In context

Currently, Brazil is already the world's second largest market for dog food and the third largest for pet food, behind the United States and China.

The pet industry in Brazil, which encompasses Pet Food, veterinary products and accessories, hygiene and animal beauty, billed, in 2018, R $ 20.37 billion in 2018.

Brazil is characterized by launching new products to the market, not only serving to attract foreign buyers to increase exports, since they are in charge of meeting quality requirements and standards, but, in turn, stimulate and raise the quality of the national industry, and the truth is that companies in the sector constantly seek to use technological innovation and creativity to develop more specialized and interesting solutions for consumers.

Now, for example, one of the most important companies in the market, BRF, bought all the shares of the companies that make up the Hercosul Group, specialized in the production of pet food and expanded to Paraguay since 2019.

From the company, they affirmed that this decision will allow them to be able to better satisfy the growing demand of consumers in the pet food segment, and it is that the changes happen so quickly and constantly in the sector due to the new links that are generate between people and animals that it is necessary to offer more and better options on a continuous basis.

 

How did the coronavirus pandemic affect the country's industry?

That Brazil had difficulties coping with the pandemic is no longer news; However, within our industry, it should be noted that, as in many other countries, there has been a considerable increase in the purchase and adoption of pets.

In fact, only in March 2020, at the beginning of the pandemic, Brazil had already become a country with more dogs than children, reaching 300% more pets in just one month. Despite that explosive growth, then the numbers stabilized over the months.

Thus, by consequent logic, a large increase in the demand for both food and services, accessories and games for these animals was perceived. And, according to specialists in the sector, this increase and expansion of the market has no turning back, which is also supported by the growth of the previous 5 years: the pet food and pet accessories industry grew by 87% in that period. (Euromonitor International)

For example, Petz, one of the largest pet product marketing companies in the country, saw growth of 46.6% in 2020 compared to 2019, reaching a turnover of 1.7 billion reais (approximately USD 303 million). This was due, in large part, to its long-standing commitment to online sales.

In addition, the sector was highly favored for being classified as "essential", which allowed stores and veterinarians to continue operating throughout the entire confinement period.

 

"The year was challenging for all sectors, but the results of our industry show a very expressive growth and reinforce the resilience of the pet market"

                                                                                                                          Sergio Zimerman, founder and CEO of Petz.

 

Changes experienced by the pet industry in Brazil

Accessories on the rise

The purchase of snacks, hygiene products and accessories for pets has skyrocketed. This is mainly due to the fact that their owners spend more time at home and, therefore, with them, since during confinement they have not been able to take their pets, mainly dogs, to services such as baths and haircuts, so they had to figure it out at home.

First pets

Many people, mainly young adults, decided to buy or adopt their first pet precisely during 2020, so there was a boom of, we could say, new mothers and fathers. As logic indicates, they are the ones who consume the most: they must buy everything the pet needs, from feeders to blankets, and they will surely buy more as well, since the enthusiasm and illusion of having a new member in the family, When in many cases they are families of one person, it causes the budget to be exceeded.

The data from the digital bank Nubank prove it: its clients saw an increase of 73.1% in expenses in the pet segment in 2020.

Change of pet-human bond

Although there have been disadvantages of the boom of early 2020, such as the abandonment of pets due to the subsequent economic crisis, the question that haunts the industry is why the pet market not only survives the crises, but that continues to grow.

The truth is that the development of the market confirms 2 characteristics of the development of the bonds between pets and people:

• Have improves the health of both.
• It increases the life expectancy of people, mainly of the inhabitants of large cities.
• Animals are increasingly important in therapeutic treatments and social inclusion policies.

 

In conclusion

According to Euromonitor International, in 2021 Brazil will climb one more step towards consolidation as the 6th. largest pet market in the world.

It is certainly a market to watch closely, as they know how to grow even in tough times.

Tell us what you think of the Brazilian pet market in comments, we are interested in your opinion!

 

Source: All Pet Food