South America Pet Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South America Pet Food Market is segmented by Products (Dry Pet Food, Wet Pet Food, Veterinary Diet, Treat/Snack, and Other Products), Animal Type (Dog, Cat, Bird, and Other Animals), Sales Channel (Specialized Pet Shops, Internet Sales, Hypermarkets, and Other Sales Channels), and Geography (Brazil, Argentina, Chile, and Rest of South America). The report offers market size and forecasts in terms of value in USD million for all the above segments.

Market Snapshot

Market Snapshot 1
Study Period: 2017-2027
Base Year: 2021
CAGR: 5.3 %

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Market Overview

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 the 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.

Scope of the Report

The report on the South American pet food market contains an analysis of various parameters of the market. The study includes multiple kinds of pet food for pets, like cats, dogs, etc., in South America. The study involves an analysis of formulation requirements and market demand. The report presents a wide-range analysis of market share, size, and trends of the South American pet food market. The market operates in the B2C model, and market sizing has been done at the consumer level.

The South American pet food market is segmented by products (dry pet food, wet pet food, veterinary diet, treat/snack, and other products), animal type (dog, cat, bird, and other animals), sales channel (specialized pet shops, internet sales, hypermarkets, and other sales channels), and geography (Brazil, Argentina, Chile, and Rest of South America). The report offers market size and forecasts in terms of value in USD million for all the above segments.

Product
Dry Pet Food
Wet Pet Food
Veterinary Diet
Treat/Snack
Other Products
Animal Type
Dog
Cat
Bird
Other Animals
Sales Channel
Specialized Pet Shops
Internet Sales
Hypermarkets
Other Sales Channels
Geography
Brazil
Argentina
Chile
Rest of South America

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Key Market Trends

Pet 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.

pet1

Brazil Dominates the Market

Brazil overtook Japan as the second-largest market for pet food worldwide in 2012, and it is behind only the 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.

pet2

Competitive Landscape

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.

Recent Developments

In 2022, Baires SA, a market leader in Argentina, launched a new premium brand called Fawna: Patagonic Taste, a dry dog and cat food product resembling local flavors and recipes from Argentinian Patagonia.

In 2021, Nestle launched a new cat food, 'Purina One Visible Nutrition,' in Brazil, containing real chicken and salmon. The new launch is aimed at cat owners who are keen to feed premium products to their cats and also address the growing obesity in cats.

In 2020, Nestlé Purina started a pilot for an innovative bulk delivery system for its Purina Dog Chow products in Chile. In partnership with Algramo, a social company focusing on reusable packaging, Nestlé Purina offers a new shopping experience in which a mobile app and electric tricycles are at the core of the service.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product

      1. 5.1.1 Dry Pet Food

      2. 5.1.2 Wet Pet Food

      3. 5.1.3 Veterinary Diet

      4. 5.1.4 Treat/Snack

      5. 5.1.5 Other Products

    2. 5.2 Animal Type

      1. 5.2.1 Dog

      2. 5.2.2 Cat

      3. 5.2.3 Bird

      4. 5.2.4 Other Animals

    3. 5.3 Sales Channel

      1. 5.3.1 Specialized Pet Shops

      2. 5.3.2 Internet Sales

      3. 5.3.3 Hypermarkets

      4. 5.3.4 Other Sales Channels

    4. 5.4 Geography

      1. 5.4.1 Brazil

      2. 5.4.2 Argentina

      3. 5.4.3 Chile

      4. 5.4.4 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Competitor Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Mars Inc.

      2. 6.3.2 Nestle SA (Purina)

      3. 6.3.3 Colgate Palmolive ( Hill's Pet Nutrition)

      4. 6.3.4 Uni-Charm Corp.

      5. 6.3.5 Nutriara Alimentos Ltda

      6. 6.3.6 InVivo NSA

      7. 6.3.7 Agrolimen SA

      8. 6.3.8 Mogiana Alimentos SA

      9. 6.3.9 J.M. Smucker (Big Heart)

      10. 6.3.10 Diamond Pet Foods

      11. 6.3.11 Blue Buffalo

      12. 6.3.12 Merrick Pet Care

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. AN ASSESSMENT OF THE IMPACT OF COVID-19 ON THE MARKET

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Frequently Asked Questions

The South America Pet Food Market market is studied from 2017 - 2027.

The South America Pet Food Market is growing at a CAGR of 5.3% over the next 5 years.

Mars Inc., Nestle SA (Purina), Colgate Palmolive ( Hill's Pet Nutrition), Total Alimentos SA, Lupus Alimentos are the major companies operating in South America Pet Food Market.

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