(Food-Beverage-News.Com, September 23, 2019 ) Market Overview • The Global Pet Food Market was worth $XX billion in 2018 and is forecasted to reach $XX billion by 2026, at a CAGR of XX% during the forecast period. • Pet food is plant or animal material intended for consumption by pets. Typically sold in pet stores and supermarkets, it is usually specific to the type of animals, such as dog food or cat food. Pet food industry is one of those enterprises, which has been performing admirably, notwithstanding the financial downturn. The administration of different nations has taken some activities and few initiatives to advance the utilization of healthy and safe ingredients to improve the general health of pets.
Market Dynamics • Pet refinement/humanization influencing the purchasing decisions, changing the perception of consumer towards pet health, changing demographics, increasing product differentiation are the key drivers for the market growth. A survey conducted by the American Veterinary Medical Association found that in recent years, expenditure towards veterinary care and pet’s health care have seen a 40% raise. This is due to the growing human-animal bond, which defines consumers’ willingness to spend for their pets. Demand for pet health care insurance in the country will also support the argument.
Market Segmentation • Based on the product,Wet food is significantly higher in moisture than dry or semi-moist food. They are thermally processed cereal, grain and legume products prepared hermetically to increase the shelf life with no addition of preservatives and artificial additives. As the thermal process enhances the shelf life of products, the need for the addition of preservative gets minimized. When compared to dry pet food, wet pet food contains more proteins or fats. However, consumers prefer dry pet food as it’s less expensive and easy to feed. Wet pet foods are more popular for cats as they consume very less water; wet food provides hydration and prevents urinary tract infections. • On the basis of price, the global market for pet food is broadly classified as economic, premium and super-premium. The global economic pet food market was worth $35.4 billion in 2018 and is forecasted to reach $XX billion by 2026, at a CAGR of XX% during the forecast period. The premium segment is expected to hold the highest market share in the forecast period. The products classified under economic segment are a necessity for every pet owner. • Depends on the application, the global market for pet food is broadly categorized into dog, cat, bird, and, others. Globally, the dog food segment is majorly driving the pet food market with CAGR 4% in the forecast period. This segment covers nearly 60% of the total market and the cat food market is expected to grow at the fastest rate in the pet food industry. Dogs are the major consumers of pet foods. Dogs adapt to traditional eating habits such as meat, non-meat scraps, and leftovers of human food. However, these unhygienic foods have led to allergic reactions in pets. • Based on the distribution channel, the market is divided into specialty pet shops, hypermarkets/supermarkets, online and others.
Geographical Share • The global Pet Food Market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. • The North America Pet Food Market was worth $35.5 billion in 2018 and is forecasted to reach $XX billion by 2026, at a CAGR of 4.3% during the forecast period. North America is the largest market for Pet food globally with a global market share of 43%. In North America, the market is mainly dominated by the US followed by Mexico and Canada. Higher pet ownership and more focus on pet nutrition and health are the key factors driving the market. North America continues its dominant position in the global pet food market. The U.S. represents the largest market for pet food in the North America region. • Europe is the second-largest market for pet food in the world with a market share of 34% as of 2018. The Europe Pet Food Market was worth $27.5 billion in 2018 and is forecasted to reach $XX billion by 2026. The market is primarily being driven by the increase in pet humanization and change in trend to urbanization leading to closer contact with pets and hence a higher tendency to look after the nutritional needs and health of the pet. The market is seeing an increase even during the slowdown, and this has led to the emergence of pet superstores that tend to all needs of pets, be it nutritional, dietary, exercise-related or the works. • The pet food market in the Asia Pacific region has grown remarkably over the past few years due to the growth in the emerging markets such as China, India, Indonesia, Thailand, Malaysia, and Taiwan. In addition, the changing preference of the people to adopt a pet in the Asia-Pacific region especially in India and China has also fueled the growth of the pet food market in the recent past. The use of pet food is popular among pet owners in urban India, thus, all manufacturers are targeting urban pet owners, mainly in first-tier cities. The availability of branded pet food is restricted to urban India as the presence of popular breeds is limited to major cities.
Competitive Analysis • Few key market players are Big Heart Pet Brands, Blue Buffalo, Deuerer, Heristo AG, Hill’s Pet Nutrition, Laroy Group, Mars Petcare Inc, Nestlé Purina PetCare, Spectrum Brands / United Pet Group and Unicharm Corp. • The Global Pet food market is majorly dominated by five companies. These big five companies account for 55% of the market. In fact, two of the companies account for 46% of the market. The two big companies are Mars and Nestle account for 24% and 22% of the market respectively. The other companies Colgate-Palmolive, Blue Buffalo Pet products, and Spectrum Brands account for 4.9%, XX%, and XX% of the market share. • The rest of the companies in the world account for 45% of the market. Some years back P&G Pet Care was also a big player in the market, but later Mars slowly acquired its majority of the operation in this business making it the biggest company in the pet food market business. • The key strategy being adopted by Hills nutrition is promotions and collaborations with government programs. The company is targeting the vet community and its sales team, which comprises 75% of vet nurses. The initiative is aimed at pushing its nutrition care products. The company’s high pricing strategy emphasizes the image of Hills as a specialty pet food brand. • Keeping in line with high pricing, the company launched its pet food label made from natural ingredients, Science Diet Dry, and a new low fat, fat-burning pet food under the label name ‘Prescription Diet Metabolic’. In addition, Hills nutrition focuses on pet food packaging and labeling improvements to better emphasize its latest product enhancements.
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