Editorial Notes: The petfood market in 2010

The two primary trends are being encouraged by manufacturers' efforts to generate growth. - Tim Phillips

Remarkable shifts in buying behaviors are occurring in the petfood market worldwide. These shifts are diverse and encompass a wide range of geographic markets and product categories. But, notes Euromonitor, they have two primary, inter-related trends in common: pet humanization and an increasing interest in pet nutrition and health.

These two trends stem from:

  • Economic progress;
  • Demographic changes;
  • Changing government positions; and
  • New media attitudes.

Also, the two primary trends are being encouraged by manufacturers' efforts to generate growth through product innovation and new marketing strategies, particularly in mature core markets.

Euromonitor's November 2006 report, The World Market for Petfood and Pet Care Products ( www.euromonitor.com ), includes several speculations as to what the industry will look like in 2010, including:

North American and Western European shares will drop. In 2010, these markets will remain the most valuable, accounting for 72% of the global value of petfood and pet care products. However, this will be down from 75% in 2005. The effect of market maturity is expected to be compounded by intense pricing competition in the retail environment.

Segments will blur. By the end of the forecast period, the lines between the premium and mass market segments are likely to have become extremely blurred. Major manufacturers in the mid-priced segment, including world leaders Nestlé and Mars, are increasingly looking to reposition their core, mid-priced brands with a more premium-oriented image.

Functional products will boom. By 2010 demand for health-oriented products is expected to have developed significantly in terms of sophistication, encouraged by manufacturers' efforts to generate growth in mature markets through product innovation. Functional petfood and pet products targeting specific conditions and bodily systems are likely to be widely available, especially as health-oriented innovation increasingly enters the mass market.

Pet humanization will increase in influence. This will be spurred by reduced household sizes and the erosion of traditional community bonds. The increasing tendency to perceive pets in anthropomorphic terms is leading manufacturers of petfood and pet care products to increasingly track trends in human product types.

Shares of emerging markets will climb. Emerging markets will account for a significantly higher proportion of global petfood and pet care products' value sales in 2010. Markets such as China and Russia are set to see strong growth, driven by rising disposable income, improved distribution and changing consumer attitudes toward domestic animals.

Petfood sales up 14%

Euromonitor predicts the global petfood and pet care products market will grow 15.1%, from US$58.2 billion in 2005 to US$67.0 billion by 2010. Global petfood (dog, cat and other) sales will grow 14%, from US$45.2 billion in 2005 to US$51.5 billion by 2010.

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