DOG FOOD IN PERU

Euromonitor International
July 2015
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Summary 1 Dog Food by Price Band 2015 ..................................................................... 4
Category Indicators ...................................................................................................................... 4
Table 1 Dog Owning Households: % Analysis 2010-2015 ........................................ 4
Table 2 Dog Population 2010-2015 ........................................................................... 4
Table 3 Consumption of Dog Food by Prepared vs Non-prepared: % Analysis
2010-2015 .................................................................................................... 5
Category Data .............................................................................................................................. 5
Table 4 Sales of Dog Food by Category: Volume 2010-2015 ................................... 5

Table 5 Sales of Dog Food by Category: Value 2010-2015 ...................................... 5

Table 6 Sales of Dog Food by Category: % Volume Growth 2010-2015 .................. 5

Table 7 Sales of Dog Food by Category: % Value Growth 2010-2015 ..................... 6

Table 8 Sales of Premium Dog Food by Category: Value 2010-2015 ....................... 6

Table 9 NBO Company Shares of Dog Food: % Value 2010-2014 ........................... 6

Table 10 LBN Brand Shares of Dog Food: % Value 2011-2014 ................................. 6

Table 11 LBN Brand Shares of Dog Treats: % Value 2011-2014 ............................... 7

Table 12 Forecast Sales of Dog Food by Category: Volume 2015-2020 .................... 7

Table 13 Forecast Sales of Dog Food by Category: Value 2015-2020 ....................... 7

Table 14 Forecast Sales of Dog Food by Category: % Volume Growth 2015-

2020 ............................................................................................................. 8

Table 15 Forecast Sales of Dog Food by Category: % Value Growth 2015-2020....... 8

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DOG FOOD IN PERU

HEADLINES
 In 2014, dog food sales reach PEN258 million after current value growth of 10%
 The 2013 purchase of Alicorp SAA’s dog food business by Molitalia SA, from the Carozzi
group, still has an impact on the industry
 Molitalia SA decides to stop selling Master Dog and even though a definitive decision is
unconfirmed there is no stock left for 2015
 Unit prices of dog food experience a slight increase in current terms in 2014
 Local company Rinti SA is still the leading player in dog food with a 36% value share in 2014
 Over the forecast period, dog food will see value sales growth at a CAGR of 9% at constant
2015 prices

TRENDS
 In 2014, Peru still ranked as the country with the lowest per capita consumption of dog food in
volume terms in the Latin American region. The percentage of dogs fed with prepared food in
2014 reached 25% of the total population of dogs in the country, and for 2015 slight growth to
26% is expected. The remaining percentage of the dog population is fed with home-made
leftovers and bones, mostly by low-income families. Some middle-income households
combine packaged food with home-made leftovers, as they perceive that the latter can
complement a dog’s nutrition requirements better.
 The phenomenon of pet “humanisation” is expected to continue in 2015, with local pet owners
more concerned about their pet’s health and nutrition, making better choices for them. In
2015, it is expected that wet dog food will increase its value sales by 29% in current terms,
being the most dynamic within dog food, followed by dog treats with a 24% increase in current
value sales.
 Dog food sales growth in 2014 was slightly below the performance obtained the previous
year. However, the 2014 growth rate was still strong, taking into account that dog food
registered double-digit growth each year during 2010-2013; therefore, it was reasonable that
further development came at a slower pace in 2014.
 In 2014, dog food sales experienced current value growth of 10%, a considerable reduction
from 13% in 2013. The decrease in growth of dog food in 2014 was the result of strong
deceleration of the Peruvian economy. The most affected within dog food were mid-priced and
premium dry dog food, which experienced drops in their value sales growth rates in 2014 by
four and 12 percentage points, respectively.
 In 2014, the average unit price of dog food recovered slightly in current terms compared to
2013. The only category affected by the deceleration of the economy and therefore presenting
a decrease in its average unit price in 2014 in current terms was economy dry dog food;
however, it is expected to recover in 2015.
 Wet dog food remains a niche category in Peru, with dry dog food accounting for a 97%
volume share in 2014. With the average unit price of wet dog food being nearly three times
that of dry dog food, the former is considered a treat, given to pets on special occasions by
some owners. However, other owners with more elevated purchasing power have considered
changing their pets’ diet to wet food for the health benefits of the formula. Dry dog food is still
the most preferred type of dog food in Peru, as it is available in a wider range and is easier to

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preserve as it is shelf-stable, while wet dog food needs to be refrigerated once the product is
opened.
 In 2014, mid-priced and premium dry dog food were the most affected by the deceleration of
the Peruvian economy, with inferior growth compared to the previous year. However, it is
expected that they will increase their growth rates in 2015. Wet dog food saw current value
growth of 23% in 2014 premium wet dog food being the one with the highest growth of 24%.
Premium dog food is mostly sold in specialised channels, mainly veterinary clinics and pet
shops; therefore, recommendation by a professional is considered important.
 Early in 2014, Master Foods Perú Srl launched Pedigree Vital Protection, a special
formulation for every stage of a dog’s life. The company has confirmed that it is having great
results. This is supported by the increase in the company’s value share of mid-priced dry dog
food to 16% in 2014.
 Therapeutic dog food is only available through premium brands such as Hill’s Science Diet,
Royal Canin and Nutram Dog. The purchasing of such products is strongly linked to
veterinarians’ recommendations in order to treat dog-specific diseases or chronic conditions.
Although therapeutic brands remain in a niche, they are gradually attracting the interest of
wealthy consumers who seek to give the best care to their pets.
 Organic, all-natural and bones and raw food brands are not yet available in Peru.
 Dog treats obtained 19% volume growth in 2014, a considerable increase from 2013 when it
achieved 15% growth. It is important to highlight that dog treats represents only 2% of total
dog food value sales; therefore, it is still very small but it is experiencing great growth.
 Retail distribution of dog food is still led by traditional grocery retailers which accounted for
64% of total dog food value sales in 2014. Its leadership is based on the wide range of
economy and mid-priced dog food brands sold in loose format. This feature is very attractive
for low- and middle-income consumers, who can afford to purchase small amounts of dog
food to satisfy their pets’ daily or weekly needs. Independent small grocers carry only a few
brands but benefit from being located conveniently near to most consumers’ households in
urban areas, and they also offer sales by weight. Modern grocery retailers’ distribution is
composed of supermarkets and hypermarkets and had a value share of 17% in 2014. The
trend over the review period shows that the modern grocery retailers channel is likely to gain
more value share of dog food. Modern grocery retailers carry big packaging sizes of
midpriced brands and a few economy brands and offer attractive discounts on bulk sales.
Veterinary clinics followed in the distribution of dog food with a 14% value share in 2014,
benefiting from selling premium dog food. Pet shops has a small share of dog food value
sales as its growth is comparatively slow and the channel typically sells a limited range of pet
food.
 During 2014, the proportion of Peruvian households owning a dog increased marginally, to
account for 33%. Dogs are the most popular pets in Peru – they are perceived as affectionate,
loving, playful and loyal, all qualities that are appreciated by Peruvians when looking for a
companion animal. Although medium-sized breeds are the most common, the trend towards
living in smaller places in urban areas is determining that Peruvians are increasingly choosing
small dogs.

COMPETITIVE LANDSCAPE
 Rinti SA was still the leading player in dog food with a 36% value share in 2014, thanks to
carrying leading brands within both economy and mid-priced dog food, such as Ricocan
clásico and Ricocan Cordero y Cereales. Peruvians perceive Rinti SA as providing
goodquality products at an affordable price, and appreciate the company’s wide portfolio,
which meets the requirements of consumers with different budget restraints. Ricocan has an
excellent distribution network which ensures its presence in leading channels for dog food. In
second position in 2014 for the second year was Molitalia SA with a dog food value share of
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18%. The third rank in dog food in 2014 was taken by Nestlé Perú SA with a value share of
16%.
 Nestlé launched in 2014 a new dog treats brand, Doguis Duro de Roer. It is a dog treat with
meat flavour in a 70g pouch for medium and large dogs. The launch is only slowly gaining
awareness as there have been no significant advertising efforts.
 Social media interaction with customers is increasing as a strategy of local and international
companies to be closer to customers. Websites have had increased improvements with
options to better choose the right food for dogs and the possibility to share suggestions and
tips on how to improve pets’ quality of life.
 In 2014, there were two strong television advertising campaigns, one from Mimaskot and the
other from Ricocan. Both campaigns highlight the attributes of the products, showing the love
of owners for their dogs and how dogs enjoy the products. In 2014, the brand Dog Chow ran
the Perrotón event, in which dogs and owners run together, in order to promote healthy
activities and the bond with pets. This type of activity also contributes to strengthening loyalty
to the brand as it promotes a healthy lifestyle image.

PROSPECTS
 Dog food is expected to register a strong performance over the forecast period, with a value
CAGR of 9% at constant 2015 prices at only slightly higher prices. As the pet “humanisation”
trend will continue to develop in Peru, dog owners will be more interested in purchasing dog
food that provides a better range of benefits for their pets. Improvement in the purchasing
power of locals, jointly with enhancement of the education of pet owners by the industry,
professionals and also governmental initiatives, will increase the consumption of prepared pet
food in the country and the concern of pet owners about the health of their pets.
 The main threat to dog food’s growth in the forecast period is local or international economic
crisis which would directly affect the purchasing power of locals. In that situation, locals would
have to cut their expenditure and change to mid-priced and economy brands or choose to
feed their pets with home-made leftovers.
 As was the case in 2013 and 2014, wet dog food will perform the best over the forecast
period, with a value CAGR of 25% at constant 2015 prices at a slightly higher price. The
higher concern of locals for their pets’ health as well as the desire to pamper them will make
wet dog food grow at a fast pace in the forecast period. However, it is important to remember
that in 2015 wet dog food is expected to represent only 6% of dog food overall value sales,
excluding dog treats.
 Due to the fact that Molitalia SA decided to stop the sale of the brand Master Dog in 2014, it is
expected that the company will strengthen its distribution and advertising on its other brands,
Mimaskot and Nutrican, the former being the most important for them. Rinti SA, on the other
hand, has a wider portfolio of products in dog food and it is expected that it will focus on
product innovation and publicity for its brands.
 Dog food unit prices are expected to increase slightly in 2015 in current terms, due to
innovations and added value provided by different brands. In the following forecast period
years, there is a suggestion of stabilisation of prices with minor decreases and recoveries
because of high competition in dog food. While dry dog food will be more accessible for
consumers, wet dog food will experience an increase of its unit price as a result of more
products in pouches format instead of in metal food cans which will decrease the cost per
serving but keep a higher price per kilogram.
 Given the existing trend towards living in smaller residences in urban areas of the country, it is
expected that the small dog population will register the fastest growth rate over the forecast
period, as their care is easier in a reduced living space. As a result, leading players with
midpriced brands will focus on offering a wider variety of dog food targeting small breeds. In
addition, premium players are likely to increase the availability of dog food that specifically
targets small breeds as well.
 Premium brands are expected to perform well during the forecast period, as veterinarians will
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continue recommending premium dog food to consumers looking for the best nutrition for their
pets, or in order to treat common dog ailments. It is expected that consumers will become
increasingly interested in premium brands specially developed to meet the needs of specific
breeds. Economy and mid-priced dog food are also expected to have a positive performance
in the forecast period.
 Health and wellness dog food is only available through premium brands, and is mostly used to
treat specific conditions such as digestive problems, allergies, urinary infections or obesity.
This type of product strongly relies on a veterinarian’s recommendation to raise awareness.
However, its high unit prices will determine that it continues to represent a small category.

Summary 1 Dog Food by Price Band 2015

Category Price band Price range per kg

Wet dog food Premium Above PEN30.00
Mid-priced PEN15.00-30.00
Economy Not available in Peru
Dry dog food Premium Above PEN12.00
Mid-priced PEN5-9
Economy Below PEN5
Source: Euromonitor International

CATEGORY INDICATORS
Table 1 Dog Owning Households: % Analysis 2010-2015

% households

2010 2011 2012 2013 2014 2015

Households owning a dog 31.7 32.0 32.3 32.6 32.8 33.1

Source: Euromonitor International from official statistics

Table 2 Dog Population 2010-2015

'000s of animals
2010 2011 2012 2013 2014 2015

Dog Population 3,426.0 3,519.1 3,607.2 3,686.5 3,780.7 3,865.0

Source: Euromonitor International from official statistics

Table 3 Consumption of Dog Food by Prepared vs Non-prepared: % Analysis

20102015

% total consumption

2010 2011 2012 2013 2014

2015

Prepared dog food 24.7 25.0 25.2 25.3 25.4

25.7

Non-prepared dog food 75.3 75.0 74.8 74.7 74.6

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74.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,

trade sources

CATEGORY DATA

Table 4 Sales of Dog Food by Category: Volume 2010-2015

Tonnes

2010 2011 2012 2013 2014

2015

Dog Treats and Mixers 63.5 81.8 97.7 112.3 133.9

161.3

Dry Dog Food 22,330.4 25,397.6 29,242.7 33,026.0 35,533.7

40,282.6

Wet Dog Food 372.3 439.2 554.3 652.9 780.7

981.5

Dog Food 22,766.2 25,918.6 29,894.7 33,791.2 36,448.2

41,425.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,

store checks, trade interviews, trade sources

Table 5 Sales of Dog Food by Category: Value 2010-2015

PEN million

2010 2011 2012 2013 2014

2015

Dog Treats and Mixers 2.1 2.8 3.4 3.9 4.8

5.9

Dry Dog Food 132.7 159.4 194.3 219.3 239.2

275.0

Wet Dog Food 5.9 7.1 9.1 11.1 13.6

17.6

Dog Food 140.7 169.3 206.8 234.3 257.5

298.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,

store checks, trade interviews, trade sources

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Table 6 Sales of Dog Food by Category: % Volume Growth 2010-2015

% volume growth

2014/15 2010-15 CAGR

2010/15 Total

Dog Treats and Mixers 20.5 20.5

154.1

Dry Dog Food 13.4 12.5 80.4

Wet Dog Food 25.7 21.4

163.6

Dog Food 13.7 12.7 82.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 Sales of Dog Food by Category: % Value Growth 2010-2015

% current value growth

2014/15 2010-15 CAGR

2010/15 Total

Dog Treats and Mixers 23.8 23.3

185.4

Dry Dog Food 15.0 15.7

107.2

Wet Dog Food 29.4 24.3

196.6

Dog Food 15.9 16.2 112.1

Source: Euromonitor International from official statistics, trade associations, trade press, company research,

store checks, trade interviews, trade sources

Table 8 Sales of Premium Dog Food by Category: Value 2010-2015

PEN million

2010 2011 2012 2013 2014

2015

Premium Dry Dog Food 26.8 31.8 38.1 45.3 48.4

52.9

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Premium Wet Dog Food 0.8 0.8 0.9 1.2 1.5

2.0

Premium Dog Food 27.6 32.6 39.0 46.6 49.9

55.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,

store checks, trade interviews, trade sources

Table 9 NBO Company Shares of Dog Food: % Value 2010-2014

% retail value rsp

Company 2010 2011 2012 2013

2014

Rinti SA 34.2 34.7 34.5 34.7

36.1

Molitalia SA - - 1.7 20.0

18.2

Nestlé Perú SA 14.6 14.1 14.4 16.0

16.3

Master Foods Perú Srl 13.0 14.3 11.7 11.0

11.5

Inversiones 4.9 5.2 5.7 6.4

6.1

Veterinarias SA

Hallmark SA 4.0 4.2 4.5 4.6

4.5

Vetpharma Perú EIRL 3.1 2.9 2.5 1.9

1.9

Bang SA 2.6 2.4 1.9 1.0

0.9

Alicorp SAA 19.8 18.7 18.8 -

-

Others 3.8 3.5 4.3 4.4

4.4

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 10 LBN Brand Shares of Dog Food: % Value 2011-2014

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% retail value rsp

Brand Company 2011 2012 2013

2014

Ricocan Cordero y Rinti SA 11.7 12.4 13.4

13.8

Cereales

Mimaskot Molitalia SA - - 12.2

12.5

Pedigree Master Foods Perú Srl 14.3 11.7 11.0

11.5

Purina Dog Chow Nestlé Perú SA 10.7 10.8 10.6

11.0

Ricocan Multisabores Rinti SA 10.0 10.0 9.7

10.1

Purina Pro Plan Nestlé Perú SA 3.3 3.1 4.7

4.6

Nutram Dog Hallmark SA 4.2 4.5 4.6

4.5

Hill's Science Diet Inversiones 3.8 4.1 4.6

4.5

Veterinarias SA

Nutrican Molitalia SA - - 3.9

4.0

Ricocan clásico Rinti SA 4.3 4.0 3.7

3.8

Ricocan Rinti SA 3.0 2.7 2.8

3.1

Supercan Rinti SA 3.2 3.0 2.8

2.8

Eukanuba Vetpharma Perú EIRL 2.9 2.5 1.9

1.9

Master Dog Molitalia SA - 1.7 3.8

1.7

Hill's Prescription Inversiones 1.4 1.6 1.8

1.7

Diet Veterinarias SA

Royal Canin Bang SA 2.4 1.9 1.0

0.9

Bandido Rinti SA 1.0 0.9 0.8

0.8

Rico Crack Rinti SA 0.6 0.6 0.6

0.7

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Dog Chow Nestlé Perú SA - 0.5 0.6

0.6

Canbo Rinti SA 0.6 0.6 0.6

0.6

Thor Rinti SA 0.4 0.4 0.4

0.4

Purina Beneful Nestlé Perú SA 0.1 0.1 0.1

0.0

Mimaskot Alicorp SAA 13.9 14.4 -

-

Nutrican Alicorp SAA 4.8 4.4 -

-

Others 3.5 4.3 4.4

4.5

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 11 LBN Brand Shares of Dog Treats: % Value 2011-2014

% retail value rsp

Brand Company 2011 2012 2013

2014

Rico Crack Rinti SA 35.0 36.0 36.6

38.7

Pedigree Biscuit Master Foods Perú Srl 25.0 24.1 22.5

24.1

Pedigree Digesty Master Foods Perú Srl 21.0 19.5 19.2

20.5

Snacks

Doguis Duro de Roer Nestlé Perú SA - - -

4.0

Purina Beneful Deli Nestlé Perú SA 7.0 7.8 8.6

0.6

Mix

Others 12.0 12.5 13.1

12.1

Total 100.0 100.0 100.0

100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
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store checks, trade interviews, trade sources

Table 12 Forecast Sales of Dog Food by Category: Volume 2015-2020

Tonnes

2015 2016 2017 2018 2019

2020

Dog Treats and Mixers 161.3 187.9 212.8 236.4 258.1

279.0

Dry Dog Food 40,282.6 45,019.1 49,445.2 53,552.3 57,300.4

60,423.6

Wet Dog Food 981.5 1,231.2 1,542.0 1,928.5 2,407.5

2,980.1

Dog Food 41,425.5 46,438.3 51,199.9 55,717.2 59,966.0

63,682.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 13 Forecast Sales of Dog Food by Category: Value 2015-2020

PEN million

2015 2016 2017 2018 2019

2020

Dog Treats and Mixers 5.9 7.0 7.9 8.9 9.8

10.6

Dry Dog Food 275.0 303.5 329.9 354.2 376.1

393.7

Wet Dog Food 17.6 22.1 27.7 34.7 43.3

53.7

Dog Food 298.5 332.5 365.5 397.8 429.2

458.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,

trade sources

Table 14 Forecast Sales of Dog Food by Category: % Volume Growth 2015-2020

% volume growth

2015/16 2015-20 CAGR

2015/20 Total

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Dog Treats and Mixers 8.1 11.6 73.0

Dry Dog Food 5.5 8.4 50.0

Wet Dog Food 23.8 24.9

203.6

Dog Food 6.2 9.0 53.7

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,

trade sources

Table 15 Forecast Sales of Dog Food by Category: % Value Growth 2015-2020

% constant value growth

2015/2016 2015-20 CAGR

2015/20 TOTAL

Dog Treats and Mixers 8.6 12.4 79.1

Dry Dog Food 4.7 7.4 43.2

Wet Dog Food 23.9 25.1

205.9

Dog Food 6.7 8.9 53.4

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

©EuromonitorInternational