Hot categories, such as treats, premium foods and products with health and wellness claims, are helping spur petfood market growth.
If you're a petfood professional in Russia, Thailand or
South Africa, or you make treats, premium petfood or products
with health and wellness claims, you're in the driver's seat
behind the engines of industry growth.
According to
Euromonitor International, while the growth rate of global dog and cat food sales fell
to about 4% in 2009 after reaching a high of nearly 7% in 2008,
that level of growth during a major recession is one most
industries would envy. And our industry can thank specific
regional markets and hot product categories for that relatively
healthy increase leading to 2009 global sales of US$52
billion.
Regions such as Eastern Europe and Latin America are showing
the highest petfood sales increases. For example, Eastern
Europe grew about 12% in 2009, followed by Latin America at
10%, Euromonitor says. The Middle East and Africa recorded
nearly 15% growth, though on a much smaller sales base. North
America and Asia-Pacific have held their own, both growing at
about 5% last year, while Western Europe and Australasia are
lagging (only 2-3% growth in 2009).
Regions such as Eastern Europe and Latin America are showing the highest petfood sales increases.Looking at individual countries, Russia scores in the top 10
by 2014 for largest petfood markets, coming in sixth, and
fastest growing (Figure 1). Euromonitor projects the Russian petfood market will grow
11.8% a year through 2014, second only to India. Eastern Europe
will have two other markets in the top 10 fastest growing:
Romania and Slovakia.
In Latin America, Brazil reigns; Euromonitor projects it to
be the second largest petfood market by 2014, reaching US$4.3
billion sales, behind only the US at US$20.2 billion. But only
one country in Latin America, Venezuela, promises to be among
the fastest growing.
For the first time, the top 10 growing markets include
several from the Middle East and Africa-India, Morocco, South
Africa and Indonesia-along with a couple Asian
countries-Thailand and China-that have been on growth spurts
for a few years now. Though most of these fast rising markets
are starting from very small sales bases, their growth
potential comes partially from how little commercially prepared
petfood is currently fed vs. table scraps or homemade food. In
Russia, for example, less than 15% of dogs and less than 20% of
cats ate commercially prepared petfood in 2009.
In developed and developing petfood markets alike,
Euromonitor says specific product categories have been growing
the fastest for the past 10 years:
In Russia, less than 15% of dogs and less than 20% of cats ate commercially prepared petfood in 2009.- Cat treats and mixers, at 8% growth;
- Premium dog food, 8%;
- Healthcare, 7%;
- Dog treats and mixers, 6%;
- Premium cat food, 6%;
- Dietary supplements, 5%;
- Economy dog food, 4%;
- Mid-priced dog food, 3%;
- Mid-priced cat food, 3%; and
- Economy cat food, 3%.
The "healthcare" segment is especially worth noting, as more
and more petfood players-from multinational conglomerates such
as
Mars,
Nestlé Purina,
Colgate-Palmolive
and
Procter & Gamble
to smaller, privately held companies, start-ups and
manufacturers specializing in alternative categories such as
raw and fresh-make claims based on health and wellness,
specific conditions and functional ingredients.
Figure 2 shows the top health and wellness trends for dog and cat
food products globally, according to Euromonitor. In most
cases, these trends-grouped broadly under all natural and
organic, fortified and functional, weight management and food
allergies and hypoallergenic-got their start in human food and
nutrition advancements. This is no surprise, given how pets
have come to be treated like human family members, especially
in so-called developed markets.
In fact, more and more ingredients used in human foods,
supplements and other products are making their way into
petfoods and treats.
Figure 3
highlights some of these, especially the ones getting
most of the attention in packaging and marketing claims, as
well as others being used with less fanfare or undergoing
research for possible benefits to pets.
In most cases, these trends got their start in human food and nutrition advancements.If your company is capitalizing on these hot health and
wellness trends, including use of such human-led functional
ingredients, pay close attention to your communication,
Euromonitor says. Though many people around the world have
heard of most of the ingredients and may even consume or feed
them to human family members, consumers may not understand
these substances or their benefits, especially to pets.
Solid science is essential (and also helps with regulatory
concerns), according to Euromonitor, but too much scientific
detail can confuse consumers or turn them off. A clear message
is the key.