Between 2021 and 2022, at least four pet food companies operating in Mexico have invested 3,120 million pesos (around US$156 million) in the expansion or construction of new manufacturing facilities. Two multinational companies, Mars and ADM, and two Mexican-owned companies, Flagasa and Grupo Sesajal, have led the investment activity in the market.
This article focuses on the expansion of the Mexican-owned manufacturers.
New pet food facility for Flagasa
According to several press sources, Flagasa, an animal feed producer that entered the pet food market in the past few years, invested 220 million pesos (US$11 million) in a new pet food plant inaugurated in late 2021. Other sources state the company will operate at a capacity of 8,000 metric tons per month of dry dog food.
The new manufacturing facility is in the Platah Industrial Park, in the state of Hidalgo in central Mexico. Flagasa produces and distributes dry dog and cat food regionally with the brands Bark, Flagacan, Pet Can, Centinela and Katyto.
Grupo Sesajal, the first Mexican oils company in pet food
Sesajal is a 30-year-old Mexican-owned oils company located in the western state of Jalisco. In recent years, the company entered the pet food market with brands such as Grateful, Shaggy and Felicats. According to press sources, in March 2022, the company inaugurated a new production line that will increase its production capacity 3.4 times, up to 9,000 metric tons per month.
This is the first oils company in Mexico to enter the pet food industry. Moreover, oil was one of the raw inputs that saw price increases and scarcity due to the pandemic inflationary crises.
Pronúa aims to become a pet food market leader
Although it occurred nearly three years ago, it is worth mentioning the investment of Pronúa (Los Belenes). The company inaugurated its new pet food production plant in 2019 with a capacity of 100,000 metric tons per year. The facility is located in Acatlán, Jalisco.
Los Belenes is a Mexican-owned pet food manufacturer that participates in the market with several owned brands, a few exclusive brands they produce for retail chains and some contract manufacturing for third parties.