Brazil’s pet market revenue jumps 16.4%

The Brazilian pet industry generated a revenue of R$60.2 billion ($12.1B/€11.2B) in 2022, according to the predictions from Instituto Pet Brasil (IPB).

Pet food accounted for 56% of the total revenue in the year, achieving R$33.7 billion ($6.8B/€6.3B). Pet store sales follow with 10.4% representing R$6.28 billion ($1.2B/€1.1B).

The country’s veterinarian sector posted R$5.6 billion ($1.1B/€1B), 9.4% of the total revenue in 2022.

The pet care category registered the biggest revenue increase last year, with 20% more. Pet food (18.6%), vets (16.2%) and pet stores (11.3%) followed. 

Nelo Marraccini, President of IPB’s Advisory Board, pointed out to GlobalPETS that due to the country’s inflation and GDP improvement, a greater acceleration of the industry was expected. “The numbers confirm this expectation,” he commented.  

Purchasing channels

Pet stores represented 57.6% of the Brazilian pet industry turnover in 2022. 

According to IPB estimations, small and medium pet stores accounted for R$29.3 billion ($5.9B/€5.5B), equating to 48.7% of the total. Megastores generated 8.9% of the revenue with R$5.35 billion ($1.1B/€1B).

Veterinary clinics and hospitals remained the second channel of access to pet products and services, accounting for 18.1% of the industry revenue. Nearly 1 out of 10 pet purchases in Brazil were made in agroshops last year. 

150% more e-commerce sales

Around 6% of all pet transactions in the South American country were online and worth R$3.6 billion ($723M/€670M) in 2022. 

If we compare it with 2020, the online channel skyrocketed by nearly 150%. In January 2020, the online revenue equaled R$1.44 billion ($291M/€270M).

According to the figures, 4 out of 10 online pet transactions in Brazil were done through companies selling products exclusively online. These players generated R$1.48 billion ($298M/€280M). E-commerce giants and small and medium pet store websites followed. 

2023: lower growth?

Instituto Pet Brasil shows some concern regarding the performance of the local pet industry in 2023 due to economic instabilities and ongoing discussions in Parliament about a nationwide tax reform process.  

“These points concern the sector’s players and indicate a year with lower growth than the previous ones,” predicts IPB’s President Nelo Marraccini.

Marraccini believes that this year the Brazilian pet industry will need to do business with “greater caution” than ever.