Peruvian pet food market sees double-digit growth rates

After years of a sluggish local commercial pet food market, Peru's seeing growth exceeding other Latin American pet food markets.

(Yury Zap, BigStock.com)
(Yury Zap, BigStock.com)

The Peruvian pet food market is one of the least developed in the Latin America region if we account for caloric penetration.

However, according to press sources, the market is currently taking a second shot as it is posting double-digit growth rates, suggesting a notable acceleration compared to other markets in the area.

As the economic situation of Peru is sound and relatively stable, the reasons explaining the prior sluggishness in the local market were a poor pet culture, and possibly, pet owners favoring feeding their pets with homemade preparations and table scraps.

In addition to the lack of pet humanization, the Peruvian pet food market's delay was due to the small number of companies offering pet food for sale in the country.

According to a recent local press release, the market competition in Peru is limited, as there are just 20 brands participating in a market of approximately 5 million dogs and cats nationwide. Most of these brands are imported.

Moreover, the statement affirms that the Peruvian company Rintisa dominates the market with 60% of the total share, producing nearly 91,000 metric tons of pet food per year. The company´s revenue reached around US$100 million in 2018.

Rintisa’s information reveals a few key takeaways: 

First, the market is highly concentrated and depends largely on just one company.

Secondly, the local pet food market is likely biased toward economy products. Therefore, the Peruvian pet food market is in its first stages of development, with little participation in premium products.

The local industry needs to strengthen before seizing the new opportunities

The few other market players that are rather relevant in the market are Mars, with its global umbrella brand Pedigree; Nestlé, with Dog Chow and Molitalia with the well-known local brand Mimaskot.

As the market is entering into a new rising pace, and while only one local company dominates more than half of the industry, it is foreseeable that new players will be willing to enter the local market soon.

Nevertheless, as the market competes mostly with economy products, foreign companies offering value-added products might not be well-suited to meet the local consumer preferences. Thus, a first step for the industry is to further develop before taking full advantage of these new market opportunities.

Given the experience of other markets across the region, a considerable number of players is a necessary condition for the pet food industry to succeed.

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