Pet Food and Animal Feeds in

Mexico: ISIC 1533

Euromonitor International
December 2023
PET FOOD AND ANIMAL FEEDS IN MEXICO: ISIC 1533 Passport i

LIST OF CONTENTS AND TABLES

HEADLINES ................................................................................................................................. 1
INDUSTRY OVERVIEW ............................................................................................................... 1
Chart 1 Key Industry's Indicators 2017-2027 ............................................................ 1
PRODUCTION SCORECARD ..................................................................................................... 2
Summary 1 Scorecard of Production Pillar 2017-2027 .................................................... 3
Chart 2 Production Value Regional Comparison 2022 .............................................. 4
Chart 3 Production Value per Capita Regional Comparison 2022 ............................ 4
Chart 4 Production Value Growth Regional Comparison 2017-2027 ........................ 5
Chart 5 Future and Absolute Growth of Production Value Regional
Comparison 2022-2027................................................................................ 5
Chart 6 Production Value 2017-2027 ........................................................................ 6
Chart 7 Production Value by Category 2017-2022.................................................... 6
Chart 8 Production Value by Category 2022-2027.................................................... 7
Chart 9 Production Value per Employee 2017-2022 ................................................. 7
Chart 10 Exports 2017-2022 ....................................................................................... 8
Chart 11 Exports Regional Comparison 2022 ............................................................. 8
COST STRUCTURE .................................................................................................................... 9
Chart 12 Cost Structure Comparison 2022 ................................................................. 9
Chart 13 Cost Structure 2017-2022 ............................................................................ 9
Chart 14 Prices of Selected Commodities 2022 Q3-2023 Q4, Index ........................ 10
Chart 15 Profit and Profit Margin 2017-2022............................................................. 11
Chart 16 Average Salary 2017-2022......................................................................... 11
Chart 17 Labour Costs and Employee Productivity Comparison 2017-2022 ............ 11
FIRMOGRAPHICS ..................................................................................................................... 12
Chart 18 Number of Companies by Size 2017/2022 ................................................. 12
Chart 19 Competitive Landscape Structure by Company Size 2017/2022 ............... 13
Chart 20 Top Companies’ Ranking 2017-2022 and % of Production Value 2022 ..... 13
MARKET OVERVIEW ................................................................................................................ 13
CONSUMPTION SCORECARD ................................................................................................. 14
Summary 2 Scorecard of Consumption 2017-2022 ....................................................... 14
Chart 21 Market Size Regional Comparison 2022 .................................................... 14
Chart 22 Market Size per Capita Regional Comparison 2022................................... 15
Chart 23 Market Size Growth Regional Comparison 2017-2022 .............................. 15
Chart 24 Market Size Absolute and Average Historic Growth Regional
Comparison 2017-2022.............................................................................. 16
Chart 25 Market Structure by Buyer 2017-2022........................................................ 16
Chart 26 Market Structure 2017-2022....................................................................... 16
Chart 27 Market Structure by Category 2017-2022 .................................................. 17
Chart 28 Imports 2017-2022 ..................................................................................... 17
Chart 29 Imports Regional Comparison 2022 ........................................................... 18
ATTRACTIVENESS INDEX ....................................................................................................... 18
Chart 30 Attractiveness Index in Selected Industries 2022 ....................................... 18
Chart 31 Pet Food and Animal Feeds Attractiveness Index Comparison Across
All Industries 2022...................................................................................... 19
Chart 32 Attractiveness Index Methodology ............................................................. 19

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PET FOOD AND ANIMAL FEEDS IN MEXICO: ISIC 1533 Passport ii

ECONOMIC CONTEXT AND LABOUR MARKET ..................................................................... 20

Summary 3 Economic Context and Labour Market 2022-2027 ..................................... 20

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PET FOOD AND ANIMAL FEEDS IN MEXICO: ISIC 1533 Passport 1

PET FOOD AND ANIMAL FEEDS IN

MEXICO: ISIC 1533
In 2022, Mexico’s pet food and animal feeds industry grew by 15.5% and was the second
largest regionally in terms of production value. The industry’s turnover is forecast to increase at
a CAGR of 9.6% over 2022-2027. This industry report provides comprehensive data on
production, consumption, imports, exports, costs, profitability, and the competitive landscape.
Key indicators are benchmarked against other regional countries.

HEADLINES
▪ With production value of USD9.3 billion, Mexico accounts for 22.3% of the Latin America total
in 2022
▪ The industry’s exports share increases in 2022 to 3.4% of total production output
▪ The industry’s profitability decreases and stands at 14.6% of production value in 2022, the
third highest regionally
▪ The costs of the industry increase by 17% in 2022, largely driven by rising B2B costs
▪ The total number of companies increases in 2022, to 5,866 units
▪ The industry is fragmented, with the top five companies generating 19.1% of total production
value in 2022
▪ Nutricarsa SAPI de CV is the largest company in Mexico, generating 9.2% of the industry’s
total production value in 2022
▪ Mexico has the second largest market size for pet food and animal feeds regionally, with
demand reaching USD12.2 billion in 2022
▪ Households drive market demand, with household spending representing 68.2% of total
demand in 2022
▪ The market is dominated by domestic suppliers, as imports account for 5.4% of total market
size in 2022

INDUSTRY OVERVIEW
Chart 1 Key Industry's Indicators 2017-2027

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Source: Euromonitor International from official statistics, trade associations

Pet food and animal feeds industry turnover in Mexico ranks second in the Latin America
region. The industry is forecast to rank second regionally in 2027. The industry continued to
grow over 2022. In terms of absolute industry turnover growth, Mexico is projected to rank
second in the Latin America region. This indicates stronger B2B demand potential from the pet
food and animal feeds industry in Mexico in comparison to other regional countries.
The pet food and animal feeds industry is mainly dependent on demand growth in the
domestic markets, as exports accounted for 3.4% of total production output in 2022. Mexico
ranks seventh in the Latin America region in terms of exports share.
The industry’s profitability decreased and reached 14.6% in 2022. Mexico ranks third in the
Latin America region in terms of the pet food and animal feeds industry’s profitability.

PRODUCTION SCORECARD
The Production Scorecard is a benchmarking tool to evaluate the industry’s performance
within the region. The scorecard considers indicators in seven key pillars that are at the core of
the industry’s competitiveness. The scorecard is built by ranking countries in the regional

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context and helps to quickly identify country-specific opportunities. Unless otherwise noted, all
values expressed in this report are in US dollar terms, using y-o-y exchange rates. Data for
2023-2027 period are forecasts. All forecast data are expressed in current terms.
The pet food and animal feeds industry in Mexico ranked second in the Latin America region
by production value in 2022. Higher production value levels indicate higher potential B2B
demand from the industry and stronger supply network which supports production.
The industry ranked first in the region in terms of historic production value growth, indicating
that the pet food and animal feeds industry in Mexico is in developing stage. In terms of future
absolute turnover growth, the industry is predicted to rank above regional countries’ average,
indicating expanding B2B demand potential from the industry.
The pet food and animal feeds industry in Mexico ranked third in the region by profitability in
2022. This indicates lower operating costs of the industry and competitive advantage against
rivalling countries.
The industry ranked seventh in the Latin America region in terms of exports share in 2022.
The industry ranked below regional countries’ average, indicating high reliance on the demand
in the domestic market.

Summary 1 Scorecard of Production Pillar 2017-2027

Indicator Regional Ranking (out of 13)

Production value, 2022 2

Historic production value growth, % CAGR 1

2017-2022

Future absolute production value growth, 2

2022-2027

Future production value growth, % CAGR 1

2022-2027

Profitability, 2022 3

Exports share of total production, 2022 7

Exports value growth, % CAGR 2017-2022 1

Source: Euromonitor International from official statistics, trade associations

The production value indicator helps to evaluate the industry’s size, supply chain network and
B2B demand. Higher production value levels indicate greater potential B2B demand from the
industry and a stronger supply network, which supports production.
Historic production value growth indicates the industry’s average annual production value
growth over the period 2017-2022. The historic growth rate indicates whether the industry is
mature or in the developing stage.
Future absolute production value growth indicates the industry’s absolute production value
growth in nominal terms over the period 2022-2027. High future absolute value growth indicates
expanding production output of the industry and increasing B2B demand potential from the
industry.
The future production value growth indicates the industry’s average annual production value
growth over the period 2022-2027. The indicator helps to evaluate the industry’s future growth
potential. A high average future growth rate indicates that the industry is in the development
stage, with untapped B2B demand potential from the industry.

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Profitability indicates the industry’s profits relative to total production value in 2022. The
indicator helps to evaluate the industry’s financial stability, cost base and regional
competitiveness. High profitability indicates a strong financial position for the industry, lower
operating costs in the country and the industry’s competitive advantage over rival industry in
other countries.
Exports share of total production indicates the industry’s export value relative to total
production value in 2022. The indicator helps to evaluate the industry’s competitiveness in the
global market and the diversification of sales channels. A high exports share indicates that the
industry is competitive globally and has a diversified sales network.
Exports value growth indicates the industry’s average annual exports value growth over the
period 2017-2022. The indicator helps to evaluate the industry’s competitiveness in the global
market. High average growth in exports indicates that the industry remains competitive in the
global market and/or has gained greater market share in the global market.

Chart 2 Production Value Regional Comparison 2022

Source: Euromonitor International from official statistics, trade associations

Note: Production value shows total revenue (including export revenue) generated by all locally registered
companies, the core activities of which fall under the industry definition range. Measured at basic
prices/MSP. Also called turnover or turnover of local producers.

Chart 3 Production Value per Capita Regional Comparison 2022

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Source: Euromonitor International from official statistics, trade associations

Chart 4 Production Value Growth Regional Comparison 2017-2027

Source: Euromonitor International from official statistics, trade associations

Chart 5 Future and Absolute Growth of Production Value Regional Comparison 2022-
2027

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Source: Euromonitor International from official statistics, trade associations

Note: Top right quadrant of the chart indicates the best performing industries that will show above average
annual future growth and high absolute production value growth over the period 2022-2027. Bottom right
quadrant of the chart indicates mature industries that will show below average annual future growth but
high absolute production value growth over the period 2022-2027. Top left quadrant of the chart
indicates emerging industries that will show above average annual future growth but small absolute
production value growth over the period 2022-2027. Bottom left quadrant of the chart indicates
underperforming industries that will show below average annual future growth and small absolute
production value growth over the period 2022-2027.

Chart 6 Production Value 2017-2027

Turnover in 2022 – USD9.3 billion

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

Chart 7 Production Value by Category 2017-2022

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

Chart 8 Production Value by Category 2022-2027

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

Chart 9 Production Value per Employee 2017-2022

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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Production value per employee dynamics help to evaluate the productivity of the industry. Expanding
production value per employee indicates increasing productivity levels and higher future turnover growth
potential for the industry.

Chart 10 Exports 2017-2022

Export value in 2022 – USD407 million

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Exports show the value of goods exported to foreign countries, including all production and other costs
incurred up until the goods are placed on board the international carrier for export, but excluding
international insurance and further transportation costs.

Chart 11 Exports Regional Comparison 2022

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

COST STRUCTURE
Industry costs increased by 17% in 2022. The change was largely impacted by B2B costs,
which represented 95.1% of total industry expenditure. In addition, average salary in pet food
and animal feeds grew by 50.4% over 2022. Meanwhile, turnover per employee decreased by
1.1% over the year.
In 2022, the pet food and animal feeds industry had lower labour costs in comparison to the
manufacturing sector average in Mexico. On the other hand, B2B costs were higher than the
manufacturing sector average.

Chart 12 Cost Structure Comparison 2022

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

Chart 13 Cost Structure 2017-2022

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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Total costs equal production value less profits.
B2B costs show the total value of the goods and services consumed as inputs for a process
of production of goods and/or provision of services. The goods and services may be either
transformed or used up by the production process. Intra-industry trade, which is also included
(the industry itself is among its major buyers), refers to the exchange of products within the
same industry definition range.
Labour costs are defined as the total remuneration, in cash or in kind, payable by an
enterprise to an employee in return for work done. No labour costs are payable in respect of
unpaid work undertaken voluntarily, including the work done by members of a household within
an unincorporated enterprise owned by the same household.
Taxes less subsidies refer to taxes less subsidies on production and includes production
taxes paid by the industry or subsidies received by the industry. Excluded are specific taxes on
products such as VAT, petrol tax, tobacco tax and alcohol tax.

Chart 14 Prices of Selected Commodities 2022 Q3-2023 Q4, Index

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

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Chart 15 Profit and Profit Margin 2017-2022

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Profits are calculated as the difference between production and total costs (B2B costs, labour costs,
taxes less subsidies). The profit margin is calculated as profits divided by production value, and is
measured as a percentage. Profit and profit margin dynamics help to evaluate the financial stability and
competitiveness of the industry. Stable profitability of the industry indicates that the industry is capable of
maintaining its financial stability and competitiveness, indicating a stable future outlook in terms of B2B
demand potential.

Chart 16 Average Salary 2017-2022

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Average salary shows labour costs divided by number of employees.

Chart 17 Labour Costs and Employee Productivity Comparison 2017-2022

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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Average salary and turnover per employee dynamics help to evaluate the industry’s competitiveness.
Faster growth in turnover per employee in comparison to average salary growth indicates that the
industry is capable of maintaining its competitiveness and can compensate for cost increases through
increased production output.

FIRMOGRAPHICS
The total number of companies operating in the industry continued to grow in 2022 to 5,866
companies. The industry can be considered fragmented, as the five largest companies
accounted for 19.1% of production value in 2022. The industry’s concentration increased over
the year. Nutricarsa SAPI de CV remained the leading company in Mexico’s pet food and animal
feeds industry and accounted for 9.2% of production value in 2022.

Chart 18 Number of Companies by Size 2017/2022

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Number of companies shows the number of locally registered enterprises (regardless of capital origin),
the core activities of which fall under the industry definition range. An enterprise is an institutional unit in
its capacity as a producer of goods and services; an enterprise may be a corporation, a quasi-
corporation, a non-profit institution, or an unincorporated enterprise. Also includes zero employee firms
(sole traders) and the self-employed. Also called number of enterprises.

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Chart 19 Competitive Landscape Structure by Company Size 2017/2022

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

Chart 20 Top Companies’ Ranking 2017-2022 and % of Production Value 2022

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

MARKET OVERVIEW
The pet food and animal feeds market in Mexico ranks second in the Latin America region. In
terms of absolute market size growth, Mexico ranks first regionally. Demand for pet food and
animal feeds is largely driven by household demand, which generated 68.2% of total demand in
2022. Over the year, household demand for pet food and animal feeds increased by 14.3%.
The pet food and animal feeds market in Mexico is dominated by domestic companies, as
imports represented 5.4% of the total market size in 2022. The share of domestic companies
increased from 5.2% in 2017.

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CONSUMPTION SCORECARD
The Consumption Scorecard is a benchmarking tool to evaluate the market’s performance
within the region. The scorecard considers indicators in five key pillars that are at the core of the
market’s competitiveness. The scorecard is built by ranking countries in the regional context and
helps to quickly identify country-specific opportunities.

Summary 2 Scorecard of Consumption 2017-2022

Indicator Regional Ranking (out of 13)

Market size, 2022 2

Market size absolute value growth, 2017-2022 1

Market size historic growth rate, % CAGR 1

2017-2022

Imports share in total market, 2022 11

Imports value growth, % CAGR 2017-2022 4

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

Market size value indicates the total demand potential for specific goods or services. Higher
market size indicates higher demand potential from households, B2B and government buyers
within the country.
Market size absolute value growth indicates absolute demand potential growth in nominal
terms over the period 2017-2022. High absolute demand growth indicates expanding domestic
demand for specific goods or services.
Market size historic growth rate indicates the market’s average annual value growth over the
period 2017-2022. A high average market growth rate indicates that the market is in
development stage with untapped future demand potential for specific goods or services.
Imports share in total market indicates import value relative to total market size in 2022. The
indicator helps to evaluate demand and sales potential of foreign goods. A high import share
indicates high demand potential and sales potential for foreign goods in the country.
Imports value growth indicates average annual imports value growth over the period 2017-
2022. The indicator helps to evaluate demand and sales potential of foreign goods. High
average growth of imports indicates that the market remains open to foreign goods, and total
sales potential is expanding.

Chart 21 Market Size Regional Comparison 2022

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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Market size shows the total value of industry-specific goods and/or services, whether produced
domestically or imported, that are sold in a country’s market. Measured at purchaser price/RSP.

Chart 22 Market Size per Capita Regional Comparison 2022

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

Chart 23 Market Size Growth Regional Comparison 2017-2022

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

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Chart 24 Market Size Absolute and Average Historic Growth Regional Comparison 2017-
2022

Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Top right quadrant of the chart indicates the best performing markets with above average annual market
growth rate and high absolute market value growth over the period 2017-2022. Bottom right quadrant of
the chart indicates mature markets with below average annual market growth rate but high absolute
market value growth over the period 2017-2022. Top left quadrant of the chart indicates emerging
markets with above average annual market growth rate but small absolute market value growth over the
period 2017-2022. Bottom left quadrant of the chart indicates underperforming markets with below
average annual market growth rate and small absolute market value growth over the period 2017-2022.

Chart 25 Market Structure by Buyer 2017-2022

Market value in 2022 – USD12.2 billion

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

Chart 26 Market Structure 2017-2022

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

Chart 27 Market Structure by Category 2017-2022

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

Chart 28 Imports 2017-2022

Import value in 2022 – USD532 million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research
Note: Imports show value of goods delivered at the frontier of the importing country, including any freight,
insurance and other costs incurred during transportation of goods from the port of origin, but before the
payment of any import duties or other taxes within the country. Includes re-exports.

Chart 29 Imports Regional Comparison 2022

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

ATTRACTIVENESS INDEX
Chart 30 Attractiveness Index in Selected Industries 2022

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Source: Euromonitor International

Note: Attractiveness index (AI) is a derivative variable, which gives a quick understanding of how the selected
industry performs in comparison with other industries in an economy. AI is based on a set of variables.
For each variable, all industries in the economy are ranked and get a corresponding rate from 1 at the
very bottom to 177 at the very top. When all ranks are available, a weighted average is calculated and
the corresponding percentile is assigned. The higher the AI, the better industry performance is.

Chart 31 Pet Food and Animal Feeds Attractiveness Index Comparison Across All
Industries 2022

Source: Euromonitor International

Note: The calculated index of attractiveness evaluates industry performance in particular economy for exact
year. Each measure of industry’s performance is compared across all industries in the country and is
assigned to a corresponding rank based on industry’s performance: the better the performance
is, the higher rank the industry reaches (the rank grades the scale of each parameter into 177 ranks;
industries are assigned to one of the 177 ranks according to criterion). The ranks are then weighted by
their importance and the final score is calculated as the weighted average. According to the final result
industry is being assigned to a particular percentile.

Chart 32 Attractiveness Index Methodology

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Source: Euromonitor International

ECONOMIC CONTEXT AND LABOUR MARKET

Summary 3 Economic Context and Labour Market 2022-2027
Economic Context

Per Capita Consumer Income 2022, USD 11,221

Per Capita Consumer Income Growth 2022- 8.9%

2027, % CAGR

Inflation Rate 2022/2027 8.1%/3.1%

Real GDP Growth 2022-2027 2.3%

Labour Market

Economically Active Population 2022, ‘000 59,969

Employment Rate 2022 63.2%

Wage per Hour 2022, USD 2.0

Wage per Hour in Manufacturing 2022, USD 2.0

Average Salary 2022, USD per annum 14,769

Commodities Market

Soybeans Price in 2023, USD per metric ton 597

Soybeans Price Change in 2023, % -11.7%

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Food Index in 2023, 2010 = 100 125

Food Index Change in 2023, % -9.2%

Commodity Fuel (Energy) Index in 2023, 2010 107

= 100

Commodity Fuel (Energy) Index Change in -29.7%

2023, %

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

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