly given the recent inflationary backdrop. Cat food is generally seeing stronger growth than dog food, with cat populations expanding as cats are seen as more independent, cheaper to feed than dogs and a better pet option in urban areas where household space is often at a premium.
Cat treats and mixers are seeing strong growth in Colombia, where the Introduction of creamy treats has brought a fresh wave of innovation to the market. Inaba’s Churu brand led the charge, with this innovative product inspiring other brand owners to follow suit with similar offerings (eg Nestlé’s Fancy Feast creamy snacks). Inaba has also extended its creamy treat line to include options for dogs.
E-commerce continues to gain share, butwill only reach 9% of sales in 2024. Small local grocers remain a key channel in many countries in Latin America, although pet shops and superstores lead regionally due to their dominance in Brazil, the biggest market. So-called forrajerias, included under other non-grocery retailers, are the leading channel in Argentina.
Dog and cat populations are expected to continue growing in Latin America, with prepared food sales also likely to take further share from non-prepared food over the forecast period. With the economic backdrop gradually improving at the end of the review period, pet care sales are expected to continue growing. The premiumisation and humanisation trends will help growth in real value terms to outstrip the volume performance.
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