Brasil

IPB and ApexBrasil bring international journalists to experience the Brazilian pet industry

 Petfood Industry (USA) and Pet Business World (UK) visited three factories in the São Paulo State: Pet Society, Adimax, and Vetnil 

 São Paulo, September 2024 – Last September, the Instituto Pet Brasil (IPB), through the Pet Brasil Sector Project, carried out the Projeto Imagem (Image Project), and in partnership with ApexBrasil (Brazilian Trade and Investment Promotion Agency), organized a visit to Brazil for two international journalists from the pet industry: Debbie Phillips-Donaldson, editor-in-chief of Petfood Industry and Petfood Forum (USA), and David Rees, from the British outlet Pet Business World. The objective was to showcase the potential of the Brazilian pet industry through guided tours. 

 "The program took place from September 17 to 21, 2024. The journalists visited three industries in the sector: Pet Society (hygiene and wellness products), Adimax (pet food), and Vetnil (veterinary products), and were able to get an up-close look at the production lines and quality standards that are driving the growth of the Brazilian market," says Caio Villela, IPB's Executive President, who accompanied the visits. 

 José Edson Galvão de França, advisory board member of IPB and CEO of Abinpet, remarked that "the figures of the Brazilian pet market caught the attention of the visitors. The Brazilian pet market is expected to reach R$77 billion in 2024, representing a 12.1% growth compared to 2023." 

 The pet food segment remains the primary driver of the sector, with expected revenues of R$42.3 billion, accounting for 54.9% of the total market. Other segments are also thriving, such as the sale of animals by breeders (R$8.1 billion), veterinary products (R$8 billion), and veterinary services (R$7.5 billion). 

 Small and medium-sized pet shops remain the primary channel for consumers, representing nearly 50% of pet retail revenues, moving approximately R$37.5 billion in 2024. Specialized e-commerce is also growing, with online pet shops dominating 40.6% of online sales revenues, followed by mega stores and small retailers. 

 The strength of the pet market is supported by the production of 4.2 million tons of pet food in 2024, with the potential to exceed 9 million tons. However, the sector faces challenges, such as the high tax burden, especially in the pet food segment, where 50% of the final price consists of taxes, a reality vastly different from markets like the USA (6.6%) and Germany (7%). 

 Galvão de França points out that reducing this tax burden—possible through the new tax reform, though still uncertain—is crucial for the international competitiveness of the Brazilian industry. He emphasizes that IPB and Abinpet have been actively working to promote this change, engaging with both the Executive and Legislative branches. 

 “This was the first cycle of visits under the Projeto Imagem. Our aim is to bring communicators from different regions of the world to experience our industries and the quality and potential of Brazilian pet products. We are already planning new actions for 2025,” projects Villela.

 

About Instituto Pet Brasil 

 Founded in 2013, the Instituto Pet Brasil (IPB) aims to stimulate the development of the Pet sector, composed of the breeding, products, and services pillars for pets. The entity leads initiatives to foster knowledge, entrepreneurship, and innovation, with the goal of professionalizing the entire pet chain. Our mission is to build a professionalized sector and strengthen the relationship between humans and pets, which has proven to be beneficial for the health and well-being of both. 

 IPB provides relevant information to the sector, promotes the training of Brazilian companies, and increases their competitiveness, resulting in better services for our best friends.

 

About ApexBrasil 

 The Brazilian Trade and Investment Promotion Agency (ApexBrasil) works to promote Brazilian products and services abroad and attract foreign investments to strategic sectors of the Brazilian economy. To achieve these goals, the agency carries out a range of trade promotion activities, such as trade missions, business rounds, and support for Brazilian companies to participate in major international trade fairs, as well as visits from foreign buyers and opinion leaders to experience the Brazilian productive structure. ApexBrasil also works with public and private stakeholders to attract Foreign Direct Investment (FDI) to Brazil, focusing on strategic sectors for the development of the country's competitiveness.

 

About the Pet Brasil Sector Project 

 The Pet Brasil Sector Project is a result of the partnership between Instituto Pet Brasil and ApexBrasil, a federal government agency. The initiative assists and guides companies that want to export their products, whether they are beginners, experienced exporters, or already internationalized. At the same time, the project aims to promote the potential of the Brazilian industry in the international market, aligning more and more with the demands of the main pet markets worldwide.