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Brazil’s pet economy is a rich mine

on April 09, 2021

Many people cannot live without the company of kittens and dogs, especially the outbreak of the new crown pneumonia this year, which makes some people who are closed at home feel happier to have a "little partner."

According to Reuters' recent report, the total number of dogs and cats in Brazil ranks second in the world, second only to the United States.

Experts expect that it will reach 101 million by 2030; the pet economy will have considerable potential.

Reuters reported that Unilever Group, the consumer product brand manufacturer, would choose to launch a pet supplies brand in Brazil.

This new brand will include four pet shampoos, two care products, cat litter, and a Dog carpet product with fast absorption properties to control urine odor and disinfectants and floor cleaning products.

Besides, Unilever will establish a 24-hour call center composed of nurses and veterinarians to help pet owners.

Unilever is undoubtedly optimistic about Brazil's huge pet market. Data from the Brazilian Pet Research Institute also shows that Brazil has the world's second-highest pet cats and dogs and the world's second-largest pet supplies market.

In 2019, the country's pet products trade volume was approximately 35.4 billion reais, and related demand is expected to grow.

Pets play a vital role in the lives of Brazilians.

The Brazilian market research company CVA Solutions' survey results show that more than 70% of respondents regard pet cats (or dogs) as "babies," "children," or "family members."

During the epidemic, the Brazilian government ever implemented lockdown measures, and departments not necessary for people's livelihood were not allowed to open their business. However, pet supplies stores and supermarkets, fruit and vegetable stores, pharmacies, etc., are all classified as "people's livelihood necessities department" and are allowed to continue to open.

[su_highlight background="#ff999d"]"80% of respondents will bring their pets to the vet." The Brazilian news website "Exame" quoted a survey by CVA Solutions, stating that the average annual medical expenditure for dogs in the country is 324 reais and cats are 294 reais. 11% of dog owners and 17% of cat owners will buy health insurance for their pets, spending an average of more than 1,000 reals per year.[/su_highlight]

When it comes to pet food, price is not the only factor that consumers consider. 60% of respondents would first consider the cost of pet food, while another 40% of consumers would first consider the taste and nutrition of pet food.

CVA Solutions market research director Simati said that pet owners are very concerned about pet's health, bathing, and hair care. With this industry's development, more and more niche-focused pet products will appear on the market.

During the epidemic, many new pet business models emerged in Brazil.

such as

  • Karen, a former chemical engineer, opened a recreational place for Sao Paulo dogs, covering 2500 square meters. Dog owners only need to pay 20 reais to bring their pets in.
  • Andrade, who runs the mattress business, is also targeting the pet supplies market. Now his factory can sell 1,000 pet mattresses and pet beds every month, and "the income doubled before the epidemic." Some companies have developed a special alcohol gel to help pet owners clean their pets after walking.

"I buy special dog food for my puppy." Manolo, a neighbor of the "Global Times" reporter, said that he would choose foods with higher natural ingredients for his pet dog's health.

[su_pullquote]According to the Forbes magazine website, Euromonitor Consulting analyst, Morrow believes that trends show that people are more willing to spend money on pets and buy more healthy and natural food pets with increased singles and the aging population.[/su_pullquote]

According to a report issued by the Brazilian Pet Research Institute:

the Brazilian Ministry of Agriculture, the Ministry of Health, and other relevant departments have many regulations on pet food production, including requirements that products must be safe, products must be marked with raw materials.

Imported products must meet traceability, and the importing distribution business must be registered with the Ministry of Agriculture, etc.

Although Brazil allows pet products to use genetically modified ingredients, the outer packaging must clearly show there are ,as long as genetically modified ingredients account for more than 1% of the total ingredients, they must be marked on the packaging.

"Most of the pet food in my shop is made in Brazil." Christina, an owner of a pet store in the south of Rio de Janeiro, told the Global Times reporter. She said that pet food produced in Brazil could meet most consumers' needs, while pet food from China has hardly been seen. However, "leash, cat stick, small clothes, etc., are made in China." Christina said that the prices of pet products made in China are reasonable with high quality and very popular.

However, the epidemic's economic downturn made it difficult for the Brazilian pet consumer market to expand further.

According to the Brazilian Pet Research Institute, only 40% of Brazil's pets have access to specialized pet food, and the remaining 60% use owner's leftovers as their primary food. During the epidemic, many low-income people had to give up buying specialized pet food or even raise pets. According to the Brazilian Animal Protection Organization, during the epidemic, pet abandonment increased by five year-on-year

Besides, the high tax burden is also an obstacle to the development of the industry. According to the Brazilian Pet Products Industry Association, the tax rate for pet food is 49.99%, which means that for every one reais price, 0.5 reais is the tax cost.

We will continue to pay attention to the development of Brazil's pet industry.


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