Mixed 2022 results for 3 Latin American pet food leaders
In 2022, the pet food markets of Brazil, Mexico and Argentina posted mixed results. Inflation hindered pet food consumption in the region, as an ample sector of consumers is likely sensitive to abrupt price increases. However, impacts were varied, according to local sources.
Argentina: Raw materials inflation hit the market
Argentina was likely the country with the most significant adverse effects from high inflation. According to a press report, the local pet food market grew 1.4% in volume terms in 2022 compared to 2021. The article suggests that the higher prices for raw inputs during the year, such as meat, legumes and carbohydrates, impacted the price of pet food products.
Brazil: Steady growth path amid inflation
In contrast, the Brazilian pet food market increased 7.5% in 2022 in volume terms, according to Abinet, a trade association for the industry. At the same time, the market value rose 18.3% in nominal terms. Likely, most of the value growth is attributable to high local inflation in pet food.
Abinpet also revealed that along with the healthy local growth, Brazilian pet care product exports increased 5.6% in dollar value terms in 2022. It is worth mentioning that 94% of that amount is pet food. Meanwhile, imports were down 5.9% in dollar value terms in the same year, suggesting that Brazil’s sound pet food manufacturing and marketing infrastructure substituted for imports effortlessly.
Mexico: Inflation impacts yet good prospects for recovery
Triplethree International revised its previous 2022 data as high pet food inflation slowed local consumption. According to the revisions, the pet food market rose by 4% in volume terms, ending the high growth momentum after the COVID-19 boom.
Although 2022 was not the best year for the industry in Mexico, growth still continued despite inflation. This suggests that the pet food market continues to rely on an ample and growing consumer base. Also, as local pet food producers’ inflation is already down, volume consumption might recover to return to its potential.
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