Other Pet Food in Chile

PROSPECTS

Focus on cats and dogs leaves little room for other pets

Other pet food continued to see strong retail volume and current value growth in 2020, although this was from a low base, and it remains a niche category with few innovations or new product launches. Players are reluctant to invest in this area due to a lack of consumer interest, whilst retailers are also often reluctant to stock other pet food, which is linked to the small (but rising) population of other pets.

Growth also limited by non-prepared food and lack of humanisation of other pets

Sales of other pet food also continue to be restricted by the belief that small mammals and reptiles should be fed natural non-prepared food, whilst many believe that birds should be fed unpackaged grain and bread. Non-prepared alternatives are also considerably cheaper in comparison with packaged other pet food, with many unwilling to pay higher prices for the latter.

Consumers driven towards specialist outlets and home improvement stores

The number of stores selling other pet food continues to dwindle, in contrast to the widening distribution seen for dog and cat food. Supermarkets and hypermarkets continue to lose interest in selling other pet food because of the low rotation of these products, and the desire to give shelf space to dog and cat food.

COMPETITIVE LANDSCAPE

Little scope for mainstream new product development

Sociedad Importadora y Exportadora Caupolicán continued to lead other pet food in value terms in 2019, with its Canary Song brand having a presence in bird food and small mammal/reptile food. Although it continued to see strong growth, its growth rate slowed towards the end of the review period, due to competition from more recent introductions, such as premium brands Living World and Exoterra from Hagen Chile, which have carved out significant shares.

Limited brand range hinders growth, with distribution reach shaping shares

Product availability remains limited within other pet food in Chile, with few brands of note being accessible, and shares determined mainly by distribution presence rather than marketing or innovation. The range of brands available varies by category, with each category generally having one or two strong leaders and facing little competition in terms of distribution presence.

Diminishing store-based distribution will prove a challenge in the forecast period

With low demand likely to continue, other pet food will become an increasingly niche category in the forecast period, with sales becoming more dependent on specialist channels such as pet shops. As hypermarkets and supermarkets reduce the amount of space devoted to other pet food, it is likely that these outlets will increasingly offer only one or two brands, typically focusing on bird food and small mammal food and offering only the most popular and basic products.

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