These consumer profiles allocate between 1,500 and 5,000 pesos per month for services related to lodging, food, hairdressing services, and even therapies for pets.
Late marriages and a growing population of single and childless households are demographic and cultural changes that encourage greater integration of pets into households as substitutes for children.
While couples with children spend a large part of their income on things like housing, food, and education, couples without children or single people invest more time and money in their careers, which leaves them with more resources to spend on goods, services and pets.
Nielsen statistics show that singles or couples without children spend between 1,500 and 5,000 pesos a month on services related to lodging, food, hairdressing services and even therapies for pets.
“Many young people prefer pets to a spouse or partner,” he says in an analysis by the consultancy Research and Market.
Companion animals have gone from being in places outside the home, such as rooftops and gardens, to occupying space inside homes and integrating into homes.
“The theme of humanization was already present, however, the pandemic came and that generated a family ecosystem that included pets. The relationship became stronger”, says Alejandro Ahuad, director of Petco in Mexico. “The stronger the bond, the more willing the consumer is to spend more on this family member,” he adds in an interview with Expansión.
From functional croquettes -added with a specific ingredient that offers a specific benefit to the animal’s health-, to services such as schools, hotels, spas and specialized clinics have emerged in recent years. Even some apartment buildings already have pet amenities.
Alejandro Ahuad, from Petco, explained that, although food is the category with the greatest dynamism, accessories related to the welfare of pets are the second category in growth. There are for pets, but also for humans, such as training courses or accessories to clean the hair of dogs or cats.
Cheaper per pound: Inflation drives bulk sale of pet food The rise in the price of bags of kibble has prompted dog and cat owners to reduce the amount of food to protect their wallets.
Petco intends to continue to gain a piece of the market. The strategy for now, after growing with the large stores, in which they offer beauty, veterinary and training services, is to bet on the Express stores, which are smaller in size with an offer of food, clothing and other accessories, such as beds, houses and food, given that this size of premises will allow the company to reach places with high demand, such as the Condesa neighborhood in Mexico City, where there is a large concentration of companion pets.
Petco expects to close this year with 12 new stores and by 2023 they plan to cut the bar for 10 more units.
“In the future, more categories of care will be added, even to care for our pets when they die, a category that is growing along with hotels and the issue of nurseries, walks and everything that has to do with health and well-being,” says the CEO of Petco.
The company, which opened its first store in Mexico in October 2013, is one of those that managed to grow along with the market. Today it has a hundred stores. Sales have grown at double digits annually since the first store opened in Mexico.
Ahuad says that one of the strategies that has allowed Petco to attract pet owners -dogs, cats, and even birds- is to bring information closer through talks with experts about actions to maintain a healthy relationship with pets.
“When people live with their pet inside their house, they have to learn to live with it to establish a good relationship in which neither the owner nor the dog or cat gets frustrated and that is where we come in”, he says.
Specialized retail, in addition to premium pet food, saw growth in its pet training classes. For Ahuad, this is the result of the confinement forcing people to spend more time with their pets inside their homes, a trend that has continued since then.
Functional food, a growing category
Paola Delgado, who directs the marketing area at ADM Animal Nutrition, the company that markets the Ganador and Minino brands, comments that they have grown 6% in volume and 85% in value, as part of the evolution of the market, while visualizing a sophistication in the category, thanks to the fact that people are willing to spend more for the well-being of their pets.
Data from the consulting firm Research and Market show that the pet food market in Mexico was worth 3.3 billion dollars in 2020 and will grow at a compound annual rate (CAGR) of 5.4% between 2021 and 2026.
Funeral services for pets, a growing market
J García López opened the first funeral sanctuary for pets, which has exceeded its growth expectations. Services range from hearses to niches.
New services and products for pets are a growing market. Among other things, some of the demographic and cultural changes leading to greater integration of companion animals into households are late marriages and a growing population of singles and childless households.
In addition to spas, restaurants, specialty stores, and more services that these family members can enjoy in life, there are others that have arisen especially to accommodate their departure.
According to Oscar Padilla Gómez, CEO of J García López and Bye Bye Friend, the foregoing is linked to the fact that it is increasingly common to find owners with responsible ownership of pets.
Under this premise, the funeral home launched Bye Bye Friend, which they describe as the first funeral sanctuary for animals.
Just as funeral services are contracted for people, this J García López product contemplates an accompaniment at the time of the death of a pet, from a special hearse, farewell rooms, cremation, collection of ashes, sale of urns, niches and even the option to turn ashes into diamonds.
“Part of the ashes of pets, families transform them into ashes, and we do the same with humans. Today more people transform the ashes of their pets into diamonds, than of humans”, sentenced Padilla Gómez
CEO J García López explained that currently, the value of the pet market is approximately 35 billion pesos per year, while the value of funeral services is 12 billion pesos.
Nielsen statistics show that singles or couples without children spend between 1,500 and 5,000 pesos a month on services related to lodging, food, hairdressing services, and even therapies for pets.
Funeral services are no exception, Padilla explained that this aspect of the business has had a result beyond what was proposed at the time of launching Bye Bye Friend.
“The contribution of pets within the group started being between 3 and 5% and today we are between 20 and 25%. Every month we are growing in sales of future plans for pets at a rate of 20% and at the end of the year we will surely close with a great number”.
Padilla explains that the demand is such that they plan to open a couple of crematorium ovens in 2023 plus some reception offices.
“Alfonso Galindo from Best Mexico Pet Movers“ Relocating pets is an important service, and thousands of ‘pet parents’ all over the world need shipping for their dogs, cats, and other animals for different reasons, including a home relocation, a new job, a family vacation, attending school, new ownership over the internet from rescue shelters or adoption agencies, or in our case Expats moving to and from Mexico.
Many times, your career causes you to shift your home and family to another location or even another country.
Best Mexico Pet Movers cater to pets that are restricted from, or unable to travel by airline travel. This includes Giant Breeds, Snub Noses, & ‘Dangerous Dog Breeds’. In addition, some pet parents prefer private long-distance pet transport and traveling with their furry friends over airline pet travel. This service is ideal for Expats looking to move to and from Mexico.
We’re real people who actually move pets, people, and cargo – we deliver our clients ourselves in the locations we serve. We offer both domestic and international pet relocation.
We have been moving pets since 2019 and are a distinguished member of the Animal Transportation Association (ATA)
We are registered with USDA which allows us to move pets legally by ground travel domestically in the US and federally licensed in Mexico as required by law