Brazil is the second largest market in the world for pet food, after the United States, according to the BRF company.
The Brazilian market value of these foods was 20 billion reais in 2020.
Going forward, according to BRF, it is estimated that the potential market for pet products will total approximately 40 billion reais by 2030.
One of BRF’s key goals under its Vision 2030 Plan is to become one of the two largest pet food companies in Brazil.
Above all, this growth is driven by the growth of cities and by the humanization of animals that brings with it different needs for food.
Premium pet food brands are also projected to be the most favored by consumers.
BRF is one of the world’s largest producers of fresh and frozen protein foods in terms of production capacity, according to WattAgNet.
BRF is present in this segment for the two key retail channels, including supermarkets (approximately 30% of the market) through its Balance brand, and the specialized channel (remaining 70% of the market) with its Güd brand.
Despite the regional and still limited distribution of both brands, the company enjoys substantial revenue growth of 416% in the last two years.
To serve this segment, the synergies with its production chain provide competitive advantages in costs and quality.
Already BRF is the second largest feed producer in the southern hemisphere.
It also produces the main ingredients for the formulation of feed.
So it hopes that this fact will help it with greater efficiency and lower production costs, both because of the scale of its grain purchases and because of its access to specific materials, such as hydrolyzed proteins and special oils, which it produces and distributes to the grain market. pet food.
BRF believes that these synergies give it advantages in the pet food market that are difficult for other companies to replicate.
Additionally, it has access to the distribution channel of the traditional retail segment and plans to develop its capabilities in the specialized retail market and the technical products market.