Emerging petfood markets: Latin America
This region's countries are already making their mark in the petfood industry
Emerging and developing global markets have caught the eye of the petfood industry in recent years, and rightly so. According to Euromonitor International, the gross domestic product (GDP) growth of emerging markets has far outstripped that of developed markets, increasing by roughly 5% in 2012 and 5.25% in 2013 compared to 1.25% growth in developed markets for those years. And while developed markets are expected to grow by roughly 2% annually through 2017, growth in emerging markets will remain over 5.5% each year.
Petfood and pet products have seen similar dominating growth in developing markets when compared to developed markets While these two segments have mostly seen growth in developed markets since 2001 (barring a significant drop from 2009 to 2010—from 4% growth to roughly -1%—that the petfood industry is still regaining ground from), that growth has never gone beyond 4.5% per year.
In developing markets, however, the value of pet care has grown significantly each year, though the trend lines are far less predictable. The petfood market, for instance, saw 20% growth in 2001, then fell to roughly 12.5% in 2003, according to Euromonitor data. In 2004 it was back up to 18% growth, hit a low of 12% in 2009, and has been slowly increasing each year since then, to 14% in 2013.
Of the emerging markets, Latin America is garnering significant attention from the petfood industry. Not only is it the largest global developing market, it also contains one of the top ten pet care markets…