Pet food entrepreneurs are increasingly finding a market niche in the super-premium artisanal segment in Latin America.
Pet Gourmet is a Colombian pet food company focusing on the artisanal treats category. It specializes in the creation of cookies, donuts and birthday cakes for dogs.
According to its website, a local agricultural institute granted Pet Gourmet the first-in-its-class license to commercialize natural pet food recipes. Although the company targets its product offerings as a complement to regular pet food products, it claims its products are well-suited to be the only source for feeding, as they include first-grade ingredients and recipes are nutritionally balanced.
Currently, Pet Gourmet distributes through six stores in Colombia and an e-commerce site to reach the rest of the country. According to local media, the company is planning to expand in 2020, building to 10 stores, including one in Mexico City. The rest will be in new cities in Colombia.
Pet food artisanal startups are growing in Latin America
Some pet food entrepreneurs are increasingly finding a market niche in the super-premium artisanal segment in Latin America. Usually, these companies start operating with small production volumes, yet using high-quality ingredients.
The mission of these niche pet food companies is likely finding a food solution that avoids the use of controversial ingredients that larger companies may use. These pet lover entrepreneurs are committed to nutritional feeding in a sort of artisanal experience.
Along with Pet Gourmet, there are numerous small-scale companies manufacturing pet food – for example, Tamalitos Dog and Lucky Dog Nutrición Animal. Both companies are in an affluent neighborhood in Mexico City and distribute their products locally.
Barriers and opportunities for artisanal companies
Artisanal pet food companies have a wide-open market in Latin America. However, producing first-grade pet food has its nuances and obstacles. Once these companies reach their full potential customer base locally, further expansion plans and financing are mandatory to continue growing.
The case of Pet Gourmet is just an example of a successful business plan in a market that is eager for innovative pet food solutions.
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 dogs and cats continue to reign supreme, the growth of the “other” pet space can’t be denied: 9.9 million homes own a bird, 6.2 million homes have a small pet (usually small mammals) and 5.7 million homes own a reptile.
