Some habits, traditions or customs have changed over time, due to different ideas, opinions or perspective with which new generations think or act. And very clear is the example of the pets as important members of the Family nucleus.
Pets represent a Emotional Support, company and security, mainly for the people who currently support the home, to the extent of investing in these amounts that previously would not have been imagined.
According to the article by White Mountain Group, “Latin America, Leader in pet population growth”, the increase in the global pet population is remarkable. In 2017 there were 670 million, while by 2022 it is estimated that there will be 730 million, this would be a growth of 9% (60 million). Of the total growth, 45% will come from Latin America, and between 2017 and 2022 it is estimated that the population in the region will increase from 160 million to 187 million, 17%; with more details, the number of cats is expected to grow by 28% (47 million) and the number of dogs by 72% (115 million).
By pet can be understood: dogs, cats, reptiles, amphibians, birds, small mammals, invertebrates and fish, among other small species.
The White Mountain Group article mentions that cats and small dogs are increasingly being chosen as pets. The amount of gatos between 2017 and 2022 will increase by 5%, while the small dogs 4%, leaving behind medium dogs with 3% and large dogs with 0 percent. Based on these figures, it is not surprising that this is a Entrepreneurship Industry and growth in every way.
This Industry is evolving as it is strongly supported by people who want to do more and more activities with their pets as it can be seen how shopping centers, department stores, restaurants and hotels are becoming more “pet friendly” or friendly with pets, adapting thus its business concept to provide spaces for animals and allowing people to eat, stay or simply walk while they are in the company of these.
Millennials, the population between 25 and 40 years old, are the ones who are most decisively adopting a pet and not as a companion animal, but the category is raised to being treated as one more member of the family. Among its owners are those who have not yet formed or will not form a family and also those who have already completed one.
In Mexico, there is no exact figure with which to determine the number of pets per household, since there is no census or registry that allows knowing how many there are, where they live, if they are dewormed, vaccinated or sterilized, however, it is calculated that there are between 23 and 28 million pets (according to the Inegi and the Mexican Association of Veterinary Doctors Specialists in Small Species).
Among the products that owners consume for their pets, there are aesthetic and medical care, as well as clothing, footwear, toys, but they also carry out in-depth research on premium and healthy food that will achieve a better and healthy development.
In this sense, good news in Mexico for pet owners and Shelters is, that in October the proposal to eliminate the Value-added tax (VAT) on animal feed and agricultural and livestock products, within the Tax miscellany and the Income Law for next year, which will be effective as of January 2022. It should be noted that these foods began to be taxed in the last presidential term, but the argument that the Secretary of Finance The objective of eliminating the tax on these products was that they be given a treatment similar to that of products intended for human consumption.
On the stock side, there are Indices and Vehicles to invest in the pet sector. Companies whose main source of income comes from products or services related to pet care will constitute the largest percentage of the portfolio.
Some consider having a pet a luxury and a blow to the pocketbook. However, protection for pets has become paramount and the market has understood it, so there are insurers that offer the service for pets, where the policy – at a low cost – covers civil liability, veterinary and legal assistance telephone, advice in case of loss, guidance for traveling with pets, consultations at home and / or office, studies, hospitalization, discounts on cosmetic services and vaccines, stay for pets and even funeral expenses. Having this type of insurance facilitates in every way the development of the pet and personal finances.
The humanization of pets is becoming more common, but the most important thing is that the pet remains healthy, happy and safe in the company of its owner, achieving mutual well-being.
The author is BBVA Asset Management | Executive Director ETF’s.