Nestlé Purina invests US$470M in Brazil’s pet food industry

BRAZIL – Nestlé Purina PetCare has inaugurated a new wet pet food factory in Vargeão, Brazil, as part of a CHF 370 million (US$470 million) investment aimed at expanding production capacity in one of the world’s fastest-growing pet food markets.

Marcelo Melchior, CEO of Nestlé Brazil, emphasised the project’s strategic importance. 

“Petcare is one of four businesses Nestlé is focused on globally. The new Vargeão plant strengthens our global strategy to expand premium wet pet food, offering a variety of textures and sensory experiences that elevate great nutrition for dogs and cats. This investment reflects our commitment to innovation, the wellbeing of pets, and Brazil as one of the most strategic markets for the growth of the pet business.”

Brazil is one of the largest pet markets globally, with an estimated 110 million pets and a rapidly expanding commercial pet food sector.

The Vargeão site complements Purina’s existing manufacturing facility in Ribeirão Preto and will serve both domestic demand and export markets.

The plant has already begun shipping products to Chile, with further expansion planned across South America.

In addition to increasing production capacity, the factory incorporates advanced digital manufacturing technologies. 

The facility includes next-generation processing lines, an Integrated Operations Center (IOC), automated filling and packaging robots, and monitoring systems based on Internet of Things (IoT) and artificial intelligence. 

These systems allow real-time production monitoring and end-to-end traceability across the manufacturing process.

Sustainability was also integrated into the project design. 

The Vargeão facility is Purina’s first manufacturing plant in Latin America to operate using 100% renewable energy for both thermal and electrical needs. 

The plant uses a biomass-powered boiler and renewable electricity sources to support its operations.

The project is expected to create approximately 140 permanent jobs and contribute to regional economic development.

Brazil’s rapidly expanding pet food market

Brazil is one of the largest pet food markets worldwide, and wet food is the fastest‑growing segment within its industry.

Brazil also dominates the South American pet food sector, accounting for nearly 60% of the regional market and benefiting from strong urbanisation and expanding veterinary networks.

The pet food market in Brazil was valued at approximately US$9.3 billion in 2025 and is projected to grow to around US$14.5 billion by 2031, driven by increasing pet ownership and higher spending on premium nutrition.

Industry analysts attribute this growth largely to the “pet humanisation” trend, where pets are increasingly treated as family members.

This shift has led to greater demand for premium diets, specialised nutrition, and higher-quality formulations.

Another key factor shaping the market is the gradual shift toward wet and premium pet food products.

While dry kibble still accounts for the largest share of the Brazilian market, wet pet food represents about 35% of total consumption and continues to gain traction as owners seek products with improved palatability, hydration benefits, and varied textures.

Brazil’s wet pet food segment alone is projected to expand steadily in the coming years, with demand driven particularly by cat nutrition products and premium dog diets.

Despite the market’s size, analysts note that a significant growth opportunity remains: only about 45% of pets in Brazil currently consume commercial pet food.

This indicates strong potential for further industry expansion as more owners transition from homemade diets to commercial products.

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