In general, the current economic crisis that hinders Latin America is not negatively impacting the pet food market. In fact, some pet food companies in the region have expanded or grown in 2020, amidst the adverse effects of the economic situation on employment and income. The Peruvian pet food leader Rintisa is one example.
According to a press release, the company will post 35% growth in the year, surpassing 10,000 metric tons per month of production, or nearly 120,000 metric tons per year. Rintisa features a few umbrella brands, of which Ricocan and Ricocat are the most relevant.
With that production capacity supplying the whole Peruvian pet food market, Rintisa also exports a sizeable part of its stated production to foreign markets like Bolivia, Ecuador, Colombia and Panama. Press sources affirm that the local competitive environment in Peru splits among a few companies and brands, including Mikaskot (a Molitalia brand), Dow Chow and Pedigree, that together with Rintisa lead the market. In addition, there are nearly 22 pet food brands in the local market with a relevant share.
Peru: pet food market in early development
Peru is a market with one of the lowest caloric penetration rates—percentage of pets eating commercial pet food—compared to other countries in the region, such as Chile or Uruguay. Thus, there is still plenty of room for growth.
However, the Peruvian pet food market has a few constraints on rapid expansion, such as hundreds of thousands of dogs and cats living in the street, a relatively low pet care culture and an underdeveloped distribution channel. Still, it is likely that double-digit growth rates are attainable by some of the leading pet food players every year, as the market is still in an early developing stage.
As for Rintisa, the company owns a large infrastructure capacity and continues investing in expanding its operation, signaling the confidence of the company in the local and regional pet food markets.