Market Trends of south america pet nutraceuticals Industry
Brazil accounted for the largest cat population in the region with the advantages of adaptability to smaller living spaces and lower maintenance
- The pet cat population in South America has been steadily increasing, which increased by 13.3% between 2019 and 2022. This upward trend can 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 holds the largest cat population, accounting for about 55.5% of the total cat population as of 2022. In South America, cats made up 19.3% of the overall pet population in 2022. This relatively lower proportion of cats can be attributed to cultural perceptions that dogs are considered more practical and valued pets. As a result, the number of cats represents 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, has contributed to an increasing preference for cat ownership. This trend has led to a significant rise in the cat pet population across the region. In Brazil, as of 2020, about 14.3 million households owned cats as pets. Similarly, in Argentina, the rate of cat ownership is even higher, with 31.4% of households, which is 4.6 million households holding cats as pets.
- An important emerging trend in the region is the establishment of cat cafes. As of 2021, there were around 20 cat cafes 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, coupled with the cat's ability to adopt smaller living spaces, has the potential to 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 can be attributed to the rising 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 and driving pet product premiumization. The expenditure on pet nutraceuticals accounted for about 10.1% of the total pet expenditure per pet in 2022. The pet nutraceutical expenditure per pet in the country increased from USD 94 in 2017 to USD 128.5 in 2022. During the period from 2017 to 2022, the number of pet owners spending on pet nutraceuticals annually increased by about 49.1% for dogs, 48.5% for cats, and 12.9% for other pet animals. Among the South American countries, Brazil stands out with the highest pet expenditure on pet nutraceuticals per animal, reaching USD 51.4, followed closely by Argentina at USD 41.4 in 2022. This higher pet expenditure in Brazil is largely due to the country's increased spending on pet health.
- Among distribution channels, offline retail channels such as pet shops, vet clinics, and supermarkets are the preferred distribution channels for purchasing pet nutraceutical products in the region. However, during the pandemic, the adoption of e-commerce for pet nutraceuticals has increased.
- The higher consumption of premium pet nutraceuticals 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
- Brazil accounted for the largest cat population in the region with the advantages of adaptability to smaller living spaces and lower maintenance
- Brazil held the major other pets population including birds, ornamental fish, and mammals due to the presence of a unique ecosystem
- Dogs are the most popular and valued pets in South America that account for 29.8% of the total pet population
