PET CARE IN MEXICO - ANALYSIS

Country Report | May 2024

EXECUTIVE SUMMARY Market Sizes

Pet care in 2024: The big picture Sales of Pet Care
Retail Value RSP - MXN million - Current - 2010-2029
Given the economic situation in Mexico following the pandemic and inflation levels
seen in 2022, pet food, especially for dogs, has become polarised. There is a significant
group of consumers looking to save money, and opting for more economy brands of 80,289 Forecast
essential products. On the other hand, there is a growing segment of consumers who 120,000
are willing to spend more on their pets due to the perceived benefits of premium food
and the emotional connection they have with their pets.
100,000
The increase in the number of cats in households is a phenomenon observed globally,
and Mexico is no exception. According to Euromonitor International’s Voice of the 80,000
Consumer: Health and Nutrition Survey (fielded January to February 2024), 78% of
households in the country own pets, a higher number than in previous years, with a
rising number owning one or two cats. This trend is driven by people seeking the 60,000
companionship and affection of a pet. However, due to time constraints, finding space
to dedicate to a pet can be challenging. 40,000
Recent years have seen noticeable growth in the introduction of new pet food products
with specific functionality, which have been well-received by local consumers. This 20,000
trend is encouraging established brands to adopt similar strategies, including Dog
Chow, which has relaunched its weight control, longevity, and home pets line, while
Full Life has introduced its salmon line, which emphasises claims on packaging related 0
2010 2024 2029
to improved skin and coat health or strengthened immune system. This trend is
significant in the Mexican market, as per Euromonitor International's Claims system,
where 50% of pet food products boast the "natural" claim, 33% highlight being "high in
protein", and 24% emphasise "immune system health". This underscores the relevance Sales Performance of Pet Care
these claims hold in the national market. % Y-O-Y Retail Value RSP Growth 2010-2029

2024 key trends 7.5% Forecast

20%
Wet cat food stands out as a strong performer in cat food, experiencing double-digit
growth in both value and volume terms. This trend is fuelled by the increasing number
of cat-owning households in Mexico. Unlike with dogs, wet cat food tends to be more
commonly mixed with dry food, and not seen as merely a treat or supplement but as an 15%
integral part of pet nutrition. This perception drives its significant growth as the cat
population rises in households.
The weight management strategy in pet food is gaining greater prominence in Mexico, 10%
particularly in dog food, driven by the significant sales volumes of the dry format. With
the entry of new competitors in the economy segment and the impact of inflation on
consumers’ household budgets, some players, including producers of private label, are
gaining ground. However, renowned brands are also having to adjust to the spending 5%
habits of local consumers. They are approaching this adjustment in two ways: either by
reducing the quantity of kilograms per bag to lower the overall cost, a strategy adopted
by brands such as Pedigree, or by offering promotions with free content or additional
packages, as offered by Dog Chow. This trend is also being fuelled by the increase in 0%
2010 2024 2029
small or medium-sized dogs in local households. According to Euromonitor
International’s Voice of the Consumer: Health and Nutrition Survey (fielded January to
February 2024), 30% of dog owners have large-sized dogs (over 23kg), a percentage that
is five points lower than the previous year. As a result, the number of Mexicans Sales of Pet Care by Category
purchasing large volumes of food is decreasing, and players are having to adapt to Retail Value RSP - MXN million - Current - 2024 Growth Performance
these new levels of consumption and spending habits.
Pet Food
Competitive landscape 70,293.2
Pet Products
Effem México SA de CV, Nestlé México SA de CV and ADM México SA de CV remained 9,995.5
the three leading players in dog and cat food in 2023, boasting a wide presence with 0% 10% 20%
brands covering all price segments in both dry and wet food. Meanwhile, Grupo Acuario
Lomas SA de CV maintained its leadership of other pet food, a competitive landscape PET CARE 80,288.8 CURRENT % CAGR % CAGR
YEAR % 2019-2024 2024-2029
that features a much higher share of smaller players under “others”. GROWTH

In line with the increasing number of households owning pets and the growing
importance of categories such as cat food, players are continuing to invest in their
manufacturing plants. For instance, Nestlé announced a USD220 million investment in
its plant in Silao, Guanajuato, aiming to expand its footprint across the region. Similarly,
ADM inaugurated its third production line in Guadalajara, the result of a USD33 million
investment, with plans to ramp up dry food production. Furthermore, there are other
investments for more specific projects, such as Campi, which invested USD6 million in

© Euromonitor Interna onal 2024 Page 1 of 3

its freeze-dried food plant. This investment is geared towards meeting the needs of Competitive Landscape
the domestic market as well as those of the US and Canada.
Company Shares of Pet Care
Retailing developments % Share (NBO) - Retail Value RSP - 2023
The growth of discounters is a trend that is expected to continue throughout the
Effem México SA de CV 26.0%
forecast period, driven by the financial position of many local consumers. According to
Euromonitor International’s Voice of the Consumer: Lifestyles Survey (fielded January Nestlé México SA de CV 20.2%
to February 2024), 63% of consumers are actively saving money, a trend that is expected ADM México SA de CV 7.4%
to persist and is prompting discounters such as Neto and 3B, which were previously
commonly found on the outskirts of major cities, to expand their presence into new Royal Canin México SA de... 3.9%
locations and areas with higher economic activity. Nueva Tecnología en Alim... 3.4%
Additionally, e-commerce is also expected to continue growing due to its inherent Hill's Pet Nutrition de ... 2.1%
benefits. According to Euromonitor International’s Voice of the Consumer: Lifestyles Bayer de México SA de CV 1.4%
Survey (fielded January to February 2024), 33% of consumers are purchasing online,
supported by the convenience of ordering anytime and anywhere, participating in Proveedora La Perla SA d... 1.0%
loyalty programmes, and comparing products to choose the best prices, while reading Merial México SA de CV 0.8%
product reviews from other users. This trend is expected to persist throughout the
forecast period. In addition, e-commerce serves as an expansive platform for new and Clorox de México SA de C... 0.6%
smaller brands to engage with Mexican pet owners. Grupo Acuario Lomas SA d... 0.5%
Doane Pet Care Enterpris... 0.4%
What next for pet care?
Cargill de México SA de ... 0.4%
The social and environmental responsibility of major industry players is becoming an Grupo Conocido SA de CV 0.4%
integral part of both short- and long-term agendas. Players such as ADM are engaging in
collaborations with partners such as Kidzania, aiming to promote environmental Diamond SA de CV, Grupo 0.3%
awareness among children and have an impact on future generations. Additionally, Pfizer SA de CV 0.3%
players have demonstrated their responsiveness and support during challenging times,
as seen with Nestlé's donation of seven tonnes of pet food to animals affected by Nutrimentos Minerales de... 0.3%
Hurricane Otis in the country. These initiatives extend throughout the entire Holland de México SA de ... 0.3%
production chain of companies, not just in direct consumer interactions. For example,
Other Private Label 9.3%
Mars has implemented a regenerative agriculture programme called "Lands for Future
Generations", aiming to benefit 100 farmers by sharing best agricultural practices to Others 20.7%
achieve 7,000 tonnes in the first year. The programme aims to maintain soil health,
reduce greenhouse gas emissions, and establish a sustainable supply source. It is
expected that such actions will continue to emerge over the forecast period.
Additionally, the pet care industry has historically focused its innovations around dogs Brand Shares of Pet Care
and their needs, given the prevalence of dogs in households and the high sales % Share (LBN) - Retail Value RSP - 2023
volumes of dog food. However, it is expected that the number of pet cats will continue
to rise in the coming years. This trend will likely lead to the launch of new products Pedigree 15.6%
specifically tailored to the health needs of cats. One such example is Dentalife, a snack Whiskas 7.8%
designed to promote oral health in cats by helping to reduce tartar buildup. It contains
calcium and taurine and comes in flavours such as salmon and chicken. This snack is the Dog Chow 7.7%
first of its kind in the country and is expected to pave the way for further innovations in Ganador 3.7%
feline health.
NUPEC 3.4%

DISCLAIMER Campeón 3.3%

Pro Plan 3.1%
Forecast closing date: 15 April 2024 Mainstay 2.4%
Report closing date: 22 May 2024 Royal Canin Veterinary D... 2.3%

Analysis and data in this report give full consideration to consumer behaviour and Minino 1.9%
market performance in 2024 and beyond as of the dates above. For the very latest PAL 1.7%
insight on this industry and consumer behaviour, at both global and national level,
readers can access strategic analysis and updates on www.euromonitor.com and via the Royal Canin 1.7%
Passport system, where new content is being added on a systematic basis. Hill's Science Diet 1.2%
CanPro 1.0%
SOURCES Hill's Prescription Diet 0.9%

Sources used during research include the following: Beneful 0.9%

Frontline 0.8%
Summary 1 Research Sources
Cat Chow 0.8%
Official Centro de Control Canino del Estado de México
Sources Other Private Label 9.3%
INEGI Others 30.4%
Minis try of Economy
5-Year Trend
SEC Secreta ria de Economia Increasing share Decreasing share No change
Secreta ria de Sa lubria d y As is tencia
Servicio de Informa ción y Es ta dís tica Agroa limenta ria y Pes quera
SESIC
US Foreign Commercia l Service
Trade AMEPA
Associations
AMMVEPE As ocia cion Mexica na De Medicos Veterina rios de Pequeña s Es pecies
ANAM As ocia cion Na ciona l de Aba rroteros Ma yoris ta s
As ocia cion Mexica na de Acua riofilia y Pequeños Es pecies , AC

© Euromonitor Interna onal 2024 Page 2 of 3

 Official Centro de Control Canino del Estado de México
Sources
As s ocia cion de Medicos Veterina rios de Azca potza lco
CANACINTRA
Club Ca nofilo del Es ta do de México AC
Club de Médicos Veterina rios Zootécnis ta s AC
CONAFAB Cons ejo Na ciona l de Fa brica ntes de Alimentos Ba la ncea dos y de la
Nutrición Anima l, AC
FCM Federa cion Ca nofila Mexica na
Foro Ma s cota s
Médicos Veterina rios Es pecia lis ta s de Pequeña s Es pecies del Sur
Mexica n Pet As s ocia tion - Ama s cota
Pet Food La tinoa merica
Pet Forum Events
PFI Pet Food Ins titute
Unida d Médica Veterina ria
Trade Press 20 minutos
Aba rrotes y Ma s
Al Deta lle
All Extruded
Alto Nivel
AM
America Reta il
AMVO As ocia ción Mexica na de Venta s Online
Bloomberg
CNN
El As es or de Mexico
El Economis ta
El Fina nciero
El Sema na rio
El Univers a l
Entrepreneur
Expa ns ión
Felinos de México
Forbes
Ima gen Veterina ria
Informa BTL
Jorna da UNAM
La Ca s a de Los Ga tos
La Jorna da
La Verda d Sobre Los Ga tos
Ma nufa ctura
Ma rkethink, The
Merca 20
Milenio
Mundo Ejecutivo
Periodico Excels ior
Perros de México
PetFoodIndus try.com
PMFARMA
Pos ta
Quo
Reforma
Revis ta Anima les de Cía
Revis ta del Cons umidor
Revis ta Perros Pura Sa ngre
Revis ta Spla s h
Revis ta Va ngua rdia Veterina ria
SABI
SEE News America s
Sips e.com

Source: Euromonitor Interna tiona l

© Euromonitor Interna onal 2024 Page 3 of 3