In the years leading up to the pandemic, the Mexican pet food market witnessed impressive double-digit growth rates in volume. However, recent years have seen a deceleration, with a compound annual growth rate averaging around 6%. Surprisingly, there is no evidence to suggest that the population of dogs and cats has slowed in growth. On the contrary, macro-trends such as smaller households and an increase in single- or two-person households would not support this theory.
To understand the factors behind the pet food deceleration, it is important to analyze the influence of consumer decisions on the market’s mid-term growth prospects.
Consumers factors likely reshaping market outlook
One prevailing theory within the Mexican pet food industry suggests that the combination of inflation and income loss among a segment of pet owners is driving them to supplement dry pet food with homemade meals or leftovers. This behavior indicates some dog owners are blending commercial pet food with homemade alternatives, reducing their reliance on balanced pet diets and subsequently impacting the growth rate of the market.
While this practice may offer short-term financial relief, it raises valid concerns about the nutritional adequacy of such diets, potentially compromising the overall health and well-being of pets. It is worth noting that in Mexico, the largest product segment in the entire pet food market is economy dry dog food.
Another factor is that, with a significant pet population of 45.68 million dogs and 18.55 million cats, including pets and stray animals, as reported by INEGI, there is a growing concern about the rise in pet abandonment. This alarming trend not only poses ethical concerns but also has implications for the dynamics of the pet food industry.
Manufacturers can respond with fresh ideas for new pet food products
To address these challenges, pet food manufacturers can take a deep dive into consumer preferences and conduct thorough market research to accurately understand what consumers may want in terms of pet food innovation. By gaining insights into evolving consumer demands, manufacturers can develop new and appealing product offerings that meet the specific needs and preferences of pet owners.
This approach allows manufacturers to align their strategies with consumer expectations and drive growth by delivering innovative and targeted pet food solutions. By actively engaging with consumers and providing tailored solutions, manufacturers can adapt to evolving market dynamics, meet consumer demands and drive future growth in the Mexican pet food industry.
