Pet Food News

IBIS World offers report on prepared animal, bird feed manufacturing

IBIS World offers a new report on Prepared Animal and Bird Feed Manufacturing Industry in Australia , which found the industry's performance is closely related to both agricultural and social trends.

“Variations in weather patterns, herd stocks and outbreaks of disease often dictate the well-being of stockfeed operations within the industry, as do pet ownership levels for petfood manufacturers,” said IBISWorld industry analyst, Ryan Lin.

Despite these uncertainties, the industry has remained resilient over the five years through 2012-13, while also facing highly volatile commodity prices and waning profit margins.

According to the report, while the prepared animal and bird feed manufacturing industry has a number of small to medium-sized companies, the majority of revenue is generated by major companies. IBISWorld estimates that the top four manufacturers will account for approximately 54 percent of industry revenue, representing a growing rate of concentration over the past five years. The petfood segment remains more concentrated as it demands higher brand and customer loyalty.

Over the next five years to 2017-18, growth in the prepared animal and bird feed manufacturing industry is expected to be limited by the global economic recovery. An increase in pet ownership levels, advancements in technology and food safety are expected to help alleviate some of the risks associated with weather and potential disease outbreaks. The increase in pet ownership along with rises in disposable incomes are expected to drive demand for petfoods.

Popular Stories