PET PRODUCTS IN COLOMBIA

Euromonitor International
June 2017
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Category Data .............................................................................................................................. 3
Table 1 Sales of Pet Products by Category: Value 2012-2017 ................................. 3
Table 2 Sales of Pet Products by Category: % Value Growth 2012-2017................. 4
Table 3 Sales of Pet Healthcare by Type: % Value 2012-2017................................. 4
Table 4 Sales of Other Pet Products by Type: % Value 2012-2017 .......................... 4
Table 5 Forecast Sales of Pet Products by Category: Value 2017-2022 .................. 4
Table 6 Forecast Sales of Pet Products by Category: % Value Growth 2017-
2022 ............................................................................................................. 5

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PET PRODUCTS IN COLOMBIA

HEADLINES
 Pet products current value sales grow by 8% in 2016 to reach COP16.4 billion
 Growth in Colombia’s pet population and the pet humanisation trend continue to support the
positive development of pet products
 Other pet products shows the fastest development in current value growth terms, with sales
increasing by 10%
 Merck Sharp & Dohme Colombia SAS leads the highly fragmented pet products category in
2016 with an overall value share of 9%
 Pet products value sales at constant 2017 prices are expected to record a CAGR of 6% over
the forecast period

TRENDS
 Based on provisional estimates, pet products in Colombia is projected to record current value
sales growth of 11% in 2017. The category will continue to benefit from growth in the
country’s dog and cat populations and growth in the proportion of Colombian households that
own these types of pets. The pet humanisation trend, whereby owners perceive pets as family
members and treat them accordingly by spending more on caring for their physical and
emotional wellbeing, will also continue to have a positive influence on the performance of pet
products in 2017.
 Pet products recorded another buoyant performance in 2016. In line with the pet
humanisation trend, the assortment of brands and product types on offer in the category
continued to expand. One notable development in this regard was the growing availability of
non-essential product types such as pet clothing, toys, shampoo and soap in pet specialists
channels. In a related trend, more businesses started to offer home spa and grooming
services for dogs and cats towards the end of the review period.
 Pet products current value sales grew by 8% in 2016. That this was below the projected
current value CAGR of 13% for the entire review period was mainly explained by the
slowdown in the Colombian economy and price increases arising from volatility in foreign
exchange rates. Nevertheless, current value growth remained robust overall, and the amount
of shelf space devoted to pet products in supermarkets, pet shops and veterinary clinics in
Colombia continued to increase, as did the number of companies offering pet-related
services.
 Cat litter continued to perform strongly in 2016, posting current value growth of 9%. Growth in
cat ownership, increasing consumer appreciation for the convenience of this product type and
the availability of a wide variety of products of different quality levels and prices all helped to
sustain the positive development of the category. While sand was traditionally used for this
purpose in Colombia, industry sources report that in recent years consumers have become
more willing to use cat litter products, or mixture of both.
 Pet healthcare also performed well in 2016, with current value sales growing by 7%. The city
of Bogota has introduced an animal identification system for cats and dogs called the “4 Legs
Citizen Identification System”, which will not only make it possible to identify dogs and cats
that live in the city, but will also extend healthcare services to them.

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 Pet dietary supplements recorded current value sales growth of 5% in 2016. The development
of the category continued to be hampered by the growing availability of wet and dry dog and
cat food products with higher nutritional values. As a result of this latter trend, most
consumers only show interest in this category when their pets get sick and dietary
supplements are prescribed by a veterinarian.
 Other pet products was the most dynamic performer in 2016, posting current value sales
growth of 10%. The category remained one of the primary beneficiaries of the pet
humanisation trend thanks to its offer of an increasingly wide assortment of non-essential
product types that appeal to owners who are inclined to pamper their pets and treat them like
family members. Examples of these product types include toys, kennels and bedding,
grooming products, pet birthday party materials, pet clothing and costumes for special
occasions, eg Christmas, football matches etc. Demand for such products, and for related
services such as dog bakeries and pet spas, is especially strong in urban areas.
 Accessories continued to account for the largest value share in other pet products in 2016,
partly because they are more widely available than other product types. Beauty products
ranked a close second within the category in value terms, however, and continued to gain
popularity in line with the wider trend towards pet humanisation in Colombia.
 Flea/tick treatments remained the dominant product type within pet healthcare in value terms
in 2016, with worming treatments placing second. Both continued to post robust growth in
current value sales thanks to growth in the dog and cat populations, the positive influence of
the pet humanisation trend and recommendations from veterinarians.
 Pet specialists (pet shops, pet superstores and veterinary clinics) continued to dominate pet
products distribution in Colombia in 2016, as these operators offer the widest assortments.
Retailers from other channels tend to carry much narrower assortments and allocate relatively
little shelf space to pet products. Internet retailing started to play a more prominent role in pet
products distribution towards the end of the review period, and is expected to be one of the
most dynamic channels in the category over the forecast period.

COMPETITIVE LANDSCAPE
 Based on provisional estimates, no significant changes to the competitive environment within
pet products are expected in 2017. However, competition looks set to intensify in all
categories as companies continue to launch new products to meet the needs of the growing
number of pet owners in Colombia.
 Pet products remained highly fragmented in 2017, with many smaller and medium-sized
companies present offering a diverse array of products. However, Merck Sharp & Dohme
remained the overall leader with a value share of 9%. This was due to its strong lead in pet
healthcare, where its value share increased substantially from 2015. The company offers a
wide portfolio in this category, one that includes various shampoos, soaps and other product
types for the treatment of ticks, fleas and other parasites in pets. Thanks to its favourable
reputation among veterinarians, distribution of the company’s pet healthcare products via the
veterinary clinics channel improved during the review period.
 Comercializadora Bogotana was one of the strongest performers among the many small and
medium-sized companies in pet products in 2016. While its overall value share remained
unchanged on 2015 at 3%, its overall ranking increased from fifth to fourth. This improvement
was due to its wide distribution coverage and diverse offer in categories such as pet
healthcare, where it Canamor brand continued to gain popularity among consumers.
 A key strategic focus for pet products manufacturers in 2016 was to tap into the pet
humanisation trend by emphasising the importance of comprehensive care for pets and

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creating an emotional connection between their brands and consumers. To this end,
companies used presentations, packaging, marketing methods and retail distribution
strategies that were similar to those employed for products intended for human consumption.
 Cat litter, pet healthcare and pet dietary supplements did not witness any new launches that
had a significant influence on their overall performances in 2016. The assortment on offer in
the other pet products category became more diverse, mainly thanks to the growing
availability of domestic and imported accessories products.
 There was no mass media advertising in pet products in 2016, with companies instead
focusing on point-of-sale promotional activities.
 A number of smaller branded manufacturers in pet products also produce private label lines
for major retailers such as Almacenes Éxito SA. The latter’s private label line Éxito mainly
offers competitively-priced pet accessories such as toy bones, balls etc. However, the overall
value share of private label within pet products remained low in 2016.
 Domestic manufacturers in pet products are able to compete with multinationals by
responding rapidly to emerging trends and leveraging their superior knowledge of the
traditional habits and preferences of Colombian consumers.

PROSPECTS
 Growth in pet ownership and the pet humanisation trend will continue to drive the positive
development of pet products in Colombia over the forecast period. The category will also
benefit from improvements in distribution and the availability of an increasingly wide selection
of brands and product types at multiple price points.
 Other pet products looks set to remain the most dynamic performer within pet products over
the forecast period in terms of value sales growth at constant 2017 prices, with a CAGR of 8%
projected. The pet humanisation trend, continuous innovation and the wide assortment of
product types on offer will continue to strengthen consumer interest in the category,
particularly among higher-income pet owners.
 Cat litter value sales at constant 2017 prices are expected to grow at a CAGR of 6% over the
forecast period. The growing popularity of keeping cats as pets, particularly in urban areas,
will continue to support the positive development of this category, as will increasing consumer
appreciation for the convenience of cat litter products.
 Pet healthcare is expected to see value sales at constant 2017 prices grow at a CAGR of 3%
over the forecast period. The category will continue to benefit from growth in Colombia’s pet
population and better education among owners about how to treat and prevent parasites and
other common health problems in pets, mainly dogs and cats.
 Moderate growth in value sales at constant 2017 prices is also projected for pet dietary
supplements over the forecast period. However, it is likely that demand in this category will
continue to be hampered by the growing availability of pet food products that are made from
higher quality ingredients and enriched with various types of vitamins, minerals and other
nutrients.

CATEGORY DATA
Table 1 Sales of Pet Products by Category: Value 2012-2017

COP billion
2012 2013 2014 2015 2016 2017

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Cat Litter 1.4 1.4 1.6 1.7 1.8 2.0

Pet Healthcare 3.0 3.1 3.3 3.5 3.8 4.1
Pet Dietary Supplements 1.8 1.9 2.0 2.1 2.2 2.3
Other Pet Products 3.8 6.2 7.1 7.9 8.6 9.8
Pet Products 9.9 12.7 14.0 15.1 16.4 18.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Pet Products by Category: % Value Growth 2012-2017

% current value growth

2016/17 2012-17 CAGR 2012/17 Total

Cat Litter 10.1 7.8 45.5

Pet Healthcare 7.8 6.6 37.9
Pet Dietary Supplements 4.3 4.6 25.3
Other Pet Products 13.5 21.0 159.2
Pet Products 10.6 12.8 82.7
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Sales of Pet Healthcare by Type: % Value 2012-2017

% retail value rsp

2012 2013 2014 2015 2016 2017

Flea/Tick Treatments 82.0 81.0 81.0 80.5 81.5 81.8

Other Products 8.0 8.8 8.6 9.0 7.3 6.9
Worming Treatments 10.0 10.2 10.4 10.5 11.2 11.4
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Sales of Other Pet Products by Type: % Value 2012-2017

% units
2012 2013 2014 2015 2016 2017

Accessories 42.7 43.6 44.2 44.1 45.4 47.8

Beauty Products 38.3 38.3 38.5 38.5 39.2 39.3
Other 19.0 18.1 17.3 17.4 15.4 13.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Forecast Sales of Pet Products by Category: Value 2017-2022

COP billion
2017 2018 2019 2020 2021 2022

Cat Litter 2.0 2.1 2.2 2.4 2.5 2.6

Pet Healthcare 4.1 4.3 4.4 4.5 4.6 4.7

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Pet Dietary Supplements 2.3 2.4 2.5 2.5 2.6 2.6

Other Pet Products 9.8 10.6 11.5 12.3 13.2 14.1
Pet Products 18.1 19.4 20.6 21.7 22.9 24.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 6 Forecast Sales of Pet Products by Category: % Value Growth 2017-2022

% constant value growth

2017/2018 2017-22 CAGR 2017/22 TOTAL

Cat Litter 5.9 5.8 32.4

Pet Healthcare 5.2 3.0 16.1
Pet Dietary Supplements 3.6 2.7 14.1
Other Pet Products 8.9 7.6 44.0
Pet Products 7.1 5.8 32.7
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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