The Argentina pet food market is expected to register a CAGR of 5.27% during the forecast period (2020-2025). According to the American Pet Products Association (APPA) in 2019, the country is the third-largest market in South America for pet food. The market is dominated by dry pet food products, followed by wet pet food. Treats and snacks are anticipated to have the fastest growth during the forecast period. The market is expected to grow but at a slow pace, due to the economic condition prevailing in the country. Most of the pet food sold in the country is through the veterinary clinics, with the focus on premium, tailor-made pet food, and offer delivery services.

Key Market Trends

Increasing Pet Humanization

Argentina is the country with the most pets per capita, according to the results of a global survey. Argentina is the leading nation that prefers to have a dog as pets more than cats. It is also discerned that most of the pet owners choose a dog over other pet animals. According to the APPA, in 2019, Argentina accounted for dogs and cats in the country. The global pet humanization trend is also permeating Argentina, with pet owners increasingly looking for new product varieties, from wet food products and value-added treats to vegan alternatives. Foreign companies like Mars and Nestle Purina are investing in local production facilities or expansions to increase their portfolio of snacks, treats, and wet pet food. Along with those well-known multinationals, leading local pet food companies like Molino Chacabuco, Metrive, and Alimentos Grupo Pilar are increasing their stakes in the domestic market, hoping that high prices and volatility will eventually ease.

Export is Leading the Argentina Pet Food Market

Argentina?s pet food market has remained as one of the biggest pet-loving countries in the region, supported by a strong local industry, but the consumers are struggling to care for their pets in their usual manner as the cost of living rises due to the rampant inflation recorded in 2018 at 40.7%, according to the World Bank Data. According to the studies, It is anticipated that the local pet food market registered positive but weak volume growth in 2018, reaching about 635,000 metric tons of dog and cat food combined which means that the country has the second-highest pet food caloric penetration rate in Latin America, after Mexico. It can also be inferred that the local pet food market is also reaching maturity. With relatively high penetration rates and previous vigorous volume growth, it is apparent that the Argentinean pet food market will see decelerated growth in the forecasted period. According to the International Trade Centre, Chile, Uruguay, Peru, and Bolivia are the major importers of pet food products from the Argentinean market with Chile holding a major share of 70% of the import.

Competitive Landscape

The Argentina pet food market consists of few global players, like Nestle, Mars Incorporated, and Hill’s Pet Nutrition, but many of the pet food manufacturers are locally based. The market is highly fragmented and competitive; hence, the leading players are involved in the R&D of innovative pet food products, in order to achieve major market shares. Along with those well-known multinationals, leading local pet food companies like Molino Chacabuco, Metrive, and Grupo Pilar are increasing their stakes in the domestic market.

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