A new analysis from the United States (US) Department of Agriculture’s Foreign Agricultural Service is telling American dog and cat food manfacturers that is there is an opportunity to expand the Caribbean and Latin America’s taste for their products.
The recently-published international agricultural trade report, Expanding The Dog And Cat Food Market In South America And The Caribbean, was authored by researcher Chanceuse Twagirimana. “Latin America – South America and the Caribbean – is the thirdlargest market for US dog and cat food. The region is currently experiencing disinflation, lower interest rates, favourable export commodity prices, and increased tourism, all driving economic activity,” she noted.
“This boost in economic activity enables consumers to focus on pet care, particularly regarding their pets’ diets. Brazil, Peru, the Dominican Republic, Colombia, and Trinidad and Tobago are evolving pet food markets, offering significant opportunities for increasing US pet food exports.”
Twagirimana referenced information from United Nations, which stated that Latin America consists of 25 countries, with 82 per cent of the population living in urban areas.
She also said that the World Bank reported that Latin America’s total gross domestic product is US$7.1 trillion, with a growth rate of two per cent in 2023.
“Latin America is the third-largest market for US dog and cat food exports, importing $US162 million in 2024, an 11 per cent increase from 2023. As the region’s economy further stabilises from the COVID-19 pandemic, it expects a rise in demand for imported dog and cat food,” the analysis stated “Additionally, the Economist Intelligence Unit (EIU) projects inflation to decrease by nine per cent in 2025 and to continue declining.
“According to EIU, Latin America is experiencing disinflation, lower interest rates, favourable export commodity prices, and an increase in tourism, all of which are driving economic activity and an increase in discretionary spending.
“As the economies of most Latin American countries stabilise, there is growing consumer spending on pet care,” it added.
Twagirimana also said that during the COVID-19 pandemic, pet ownership increased globally, especially
in Latin America.
“In 2023, Latin America imported US$259 million worth of dog and cat food, a 75-percent increase since 2020. The primary exporters of dog and cat food to Latin America excluding intraregional trade are the United States, the European Union, and Mexico, with the United States holding a 40-per cent market share,” she reported.
“This surge in pet ownership can be attributed to consumers adopting pets for companionship during the lockdowns and an increase in disposable income. Consequently, this rise in pet ownership has led to higher pet food purchases, particularly dog food.
“With an urbanisation rate of 82 per cent in the region, many consumers are choosing smaller dogs and cats, which are more suitable for apartment living. The shift toward apartment housing in Latin America has resulted in an eight per cent increase in cat ownership and a seven per cent rise in cat food purchases.”
The report also stated that “as demand for dog and cat food grows in Latin America, consumers increasingly seek premium pet food options”.
“According to Euromonitor, the trend stems from the growing humanisation of pets; in Latin America, 74 per cent of owners view their pets as beloved family, the highest percentage of any region,” it said.
“This humanisation is prompting consumers to pay greater attention to the ingredients and quality of pet foods. There is a rising demand for sustainable, healthy, and natural pet products. This rising demand is observed in the increased purchases of wet pet food. However, dry pet food remains the most popular in Latin America.
Twagirimana concluded that “with an improving economy, a focus on pet humanisation, and rising demand for premium pet food, pet food is set for continued growth” in the region.
(SC)
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