The new pet food production facility in Florestal, Vargeão, is scheduled to start operations in March 2024.
The Brazilian pet food market is the second largest globally after the U.S. According to official reports, Brazil has more than 400 pet food manufacturers nationwide.
Nestlé Purina is among the top 10 pet food producers in Brazil, with two production facilities in the country, yet ranks fifth in production capacity compared to other leading companies, according to a report by Triplethree International. The largest pet food companies in Brazil are Premier Pet and BRF Pet.
In December 2021, Nestlé Purina announced the construction of a new production facility in Florestal, Vargeão, in the southern state of Santa Catarina. The company expects to complete the construction of the new facility at the end of 2023 and to start operations in March 2024.
Dry pet food more popular in Brazil, yet Purina bets on wet
According to an article on NSC Total, Purina Vargeão will focus on wet food products at first, with an estimated production capacity of 30,000 metric tons annually. Such investment would position Nestlé Purina as the third biggest domestic pet food producer in Brazil, as established by the ranking of Brazilian pet food companies by Triplethree.
It is worth noting that around half of the current market leaders in Brazil participate in the wet food market, while the others focus only on dry food and treats. Although Purina’s press release states that the new facility will serve local and foreign markets, perhaps Purina is taking advantage of such a competitive advantage to encourage sales of wet pet food products locally.
Versatile pet food market with hundreds of manufacturers
As the second largest market worldwide, Brazil is a significant hub of pet food innovation in Latin America. A sizeable portion of its 400 pet food companies are startups with innovative products, including natural or human-grade ingredients in pet food.
Brazilian pet owners are likely more drawn to such innovative products rather than to regular wet pet food. Among the successful startups are Mascote Fit, Simple Dog, Natoo and several regional companies of smaller scale.
Iván Franco is the founder of Triplethree International and has collaborated on hundreds of research projects for several consumer goods industries. He was granted the Global Consultant of the Year award by Euromonitor International and authored the book 17 Market Strategies for Growth (in Spanish).
While forecasts can have short shelf lives, being overtaken by unforeseen events, there’s no question that the U.S. economy and American houseeholds have been buffeted by COVID-19 shutdowns and illnesses, patches of job insecurity despite low unemployment rates and record price inflation only partially offset by wage increases.
