![Country report: Brazil – Pet market skyrockets despite global headwinds](https://globalpetindustry.com/wp-content/cache/thumb/7a/365aa86cb42cd7a_960x540.png)
Considered one of the fast-growing markets in the Latin American region, Brazil’s national pet industry grew by 27% last year. Exports are also on the rise.
The Brazilian pet market is one of the most vibrant and resilient globally. Already the 6th largest in the world in terms of revenue, it recorded a rise of 42.5% during the pandemic, jumping from R$35.3 billion ($6.8B) in 2019 to R$51.7 billion ($9.96B) in 2021.
Even with the challenges imposed by the pandemic, it is expected that the sector will grow another 22% this year. But there is no growth without difficulties, especially with the rise in production costs and the war in Ukraine.
So, in Brazil, they are used to being asked: how does the Brazilian market manage to remain so relevant and, on top of that, register growth?
Open despite COVID
Brazilians have a very close relationship with their pets and will always take care of them well, even though they often have to choose cheaper products. Moreover, the chain of production, supply and sale of products for pets is broad and widespread in the country, and it was able to remain open even during the most critical periods of COVID-19.
The number of companies in the Brazilian pet sector exceeded 285,000 in 2021. 6 out of 10 are pet stores, veterinary practices and clinics, agrostores and food retail. The rest are breeders (37.8%) and around 180 legally established pet food industries (0.2%).
Businesses such as small and medium-sized pet stores continue to be the main retailing channel, representing practically half of all sales in the sector. They are followed by veterinary clinics and hospitals (18%), agrostores (9.8%), food retail (8.6%), large pet stores (8%), e-commerce (5.4%), and others such as service clubs and convenience stores (2.1%).
E-commerce has also gained traction, indicating the progressive change in the habits of pet parents. Before the pandemic, it represented only 5.4% of product purchases, but grew by 48% in isolation compared to 2020.
From Brazil to the world
Exports are increasingly relevant to the sector. According to Abinpet (Associação Brasileira da Indústria de Produtos para Animais de Estimação), they increased by 33% last year, thanks to pet food. Pet products worth $412.5 million were exported in 2021, compared to $310.5 million in 2020.
Instituto Pet Brasil (IPB) believes that businesses need to improve their sales. The institute provides companies in the country with international experience, through member participation in international events and business roundtables within the Pet Brasil Sector Project, in partnership with ApexBrasil (Agência Brasileira de Promoções e Exportações e Investimentos). This federal government agency works to promote Brazilian products and services abroad, and to attract foreign investment to strategic sectors of the Brazilian economy.
Pet census
The country has more than 149.6 million pets. The most recent IPB estimate is 58.1 million dogs, followed by ornamental birds (41 million) and cats (27.1 million). Ornamental fish occupy 4th place (20.8 million), and reptiles and small mammals total some 2.5 million.
From 2020 to 2021, the pet population grew by 3.6%. Cats stand out, with an increase of 6%. Dogs came in second place, up by 4%.
Protecting pets
Concern for the health of pets, and their quality of life, is an important part of IPB’s work. Periodically, the institute does a survey on animals in conditions of vulnerability (ACVs). The research highlights the situation of pets that live with families classified below the poverty line, as well as those living on the streets but receiving care from people nearby.
Brazil had 184,960 abandoned or rescued animals in 2020. Monitoring how these animals are looked after and adopted is also a commitment of several companies in the pet sector, in partnership with NGOs present in the country and around 400 animal protection services.
Its concern for animal welfare led IPB to create one of the most relevant pet care programs in the country: the Legal Breeder campaign. This is an initiative developed with other organizations in the sector. The idea is to advocate for the welfare of pets, from birth to sale or adoption, and for education on responsible pet ownership for owners and families.
IPB also recognizes that millions of pets are legally bred each year, by breeders that help educate families about responsible pet ownership. So the campaign also highlights good practices in pet care, for both pure-bred and cross-bred animals. Mistreatment is born out of the illegality of the parallel market.
Professionalizing the sector
In May, IPB promoted a double round of business roundtables, with companies from Argentina. The roundtable calendar also includes discussions with Chile, Colombia, Peru, China and the United Arab Emirates this year.
IPB has also developed the PDI Pet, an exclusive platform to help Brazilian companies become competitive. It enables them to meet the needs of the most demanding markets, whether in Brazil or abroad. This works with 3 pillars: training, recycling and continuous improvement. Participants have access to market data, performance monitoring, and marketing guidance.
All these activities are part of the Instituto Pet Brasil mission, which was born in 2013 to stimulate the development of the pet sector. IPB believes in a professionalized sector that strengthens the relationship between humans and pets. And this has proven beneficial for the health and well-being of both.
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