Optimism returning in Mexico

Now the sector is hoping for an upturn in the next few years. In Mexico, four out of five households now have one or more pets. Over half of these are dogs. For the pet supplies industry, this could mean a lucrative sales market, but the consequences of the global recession are still being felt keenly in the country. For example, many Mexicans are shunning industrially produced pet food on account of their strapped financial circumstances, preferring instead to feed their pets on household leftovers. This return to old habits has caused the market to stagnate; but a slow yet steady improvement in the economic situation is emerging in Mexico. Experts anticipate marked growth in the pet supplies industry by the year 2015. They estimate the market potential at around $ 1 billion. In the days before the global financial crisis, one in three Mexicans regularly purchased industrially manufactured food for their pets. Mars Petcare leads the market In the sales statistics for the Mexican market, Mars Petcare occupies the number one slot with its “Pedigree” and “Whiskas” brands. According to experts, the company has a market share of nearly 40 per cent in the dog food segment with “Pedigree”, while “Whiskas” accounts for 65 per cent of the cat food market. Mars has achieved this status in the Mexican market for various reasons, not least the sharply reduced sales price of its products, with discounts of up to 20 per cent. The average price of a kilo of dog food in Mexico is currently 25 pesos ($ 2). Mars is undercutting this price by five pesos to 20 pesos per kilo ($ 1.5). In the high-priced segment, Royal Canin and Procter & Gamble Petcare are competing for market share. Nestlé Purina Petcare is also increasing its efforts to position its products in the Mexican market. Like Mars, the company is concentrating on targeting the 600 000 or so smaller general stores in the country, because experts say that these handle roughly half of all pet food products. Humberto Perez, head of development at Nestlé Purina Petcare, says that industrially produced pet food is a very good option for the proprietors of small stores because it is still on the verge of finally breaking through in Mexico. “Half of all families in this country own a pet, and many dogs and cats are currently being fed on the daily leftovers.” Perez believes it is important to secure this purchasing power for one’s own company. Experts claim that the trend towards ensuring a healthy, balanced diet for…