BRAZIL- Nestlé Purina Brazil, one of the top pet food players in the country, has opened a new wet pet food production facility in Florestal, Vargeão, scheduled to start operations in March 2024, according to a press release by the company.
Official reports provide that the Brazilian pet food market is the second largest globally after the U.S., with more than 400 pet food manufacturers nationwide.
Nestlé Purina is among the country’s top 10 pet food producers and operates two production facilities there.
However, it ranks fifth in production capacity according to a report by Triplethree International, behind companies like Premier Pet and BRF Pet.
Nestlé Purina announced the construction of this new production facility in Florestal, Vargeão, in December 2021 and will finally begin construction this year and start operations in March 2024.
According to an article on NSC Total, despite dry pet food being more popular in Brazil, Purina Vargeão will first focus on wet food products, with an estimated production capacity of 30,000 metric tons annually.
Available data shows that around half of the current market leaders in Brazil participate in the wet food market, while the others only focus on dry food and treats, responding to popular domestic demand.
While Purina’s press release states that the new facility will serve local and foreign markets, Purina could be taking advantage of such a competitive advantage to encourage sales of wet pet food products locally.
Interestingly, while Brazilian pet owners purchase wet pet food, they are more drawn to innovative products than regular wet pet food.
This trend is evident in the success that startups like Mascote Fit, Simple Dog, and Natoo enjoy.
According to Triplethree, this wet pet food investment could position Nestlé Purina as the third biggest domestic pet food producer in Brazil.
Additionally, this investment will continue to bolster the business unit’s position within the Nestle brand, which has been reaping handsomely from pet care products.
According to Nestle’s recently released quarter one 2023 financial results, Purina PetCare emerged as the biggest contributor to its organic growth, owing to good momentum for science-based and premium brands Purina ONE, Purina Pro Plan, and Friskies.
The North American region, especially USA and Canada, led this growth, particularly through the e-commerce channel.
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