News

Nov 06, 2024

How to navigate the LATAM pet food market | PetfoodIndustry

A look at the opportunities and challenges posed by each Latin American region. In order to understand the Latin American pet food market, it's best to picture it as a vast highway with multiple

A look at the opportunities and challenges posed by each Latin American region.

In order to understand the Latin American pet food market, it's best to picture it as a vast highway with multiple lanes, each representing categories like dry food, wet food, treats and premium options. Each country moves through this highway at different speeds, reflecting varying levels of market maturity and saturation.

Brazil and Argentina: Highways at peak traffic

Brazil and Argentina are like modern highways with three to four lanes yet stuck in rush hour. In Brazil, the dry food lane is heavily congested due to high demand, while the premium dry food lane is gaining speed as consumers shift towards higher-value products. Argentina, though also busy, finds relief through exports, which offer alternative routes and help ease market pressure.

Mexico: Expanding amid congestion

Mexico’s pet food market resembles a large, six- to seven-lane highway experiencing heavy traffic under construction. The budget dry food and wet food lanes are saturated, reflecting a mature market. New lanes are being added, however, such as dry food for small breeds, which is gaining traction as the trend of owning smaller pets continues to rise.

Central America: Smooth flow, but high costs

In Central America, the highways are less congested, but high tolls (costs) restrict smoother traffic. While the market flows steadily, it faces challenges with costs and limited accessibility. The market would benefit from more variety, which could lower prices and stimulate greater consumer engagement.

Rest of LATAM: Open lanes but limited infrastructure

In most other LATAM countries, except Chile and Colombia, market infrastructure remains limited. There are lanes, but traffic is light due to a lack of brands and offerings. This presents a significant opportunity for companies willing to invest in expanding these markets, creating new lanes, and driving growth.