Pet Care Industry Overview

Transcription

1 Pet Care Industry Overview PET SOUTH AMERICA 2018 Briefing by Euromonitor International

2 2 OVERVIEW ABOUT EUROMONITOR INTERNATIONAL INTRODUCTION GLOBAL OUTLOOK TOP TRENDS SHAPING THE INDUSTRY MARKET SNAPSHOPTS

3 3 About Euromonitor International

4 ABOUT EUROMONITOR INTERNATIONAL 4 Network and Coverage

5 ABOUT EUROMONITOR INTERNATIONAL 5 Research Expertise

6 6 Global Outlook

7 GLOBAL OUTLOOK 7 Pet care in context

8 GLOBAL OUTLOOK 8 Pet products posts good growth, but pet food dominates

9 GLOBAL OUTLOOK 9 North America dominates, but emerging markets will be growth engines North America remains the largest region, largely thanks to pet humanisation, which shows no signs of abating. Premiumisation has also been key, as consumers are opting for higher value food and products. Despite being one of the most developed markets in the world, dog owners in North America are splashing out on dog food. Premium and niche offerings have been key to driving the category, with increasing numbers of different and exotic ingredients as a means to differentiate offerings. Already the third largest region, Asia encompasses the best prospects for dog and cat food, as consumers increasingly adopt prepared food. Premiumisation has been a key driving trend, as consumers aim to offer the very best to their pets.

10 GLOBAL OUTLOOK 10 Emerging markets lead in terms of the future of the industry China has experienced strong growth, as pet owners humanise their pets and feed them commercially prepared food, particularly premium food. Grooming and beauty products, as well as highly customisable products, are now amongst the purchases of the younger generation for their pets. India, on the other hand, remains one of the smallest markets, but the prospects in the region are very positive. Recent demonetisation in India affected the country s economy, including the booming pet care. However, the urban and young population, as well as increasing dog and cat adoption, are expected to further boost the growth of pet care. With the adoption of expensive and foreign breeds, people will also focus on spending on additional pet products, such as toys and beauty products.

11 11 Top Trends Shaping the Industry

12 TOP TRENDS SHAPING THE INDUSTRY 12 Premiumisation leads the way Premium dog and cat food has been driving players strategies for years. Age and breed segmentation have been key to achieving this. For the forecast period toy breed will continue to drive strategies and new offerings, as well as further segmentation in terms of age and lifestyle. Similar to humans, aged pets are an increasing concern as, due to medicine and quality food, pets are living longer. Senior pets have specific needs, and preventative care for senior pets is also taken quite seriously by more affluent consumers, particularly in more developed markets. In distribution terms, premiumisation, typically more prevalent in pet speciality retailers, is increasingly seen in grocery retailers, which typically are more mass. Innovation is expected to come from across a range of differing strategies. On the one hand, gourmet-style food is popular in many markets; on the other, natural and more artisanal food bodes well with younger consumers who are on the lookout for such products.

13 TOP TRENDS SHAPING THE INDUSTRY 13 Focus on Health The concept of health has changed over the years, and it now entails a more holistic and global approach, also including wellbeing, and taking a preventative approach. A change in human eating habits and patterns has been driven by the need to take greater control over what is eaten, its quality and its quantity. This has given rise to a number of product reformulations, changes in packaging either for convenience or for portion control, and a number of cut-downs : sugar and salt being the main ones. The rise of intolerance and allergies, or just the idea that some foods or nutrients are preferable, has also led to a rise in free-from diets. In pet care terms there are obvious similarities. More educated humans are also more educated pet owners, who transpose such concerns and knowledge whilst shopping for their pets. This has given rise to the development of many pet food strategies. Natural, which was once a sign of premium, has now become mainstream, and diets have evolved to accompany human trends. For intolerances and allergies, grain-free diets have become increasingly popular, as demonstrated by Blue Buffalo in the US being one of the most popular brands. LID diets have also seen some potential in the US. Such diets focus on only a few ingredients in order to limit the possibility of allergies. Key for the development of the industry is a global and wider notion of pets health. Healthy and fit means the ideal weight being observed. While affluent consumers in many developed markets realise the importance of such factors, much has yet to be done in terms of education. Many consumers are still unaware of their pet s ideal weight, and an overweight pet is often not seen as such, and therefore not seen as being at risk.* Manufacturers are stepping up efforts in order to educate consumers via their websites, contests or other digital activities. This will prove fundamental in the development of the industry. Moreover, fitness activity trackers will also become more prominent, offering new insights into how people feed their pets and meet their needs. Note: * State of Pet Health Report, Banfield Pet Hospital, 2017

14 TOP TRENDS SHAPING THE INDUSTRY 14 High Protein, Different Protein The protein craze (with Greek yoghurt being one of the most famous products), which has driven many human diets, has also trickled down to pet food. Protein is an indispensable source of nutrients, but alternatives to animal protein have long been sought in the industry. The quest is far from over, and while old protein types are re-entering the chain, new plant and insectbased proteins are increasingly making inroads. In August 2017, Mars launched CRAVE, a new high-protein pet food (grain-free) for the masses, as the company states. "Every dog and cat shares a connection with their wild ancestors from their natural behaviours to their nutritional needs, said Eric Huston, Marketing Director, Mars Petcare. "What sets the CRAVE brand apart is that we're offering specialityquality nutrition at a price designed for the masses, making it affordable and convenient for all pet owners to implement a protein-rich diet that satisfies their dog or cat's inner animal. Also in the US, the Blue Buffalo Bayou Blend range, launched in 2016, features novel proteins from the US South, such as alligator and catfish. Currently used as alternative proteins are sweet potato, lentils, tapioca and pea. Pea protein is unique, as it is a nonallergenic, gluten-free, grain-free, non-animal-based protein source, produced from a sustainable and environmentallyfriendly crop, field peas. Algae is also being studied as a source of protein, particularly as fish stocks are under pressure from human demand. Whilst it may take a while to get consumers aboard the insect protein craze, this is already being used by a few manufacturers. A good example is Bühler, which has partnered with Protix and has established a plant in China in order to provide insects for pet food. Also, EntoBento and Jiminy treats have been launched at Superzoo in the US.

15 15 Market Snapshots

16 MARKET SNAPSHOTS 16 Global snapshot of dog food

17 MARKET SNAPSHOTS 17 Global snapshot of cat food

18 MARKET SNAPSHOTS 18 Regional snapshot of Latin America

19 Thank you This is a shorten version of the briefing Pet Care Global Industry Overview. For more insights: blog.euromonitor.com Contact us: press-sp@euromonitor.com