Pet Products in Brazil

PROSPECTS

Pet humanisation drives pet healthcare’s growth over the coming years

Since pet products are closely related to a growing concern regarding pet’s quality of life, pet owners dedicate more expenditure to this category willing to provide extra comfort with products that were not priority items during the recessionary period, for example animal bedding. As the pet humanisation trend intensifies, expenditure on their health and comfort naturally tends to increase, especially when consumers finally enjoy the affordability of more expensive and non-essential items.

Increasing concern about pets’ appearance and health benefits pet cosmetics

With the development of the humanisation trend, consumers search for more sophisticated and varied ways to pamper their pets, driving consumption within the overall category. In this scenario, pet cosmetics follows the same recent trend observed in human cosmetics with sophisticated products to be used at home in lieu of acquiring services, a habit developed during the economic recession in recent years.

Leisure products and home accessories benefit growth of other pet products

Other pet products relies not only on cosmetics but also on pet toys and comfort items such as pet baskets and feeding bowls to grow. The main driver of such growth are the special care habits consumers have developed recently, more widely comprehending their pets’ psychological needs and instincts, now underpinned by a strengthening economy.

COMPETITIVE LANDSCAPE

Merial Saúde Animal Ltda’s brands lead growing pet healthcare

Pet healthcare market share is expected to further concentrate among the largest brands. Into a positive scenario, Merial’s brands together grew above the market rate and continue to lead against increasingly fierce competition.

Pet accessories and homewares sees higher market fragmentation

Other pet products such as pet toys, feeding bowls and litter trays grow every year as the humanisation trend intensifies and consumers aim to provide more comfort to their pets. As these products’ sales usually do not depend on strong brand awareness (different from other healthcare items), they do not compete heavily in terms of added value, and the subcategory remains highly fragmented.

Toys and accessories sees fiercer competition from new entrants

Due to the high fragmentation of toys and accessories, not only pet specialist brands are attracted to the positive prospects but some brands that had never invested in pet products before also began making efforts to explore the potential shown by this subcategory. Furacão Pet, which has been in this market for 10 years, recently received a portfolio investment worth BRL2.

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