Online Extra! More from "Is petfood recession-proof?"
According to Euromonitor International, these are the top 21 petfood trends leading to 2012 - is your company on track for success?
Top global pet industry trends leading
- Products that contain human-grade ingredients, particularly those that have been certified by statutory bodies such as the US Department of Agriculture, will become increasingly popular.
- Producers that can reassure consumers regarding the origin of their raw materials will benefit.
- Deepening anthropomorphism will drive the growth of superpremium products like the PANDEAN (pasteurized, nutrient dense and all natural) and Ultra diets.
- Such niches as organic, fresh and vegetarian petfood are also likely to expand.
- There will be some potential for premium products in the metropolises of developing economies, including Moscow and Beijing.
- Outside of core markets, innovative distribution strategies remain key to the establishment of a first-mover advantage. This will be particularly important to volume-led growth for economy offerings.
- Private label manufacturers will increasingly target the premium segment, undermining the margins of branded goods.
- Pet superstores are likely to play an important facilitating role in this regard by utilizing their brand equity as retailers to drive private label sales, especially in the premium segment.
Trends in developing markets
- Economic development has fueled an increase in consumption.
- An increasing number of consumers are trading up to value-added products.
- Due to their overdependence on commodity exports, the medium-term stability of some recent sales gains may be questionable.
- Accelerating urbanization is bringing suppliers, retailers and consumers closer together.
- Improving transportation infrastructure and logistical systems are facilitating distribution.
- Large-format retailers are expanding, bringing packaged petfood to new regional and local markets.
- There is more foreign investment in local production facilities.
- Sales remain concentrated among affluent middle class consumers, with mid-price brands predominant.
- However, premium brands can find lucrative and expanding markets in large metropolitan areas.
- Meanwhile, generally low consumption levels suggest huge potential for growth in China and India, particularly in the economy segment.
- Reduced poverty rates are driving volume growth in the economy segment, particularly in Latin America.
- Falling unemployment and improved welfare provision have reduced income inequality.
- Mass advertising and westernization are encouraging the use of packaged petfood instead of scraps.