WASHINGTON — Latin America, specifically South America and the Caribbean, is the third largest market for US dog and cat food exports, according to the US Department of Agriculture (USDA) Foreign Agricultural Service (FAS). Numerous factors, such as disinflation, have been driving economic activity in the region, allowing consumers to focus more on their pets’ diets.
All of these factors lead to more opportunities for US pet food manufacturers to increase their pet food exports and expand their global footprints.
Economic factors
The World Bank reports that Latin America’s total gross domestic product (GDP) is $7.1 trillion, with a growth rate of 2% in 2023. According to the USDA FAS, Latin America imported $162 million worth of US pet food products in 2024, an 11% increase from 2023. As the region’s economy further stabilizes from the COVID-19 pandemic, it expects a rise in demand for imported dog and cat food.
Additionally, the Economist Intelligence Unit (EIU) projects inflation to decrease by 9% in 2025 and to continue declining. According to EIU, Latin America is experiencing disinflation, lower interest rates, favorable export commodity prices and an increase in tourism, all of which are driving economic activity and an increase in discretionary spending. As the economies of most Latin American countries stabilize, there is growing consumer prioritization and spending on pet care.
Trends and drivers
During the COVID-19 pandemic, pet ownership increased globally, especially in Latin America, according to the USDA FAS. In 2023, Latin America imported $259 million worth of dog and cat food, a 75% increase since 2020. The primary exporters of dog and cat food to Latin America (excluding intra-regional trade) are the United States, the European Union and Mexico, with the United States holding a 40% market share.
The agency attributes this surge in pet ownership to consumers adopting pets for companionship during the lockdowns and an increase in disposable income. Consequently, this rise in pet ownership has led to higher pet food purchases, especially dog food. With an urbanization rate of 82% in the region, many consumers are choosing smaller dogs and cats, as they are more suitable for apartment living. The shift toward apartment housing in Latin America has resulted in an 8% increase in cat ownership and a 7% rise in cat food purchases.
As demand for dog and cat food grows in Latin America, consumers increasingly seek premium pet food options. According to Euromonitor, the trend stems from the growing humanization of pets in the region, where 74% of owners view their pets as family, the highest percentage of any region.
This humanization is prompting consumers to pay greater attention to the ingredients and quality of pet foods, leading to rising demand for sustainable, healthy and natural pet products, according to the USDA. This rising demand is observed in the increased purchases of wet pet food; however, dry pet food remains the most popular in Latin America.
Emerging markets
Brazil, Peru, the Dominican Republic (DR), Colombia, and Trinidad and Tobago are all evolving pet food markets, offering significant opportunities for increasing US pet food exports, according to the USDA FAS.
With the third largest pet population in the world — amounting to four pets for every five people — Brazil is one of the largest markets in the rapidly growing pet food industry, according to S&P Global. However, unlike China and the United States (the largest and second largest pet populations, respectively), Brazilians do not use prepared pet food, indicating significant potential for growth in this sector, according to the USDA FAS. In 2024, the United States exported $9 million worth of dog and cat food to Brazil, four times the amount since 2020. Today, the United States is one of Brazil’s leading suppliers of pet food after the European Union, holding a 30% market share.
Like the rest of Latin America, Brazil is recovering economically from the pandemic and inflationary impacts, making Brazilians more price-sensitive, especially regarding pet products. According to the USDA FAS Brasilia, Brazilians are leaning toward middle- or low-priced pet food. However, as inflation decreases and Brazil’s GDP grows, there is a notable rise in the demand for premium pet food.
According to Trade Data Monitor, in 2024, Peru imported $48 million worth of dog and cat food, an 11% increase from 2023. Euromonitor forecasts sales in Peru’s pet care sector to reach $730 million. The United States exported $9 million worth of dog and cat food, making it one of the leading destinations, holding a 21% market share in the Peruvian dog and cat food market, according to the USDA FAS.
The agency also reported a notable increase in cat adoption in Peru, largely due to the perception that cats are easier to care for than dogs, leading to an increase in cat food purchases. Like the rest of Latin America, Peruvians invest in premium pet care. Peruvian consumers are better educated about canine and feline health and buy high-quality, gourmet pet food to help reduce future veterinary costs. As inflation decreases, a robust economy and a continued trend of pet humanization are expected to contribute to a promising future for the pet food market in Peru.
The DR is the largest economy and second-most populous country in the Caribbean. The EIU reports that the DR has experienced rapid growth during the past decade, with a projected GDP increase of 2% in 2024 and a forecasted rise of 5% in 2025. Inflation fell by 5% in 2024, and the EIU expects it to continue declining. In 2024, the DR imported $22 million worth of dog and cat food, marking a 5% increase from 2023, according to the USDA FAS. The United States exported $8 million worth of dog and cat food, maintaining its position as the leading pet food exporter with a 38% market share in the Dominican pet food market. However, in 2024, US dog and cat food exports decreased by 8%, EU exports increased by 19% and Mexico’s exports rose by 6%.
The agency reported that the DR’s pet food market is projected to grow by 12% per year, adding an annual $29 million (1.8 billion DOP) by 2029. The DR is an expanding and competitive market, and the United States is its leading agricultural exporter. The comprehensive free trade agreement (FTA) between the United States and the DR presents opportunities for the United States to expand its presence in the Dominican pet food market.
According to the US Census Bureau Trade Data, US dog and cat food exports to Colombia reached their highest point in 2022 at $54.95 million, and have steadily decreased year after year. In 2024, the United States exported $44.85 million worth of dog and cat food to the country, a 4% decrease from 2023. This decrease in exports can also be seen in Trinidad and Tobago. In 2024, the United States exported $10.55 million worth of dog and cat food to Trinidad and Tobago, a 3% decrease from 2023, according to the US Census Bureau Trade Data.
Trade policy
The United States has a total of four FTAs in Latin America — The United States-Chile FTA, the United States-Colombia Trade Promotion Agreement, the Dominican Republic-Central America FTA, and the United States-Peru FTA. These FTAs allow most goods from the United States to enter these countries duty-free. The full implementation of these agreements led to a significant increase in US exports and enhanced the competitiveness of US dog and cat food in international markets.
In contrast, US dog and cat food faces a high tariff rate of 51%in Brazil, as pet food is classified as a luxury good. This tariff rate results in higher costs for these products. Any product containing more than 1% of genetically engineered ingredients must be labeled as “transgenic” and marked with a black “T” symbol inside a yellow triangle. This requirement applies to both human and animal consumption of biotech products. The label must also specify the donor gene, which poses a challenge for US pet food companies, as ensuring traceability of the corn and soybeans used in production can be difficult, according to FAS Brasilia.
Despite these policy restrictions, US pet food exports to Latin America are experiencing significant growth, with prospects continuing to increase. The region is recovering economically from the impacts of the pandemic and inflation, prompting many consumers to prioritize their pets. As Latin America leads the world in the humanization of pets, it also leads the world in premium pet care, emphasizing the diet and health of their pets. With an improving economy, a focus on pet humanization and rising demand for premium products, US pet food processors could tap this region to support their international growth.
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