South America Pet Food Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

South America Pet Food Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The South American pet food market is projected to witness a CAGR of 5.3% during the forecast period (2022-2027).

COVID-19 exerted a negative impact on the supply chains. Owing to the restrictions in the movement of raw materials, the pet food industry suffered initially in terms of supply and cash flow. On the other hand, demand for the pet food segment witnessed a steady growth in many parts of the world as people adopted more pets with the growing desire for companionship during the lockdown. To address this demand, the players in the market have shifted their focus from retail stores to e-commerce platforms by increasing their investments in developing their own websites.

The rapid economic and social changes in these countries are leading to increased urbanization, high-income growth, and a strong aesthetic sense among the consumers. Due to a rise in this trend of humanization, owners are becoming increasingly aware of pet health, nutrient uptake, and overall wellness.

Brazil dominates the market. Brazil is one of the largest markets worldwide for pet products, only behind United States and China. During the initial months of the pandemic, thousands of Brazilian households acquired pets. Demand for pet food, especially packaging that stands out for its sustainability, functionality, and food safety guarantees, is expanding. Manufacturers are capitalizing on this situation and differentiating their products on these lines, with natural and ethically sourced products being a major hit in this regard.

South America Pet Food Market TrendsPet Humanization Resulting in Higher Demand for Pet Food

The growing bond between pet owners and their pets shapes consumers’ willingness to spend more on pet food. Consumers are now becoming aware of their pet’s health and are buying mostly premium pet food with rich nutritional value for the betterment of their beloved pets. Nowadays, pet owners are not just looking for basic food products but also for pet consumables that are locally produced and natural or have specific health benefits.

Chilean pet care industry benefitted from the humanization of pets and downward birth rate trends and recorded year-on-year growth of over 5% in 2020. As per the Agriculture and Livestock Service of Chile, the Chilean government has authorized and registered 147 new imported pet food products in the local market in 2021. Of those, about 69% are dog food products, and the remaining are cat food products. Within the premium segment in Chile, Royal Canin Argentina and Royal Canin Brasil are the most active companies, registering 32 new prescription products in the first quarter of 2021, including the VHN veterinary line.

Brazil Dominates the Market

Brazil overtook Japan as the second-largest market for pet food worldwide in 2012, and it is behind only United States. Brazilian pet food companies rely on US companies for the ingredients for their formulations. According to Instituto Pet Brasil, the share of pet food in the Brazilian pet care market comprises 50%, making the pet food market. The large dog and cat population in the country spurs a sizeable network of retail outlets across the country, supporting the pet food market as a resilient and profitable business.

With the Brazilian pet food market growing and a rise in the demand for innovative pet products, the ingredient suppliers are required to be registered at the MAPA’s Department of Animal Production Inspection and Development (DFIP) as a prerequisite for exporting to Brazil. Specialized pet stores are gaining popularity in the country due to the consistent price range offered by these small outlets, unlike the price volatilities of large-scale outlets of major brands. These stores are often involved in producing innovative and naturally and ethically sourced materials, and hence, their dedicated pet food product lines are capturing consumer interest.

South America Pet Food Market Competitive Analysis

The South American pet food market is fairly consolidated, with the leading players investing in R&D to introduce innovative pet food products to achieve significant market shares. The South American pet food market is dominated by players like Nestle SA (Purina), Mars Inc., Hill’s Pet Nutrition, Total Alimentos SA, and Lupus Alimentos.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.