whole pets market locations

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Consumer choices impact growth of Mexican pet food market

In the years leading up to the pandemic, the Mexican pet food market witnessed impressive double-digit growth rates in volume. However, recent years have seen a deceleration, with a compound annual growth rate averaging around 6%. Surprisingly, there is no evidence to suggest that the population of dogs and cats has slowed in growth. On the contrary, macro-trends such as smaller households and an increase in single- or two-person households would not support this theory.

To understand the factors behind the pet food deceleration, it is important to analyze the influence of consumer decisions on the market’s mid-term growth prospects.

Consumers factors likely reshaping market outlook

One prevailing theory within the Mexican pet food industry suggests that the combination of inflation and income loss among a segment of pet owners is driving them to supplement dry pet food with homemade meals or leftovers. This behavior indicates some dog owners are blending commercial pet food with homemade alternatives, reducing their reliance on balanced pet diets and subsequently impacting the growth rate of the market.

While this practice may offer short-term financial relief, it raises valid concerns about the nutritional adequacy of such diets, potentially compromising the overall health and well-being of

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Walmart dominates the grocery market. Can it conquer pet services too?

The news: Walmart is opening a dedicated pet services facility that will offer veterinary care and dog grooming in an Atlanta suburb, per CNBC. The center will have its own dedicated entrance next to the store.

  • Although the retailer considers the center a pilot, it expects to open several more pet services locations by next year.
  • The pet services center will carry the Walmart name, but employees of vet care and pet product companies PetIQ will staff it.

The expansion into pet services comes at a time when roughly two in three consumers (66%) own a pet, per the American Pet Products Association, and pet owners (or pet parents, as some refer to themselves as) are increasingly treating them ( and spending on them) like family members.

The landscape: Our forecast expects pet product sales to grow 6.6% to $78.34 billion. But growth is on a downward trajectory since peaking at 27.0% in 2021 during the height of the pandemic-fueled pet boom.

  • Petco CEO Ron Coughlin suggested earlier this year that the pet supplies industry was “resilient to inflation” because pet owners continue to need to feed and care for their charges even when prices rise. But the
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