Argentina Pet Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Argentina Pet Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Argentina Pet Food market is expected to register a CAGR of 5.2% during the forecast period.

• The country is one of the top 3 markets in South America for pet food. Nearly 66% of households in Argentina have at least one dog, while 32% have a cat as a pet. The market is dominated by dry pet food products, followed by wet pet food. Treats and snacks are anticipated to have the fastest growth during the forecast period.
• The market is expected to grow but at a slow pace, due to the economic condition prevailing in the country. Most of the pet food sold in the country is through veterinary clinics, with a focus on premium, tailor-made pet food, and offer delivery services.
• There are at least 40 pet food producers in the nation, with the majority concentrated in three states (Buenos Aires, Cordoba, and Santa Fe) - places where maize and other grains are cultivated in plenty. 70% of the producers are large multinationals, with the remainder being local small and medium-sized businesses. Imports are also increasing as customers seek out more specialized foods that are not produced locally, thus propelling the market.

The global pet humanization trend is also permeating Argentina, with pet owners increasingly looking for new product varieties, from wet food products and value-added treats to vegan alternatives.

Pet adoptions surged by roughly 200% during the epidemic. In Argentina, 86% of homes currently have at least one pet, most of which are dogs or cats. According to the Argentine Chamber of Animal Nutrition Companies (CAENA), in the year 2022, the country had 17 million dogs and 11 million cats. Argentina is the leading nation that prefers to have a dog as a pet more than a cat. It is also discerned that most pet owners choose a dog over other pet animals.

Foreign companies like Mars and Nestle Purina are investing in local production facilities or expansions to increase their portfolio of snacks, treats, and wet pet food. Along with those well-known multinationals, leading local pet food companies like Molino Chacabuco, Metrive, and Alimentos Grupo Pilar are increasing their stakes in the domestic market, hoping that high prices and volatility will eventually ease.

Argentina´s pet food market has remained one of the biggest pet-loving countries in the region, supported by a strong local industry, but the consumers are struggling to care for their pets in their usual manner as the cost of living rises due to the rampant inflation recorded in 54.2% in 2021 according to the World Bank Data.

Argentina manufactured 764,000 metric ton of pet food in 2021, according to the Argentine Chamber of Animal Nutrition Companies (CAENA). Economy-priced goods predominated, accounting for 40% of total production. Premium pet foods accounted for 27% of total output, with ultra-premium accounting for 18%. In 2021, 17% of Argentine pet food output was exported. metric tons of dog and cat food combined which means that the country has the second-highest pet food caloric penetration rate in Latin America, after Mexico. It can also be inferred that the local pet food market is also reaching maturity.

Because the country's pet food sector is focused on local growth, there is a growing emphasis on wet food. Due to decreasing demand in the domestic market, wet pet food is expected to boost overseas commerce. Argentina's pet food companies joining the international market have a lot to offer, including high-quality goods at reasonable prices. According to the International Trade Centre, Chile, Uruguay, Peru, and Bolivia are the major importers of pet food products from the Argentinean market with Chile holding a major share of 70% of the import.

The Argentina pet food market is fragmented with few global players being, Nestle, Mars Incorporated, Molino Chacabuco, Metrive, and Hill’s Pet Nutrition, but the market also has some pet food manufacturers that are locally based. The market is competitive; hence, the leading players are involved in the R&D of innovative pet food products to achieve major market shares. Along with those well-known multinationals, leading local pet food companies like Molino Chacabuco, Metrive, and Grupo Pilar are increasing their stakes in the domestic market.

• The market estimate (ME) sheet in Excel format
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