Pet market in Brazil dribbles the economic crisis

The Brazilian's relationship with their pets should be stronger than the economic crisis. The Brazil is the seventh economy in the world, but boasts the second position in the global pet market, behind the United States. Although the industry predict for 2015 small slowdown in relation to the expansion of 8% from last year, the investment must follow warm. Two global giants have new feeds factories at different stages of development, one of the leaders in specialized retail intends to expand the number of stores in more than 30% and even the Marfrig is betting on pets.
Among the industrial investments, the American Mars, leader in food for pets in the country with the Pedigree marks (for dogs) and Whiskas (cat), is with the earlier project. The company will inaugurate in 2016 a unit of R $ 140 million in Ponta Grossa (PR) to expand its production in Brazil in 35%. "We have an unshakable belief that, despite ups and downs, the pet industry is quite promising," says João Carlos Rapacci, President of Mars pet Division. The Nestlé Purina, Mars ' main competitor, also considers expanding its production. The company may announce by the end of the year, the expansion in manufacturing capacity of rations. Nestlé 's division dedicated to animal feed 16% of the market dominates Country, which moves R $ 11 billion a year, according to the Brazilian Association of the Industry of Pet Products (Abinpet). The slices of Mars are 44% (rations of cats) and 29% (dogs), according to market data. Today, the animal feed segment represents approximately two-thirds of the pet segment, which moved $ 16.4 billion last year. That amount put Brazil in the second global position in the sector, with 7%.
The country is second only to the United States, which dominate 33% of pet market. According to the President of Nestlé Purina for Latin America, Fernando Merce, the Brazil accounts for 55% of the Latin American consumption of pet foods. Today, there are 65 million "consumers"-40 million dogs and 25 million cats. Besides the natural expansion of the market, the President of the Brazilian Association of the Industry of Pet Products (Abinpet), José Edson Galvão de France, says that sales of pets are benefited by the urbanization of the population, who live in apartments. This contributes to the Brazilian abandon an old habit, from cooking to pet, and adopt the industrialized food. In addition to the growth in volume, the factories make everything so that the consumption of rations be more sophisticated. Mars, has been investing in feeds and tidbits that help in the functioning of the intestine and in cleaning the teeth. The Nestlé Purina seeks local innovations: in Brazil, uses tropical fruits, such as blueberries and acerola, in the formulation of their products.
Retail industry sources, the development of specialized retail in the country also helps increase average expenditure per animal. The Abinpet informs that today a large dog costs $ 315 per month to the owner-considering food and services such as bathing, grooming and veterinary visits. The two biggest retail chains for pet in Brazil-Cobasi and Pet Center Marginal-have less than 30 stores. This shows that the market has a lot to develop: in the USA, there are networks with 2 thousand units. Sought, the Cobasi family network wouldn't give an interview.
The Pet Center Marginal, which has the Fund Warburg Pincus as controller, spent the last year reorganizing the management, according to Sergio Zimerman, founder and CEO of the company. In 2015, the company will open nine stores-expansion of 33% compared to the current 27 units. To grow out of Sao Paulo, the company will adopt the Petz brand. That's because "Marginal" is a reference well paulistana: refers to the Marginal Tietê, where are the headquarters and the first store of the network.