Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Dog and cat food; Dog and cat food by price platform (excl treats and mixers);
Dog and cat food by price platform (incl treats and mixers); Dog and cat food
by type (excl treats and mixers); Other pet food; Pet care products
Executive summary
Raising animal health awareness
Mexico had almost 26 million pets in 2005. It is common for lower-income
households to have two or three pets where people take pity on street dogs and
cats and provide them with shelter and food within their limited means. As a
result, it is estimated that over two thirds of households owned a dog, while
just over a tenth owned a cat. Large pet food companies focused their
attention and resources on creating awareness campaigns on pet care. Strong
advertisements by major players Nestlé México SA de CV and Effem México SA de
CV increased consumption of both dog and cat pet food, which became more
widely available in stores across the country.
Consumers slowly switch to processed pet food
Current trends of market globalisation on pet care led to good market
opportunities for pet food companies, veterinary clinics, pet retailers,
specialised pet shops and breeders, all of which displayed significant sales
growth over the review period. The strong growth derives from an increased
awareness on pet care launched by major pet food companies and by a wider
participation of kennel clubs and animal support groups in the country. The
convenience of a nutritious, hygienic and ready-to-serve pet food is becoming
a well-accepted alternative for feeding pets. It is estimated that less than
half of the pet population eat packaged pet food. Despite this rapid trend,
many pet owners still feed their pets with food scraps, as it is an easy and
convenient way to dispose of left-over food.
Pricing is a purchasing decision factor
Despite the apparent improvement in the Mexican economy, the disposable income
of many consumers is still low. Households with lower incomes try to make ends
meet. Therefore, the last thing consumers want to do is to spend money on pet
food. Instead, they generally feed their pets with whatever food scraps are
available at the end of a meal. Furthermore, many street dogs eventually
become pet dogs and serve as guardians in exchange for food and shelter. A
different dynamic takes place in households with larger discretionary income.
Pet owners with high income are exposed to global pet care trends through
their travels and opt to give their pets the best care available in the
country. It is not strange for these pet owners to take their cats and dogs
for at least a yearly visit to the veterinary clinic, to follow diet
recommendations set by veterinarians and to purchase packaged pet food.
The pet food industry in Mexico is dominated by multinationals
The Mexican pet food industry is relatively small, with multinationals
dominating the market. Effem México (subsidiary of Mars, Inc.) and Nestl
México manage manufacturing facilities mainly in Central Mexico. Other
important international players are Iams de México S de RL de CV (Procter &
Gamble), Diamond SA de CV, Grupo, Royal Canin México SA de CV, and Hill' s Pet
Nutrition de México SA de CV (Colgate-Palmolive.) There are also a few local
producers such as MaltaCleyton SA de CV, Grupo Nutec, and Grupo Industrial Los
Belenes SA de CV.
Premium pet food reports increased sales
Veterinary clinics and breeders are the main channel for the sales of premium
pet food in Mexico. The largest pet food companies invest in advertising and
promotional resources to gain their brands the recommendation of veterinarians
and breeders. In spite of the small proportion of pet owners who take their
pets to veterinary clinics, the seal of approval and recommendations by
veterinarians help stimulate the sales of premium products, typically not
found in the traditional retail channel.
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