Mexico's pet food market growth corresponds to its economic growth. Like many nations worldwide, Mexico’s pet owners increasingly live in cities and want pets that fit their lifestyles, not to mention their homes. Many of those pet owners are now willing to go premium for their pet’s food. As urbanization, humanization and premiumization influence the market, dog and cat ownership continues expanding. However, that growth differs from past patterns and is influenced by household income level and other factors, Melanie Torres, senior research analyst, North America food and pet care for Euromonitor International, said her presentation during Foro Mascotas in Guadalajara, Mexico.
Although dog populations still dominate the Mexican market, Torres said demographic changes, premiumization and changing household priorities are reshaping where manufacturers should invest.
"Dog populations still dominate the market. However, rising cat ownership is reshaping growth in Mexico," Torres said. "It is creating an opportunity for brands to diversify and expand their revenue streams."
According to Euromonitor data presented during the session, cat populations have grown roughly 7% to 8% annually over the past several years in Mexico, while large-dog populations have declined. Medium and small dogs continue to grow, but at a slower pace than cats.
Smaller pets, larger spending as Mexico urbanizes
Torres said the shift is being driven by broader demographic changes rather than simply changing pet preferences.
Smaller households, urban lifestyles and the desire for companionship are making cats and small dogs increasingly attractive to consumers.
"With smaller pets, there's a greater emphasis as their primary role in the household being emotional support and companionship," Torres said. "They tie into changes in household size and household lifestyles."
By contrast, larger dogs are still often viewed as working animals or guardians.
"A good portion of the local population also sees these animals as more of a source of security and protection," she said.
Those differing perceptions influence purchasing behavior, helping fuel premiumization among owners who increasingly treat companion animals as family members.
However, Euromonitor's consumer research found that approximately 72% of Mexican respondents consider pets beloved members of the family, while countries such as Chile approach 80%. That relatively lower level of humanization leaves room in Mexico to expand the trend.
Although Mexico's pet population continues to expand, growth is slowing. Euromonitor projects annual dog and cat population growth will decline from about 5% in 2021 to roughly 2.5% by 2026.
Meanwhile, spending per pet has remained relatively stable after adjusting for inflation.
That suggests the industry's future growth will increasingly depend on convincing owners to spend more on each animal rather than relying on rapid increases in pet ownership.
"If pet spend is rising and pet population is staying steady, does that mean pet owners are willing to spend more across the board?" Torres asked. "Not necessarily."
Instead, manufacturers must recognize that consumer aspirations often exceed household budgets.
"The reality of budgets in Mexico is a little bit different," Torres said.
Scenes from the class struggle in the Mexican pet food aisle
One of the presentation's key findings was that Mexico's pet ownership growth is becoming increasingly polarized. While pet ownership remains high across income groups, Euromonitor found the strongest growth among both the highest-income households and the lowest-income households.
"These positive shifts in population and demographics and this increased willingness and hope to spend more on pets is going to be challenged by this polarization," Torres said. "The industry is going to have consumption split between these really high-earning households and these really lower-earning households."
She said companies must recognize that these consumers will purchase different products, shop through different retail channels and respond to different pricing strategies.
Despite economic pressures, many owners remain committed to maintaining their pets' quality of life. Torres said Mexican consumers increasingly prioritize spending on their pets, even when it means reducing spending on themselves.
"Consumers are more willing increasingly to sacrifice their own spending to keep the lifestyle that they want to build for their pets," she said. "They want to have this elevated lifestyle for their pets, almost trying to deliver the lifestyle that they can't have for themselves."
That emotional commitment continues to support demand for higher-value products, even as companies must remain mindful of affordability.
Torres cautioned manufacturers against assuming that premium products in Mexico should simply mirror those sold in North America or Europe.
Instead, companies should define premium through the lens of Mexican households.
"What does premium look like in Mexico, not just what we want it to look like through a global lens, but what does it look like when we tie it to the local household?" she said.
That local perspective will become increasingly important as established companies compete with newer brands. Torres noted that innovators entering rapidly growing categories such as cat food have an opportunity to define consumer expectations before legacy manufacturers respond.
"These disruptors are going to be able to come in and help consumers decide and define what quality means, what innovation looks like," she said. "You want to be able to help set up your brand as the standard of this change."
While premiumization remains one of Mexico's strongest long-term trends, Torres emphasized that success depends on balancing aspiration with affordability.
Consumers increasingly want better nutrition, higher-quality ingredients and products that mirror their own health priorities. At the same time, many remain constrained by household budgets.
For manufacturers, that means innovation should focus not only on developing new products but also on making premium benefits accessible to a broad range of consumers.
"We still have to meet consumers where they are now," Torres said.
As Mexico's pet food market matures, companies that understand both the country's demographic shifts, cultural heritage and its economic realities are likely to be best positioned for growth.
