PET CARE IN MEXICO

Euromonitor International
April 2014

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LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Pet Care Is Expected Post Healthy Sales Growth in 2013 ....................................................... 1
Economy Dry Dog Food To Post the Highest Retail Volume Sales Growth in 2013 ................. 1
International Players Lead Pet Care ......................................................................................... 1
Traditional Grocery Retailers Lead Pet Care Sales .................................................................. 1
Pet Care Is Set To Post Positive Sales Growth Over the Forecast Period ............................... 1
Key Trends and Developments .................................................................................................... 1
Economy Dog Food Gains Relevance in Modern Retail Channels ........................................... 1
Innovations in the Premium and Mid-priced Segments Include Functional Benefits ................. 2
Social Media Is Becoming A Key Marketing Tool for Pet Food Brands .................................... 3
Animal Maltreatment Punishments Become Stricter in Mexico City.......................................... 5
Unattended Pets Lead To New Legislation Proposals .............................................................. 6
Market Indicators .......................................................................................................................... 7
Table 1 Pet Populations 2008-2013 .......................................................................... 7
Market Data .................................................................................................................................. 7
Table 2 Sales of Pet Food by Category: Volume 2008-2013 .................................... 7
Table 3 Sales of Pet Care by Category: Value 2008-2013 ........................................ 7
Table 4 Sales of Pet Food by Category: % Volume Growth 2008-2013 .................... 8
Table 5 Sales of Pet Care by Category: % Value Growth 2008-2013 ....................... 8
Table 6 NBO Company Shares of Pet Food: % Value 2008-2012 ............................ 8
Table 7 LBN Brand Shares of Pet Food: % Value 2009-2012................................... 9
Table 8 NBO Company Shares of Dog and Cat Food: % Value 2008-2012 ........... 10
Table 9 LBN Brand Shares of Dog and Cat Food: % Value 2009-2012 .................. 10
Table 10 Penetration of Private Label in Pet Care by Category: % Value 2006-
2011 ........................................................................................................... 11
Table 11 Distribution of Pet Care by Format: % Value 2008-2013 ............................ 11
Table 12 Distribution of Pet Care by Format and Category: % Value 2012 .............. 12
Table 13 Distribution of Dog and Cat Food by Format: % Value 2008-2013 ............. 13
Table 14 Distribution of Dog and Cat Food by Format and Category: % Value
2013 ........................................................................................................... 14
Table 15 Forecast Sales of Pet Food by Category: Volume 2013-2018 ................... 15
Table 16 Forecast Sales of Pet Care by Category: Value 2013-2018 ....................... 15
Table 17 Forecast Sales of Pet Food by Category: % Volume Growth 2013-
2018 ........................................................................................................... 15
Table 18 Forecast Sales of Pet Care by Category: % Value Growth 2013-2018 ...... 16
Definitions ................................................................................................................................... 16
Sources ...................................................................................................................................... 16
Summary 1 Research Sources ...................................................................................... 16


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PET CARE IN MEXICO


EXECUTIVE SUMMARY

Pet Care Is Expected Post Healthy Sales Growth in 2013
Pet care is expected to post healthy current value sales growth in 2013, driven by the good
performance of cat and dog food. Mexicans increasing perception of the benefits of feeding
their pets with packaged food instead of just scraps is influencing the development of the
industry.

Economy Dry Dog Food To Post the Highest Retail Volume Sales
Growth in 2013
The increasing availability of economy brands is attracting new consumers. Small
presentations of less than 1kg and food sold unpacked in bulk by some modern grocery chains
offer affordable options to lower-income dog owners. Influenced by mass marketing campaigns,
these dog owners are looking for economy products that allow them to trade-up from table
scraps to prepared food.

International Players Lead Pet Care
Effem Mxico SA de CV (the Mexican affiliate of Mars Inc) is the leading player in pet care. Its
main brands, Pedigree and Whiskas make Effem the leader in mid-priced segment. The main
brands of the second-ranked player, Nestl Mxico SA de CV, Purina Dog Chow and Purina Cat
Chow also compete in the mid-priced segment.

Traditional Grocery Retailers Lead Pet Care Sales
Although pet care sales depend significantly on the product category, traditional grocery
retailers hold a strong retail value share. This channel is focused on the distribution of economy
and mid-priced brands. Traditional grocery retailers commonly offer consumers the opportunity
to buy unpackaged dry pet food. This allows low-income owners to purchase in smaller
quantities rather than have to buy the entire package. Combined with the important number of
traditional grocery stores in the country, such options support the leading position of the retail
distribution channel in pet food, and pet care overall.

Pet Care Is Set To Post Positive Sales Growth Over the Forecast Period
The pet humanisation trend is predicted to continue to drive pet care sales, attracting new
players and consumers into the industry. Pet owners are likely to be willing to spend more on
their pets and jump from low-priced products to more expensive ones, thereby contributing to
the forecast positive performance.


KEY TRENDS AND DEVELOPMENTS

Economy Dog Food Gains Relevance in Modern Retail Channels
Economy dog food, which accounts for the majority of retail volume sales, is mostly
distributed through traditional grocery retailers, thanks to independent small grocers and
markets, including tianguis (street markets), the preferred choice of low-income consumers. One
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of the advantages that the traditional grocery channel offers to these consumers is the
opportunity to buy in smaller quantities that fit their reduced budgets.
Several companies produce smaller than regular presentations which are available only in
traditional stores, so that more people can afford them. Store owners purchase a 15kg bag of
dry dog food that is opened and sold (per kg or g) according to the consumers needs. Thus
people can buy daily portions of dog food as they would human food for their family.

Current Impact
Recently, modern grocery retailers that were predominantly focused on mid-priced dog food
realised that a strategy to develop the economy offer in their stores was creating the equivalent
of the traditional purchase system, whereby consumers would be allowed to buy small quantities
of food.
Wal-Marts Bodega Aurrera and Mi Bodega Aurrera discounter formats led the way; they
started to sell dry dog food in bulk, with consumers deciding how much food to buy. This
allowed dog owners to control their budget by purchasing in the same way as in traditional
grocery stores or markets. As the strategy is proving to be successful, it has spread to certain
stores of other chains, such as Comercial Mexicana and Soriana. In addition, Wal-Marts
Bodega outlets introduced a small packaged presentation of 900g for consumers who want to
buy in more convenient quantities.
The goal of developing economy dry dog food in modern grocery retailers is producing
results. Some pet owners are being encouraged to trade-up from table scraps to prepared food,
thanks to modern grocery retailers activities, which can influence consumption habits.

Outlook
The trend of selling unpackaged pet food through modern retail channels is expected to
continue with new players including the bulk buy option in certain outlets. This is likely to reduce
sales of economy dry dog food in the traditional grocery channel, although independent small
grocers and markets are expected to continue to hold the biggest portion retail volume sales of
economy dog food over the forecast period. Price wars would keep pet food prices stable in
modern retail stores.

Future Impact
Modern retailers are likely to continue to include new economy dry dog food options in smaller
packages to compete with non-prepared and unpackaged food. This strategy is expected to
continue creating awareness about prepared food among consumers who feed their pets with
table scraps. When these owners decide to purchase prepared dog food, they generally enter in
the economy segment, mixing table scraps with prepared food, before switching to prepared
food only. The strategy of selling unpackaged food in modern retail stores is mainly focused on
dry dog food, but it could be extended to include cat or bird food in the forecast period.

Innovations in the Premium and Mid-priced Segments Include
Functional Benefits
There is a growing trend towards treating pets as members of the family. This development
has significantly impacted the product offer for pets. Premium dog food manufacturers have
identified this trend, leading them to increase their offer to more sophisticated and specific
products, targeting different life stages and breeds. The pet humanisation trend is not restricted
to food. In recent years, more human services for pets have appeared, like spas, pet-friendly
hotels and restaurants and medical insurance.
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Many consumers are willing to buy items they think will improve their pet's quality of life. They
are therefore interested in fortified food that tends to mirror human food, along with health and
wellness trend options, like low-fat food, natural ingredients and functional benefits.

Current Impact
Pet food manufacturers are aware of the growing concern about providing pets with better
nutrition. Thus many players are incorporating health ingredients into their new mid-priced and
premium products. There are many examples of this type of innovation.
Purina Cat Chow (Nestl Mxico SA de CV) released Vida Sana, a line extension, in 2011; its
unique selling point hinges on the positioning of higher-quality, all-natural ingredients.
MaltaCleyton SA de CVs Ganador, a mid-priced dry dog food launched in 2012, offers Ganador
Duo in two flavours. The new offering contains lactobacillus to improve the pets digestion.
MaltaCleyton also launched Minino Plus, a mid-priced dry cat food that is a line extension of the
economy Minino brand. The product claims to contain Vital5, a nutritional mix to protect a cats
eyes, skin, heart, stomach and urinary system.
Natures Variety (Natures Variety Inc), a premium brand distributed by the internet retailer Pet
nGo, is a grain-free and gluten-free food that includes real dried meat. It is fortified with
probiotics and minerals and claims to improve skin, manage weight and increase energy. The
new offering is available for dogs and cats.
Functional ingredients were also included in new products of other pets. For example, in 2012
KayTee (various distributors) launched Forty-Diet versions for canaries, cockatiels and
parakeets. Forty-Diet products contain a blend of fresh seeds, grains, and pellets. It also
launched Fiesta Max for parakeets, conures, macaws and parrots. Fiesta Max provides a blend
of fruits, vegetables, seeds and grains fortified with omega-3, and it claims to be beneficial for
heart, brain and visual functions. Pre/pro biotics are also incorporated to boost digestive health.

Outlook
Fortified and functional offerings will predominantly be found in premium pet food, although
mid-priced brands will continue to develop improved formulas. Grain-free pet food is likely to
attain higher added-value positioning to support retail price increases and manufacturers'
margins. Organic food is expected to remain niche with a reduced selection. This will mirror the
development of organic food for humans, which is also characterised by a limited product offer.
New formulas could appear, running parallel with greater consumer interest in all-natural food
that is free from preservatives, both for themselves and their pets. Health and wellness
propositions are likely to become increasingly prevalent for fish, small mammal and other types
of pet food.

Future Impact
Despite economic challenges, the pet humanisation trend will continue to develop. Pet
parents will remain on the lookout for high-quality food and products that maximise the length
and quality of their pets lives. As pet owners become more health conscious about their own
food choices, such lifestyle considerations will increasingly be extended to their pets, with
companies innovating accordingly. Segmentation will develop further, with pet food becoming
even more specialised than it already is.

Social Media Is Becoming A Key Marketing Tool for Pet Food Brands
Although about 60% of the Mexican population does not have access to the internet, the
country is ranked fifth in terms of the number of Facebook users around the world, reaching
more than 40 million users in 2013.
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According to a survey by AMIPCI (Asociacin Mexicana de Internet Internet Mexican
Association), visiting social networks has become the second most popular activity of internet
users, after e-mailing. Internet users belong to an average of four social networks, with
Facebook the most popular, followed by YouTube and Twitter. Among social network users,
46% follow at least one brand to keep up-to-date with news, as these sites generate interesting
content or to provide information about a brand.
Facebook offers the possibility to create an online community of users around advertisers
offers and products. One of the characteristics that make it an attractive online marketing tool is
the possibility to target particular consumer groups for each brand, using criteria such as
location, age, interests, sex, language, relationship status, education, etc.
YouTube offers advertisers a way to promote their content to its online community as to tailor
content to their target audience. It offers analytic tools to help advertisers understand their
audience and derive general business intelligence and a number of charged-for services. Brand
channels give companies the possibility to create a specific avenue of communication
personalised with their image and feel, where customers can be informed about new products
and activities and leave feedback. Brand channels are aimed at creating relationships with
customers and strengthening customer awareness and loyalty.
Twitter is a form of micro-blogging whose premise is what are you doing. Twitter users are
given 140 characters per tweet, offering a real-time peek into consumers views and behaviour,
which provides a potentially vital resource for marketing.

Current Impact
Pet food brands are increasing their use of social networks to get in touch with consumers. It
is common to find Facebook profiles, Twitter accounts and YouTube channels providing product
information to pet owners, communicating brands activities, or organising promotional contests.
Some brands create local accounts targeted only at the Mexican population, while others have
regional profiles addressed to all Spanish-speaking Latin American countries.
Pedigrees Facebook profile has more than 73,000 Mexican fans while its Twitter account has
more than 5,000 followers. The brand is very active on social networks, publishing daily updated
content that includes information about promotional events and advice on dog care. Pictures of
dogs and puppies are key elements used to create interest among Facebook owners.
Purina (Nestl Mxico SA de CV) has three Latin American Facebook pages, for Purina Dog
chow, Cat Chow and Pro Plan, with a combined total of two million fans. Dog Chow has a
Twitter account for Mexican consumers with more than 6,000 followers while Purina owns global
channels only in English language on YouTube. Purinas activities on Facebook include the Cat
Chow daily challenge, where cat owners are invited to post pictures of their cats in different
situations such as: getting along with other animals, smiling or enjoying nature. The goal of the
challenge is to provide users with access to an application that allows them to create a photo
album of their cats and share it with their Facebook contacts.
Ganadors YouTube channel promotes a contest where dog owners can win a year's supply
of food for their pet. It also runs a comical web serial called "Perros sin Reserva" (dogs without
caution); short episodes about a man and his dog challenged to make a 3-month trip while being
fed only Ganador dry dog food. The serial aims to show that Ganador offers nourishing food, so
delicious that even the man could eat it.

Outlook
It is expected that the numbers of internet and social networks users will continue to rise, from
40% to over 65% of the Mexican population in 2018. Although the use of the internet tends to be
concentrated among high- and middle-income consumers, the penetration among low-income
consumers is also set to increase.
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Facebooks ability to generate profits is often debated, so it is likely that in the short term this
and other social networks will continue working to raise their profile as a good place for brands
to research, advertise and sell.
The number of people willing to make internet purchases is likely to grow as companies
design easy-to-use sites that protect consumers financial information.

Future Impact
Brands that are not involved in social networks might become interested as their competitors
prove that they are able to get closer to their target audience through such sites. They could
also make their websites more social by adding social plug-ins, such as the Like button for
Facebook or Follow Me for Twitter. Brands that have social media accounts but tend to ignore
them are expected to become more focused on generating interesting content and answering
consumers questions. More resources will be addressed to community managers, and
interactive promotional activities are likely to maintain a presence on Facebook and Twitter.

Animal Maltreatment Punishments Become Stricter in Mexico City
In Mexico there are laws which protect animals rights, such as Ley de proteccin a los
animales (Animal Protection Law). Each Mexican state has its own legislation, but, in general,
they are very similar to that of Distrito Federal. The latest version from Distrito Federal was
published in September 2010, with the objective of regulating the protection, defence and
wellbeing of animals living permanently or temporarily in Mexico City. This law prohibits public or
private dog fights, and humanitarian animal sacrifice has to be implemented by authorised and
trained personnel.
There are strong animal rights associations, such as El Muro A.C (The Wall). The main tenets
are: no to violence, no to indifference, yes to pet adoption, yes to sterilisation, and yes to
punishment of animal abusers. In line with this initiative, the Mexico City police department has
an animal surveillance brigade, which specialises in rescuing animals from cruelty and neglect.
In 2011, the brigade began a programme which saw staff visit parks to talk with pet owners
about being responsible. The brigade also set-up tents to educate children on animal rights and
give them informative colouring books, so they could learn about pet care and have fun at the
same time.

Current Impact
The legislation against those who intentionally maltreat animals and pets became stricter in
2013. Mexico Citys government published an official communication stating that cruelty to
animals that causes them injuries will be punished with jail terms of 6-24 months. The length of
imprisonment will lengthen if injuries put the animals life at risk: reaching four years of jail if the
animal dies and six years if it died suffering. Even if animals and pets suffered maltreatment
without there being evidence of injuries, offenders will lose the right to own the animal and it will
be confiscated by the citys government. The legislation also provides protection to circus, zoo
and farm animals.
This action is the result of higher awareness that pets and all kind of animals are living beings
that deserve to be treated with respect. This perception is aligned with the growing pet
humanisation trend, which has seen domestic animals become part of the family and owners
willing to cut other expenses in order to be able to pamper their pet.

Outlook
It is expected that similar laws will be approved in the short term in other regions of the
country. Existing legislation in Mexico City could also become stricter as it still allows bullfighting
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and cockfighting. There are growing movements against such events, led by animal protection
associations.
New legislation would have a positive impact on unattended pets, if the government is able to
take fast and effective action when people denounce abuse, motivating others to report neglect
or violence against animals.

Future Impact
Whilst a segment of population considers their pets as part of their family, many owners are
not especially attached to their pets. As animals are increasingly recognised as valuable beings;
and governments, associations and pet care brands work to develop animal protection and
promote the value of animals, indifferent owners are likely to become more committed to their
pets wellbeing. This development would provide a boost to the industry; as such owners are
more willing to increase their expenditure on pet care.

Unattended Pets Lead To New Legislation Proposals
In recent years the number of unattended dogs and cats has concerned the authorities. This
includes street animals and pets that are not receiving the appropriate attention. The number of
homeless animals is high, as many people abandon their pets when they cannot or do not want
to take care any more of them. Moreover, some owners do not sterilise their pets and they let
them roam free in the street without controlling their behaviour. This can lead to a high level of
unregulated reproduction and the abandonment of new puppies and kittens. It is estimated that
about 10% of the dog population consists of street dogs. In Mexico City, the street dog
population is estimated at over 120,000 dogs.
Health authorities are concerned about the faeces of unattended cats and dogs. Dried faeces
represent a potential source of infection for humans, such as typhoid or amebiasis. Another
concern of the authorities is dog bites. In 2012, more than 11,000 people reported a bite from
street or owned dogs. It should be noted that pets suffering maltreatment become stressed and
prone to attack.
Government Canine Control Centres have the job of collecting street dogs, while civil
associations give protection to a number of unprotected animals; nevertheless they cannot
cover the whole unattended pet population due to the high number of stray dogs and cats.

Current Impact
At the end of 2012, in Iztapalapa, Mexico City, a group of street dogs killed four people,
including a woman and her 8-month-old baby. This tragic event forced Mexico Citys
government to pay more attention to the increasing number of unattended animals and propose
new legislation on pet ownership.
Such proposals included a tax of Mx$500 on unsterilized pets, and penalties for owners that
fail to pick up the faeces of their pets, or leave children alone with pets. The proposed legislation
also includes up to 36 hours of arrest for people who abandon their pets or refuse to register
them on a pet census. The proposed pet census may include an electronic ID system via a chip
for cats and dogs. At the end of the review period, such proposals remained under discussion,
and it is not certain if they will be implemented in Mexico City or other regions of the country.
Animal refuge centres are working on creating awareness of pet abandonment and promoting
pet adoption schemes. These efforts are mainly focused on dogs, but cats are also gaining
attention. One example is the annual Gatofest event, organised for the first time in 2011, which
aims to promote cat adoption and provide information on cat care.
Some pet food brands support animal refuge centres efforts while taking the opportunity to
involve their brands with food donation activities. For example, Effem Mxicos Pedigree
Adptame (Adopt me) programme, started in 2008. According to the brands website, the
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programme saw the company donate more than 1,000 tonnes of food to 30 adoption centres,
and led to the adoption of more than 17,000 dogs. In 2012, Ganador donated one ton of food to
several dog refuge centres; as most of these centres are civil associations, they receive funds
only from donations.

Outlook
It is has not been announced if the legislation proposals will be approved or rejected in the
short term. Nonetheless, the demand for new legislation is expected to gain force until the
government decides to become more active in securing responsible pet ownership laws and
regulations. The proposed changes to legislation are being discussed in Mexico City, but other
regions of the country are likely to propose similar laws locally.

Future Impact
As awareness of the unattended pets issue grows, pet adoption and refuge centres will
provide opportunities for companies to associate their brands with such activities.
Economy dog and cat food should benefit from the increasing number of adoptions. Often,
new owners decide to feed their pets with lower-priced products, as they may already be adult
animals that have survived successfully on street food.


MARKET INDICATORS

Table 1 Pet Populations 2008-2013

'000s of animals
2008 2009 2010 2011 2012 2013

Dog Population 17,532.3 17,859.3 18,239.2 18,615.4 22,141.3 24,264.8
Cat Population 7,035.6 7,176.3 7,352.9 7,528.7 7,676.9 7,944.0
Bird Population 1,299.5 1,308.5 1,319.0 1,328.9 1,341.5 1,356.4
Fish Population 1,178.8 1,198.9 1,217.3 1,235.5 1,251.1 1,268.3
Small Mammal Population 236.2 240.5 245.7 250.2 255.5 256.0
Reptile Population 56.8 57.5 58.3 58.8 59.5 64.0
Source: Euromonitor International from official statistics



MARKET DATA

Table 2 Sales of Pet Food by Category: Volume 2008-2013

'000 Tonnes
2008 2009 2010 2011 2012 2013

Dog and Cat Food 631.0 640.4 686.2 740.4 821.6 906.6
Other Pet Food 5.7 5.6 5.7 5.7 5.8 5.9
Pet Food 636.7 646.0 691.9 746.1 827.4 912.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 3 Sales of Pet Care by Category: Value 2008-2013

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Mx$ million
2008 2009 2010 2011 2012 2013

Dog and Cat Food 14,898.1 16,331.6 18,383.8 20,507.9 24,464.1 28,110.8
Other Pet Food 355.3 344.0 379.1 398.3 433.4 465.7
Pet Food 15,253.4 16,675.5 18,762.9 20,906.2 24,897.4 28,576.5
Cat Litter 28.8 29.1 30.4 31.5 33.0 34.4
Pet Healthcare 24.6 25.0 26.0 26.8 28.0 29.1
Pet Dietary Supplements 15.0 14.8 15.6 16.3 17.4 18.4
Other Pet Products 11.0 10.7 11.1 11.4 11.7 12.1
Pet Products 79.3 79.5 83.0 85.9 90.0 94.1
Pet Care 15,332.7 16,755.0 18,845.9 20,992.1 24,987.4 28,670.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 4 Sales of Pet Food by Category: % Volume Growth 2008-2013

% volume growth
2012/13 2008-13 CAGR 2008/13 Total

Dog and Cat Food 10.3 7.5 43.7
Other Pet Food 1.0 0.6 3.0
Pet Food 10.3 7.5 43.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 5 Sales of Pet Care by Category: % Value Growth 2008-2013

% current value growth
2012/13 2008-13 CAGR 2008/13 Total

Dog and Cat Food 14.9 13.5 88.7
Other Pet Food 7.5 5.6 31.1
Pet Food 14.8 13.4 87.3
Cat Litter 4.4 3.7 19.7
Pet Healthcare 4.1 3.4 18.3
Pet Dietary Supplements 6.0 4.3 23.2
Other Pet Products 3.7 2.0 10.5
Pet Products 4.5 3.5 18.6
Pet Care 14.7 13.3 87.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 6 NBO Company Shares of Pet Food: % Value 2008-2012

% retail value rsp
Company 2008 2009 2010 2011 2012

Effem Mxico SA de CV 35.9 35.9 36.1 35.5 36.6
Nestl Mxico SA de CV 20.0 20.5 21.2 21.1 21.1
MaltaCleyton SA de CV 4.5 4.7 4.5 4.5 4.8
Hill's Pet Nutrition de 3.4 3.6 3.7 3.7 3.6
Mxico SA de CV
Royal Canin Mxico SA 2.6 2.9 3.3 3.6 3.6
de CV
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Cargill de Mxico SA de 0.9 1.7 1.9 2.2 2.3
CV
Grupo Industrial Los 1.7 1.8 1.8 1.6 1.5
Belenes SA de CV
Procter & Gamble de 1.5 1.3 1.2 1.2 1.2
Mxico SA de CV
Nueva Tecnologa en 0.3 0.3 0.3 0.3 0.3
Alimentacin SA de CV
Hartz Mountain Corp 0.4 0.3 0.3 0.3 0.3
Intelipet Mexico 0.2 0.3 0.3 0.3 0.3
Diamond SA de CV, Grupo 0.2 0.2 0.2 0.2 0.2
Tetra Werke GmbH 0.2 0.1 0.2 0.2 0.1
Empacadora La Merced SA 0.2 0.2 0.2 0.2 0.1
de CV
Verde Valle SA de CV 0.2 0.2 0.2 0.2 0.1
Abarrotera de Jalisco 0.1 0.1 0.1 0.1 0.1
SA de CV
Industrias Aqua Pet 0.1 0.1 0.1 0.1 0.1
Digrans SA de CV 0.1 0.1 0.1 0.1 0.1
Tetra Perez SA de CV 0.1 0.1 0.1 0.1 0.1
Del Monte Foods Co - - - - -
Heinz Mxico SA de CV - - - - -
Private Label 12.1 12.2 11.8 11.1 10.6
Others 15.5 13.4 12.6 13.5 12.8
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 7 LBN Brand Shares of Pet Food: % Value 2009-2012

% retail value rsp
Brand Company 2009 2010 2011 2012

Pedigree Effem Mxico SA de CV 20.2 20.3 19.5 19.6
Whiskas Effem Mxico SA de CV 8.0 8.2 7.9 8.5
Purina Dog Chow Nestl Mxico SA de CV 4.0 4.1 4.2 4.3
Perfect Fit Effem Mxico SA de CV 3.0 3.1 3.6 4.0
Pal Effem Mxico SA de CV 3.8 3.8 3.6 3.7
Mainstay Nestl Mxico SA de CV 3.8 3.8 3.6 3.5
Purina Cat Chow Nestl Mxico SA de CV 2.8 2.9 2.9 2.9
Purina Pro Plan Nestl Mxico SA de CV 2.5 2.8 2.9 2.9
Purina Friskies Nestl Mxico SA de CV 2.7 3.0 2.9 2.8
Ganador MaltaCleyton SA de CV 2.9 2.7 2.6 2.8
Hill's Science Diet Hill's Pet Nutrition de 2.7 2.6 2.6 2.5
Mxico SA de CV
Royal Canin Royal Canin Mxico SA 1.5 1.8 2.0 2.0
de CV
Royal Canin Royal Canin Mxico SA 1.4 1.5 1.6 1.6
Veterinary Diet de CV
Purina Nestl Mxico SA de CV 1.3 1.4 1.4 1.5
Dogui Cargill de Mxico SA de CV 1.0 1.1 1.3 1.5
Eukanuba Procter & Gamble de 1.3 1.2 1.2 1.2
Mxico SA de CV
Hill's Prescription Hill's Pet Nutrition de 0.9 1.1 1.1 1.1
Diet Mxico SA de CV
Purina Beneful Nestl Mxico SA de CV 0.8 0.9 1.0 1.1
Purina Puri Carne Nestl Mxico SA de CV 1.1 0.9 0.9 1.0
Dog Power Grupo Industrial Los 1.1 1.1 1.0 0.9
Belenes SA de CV
P E T CA RE I N ME XI CO P a s s p o r t 10
E u r o mo n i t o r I n t e r n a t i o n a l
Top Choice MaltaCleyton SA de CV 0.8 0.8 0.9 0.9
Gatina Nestl Mxico SA de CV 1.1 1.1 1.0 0.9
Poder Canino MaltaCleyton SA de CV 0.6 0.6 0.7 0.7
Belenes Max Grupo Industrial Los 0.7 0.7 0.7 0.6
Belenes SA de CV
Key Can Cargill de Mxico SA de CV 0.4 0.4 0.5 0.5
Minino MaltaCleyton SA de CV 0.4 0.4 0.5 0.5
NUPEC Nueva Tecnologa en 0.3 0.3 0.3 0.3
Alimentacin SA de CV
Pet Master Cargill de Mxico SA de CV 0.3 0.3 0.4 0.3
Cesar Effem Mxico SA de CV 0.4 0.4 0.3 0.3
Clever Intelipet Mexico 0.3 0.3 0.3 0.3
Private label Private Label 12.2 11.8 11.1 10.6
Others 15.6 14.8 15.6 14.7
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 8 NBO Company Shares of Dog and Cat Food: % Value 2008-2012

% retail value rsp
Company 2008 2009 2010 2011 2012

Effem Mxico SA de CV 36.5 36.4 36.6 36.0 37.0
Nestl Mxico SA de CV 20.5 21.0 21.6 21.5 21.5
MaltaCleyton SA de CV 4.6 4.8 4.6 4.6 4.9
Hill's Pet Nutrition de 3.4 3.7 3.8 3.8 3.7
Mxico SA de CV
Royal Canin Mxico SA 2.6 3.0 3.4 3.7 3.7
de CV
Cargill de Mxico SA de 1.0 1.8 1.9 2.2 2.4
CV
Grupo Industrial Los 1.8 1.8 1.8 1.7 1.5
Belenes SA de CV
Procter & Gamble de 1.5 1.4 1.2 1.2 1.2
Mxico SA de CV
Nueva Tecnologa en 0.3 0.3 0.3 0.3 0.3
Alimentacin SA de CV
Intelipet Mexico 0.2 0.3 0.3 0.3 0.3
Diamond SA de CV, Grupo 0.2 0.2 0.2 0.2 0.2
Del Monte Foods Co - - - - -
Heinz Mxico SA de CV - - - - -
Private Label 12.3 12.4 11.9 11.2 10.7
Others 15.2 13.1 12.4 13.3 12.6
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 9 LBN Brand Shares of Dog and Cat Food: % Value 2009-2012

% retail value rsp
Brand Company 2009 2010 2011 2012

Pedigree Effem Mxico SA de CV 20.7 20.7 19.9 20.0
Whiskas Effem Mxico SA de CV 8.1 8.3 8.1 8.7
Purina Dog Chow Nestl Mxico SA de CV 4.1 4.2 4.2 4.4
Perfect Fit Effem Mxico SA de CV 3.1 3.1 3.7 4.1
P E T CA RE I N ME XI CO P a s s p o r t 11
E u r o mo n i t o r I n t e r n a t i o n a l
Pal Effem Mxico SA de CV 3.9 3.9 3.7 3.8
Mainstay Nestl Mxico SA de CV 3.9 3.9 3.6 3.5
Purina Cat Chow Nestl Mxico SA de CV 2.9 2.9 3.0 2.9
Purina Pro Plan Nestl Mxico SA de CV 2.6 2.8 2.9 2.9
Purina Friskies Nestl Mxico SA de CV 2.8 3.0 2.9 2.8
Ganador MaltaCleyton SA de CV 2.9 2.7 2.6 2.8
Hill's Science Diet Hill's Pet Nutrition de 2.7 2.7 2.7 2.6
Mxico SA de CV
Royal Canin Royal Canin Mxico SA 1.6 1.8 2.0 2.0
de CV
Royal Canin Royal Canin Mxico SA 1.4 1.5 1.6 1.6
Veterinary Diet de CV
Purina Nestl Mxico SA de CV 1.4 1.4 1.5 1.6
Dogui Cargill de Mxico SA de CV 1.1 1.1 1.3 1.5
Eukanuba Procter & Gamble de 1.4 1.2 1.2 1.2
Mxico SA de CV
Hill's Prescription Hill's Pet Nutrition de 0.9 1.1 1.2 1.1
Diet Mxico SA de CV
Purina Beneful Nestl Mxico SA de CV 0.8 1.0 1.1 1.1
Purina Puri Carne Nestl Mxico SA de CV 1.1 0.9 0.9 1.1
Dog Power Grupo Industrial Los 1.1 1.1 1.0 0.9
Belenes SA de CV
Top Choice MaltaCleyton SA de CV 0.8 0.8 0.9 0.9
Gatina Nestl Mxico SA de CV 1.2 1.1 1.0 0.9
Poder Canino MaltaCleyton SA de CV 0.6 0.6 0.7 0.7
Belenes Max Grupo Industrial Los 0.7 0.7 0.7 0.6
Belenes SA de CV
Key Can Cargill de Mxico SA de CV 0.4 0.4 0.5 0.5
Minino MaltaCleyton SA de CV 0.4 0.4 0.5 0.5
NUPEC Nueva Tecnologa en 0.3 0.3 0.3 0.3
Alimentacin SA de CV
Pet Master Cargill de Mxico SA de CV 0.3 0.3 0.4 0.3
Cesar Effem Mxico SA de CV 0.4 0.4 0.3 0.3
Clever Intelipet Mexico 0.3 0.3 0.3 0.3
Private label Private Label 12.4 11.9 11.2 10.7
Others 13.9 13.2 14.1 13.3
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 10 Penetration of Private Label in Pet Care by Category: % Value 2006-2011

% retail value rsp
2006 2007 2008 2009 2010 2011

Pet Care 10.6 12.6 12.1 12.2 11.8 11.1
Pet Food 10.6 12.6 12.1 12.2 11.8 11.1
Pet Products 12.1 12.4 13.3 13.9 13.9 14.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 11 Distribution of Pet Care by Format: % Value 2008-2013

% retail value rsp
2008 2009 2010 2011 2012 2013

Store-Based Retailing 93.8 93.9 93.7 93.5 93.5 93.6
P E T CA RE I N ME XI CO P a s s p o r t 12
E u r o mo n i t o r I n t e r n a t i o n a l
- Grocery Retailers 72.9 73.4 72.8 72.4 72.6 72.7
--- Modern Grocery 29.1 29.2 29.0 28.9 29.4 29.7
Retailers
--- Convenience Stores 4.8 4.9 5.1 5.2 5.4 5.6
--- Discounters 6.0 6.4 6.5 6.8 7.1 7.4
--- Forecourt Retailers - - - - - -
--- Hypermarkets 13.4 13.1 12.9 12.7 12.7 12.7
--- Supermarkets 5.0 4.8 4.5 4.2 4.2 4.0
--- Traditional Grocery 43.8 44.1 43.7 43.5 43.2 43.0
Retailers
--- Independent Small 43.8 44.1 43.7 43.5 43.2 43.0
Grocers
--- Other Grocery - - - - - -
Retailers
- Non-Grocery Retailers 20.9 20.5 20.9 21.1 20.9 20.9
--- Pet superstores - - - - - -
--- Pet shops 13.9 13.5 13.8 14.0 13.7 13.6
--- Health and Beauty - - - - - -
Specialist Retailers
--- Beauty Specialist - - - - - -
Retailers
--- Chemists/Pharmacies - - - - - -
--- Parapharmacies/ - - - - - -
Drugstores
--- Other Healthcare - - - - - -
Specialist Retailers
--- Home and Garden - - - - - -
Specialist Retailers
--- Home Improvement - - - - - -
and Garden Centres
--- Furniture and - - - - - -
Homewares Stores
--- Mixed Retailers 7.0 7.0 7.0 7.1 7.2 7.2
--- Department Stores 0.7 0.6 0.7 0.6 0.6 0.6
--- Mass Merchandisers - - - - - -
--- Variety Stores - - - - - -
--- Warehouse Clubs 6.3 6.4 6.4 6.5 6.5 6.6
--- Other Non-Grocery 0.1 0.0 0.1 0.0 0.0 0.0
Retailers
Non-Store Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0
Non-retail channels 6.2 6.1 6.3 6.5 6.4 6.4
- Veterinary clinics 6.2 6.1 6.3 6.5 6.4 6.4
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 12 Distribution of Pet Care by Format and Category: % Value 2012

% retail value rsp
PF PP

Store-Based Retailing 93.7 72.2
Grocery Retailers 72.9 12.1
Modern Grocery Retailers 29.7 12.1
Convenience Stores 5.6 0.0
Discounters 7.4 3.0
P E T CA RE I N ME XI CO P a s s p o r t 13
E u r o mo n i t o r I n t e r n a t i o n a l
Forecourt Retailers 0.0 0.0
Hypermarkets 12.7 7.0
Supermarkets 4.0 2.0
Traditional Grocery Retailers 43.2 0.0
Independent Small Grocers 43.2 0.0
Other Grocery Retailers 0.0 0.0
Non-Grocery Retailers 20.8 60.1
Pet superstores 0.0 0.0
Pet shops 13.4 57.6
Health and Beauty Specialist Retailers 0.0 0.0
Beauty Specialist Retailers 0.0 0.0
Chemists/Pharmacies 0.0 0.0
Parapharmacies/Drugstores 0.0 0.0
Other Healthcare Specialist Retailers 0.0 0.0
Home and Garden Specialist Retailers 0.0 0.0
Home Improvement and Garden Centres 0.0 0.0
Furniture and Homewares Stores 0.0 0.0
Mixed Retailers 7.3 2.5
Department Stores 0.6 2.5
Mass Merchandisers 0.0 0.0
Variety Stores 0.0 0.0
Warehouse Clubs 6.6 0.0
Other Non-Grocery Retailers 0.0 0.0
Non-Store Retailing 0.0 0.0
Direct Selling 0.0 0.0
Homeshopping 0.0 0.0
Internet Retailing 0.0 0.0
Non-retail channels 6.3 27.8
Veterinary clinics 6.3 27.8
Total 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Key: PF = Pet food; PP = Pet products


Table 13 Distribution of Dog and Cat Food by Format: % Value 2008-2013

% retail value rsp
2008 2009 2010 2011 2012 2013

Store-Based Retailing 94.0 94.0 93.8 93.7 93.7 93.7
- Grocery Retailers 74.8 75.0 74.3 73.9 73.9 73.9
--- Modern Grocery 29.7 29.7 29.5 29.3 29.8 30.0
Retailers
--- Convenience Stores 4.9 5.1 5.2 5.3 5.5 5.7
--- Discounters 6.1 6.5 6.6 6.9 7.2 7.5
--- Forecourt Retailers - - - - - -
--- Hypermarkets 13.6 13.3 13.1 12.9 12.9 12.8
--- Supermarkets 5.1 4.9 4.6 4.2 4.3 4.1
--- Traditional Grocery 45.0 45.3 44.8 44.5 44.1 43.9
Retailers
--- Independent Small 45.0 45.3 44.8 44.5 44.1 43.9
Grocers
--- Other Grocery - - - - - -
Retailers
- Non-Grocery Retailers 19.3 19.1 19.5 19.8 19.7 19.8
--- Pet superstores - - - - - -
--- Pet shops 12.2 12.0 12.4 12.6 12.5 12.4
--- Health and Beauty - - - - - -
Specialist Retailers
P E T CA RE I N ME XI CO P a s s p o r t 14
E u r o mo n i t o r I n t e r n a t i o n a l
--- Beauty Specialist - - - - - -
Retailers
--- Chemists/Pharmacies - - - - - -
--- Parapharmacies/ - - - - - -
Drugstores
--- Other Healthcare - - - - - -
Specialist Retailers
--- Home and Garden - - - - - -
Specialist Retailers
--- Home Improvement - - - - - -
and Garden Centres
--- Furniture and - - - - - -
Homewares Stores
--- Mixed Retailers 7.0 7.1 7.1 7.2 7.2 7.3
--- Department Stores 0.6 0.6 0.6 0.6 0.6 0.6
--- Mass Merchandisers - - - - - -
--- Variety Stores - - - - - -
--- Warehouse Clubs 6.4 6.4 6.5 6.6 6.6 6.7
--- Other Non-Grocery 0.1 0.1 0.1 0.0 0.0 0.0
Retailers
Non-Store Retailing 0.0 0.0 0.0 0.0 0.0 0.0
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- Internet Retailing 0.0 0.0 0.0 0.0 0.0 0.0
Non-retail channels 6.0 6.0 6.2 6.3 6.3 6.3
- Veterinary clinics 6.0 6.0 6.2 6.3 6.3 6.3
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources


Table 14 Distribution of Dog and Cat Food by Format and Category: % Value 2013

% retail value rsp
CF DF

Store-Based Retailing 94.1 93.6
Grocery Retailers 77.0 73.1
Modern Grocery Retailers 30.6 29.9
Convenience Stores 2.5 6.6
Discounters 3.7 8.5
Forecourt Retailers 0.0 0.0
Hypermarkets 18.4 11.3
Supermarkets 6.0 3.5
Traditional Grocery Retailers 46.4 43.2
Independent Small Grocers 46.4 43.2
Other Grocery Retailers 0.0 0.0
Non-Grocery Retailers 17.0 20.5
Pet superstores 0.0 0.0
Pet shops 13.0 12.3
Health and Beauty Specialist Retailers 0.0 0.0
Beauty Specialist Retailers 0.0 0.0
Chemists/Pharmacies 0.0 0.0
Parapharmacies/Drugstores 0.0 0.0
Other Healthcare Specialist Retailers 0.0 0.0
Home and Garden Specialist Retailers 0.0 0.0
Home Improvement and Garden Centres 0.0 0.0
Furniture and Homewares Stores 0.0 0.0
Mixed Retailers 3.8 8.2
Department Stores 0.6 0.6
P E T CA RE I N ME XI CO P a s s p o r t 15
E u r o mo n i t o r I n t e r n a t i o n a l
Mass Merchandisers 0.0 0.0
Variety Stores 0.0 0.0
Warehouse Clubs 3.2 7.7
Other Non-Grocery Retailers 0.2 0.0
Non-Store Retailing 0.0 0.0
Direct Selling 0.0 0.0
Homeshopping 0.0 0.0
Internet Retailing 0.0 0.0
Non-retail channels 5.9 6.4
Veterinary clinics 5.9 6.4
Total 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Key: CF = Cat food; DF = Dog food


Table 15 Forecast Sales of Pet Food by Category: Volume 2013-2018

'000 Tonnes
2013 2014 2015 2016 2017 2018

Dog and Cat Food 906.6 989.2 1,069.4 1,150.8 1,231.0 1,309.4
Other Pet Food 5.9 5.9 6.0 6.1 6.1 6.2
Pet Food 912.4 995.1 1,075.4 1,156.8 1,237.2 1,315.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 16 Forecast Sales of Pet Care by Category: Value 2013-2018

Mx$ million
2013 2014 2015 2016 2017 2018

Dog and Cat Food 28,110.8 30,799.7 33,482.0 36,229.4 39,007.5 41,774.2
Other Pet Food 465.7 476.7 487.6 498.6 508.4 519.6
Pet Food 28,576.5 31,276.4 33,969.6 36,728.0 39,515.9 42,293.8
Cat Litter 34.4 34.7 35.0 35.3 35.6 35.9
Pet Healthcare 29.1 29.3 29.4 29.5 29.7 29.9
Pet Dietary Supplements 18.4 18.9 19.3 19.8 20.5 21.0
Other Pet Products 12.1 12.4 12.5 12.6 12.8 13.1
Pet Products 94.1 95.2 96.1 97.3 98.6 99.9
Pet Care 28,670.6 31,371.6 34,065.7 36,825.3 39,614.5 42,393.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


Table 17 Forecast Sales of Pet Food by Category: % Volume Growth 2013-2018

% volume growth
2017/18 2013-18 CAGR 2013/18 Total

Dog and Cat Food 6.4 7.6 44.4
Other Pet Food 1.2 1.2 5.9
Pet Food 6.3 7.6 44.2
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources


P E T CA RE I N ME XI CO P a s s p o r t 16
E u r o mo n i t o r I n t e r n a t i o n a l
Table 18 Forecast Sales of Pet Care by Category: % Value Growth 2013-2018

% constant value growth
2013-18 CAGR 2013/18 TOTAL

Dog and Cat Food 8.2 48.6
Other Pet Food 2.2 11.6
Pet Food 8.2 48.0
Cat Litter 0.8 4.3
Pet Healthcare 0.5 2.6
Pet Dietary Supplements 2.7 14.2
Other Pet Products 1.6 8.0
Pet Products 1.2 6.2
Pet Care 8.1 47.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources



DEFINITIONS
This report analyses the market for Pet Care in Mexico. For the purposes of the study, the
market has been defined as follows:
Dog food
Cat food
Other pet food
Pet products
Dog and cat food sales are further broken down by product type (wet/dry) and price platform.
Examples of key brands in each price platform in Mexico are as follows:
Premium: Hills Science Diet, Royal Canin
Mid-priced: Pedigree, Purina Dog Chow, Ganador
Economy: PAL, Mainstay


SOURCES
Sources used during the research included the following:

Summary 1 Research Sources
Official Sources Centro de Control Canino del Estado de
Mxico
INEGI
Ministry of Economy
Secretaria de Economia (SEC)
Secretaria de Salubriad y Asistencia
Servicio de Informacin y Estadstica
Agroalimentaria y Pesquera (Sagarpa)
SESIC
US Foreign Commercial Service
Trade Associations AMENA
AMEPA - Asociacion Mexicana de
P E T CA RE I N ME XI CO P a s s p o r t 17
E u r o mo n i t o r I n t e r n a t i o n a l
Productores de Alimentos AC
ANAM Asociacion Nacional de Abarroteros
Mayoristas
Asociacion Mexicana de Acuariofilia y
Pequeos Especies, AC
Asociacion Mexicana De Medicos Veterinarios
de Pequeas Especies (AMMVEPE)
Associacion de Medicos Veterinarios de
Azcapotzalco
CANACINTRA
Club Canofilo del Estado de Mxico AC
Club de Mdicos Veterinarios Zootcnistas AC
CONAFAB
Federacion Canofila Mexicana (FCM)
Mdicos Veterinarios Especialistas de
Pequeas Especies del Sur
Mexican Pet Association - Amascota
Pet Food Institute (PFI)
Unidad Mdica Veterinaria
Trade Press Abarrotes y Mas
Al Detalle
Animales de Ca
Bloomberg
CNN Expansion
El Asesor de Mexico
El Economista
El Financiero
El Semanario
El Universal
Expansin
Felinos de Mxico
Imagen Veterinaria
La Casa de los Gatos/Notimex
La Jornada
La Verdad Sobre Los Gatos
Merca2.0
Milenio
Mundo Ejecutivo
Periodico Excelsior
Perros de Mxico
P E T CA RE I N ME XI CO P a s s p o r t 18
E u r o mo n i t o r I n t e r n a t i o n a l
Perros Pura Sangre
Quo
Reforma
Revista Animales de Ca
Revista del Consumidor
Revista Perros Pura Sangre
Revista Splash
Revista Vanguardia Veterinaria
Source: Euromonitor International