PET FOOD MARKET
The pet grocery store was valued at USD 74.9 billion in 2016. North America accounted for the most important share of over 35% of the worldwide market in 2016. The second largest market is Europe, followed by Asia-Pacific with around 20% of the market share, thus, accelerating the trend of pet owners across the globe. In North America, america holds the key market share of pets and pet owners, which is predicted to register a high CAGR, during 2017-2022 (the forecast period).
TASTES FOR NEW EXPERIENCES AND PORTIONS AS INDULGENCE ALIBI
Flavors and textures have gotten bolder, more complex, authentic, and specific. The correlation of pet food and the fashionable formats mixing freeze-dried bits, with kibble or treats, for texture variations, is making pet owners select from a variety of number of shapes, textures, and flavors. Furthermore, clean labeling continues to grow. Health conscious consumers search for permissible indulgences, just like the smaller portion sizes of treats or candies with healthier ingredients like chia seeds or yogurt. Pet treats are developing, when it comes to ingredients with functional or other dietary advantages, which is allowing pet owners to indulge their pets free from guilt. Recent pet food products comprised of 80% of the worldwide launches in 2015. The launches from September 2015 to September 2016, are keeping the health-related trend intact in recent products by category. The share for cat food was around 68% globally. This trend of health and wellness has made good sales for the manufacturers. A number of instances on this context are Hill’s Ideal Balance, a brand new range of dog and cat food that mixes natural ingredients with Hill’s perfectly balanced nutrition, is now available in South Africa. CORE® RawRev, a brand new high-protein grain-free product, is launched by Wellness CORE®, a family of grain-free, natural animal nutrition company.
IMPROVEMENT IN DISTRIBUTION NETWORK LEADS TO GROWTH IN PET FOOD SALES
The high web connectivity available in the key countries is boosting the use on e-commerce sites as an efficient distribution channel. The notions of convenience, affluence or exclusivity, safety, and market awareness play a really crucial role within the developing nations. The unreliability of local goods, as indicated by the recent scandals, can also be making people depend on foreign goods. These are made easily available through the e-commerce, further making the sales high. Owing to the industry’s two pet superstores, PetSmart and Petco, the e-commerce channel is exploding with the pet product sales. The late embrace of the market connectivity within the minor markets of small economies, similar to Vietnam, Thailand etc., is a explanation for infrastructure lag and almost negligible product awareness. These stores offer the nascent market benefits of low regulations and competition. The businesses, because the e-commerce is strengthening, are negotiating the ever-changing web landscape with the aspects similar to coping with giants like Amazon that’s deciding to sell through similar e-commerce web sites and mergers & acquisitions. As an example, in April 2017, PetSmart announced that it’ll acquire Chewy.com, which heightened the consternation within the independent pet retailers. In response, Tuffy’s Pet Food, a manufacturer to independent and family-owned businesses, announced pulling out its products from Chewy, as it could be owned by the most important US pet store chain. Though Tuffy’s reports a really positive response, not every company detaches itself easily from any large e-commerce sites.
“FREE FROM ALL” AND “FLEXITARIAN EFFECT” BOTH HAVING THEIR WAY TOGETHER
Though the consumers today are part-time vegetarians, they appear to do the alternative with regards to pet food. The pet owners search for food regimen options, which concentrate on the carnivorous nature of dogs and cats, thus, driving the variety of products with high and fresh meat claims. Despite the demand for carnivorous diets, veggies are still going mainstream and the producers are innovating their existing products. Free from” for all-the free from trend has been growing, for the reason that past few years and has now hit the mainstream. Pet foods are being formulated with respect to the concerns of humans that include organic and non-GMO ingredients. These ingredients are utilized in low-carb recipes and have gluten-free claims on recent cereal products that increased from one in 15 in 2011 to 1 in five in 2016. Recent product launches, with organic or GMO-free ingredients, are witnessing growth available in the market. Organic and natural food sales are expected to extend 14.6%, annually, in next two years. For Petco and PetSmart, organic pet foods are bought at a 7.1% and 5.6% rate, respectively, with organic purchases at veterinary clinics at 5.3%. Brands communicate more concerning the production processes, because of the rising consumer interest in natural plus authenticity and transparency. That is true for the buyers, too, especially, for those searching for products in non-traditional formats similar to raw, freeze-dried, frozen and baked. Balchem Corp., a world health, and nutrition company, introduced a brand new line of specialty nutrients and unique processing additives. The Omega Plus range was launched within the South Island in September 2016, after the 2 years of continuous R&D. As well as, Bob Martin launched Simply+, a variety of products marketed as “nutritionally advanced food that gives dogs with all of the essentials of a healthy food regimen”.
CROSS-BORDER ZONE TO HELP MEET BUOYANT DEMAND
The domestic market is growing at an annual rate of above 30% in China and is poised to speed up at the identical rate by 2022, reaching CNY 150 billion and further, making it the third-largest market, worldwide. Furthermore, Hangzhou in Zhejiang Province inaugurated the primary cross-border pet industry experimental zone in the town’s Jianggan District. The experimental zone will pilot the reforms on the regulation and approval of cross-border imports. It can explore the introduction of national standards within the industry and promote the exportation of domestically made products. Furthermore, greater than 35 enterprises, including the cross-border e-commerce sites like Tmall, Kaola Beibei, and related logistics & warehousing firms, have been established within the experimental zone. The zone, principally, enables one-stop services and goals to enroll open, transparent, and smart pet food import channels and regulatory policies. Similar efforts are being taken by the countries to concentrate on the growing pet population and trends. The market players are taking complete advantage of this example and investing in R&D for progressive product launches.
NOTABLE MARKET DEVELOPMENTS
1. Nestlé Purina launched a brand new production hall at its facility in Bük, in Hungary’s northwest, making the plant the most important production center in Europe and opened the USD 86 million factories in Brazil. This step is predicted to spice up the Nestlé Purina for more growth than the domestic market.
2. Carna4: Formulas Inspired by Health Food Trends. This manufacturer takes inspiration from the human health food sector to formulate progressive and whole-food recipes for dogs and cats.
3. PetLife Supersedes Expectations for the Acquisition of Dr. Geoff’s Real Food for Pets. PetLife Pharmaceuticals, Inc., a developer of a brand new generation of high potency veterinary cancer medications and nutraceuticals for pets, announced that it’s acquiring Dr. Geoff’s Real Food for Pets™ and expansion plans for a national rollout.
4. German Company Entering Thailand. Interquell, a German-based dog, and cat food company, entered the Thai industry by forming a three way partnership, named Completely satisfied Pet (Thailand) Co Ltd, with partner Technic Pet Holding, reported Pets International. Interquell holds 49% of the three way partnership. Interquell owns the Completely satisfied Dog and Completely satisfied Cat premium brands.
TOPICS COVERED IN THE REPORT
How will face-to-face interaction boost the pet grocery store in Digital Age?
Is low thiamine cat food the cause for Australian cat deaths?
Gluten free foods, GMO foods making their mark within the pet food industry.
Edible insects creeping into pet food popularity.
Humanization and premiumisation on peaks within the pet industry.
Will the US and China proceed their dominance within the pet grocery store? What are the emerging markets?
Will growing market connectivity in Asian countries of Vietnam, Thailand etc. boost the Asia-Pacific pet grocery store?