The pet food consumption in Latin America is around 7 million tons. During the Covid-19 pandemic in 2020, many people across the region used Work-from-Home as an opportunity to get themselves a pet, especially in the first quarter. The burgeoning premiumization and use of natural ingredients in pet food is the prime reason behind the booming pet food consumption across Latin America.
According to MarkNtel Advisors, the Latin America Pet Food Market is projected to grow at a CAGR of around 7.43% during the forecast period, i.e., 2022-27. With the swiftly increasing number of pet owners, the demand for pet food has witnessed a substantial rise across Latin America, principally due to the expanding knowledge about pet nutrition. Hence, pet owners are increasingly soaring the demand for high-quality products that meet the nutritional requirements of their pets. In fact, various pet food associations & federations are actively laying out stringent regulations for manufacturers to produce safe & quality pet food.
Moreover, manufacturers are also producing food specified with breeds, pet size, age, measured serving containers, and other products for the convenience of both owners & pets. Additionally, organic food variants produced without pesticides, synthetic fertilizers, antibiotics, or hormones are also gaining traction, thereby gaining consumer interest in natural formations & enabling manufacturers to diversify their products and, in turn, driving the market.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Mars Petcare, Nestle Purina, Hill’s Pet Foods, Natural Dog Food Company, Diamond Pet Foods, Sera, Spectrum Brands Holdings, Whiskas, ADM Animal Nutrition™, Others (GEPSA, Total Alimentos, etc.|
|Unit Denominations||USD Million/Billion|
Two-Fold Impact of Covid-19 on the Latin America Pet Food Market
With the Covid-19 pandemic in 2020, the Latin America Pet Food Market underwent a two-fold effect. During the initial phase, the sudden imposition of lockdown & stringent movement restrictions severely hampered the supply chain & affected the production, distribution, & logistics of pet food manufacturers across the region.
However, soon after, manufacturers began looking for alternate ways to ensure no disruptions in the pet food supply. Besides, since people started working from home, Latin America witnessed a significant increase in the pet adoption rate. Many studies indicated that pets help reduce issues like depression & loneliness due to the companionship that comes with them. Hence, people took the pandemic as an opportunity to get a pet in their family.
With this rise in the number of pets and the uncertainty of the pandemic, many consumers began stockpiling pet foods, which also resulted in short-term market growth amidst the crisis. Gradually, the demand for pet food supplies soared extensively, resulting in hiking production & sales through different distribution channels, including online platforms, and higher year-on-year growth for many manufacturers in 2020 than in 2019.
Furthermore, with the swift market revival since 2021, the supply chain has been restored with improved production, distribution, & logistics. Additionally, many producers are looking forward to introducing more pet food products to cater to the mounting number of pets across Latin America.
Based on the Type of Pet, Latin America Pet Food Market segments into:
Of them all, pet food supplies for Dogs hold the largest market share across Latin America, principally due to the growing trend of pet humanization, leading to the rising health consciousness & greater demand for high-quality pet food, i.e., free from sugar, dye, grain, & other chemical additives. The trend of dog humanization shows a greater need for the maintenance & well-being of dogs, thereby driving the sales of natural & quality rich pet food.
Moreover, a swift rise in the adoption of dogs, especially amidst the pandemic, has resulted in more family time with dogs and increasing demand for healthy treats & dog treats. Furthermore, numerous pet food companies are actively introducing new products with top-quality, higher nutrition, organic, and breed-specific food to cater to the burgeoning number of dogs and attain consumer attention, thereby leading Dogs to dominate the market.
Supermarket/Hypermarkets to Dominate through 2027
Based on the Distribution Channel, the Latin America Pet Food Market segments into:
Of them all, Supermarkets/Hypermarkets are anticipated to dominate the market with the largest share in the coming years, primarily due to the increasing consumer preference of buying products from retail shops, offering an abundance of choices among brands, prices, nutritional value, etc. Moreover, another crucial aspect behind the maximum pet food sales through supermarkets/hypermarkets is the availability of premium & exotic pet food at these stores.
On the other hand, the demand for pet food through the Online distribution channel is projected to witness the fastest growth in the coming years due to the swiftly rising millennial inclination toward e-commerce owing to the greater convenience, doorstep facilities, and personalization & customization of pet food offered by online platforms. Nonetheless, the increasing adoption of online platforms by market players & their collaboration with retail shops shall further boost the market in the coming years, states MarkNtel Advisors in their research report, “Latin America Pet Food Market Analysis, 2022.”
Based on Geography, the Latin America Pet Food Market expands across:
Of them all, Brazil holds a majority market share in the region and shall prevail the same trend in the forecast years. The market is driven primarily by Brazil, having the largest pet ownership across Latin America, thereby displaying extensive demand for pet food & positively influencing the market. Moreover, the mounting focus of pet owners on their pets’ health, coupled with the increasing expenditure on high-quality, nutrition-rich, & organic pet food, also drives the market across Brazil.
Besides, unlike big outlets of major brands in the industry with price volatilities, specialized pet food stores are gaining immense popularity in the country due to their consistent product prices. These stores often manufacture pet food with naturally & ethically sourced materials, and hence, their pet-specific food products are capturing a wide variety of consumers across Brazil.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Latin America Pet Food Market is likely to grow at a CAGR of around 7.43% during the forecast period, i.e., 2022-27.
A. Which segment would emerge as an opportunity area for players in the Latin America Pet Food Market
A. Easy availability of pet-specific food in varied price ranges, the increasing adoption of pets, and massive expenditure by people on healthy pet food are the prime aspects likely to drive the Latin America Pet Food Market through 2027.
A. With the increasing adoption of pets & the emerging trend of pet humanization, many manufacturers shall come up with more variety of pet food to cater to the mounting number of pets across Latin America through 2027, which would create remunerative growth opportunities for the market.