Brazilian PET Market 

World's Third-Largest PET Market

Brazil occupies the 3rd place in the international ranking when we are talking about the biggest markets for pet products, behind only the United States and China, according to a report published by Folha de São Paulo (traditional Brazilian journalism company). Data collected by Brazilian Association of the Pet Products Industry (Abinpet) show that Brazil also ranks 3rd in the world as the country with the largest total population of pets.

In Brazil, according to the Abinpet, there are more than 140 million pets, of which approximately 55 million are dogs, 40 million are birds and almost 25 million are cats.

These results were driven by the pandemic, as people started to work at home, staying longer at home due to social isolation guidelines, this made people develop an even more humanized relationship with pets, who are treated as children and members of the family. Concern and greater investment in animal nutrition and health were some of the factors that helped boost the sector.

In the country of 212 million Brazilians, there were 144.3 million pets in 2020, according to the Pet Brazil Institute (IPB), 4 million more than in 2019. The annual increase in the pandemic was six times greater than the occurred between 2018 and 2019.

Pet product and service chains recorded a 27% increase in revenue in 2021 compared to 2020, according to a survey by Pet Brazil Institute.

The sector is expected to grow by 14% in 2022, with revenues of R$58.9 billion (about US$11.78 billion), according to estimates by the Pet Brazil Institute (IPB).

The projection was made taking into account the performance of the sector in the first quarter of 2022. Consolidated revenue in 2021 was R$ 51.7 billion (about US$ 10.34 billion).

Among the segments of the sector, the Pet Food, which includes the sale of industrialized food for pets, maintains the leadership, with estimated revenue of R$ 33.1 billion (about US$ 6.62 billion). The value is equivalent to 56.3% of the total revenue of the pet market, and represents an increase of 16.7% compared to 2021.

In second place is the segment of selling animals directly from breeders, which moved R$ 6.1 billion (about US$ 1.22 billion), or 10.5% of the sector's total, with an increase of 9.5% compared to 2021. It is followed by the Pet Vet segment, selling veterinary medicines, which generated BRL 5.8 billion (about US$ 1.16 billion), representing 9.9% of the total and an increase of 11%.

There are also the segments of General Services, with revenues of R$ 5.1 billion (about US$ 1.02 billion), representing 8.7% of the total and an increase of 7.6%, of Veterinary Services, with R$ 5.4 billion (about US$ 1.08 billion), representing 9.3% of the total and an increase of 12.4%, and Pet Care, which integrates hygiene and animal welfare products, with R $3.1 billion (about US$620 million), representing 5.3% of the total and growth of 13%.

Regarding the means used by consumers to buy products and services, small and medium pet shops maintained their leadership in sales, accounting for 48.8% of the total.

The segment of veterinary clinics and hospitals, which according to the Pet Brasil Institute has been growing in recent years, was in second place, with 18%.

Then come the segments of agrishops (9.3%), food retail (8%), large pet shops (8.3%), e-commerce (5.6%) and others (2%), which includes service clubs and convenience stores.

The pet market in Brazil has great growth potential for the coming years, for example the pet hygiene and beautification sector has grown by 316% in the last six years. This is what a report developed by DataHub shows, a data analysis platform, which has the registration of approximately 50 million companies.

The CNN Brasil survey in 2022 indicates that Brazil registered almost 23 thousand (22,943) physical pet shop stores in operation in 2021. In 2016, there were 5.5 thousand.