Other Pet Food in Brazil

PROSPECTS

Sociodemographic trends continue to drive growth in the other pet population

Smaller pets like birds, fish and small mammals/reptiles are increasingly favoured by Brazilians for several reasons. Due to growing urbanisation rates, homes are both more verticalised and smaller, driving consumers to choose pets that can stay indoors and do not need as much space as dogs, for example.

Raw material costs cause temporary unit price hike

2018 was a challenging year for the food industry in Brazil due to the truck drivers’ crisis that affected the entire production chain in early May. The country is dependent on truck transportation due to a lack of infrastructure such as railways, and for one whole week truck drivers organised themselves to halt all deliveries as a protest at high diesel prices.

Pet superstores expansion helping drive premiumisation

Apart from the temporary unit price hike experienced in 2018, unit price increases were also observed in 2019 for other pet food, but for a distinct reason. Pet superstores are expanding rapidly, with the two largest chains Petz and Cobasi opening 40 stores between them.

COMPETITIVE LANDSCAPE

Nutrópica Nutrição Especializada Ltda increases its share via innovation

Although the spread of pet superstores throughout urban centres does help the growth of brands like Nutropica, it is not the only factor that has contributed to the local player’s success in recent years. Not only has the company recently reinvented its branding strategy to include images of raw ingredients, emphasising a more natural aspect, its new product developments are also in line with consumer trends.

Indústria e Comércio de Alimentos Desidratados Alcon maintains the leading position

Meanwhile, current leader Alcon is also further consolidating its position. Its more affordable pricing is still attractive to entry-level consumers, especially for bird food.

While still highly fragmented, larger players are consolidating

Other pet food is still a fragmented category in Brazil, especially due to the prevalence of other non-grocery specialist retailers – “agro” stores – that sell gardening and farming supplies in rural areas of the country, where pets like birds are extremely common. These stores are spread throughout the country and more difficult to access; thus, local brands are prevalent in them.

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