Colombia is producing more pet products and export opportunities are growing

July 5, 2023

Nowadays, it is common to find a wide variety of pet products in specialized stores and on the shelves of department stores. The world market is growing and Colombian enterprises can take advantage of the momentum.

pet products, pet food, pet toys, Más Colombia

Pets are playing an increasingly active role in society and in families. Gone are the days when these companions slept outside the home, were fed on leftovers and were used especially for security-related tasks. Instead, pet products abound, with which families can pamper their pets in a variety of ways.

As households have become smaller, pets have gained an increasingly preponderant role, and as such receive countless signs of affection. This has driven demand and diversification in an economic sector in which Colombia has great export opportunities, ranking fourth in Latin America, behind Brazil, Mexico and Chile.

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Despite the slowdown in the world economy, annual growth expectations for the next four years in the pet sector are between 4.5% and 6%. Reports from specialized agencies such as GFK, Focus Market and Euromonitor, among others, show that growth prospects in the pet products sector will be sustained in the mid-term.

Fewer children, more pets

The increasing relevance of pets is explained by demographic, economic and social factors such as the aging of the population, income levels, the expansion of e-commerce, new regulations and the greater recognition of the affective role of pets.

According to the World Health Organization (WHO), life expectancy has increased in all countries in recent decades, to the point that in 2020 the number of children under five years of age was less than the number of people over 60 years of age.

This process initially occurred in high-income economies. However, since the end of the last century, it has accelerated in middle- and low-income countries, where the new generations are increasingly deciding to have fewer children and more pets.

In fact, it is estimated that in Latin America 8 out of 10 people have a pet in their care. A higher level than the global average, taking into account specialized reports, such as that of the Insurance Information Institute, which indicates that the world population with pets will surpass the 67% barrier by 2020.

Colombia does not escape this trend. According to DANE figures, the presence of pets in households grew steadily over the last four decades. In this period, people over 60 years of age went from representing 6.5% of the population to 13.8%, single-person households grew from 6% to 19% and the average family size decreased from 4.6 members to 3.1.

The size of the pet products market

In Colombia, this sector is becoming increasingly relevant. In the Kantar Ibope Media surveys, close to half of pet owners report that the expenses for these companions amount to between $190,000 and $750,000 pesos per month. As expected, these values vary according to the stratum and type of pet.

These results are in line with the latest analyses of firms such as Euromonitor, which estimate that approximately 60% of Colombian families in the country spent close to 4 billion pesos a year on pet products in the context of the economic reactivation. This figure is expected to exceed $6 trillion per year in the next four years.

The market in Colombia

Although the national market is mostly served by foreign companies, the pandemic and the difficulties in supply channels have opened the field to domestic MSMEs in recent years.

Since the quarantine, the consumption of products of national origin has gained space in the preferences of national and Latin American consumers. In February of this year, ProColombia reported that close to 20 companies managed to stand out in the regional pet products market.

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In the foreign market, exports of concentrates for dogs and cats accounted for a quarter of the exports of the animal feed industry. Between 2015 and 2022, they went from US$11.8 million in 2015 to more than US$67 million in 2022, according to DANE figures.

Foreign companies lead, local companies have a chance

Global demand for pet products has grown in recent years. Sales of pet foods surpass those of baby food, according to Colombiatrade. Globally, Valuates Reports valued the pet products market at more than $87 billion in 2020, with European and U.S. companies dominating Western trade channels.

The European market is led by companies from Belgium, Spain, Germany, Hungary, Italy and France, such as United Petfood, Agrolimen, Deuerer, Heristo AG, Partner in Pet Food, among others.

Latin America is the fastest growing market, both in physical and digital transactions. According to Euromonitor, the sector recorded an 85% growth in the last five years, especially in the food, clothing and toys categories, in which more than US$630 million are consumed in the domestic market per year.

In the Colombian market, North American and European brands such as Nestlé, of Swiss origin; Colgate, Mars and Pfizer, of U.S. origin; and Bayer, of German origin, dominate the market. National companies such as Solla, Grupo Bios, Italcol, Procaps and Pixie compete directly, mainly in the food, accessories, medicines and toiletries segments.

Pet products: a diverse sector with export potential

The market has diversified in all segments. In terms of food, in addition to concentrates, consumers can find snacks, gums, doughnuts, bones and a long list of edible toys. Likewise, nutritional supplements, multivitamins and digestion products are increasingly gaining strength in consumption patterns.

Owners are no longer just thinking about feeding their faithful companions. The demand for clothing and accessories has its own fashion trends, so it is natural to find clothes for casual, elegant and even electronic accessories.

Functionality is also an aspect that counts in the segment. Absorbent mats, reusable toys and adaptive furniture, among others, are among the new trends.

Of course, the demand for pet care products such as soaps, shampoos, perfumes, creams, antiparasitic products, antibiotics and healing products has grown with the market.

One of the sectors that entered in an important way to the pet products sector is plastic, particularly bags and packaging, thanks to the cultural change in recent years in the management of waste of these animals.