Latin America Pet Food Market

Latin America Pet Food Market Size (2024 to 2029)

The Latin America pet food market size is expected to reach USD 10.19 billion in 2024 and reach USD 14.36 billion by 2029, growing at a CAGR of 7.11% from 2024 to 2029.

The increasing trend of pet humanization is due to increased interaction between pets and owners, allowing the owners to spend more on quality and healthy food. There is increasing awareness regarding the health measures of pets, where the supplement of grains, nutrient sources, vitamins, and minerals is essential for animal health. Increasing incorporation of functional ingredients in food products is driving the market growth. Clean-labeled pet food products and the increasing launch of vegan foods to attract pet owners are fuelling the growth of the market size. The rising premiumization trend is surging high-quality pet food with fresh, organic, and premium ingredients, propelling the market growth. The presence of leading companies for pet food manufactured in Latin America influences the market in a wide variety of raw materials, increasing the market value. According to International Trade Center Data, pet food imports to South America increased by 30.6% in the past few years. Chile and Mexico are the significant importers of pet food, propelling the market value.  

The increasing adoption of e-commerce retailing among people is estimated to create opportunities for market expansion. Pet food sales from online retail stores are rising due to the diverse availability of food products. Market players are increasingly focusing on research and development activities to introduce innovative products that are based on flavor, shape, and color. 

The major hampering factor for the pet food market is the microbial contamination and safety issues. Contaminated pet foods result in food poisoning in the pets. High pet food prices for premium goods are hindering the market value. With pet food inflation in central countries such as Brazil and Mexico, people prefer unpacked food due to cost-effectiveness, as the premium packaging demands higher prices. The quality of pet food is the main challenge for the market's growth. As pet owners are highly obsessed with quality food, most of the natural fluctuations in temperature and humidity impact the food quality. The stringent government regulations for pet adoption are decreasing the adoption rate, which impacts the growth of the pet food market. 

MARKET DRIVERS

The growing pet ownership in Latin America is majorly propelling the Latin American pet food market growth.

Dogs and cats are mostly adopted pets in Latin America. Latin America had approximately 187 million pets in 2022, and a 17% difference was noticed in the number of pets in the Latin American region. Across Latin America, Brazil is the country with the greatest number of pets and is the leading market for pet food in Latin America. As per industry experts, the pet population in Latin America is growing at an average of 5% every year. The trend of pet humanization is increasing in Latin America, and pet owners are increasingly considering their pets as family members and spending money, time, and effort in taking care of and feeding their healthy pets. Awareness among pet owners regarding the health measures of pets, especially about the supplements of grains, nutrient sources, vitamins, and minerals, is essential for animal health.

The growing middle-class population and increasing disposable income in Latin America are contributing to the expansion of the Latin American pet food market.

The pet ownership and the adoption of premium pet food products have been experiencing an increase due to the increase in the middle-class population and disposable income of people in Latin America. As per the statistics of the World Bank, the population of the middle class in Latin America and the Caribbean grew by 50% between 2003 and 2018. Due to the increasing disposable income, pet owners in Latin America are considering purchasing nutritious and specialized pet food options for their pets. According to a study by GFK, pet owners in Latin America spend approximately USD 250 annually on pet food.

The growing adoption of functional ingredients in pet food products, the increasing popularity of clean-labeled pet food products, and the increasing launch of vegan foods to attract pet owners across Latin America are supporting regional market growth. The rising premiumization trend is surging high-quality pet food with fresh, organic, and premium ingredients. The presence of major market participants for pet food manufactured in Latin America influences the market in a wide variety of raw materials, which is aiding the regional market growth. According to International Trade Center Data, pet food imports to South America increased by 30.6% in the past few years. Chile and Mexico are the significant importers of pet food, propelling the Latin American market growth. The increasing adoption of e-commerce retailing among people is estimated to create opportunities for market expansion. Pet food sales from online retail stores are rising due to the diverse availability of food products. Market players are increasingly focusing on research and development activities to introduce innovative products that are based on flavor, shape, and color. 

MARKET RESTRAINTS

Microbial contamination and safety issues are primarily hindering the pet food market growth in Latin America.

Contaminated pet foods result in food poisoning in the pets. High prices of premium pet food products are another significant restraint to the growth of the Latin American market. With pet food inflation in central countries such as Brazil and Mexico, people prefer unpacked food due to cost-effectiveness, as the premium packaging demands higher prices. The quality of pet food is the main challenge for the market's growth. As pet owners are highly obsessed with quality food, most of the natural fluctuations in temperature and humidity impact the food quality. The stringent government regulations for pet adoption are decreasing the adoption rate, which impacts the growth of the pet food market.  

REPORT COVERAGE

This market research report on the Latin American pet food market is segmented and sub-segmented into the following categories.

Latin America Pet Food Market By Ingredients

• Animal Derivatives
• Fish Derivatives
• Fruits and Vegetables
• Cereals and Cereal by-products
• Fats and Oils
• Vitamins and Minerals
• Additives

The animal-derived segment dominates the pet food market, including beef, chicken, and pork, which dogs prefer, whereas cats mostly prefer fish derivatives. Plant-based products such as cereals have been preferred in recent years due to increased demand for organic and healthy pet foods by pet parents. The increased trend of pet humanization demands highly nutritious food with vitamins and minerals for pets' good health. 

Latin America Pet Food Market By Animal

• Dogs
• Cats
• Birds
• Other Animals

Dogs dominated the pet food market due to the higher adoption of dogs in the region. The increasing focus of pet parents on dog health and fitness drives the demand for healthy and nutritious pet food. The surging demand for clean-labeled food, irrespective of the artificial flavors and preservatives, is expanding the pet food market. The cat segment is expected to grow significantly over the forecast period due to the demand for healthy and grain-free cat food, which is highly required for healthy cat growth. The availability of cat and dog foods with various flavors, such as tuna, salmon, chicken, and others, is driving the market growth. 

Latin America Pet Food Market By Country

• Brazil
• Argentina
• Mexico
• Chile
• Rest of Latin America

Brazil dominated the Latin America Pet Food market due to increasing innovative launches in pet food ingredients. Brazil is the largest pet food market in the region because companies rely on the US market for a broad spectrum of markets. According to Instituto Pet Brazil, the share of pet food in Brazilian pet care comprises 50%, making it a famous country with the largest pet food market share. The Brazilian pet food market exports pet food to other countries, where, according to ITC data in 2021, a 35% increase has been observed in exports from Brazil in recent years. The Brazilian market often tries to attract foreign customers to increase the export business, focusing on meeting the global standard requirements with increasing quality and introducing innovations into the market with high health benefits. 

Mexico's pet food market is projected to thrive due to increasing dog and cat food production. The increasing sales through e-commerce is propelling the market growth in Mexico. The increasing collaborations and investments by the market players are driving the growth in market value. 

The Chilean pet care industry stated that they benefitted from pet humanization and recorded 5% growth in 2021 compared to the previous year. The Chilean government authorized 147 new imported pet food products in the local market in 2021, where 69% are dog food products. 

Argentina and the rest of Latin America are expected to have a decent growth rate in the forecast period due to increased awareness of the health measures for good health among pet owners. 

KEY MARKET PLAYERS

The Latin American pet food industry is highly concentrated, with ten major players together accounting for more than 50% of the market share, and the remaining market share is distributed among a large number of small manufacturers. Mars, Inc., Del Monte Foods, Hills Pet Nutrition, INC, Unicharm Corporation, Nippon Formula Feed Manufacturing Company LTD, Pet Center, Incorporated (PCI), Nestle Purina PetCare, Nisshin Saifun Group INC. Natural Dog Food Company, Halo, Purely for Pets, Marukan CO. LTD., Nutrena, and Spectrum Brands, INC. are the major companies in the market.

RECENT HAPPENINGS IN THE LATIN AMERICA PET FOOD MARKET

• In April 2024, Alfadog announced the launch of the first pet food factory powered completely by solar energy in Chile.
• In November 2022, Pets Table, a Mexico-based pet food company, raised USD 2 million in seed funding, which was led by Left Lane Capital. Pets Table stated that they would be using the investment to expand their product offering and tap the potential of new markets.
• In May 2019, Premier Pet, which is one of the biggest pet food manufacturers in Brazil, announced about their shift to a cage-free egg policy in Latin America. Premier Pet made this decision post collaborating with Humane Society International, which is one of the significant animal protection organizations worldwide. In the same announcement, Premier Pet claimed that they were the first company who have made this switch in Latin America.