What really drives pet food pricing in México?

In México’s pet food market, it’s often assumed that protein content determines whether a product is economic, standard or premium. The logic seems straightforward: lower protein equals budget-friendly, while higher protein signals premium quality. But does the data support this? Not quite.

A quantitative analysis of pet food brands and pricing shows that protein content isn’t the strongest predictor of price. In budget-friendly products (under 150 pesos (US$7.30) per kilo, protein percentage explains about half of price differences. As prices rise, however, this correlation weakens. For premium products (above 150 pesos per kilo), protein levels account for less than a quarter of price variation. Clearly, other factors play a much bigger role.

What really drives pet food pricing in Mexico?

If protein isn’t the defining factor, what is? Pricing is shaped by a combination of brand power, ingredient quality, consumer perception and distribution strategy.

1. Brand influence: A well-established brand can command higher prices regardless of nutritional content.
2. Ingredient quality: Premium fats, functional additives and specialized supplements add significant value.
3. Perceived value: Packaging, certifications and marketing efforts influence consumer perception.
4. Protein source and digestibility: While consumers may overlook it, the real driver of pet food pricing isn’t just protein content but its quality and digestibility. High-quality animal proteins and hydrolyzed sources add significant nutritional value, justifying higher prices, yet this remains a reference point for producers rather than shoppers.

In short, pricing is a multifaceted equation, not a simple function of protein percentage.

Protein alone doesn’t define market segmentation

While protein can serve as a reference point, relying on it alone oversimplifies pet food segmentation and leads to inaccurate positioning. The Mexican pet food market operates on a more complex framework, where branding, ingredient quality, and perceived value collectively shape pricing.

Rather than following a rigid formula, pet food pricing is a flexible and evolving combination of these factors, varying across brands and strategies. To compete effectively, companies must understand how these elements interact and adjust dynamically to market demands.