The reaction was immediate. The orders increased abruptly, the billing began to grow and the number of shipments forced to double the shifts in the logistics area. The company was one of the winners of the pandemic: the business multiplied by three, compared to the one before the quarantine. The “pets” category, which is what it is, enjoyed a sales boom, especially of basic necessities. sanitary pads (since people couldn’t go out or adopted pets), sanitary stones (for cats) and collection bags (with the excuse of walking the dog). In addition, the SMEs of national origin, given the evidence of closed borders, began the process of their own production, an initiative that was not included in their plans. “Now, we supply ourselves with 40% of what we sell,” explains the businessman.
A report by the GFK agency on pets ensures that more than 56% of the world’s population has at least one pet at home. Dogs are the most popular in Latin America, while in France and Russia they prefer cats. Argentina is not left out of this phenomenon, given that a survey of KEYS Competitive Information indicates that hopened about 15 million dogs and 6 million cats in a context of constant growth. In addition, Latin America is the region with the largest number of pet owners; 80% of the population has one in their care, according to FocusMarket. In 2017, there were 670 million pets in the world, while by 2022 it is estimated that the figure will rise to 730 million. In turn, it is estimated that, from 2020 to 2025, the Pet Food industry will grow 4.5% annually. “During the pandemic, adoptions of dogs and cats increased exponentially, and along with it, the awareness of each family about their care. There was an increase in the consumption of balanced food for pets”confirm John Poitevin LynchHead of Institutional Marketing Vitalcan.
on the rise. In Argentina, according to the study by the consultancy KEYS.the sector maintained the rate of growth that it had already had since 2018, favored by the restrictions of the pandemic “when many people adopted new pets and took great care of the ones they had. Likewise, primary production has been increasing in volume and it is estimated that it will increase by 15%.”, he highlights. The outlook for the coming years is that it will continue to rise at a rate of no less than 2% year-on-year.
“The confinement of so many months made many people adopt new pets and establish more permanent relationships with the ones they had. Face-to-face purchasing modes were replaced by electronic commerce and sales on platforms, which had been increasing by double digits, increased from 100% to 300% depending on the chain in question”, he highlights. Nelson Perez Alonso, from KEYS. “In the Argentine market, there has been sustained growth in all types of food in recent years,” confirms Positiven Lynch. According to a report from Euromonitor Argentina, During 2021, the local market reached 656 thousand tons of food, exceeding the 642 thousand tons registered in 2020.
The industry not only supplies the local market, but also produces for other countries. “It is estimated that, in 2022, a record of exports will be reached, surpassing 2021 widely,” says the CLAVES report. Some issues appear as an obstacle, such as difficulties in importing inputs and withholdings (at 4.5%), which makes it less competitive with Brazil, the region’s main producer. At the same time, Pérez Alonso indicates that “the climate is optimal and many companies are advancing in investments in infrastructure and technology. For 2022 and the following years, the chances of growth are high and the market does not have a visible ceiling. Online commerce will continue to grow, although at a slower rate than the previous two years, which will allow improving the logistics that this system requires”.
Bone scan. When it comes to describing the consumer, the profile is varied. For Lynch, “It goes from 20 years onwards, and with a diverse socioeconomic level, but in most cases they seek to feed their dogs or cats with good quality products that guarantee a full life. This means that the market has no ceiling, since the demand comes from all social sectors.
On the other hand, when it comes to budgets, The cost of keeping a pet in Argentina (food, veterinary attention, cleaning, beauty, and accessories) with only the essential products and services for basic care ranges from $49,000 per year for smaller breeds of dogs to $120,000 for the biggest. “This value would be the basic one, without the additions such as walks, caregivers, childcare and medical insurance. For cats, the annual cost is less. You have to calculate between $35,000 and $70,500. If other items are incorporated, the expense rises”, adds the Claves survey. Lynch argues that the “number” is variable depending on the species. “In the case of dogs, if it were a medium-sized animal that enjoys basic services at least once a month, the average budget is about $10,638. Regarding cats, it amounts to $5,000 per month, which includes: balanced premium food (2 kilos), flea control, veterinarian, sanitary pebbles (4 kilos)“, Explain. Cold numbers from an industry with a lot of feeling. After all, dog and cat things give life to a business that does not stop growing.
by Marcelo Alfano
