Pet care growth rates spiked during the pandemic in Latin America, helped by consumers adopting pets for company during lockdowns as well as the ongoing premiumisation and pet humanisation trends. In spite of high inflation rates in the region, growth has remained strong post-pandemic, albeit slightly down on the 2020-2021 period. Continued expansion of pet populations and improvements in the prepared gap will ensure 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 more than healthy in real value terms. While dog food still dominates, cat food is seeing stronger growth. The sales increases in pet products have come down from their highs during COVID-19 home seclusion periods, when owners were spending more time with their pets, increasing their tendency to pamper them.
Preventive pet health is becoming increasingly important in the pet care industry. With Brazilian households now having more pets than children, many owners of pets see them as family members. This is helping drive the adoption of natural food for pets, although natural feeding is not possible for everyone because of its high costs. In fact, economy and mid-priced dry products still dominate overall dog and cat food sales.
E-commerce continues to gain share, but will only reach 8% of sales in 2023. 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. Veterinary clinics is a key distribution channel in Argentina, where it accounts for almost half of other pet food sales.
Dog and cat populations are expected to continue growing in Latin America, with prepared sales also likely to take further share from non-prepared over the forecast period. Although the economic backdrop is currently troubled in much of the region, 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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