Market Trends of south america pet food Industry
Brazil accounted for the largest cat population in the region owing to their adaptability to smaller living spaces and lower maintenance
- The pet cat population in South America has been steadily increasing, and it increased by 13.3% between 2019 and 2022. This upward trend could be attributed to the higher adoption rates of cats as companions during the extended periods of home confinement brought on by the pandemic. Among the countries in the region, Brazil had the largest cat population, accounting for about 55.5% of the total cat population as of 2022. In South America, cats comprised 19.3% of the overall pet population in 2022. This relatively lower proportion of cats could be attributed to the cultural perception that dogs are more practical and valued pets. As a result, the number of cats represented only 50.0% of the total dog population in the region.
- However, the adaptability of cats to smaller living spaces, without feeling confined, coupled with their lower maintenance costs compared to dogs, contributed to an increased preference for cat ownership. This trend led to a significant rise in the pet cat population across the region. In Brazil alone, as of 2020, about 14.3 million households owned cats as pets. Similarly, in Argentina, the rate of cat ownership was higher, with 31.4% of households, or 4.6 million households, having cats as pets.
- An important emerging trend in the region is the establishment of cat cafes. As of 2021, around 20 cat cafes were in Brazil, providing customers with a unique opportunity to enjoy a drink while interacting with cats in a comfortable setting. This growing trend of cat cafes and the cat's ability to adopt smaller living spaces can further enhance the adoption of cats as popular pets in the region.
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Brazil stands out with the highest pet expenditure in the region due to higher-income individuals and premiumization
- Pet expenditure in South America showed consistent growth, with an increase of about 18.1% between 2019 and 2022. This upward trend could be attributed to the increased number of pet owners across the region. In Brazil, the number of households owning a pet recorded a CAGR of 1.3%, while in Argentina, it recorded a CAGR of 1.4% between 2016 and 2020.
- Pet owners in the region are increasingly focused on pet humanization, with higher-income individuals driving sales growth by opting for products made with natural ingredients, driving pet product premiumization. For instance, the retail sales value of premium dry dog food in Brazil witnessed a significant rise from USD 335.7 million in 2016 to USD 567.4 million in 2020, recording a CAGR of 14.7%. This surge in demand reflected the growing preference for premium pet products. From 2017 to 2022, the number of pet owners spending on pet food increased by about 33.8% annually for dogs, 21.7% for cats, and 12.7% for other pet animals. Among the South American countries, Brazil stood out with the highest pet expenditure per animal, reaching USD 455.8, followed closely by Argentina at USD 428.3 in 2022. This higher pet expenditure in Brazil was largely due to the country's larger pet population.
- Among distribution channels, offline retail channels such as pet shops, vet clinics, and supermarkets are the preferred distribution channels for purchasing pet food products in the region. However, during the pandemic, e-commerce's share in the distribution of pet food increased by about 14.2% between 2019 and 2021.
- The higher consumption of premium pet food and growing pet humanization are the factors anticipated to drive pet expenditure in the region during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Dogs are the most popular and valued pets in South America, accounting for 29.8% of the total pet population
- Brazil had the largest share of the other pet population, including birds, ornamental fish, and mammals, due to the presence of a unique ecosystem
