The pet food market - Brazil

The global pet food market has been growing for the last few years and projections for its development and evolution are also promising. It is driven in value by a growing focus on health and nutrition and in volume by the progressively higher number of animals kept. The market is also showing promise in the high-end and premium segments. Many dry and wet foods or "snacks" aim to help with a wide variety of health problems faced by animals, with increasingly innovative and complex recipes and are in most cases offered by major brands. In addition, natural food is the new trend of the pet market, introducing foods such as rice, vegetables, meat and vegetables into the diet of animals and replacing their traditional food. According to the Brazilian Association of Pet Products (Abinpet), Brazil has the second largest population of dogs, cats and birds in the world, estimated at over 112 million animals, behind only the United States, and has the third largest turnover worldwide in the pet market. Acting in this sector, the greatest challenge is an enormous tax burden reaching an average rate of 51.2%. This restrictive taxation also generates a very limited penetration rate, damaging the growth potential. Even so, in 2018 the volume of production increased by 3.25%, while turnover increased by 7.8%, and the prospect is that the market will continue to grow at a similar rate until 2022.