INEGI’s recent data reveals a deflationary shift in Mexico’s pet food market, with prices entering deflation territory by September 2024. October saw notable month-on-month price drops, led by Minino cat food (-23.2%) and Champ (-11.6%), alongside moderate reductions for brands like Dog Chow and Cat Chow. This trend aligns with declines in the producer price index (PPI), indicating lower production costs driven by cheaper raw materials, improved efficiencies, and heightened competition.
While lower prices benefit consumers, prior inflation has reshaped pet ownership trends, with a shift toward smaller pets like cats and small-breed dogs, which are more cost-effective to feed. This change in consumer behavior persists as a long-term adjustment to rising costs. For manufacturers, the deflationary trend signals intensified competition, margin pressures, and the need for product innovation to sustain profitability in a price-sensitive market.
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