Pet Food Market – Trends, Industry Competitiveness and Future Outlook

PET FOOD MARKET

The pet food market was valued at USD 74.9 billion in 2016. North America accounted for the largest share of over 35% of the global 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, the United States holds the major market share of pets and pet owners, which is expected to register a high CAGR, during 2017-2022 (the forecast period).

TASTES FOR NEW EXPERIENCES AND PORTIONS AS INDULGENCE ALIBI

Flavors and textures are becoming bolder, more complex, authentic, and specific. The correlation of pet food and the modern formats blending freeze-dried bits, with kibble or treats, for texture variations, is making pet owners choose from a range of variety of shapes, textures, and flavors. Moreover, clean labeling continues to grow. Health conscious consumers look for permissible indulgences, like the smaller portion sizes of treats or candies with healthier ingredients like chia seeds or yogurt. Pet treats are developing, in terms of ingredients with functional or other nutritional benefits, which is allowing pet owners to indulge their pets free from guilt. New dog food products comprised of 80% of the global launches in 2015. The launches from September 2015 to September 2016, are keeping the health-related trend intact in new 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 few instances in this context are Hill’s Ideal Balance, a new range of dog and cat food that combines natural ingredients with Hill’s perfectly balanced nutrition, is now available in South Africa. CORE® RawRev, a 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 internet connectivity available in the major countries is boosting the use on e-commerce sites as an effective distribution channel. The notions of convenience, affluence or exclusivity, safety, and market awareness play a very crucial role in the developing nations. The unreliability of local goods, as indicated by the recent scandals, is also making people rely 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 in the minor markets of small economies, such as Vietnam, Thailand etc., is a cause of infrastructure lag and almost negligible product awareness. These stores offer the nascent market advantages of low regulations and competition. The companies, as the e-commerce is strengthening, are negotiating the ever-changing internet landscape with the factors such as dealing with giants like Amazon that is deciding to sell through similar e-commerce websites and mergers & acquisitions. For instance, in April 2017, PetSmart announced that it will acquire Chewy.com, which heightened the consternation in 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 would be owned by the largest US pet store chain. Though Tuffy’s reports a very 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 seem to do the opposite when it comes to pet food. The pet owners look for diet options, which focus on the carnivorous nature of dogs and cats, thus, driving the number 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, since the 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 used in low-carb recipes and have gluten-free claims on new cereal products that increased from one in 15 in 2011 to one in five in 2016. New product launches, with organic or GMO-free ingredients, are witnessing growth in the market. Organic and natural food sales are expected to increase 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 about the production processes, due to the rising consumer interest in natural plus authenticity and transparency. This is true for the buyers, too, especially, for the ones seeking products in non-traditional formats such as raw, freeze-dried, frozen and baked. Balchem Corp., a global health, and nutrition company, introduced a new line of specialty nutrients and unique processing additives. The Omega Plus range was launched in the South Island in September 2016, after the two years of continuous R&D. In addition, Bob Martin launched Simply+, a range of products marketed as “nutritionally advanced food that provides dogs with all the essentials of a healthy diet”.

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 accelerate at the same rate by 2022, reaching CNY 150 billion and further, making it the third-largest market, worldwide. Moreover, Hangzhou in Zhejiang Province inaugurated the first cross-border pet industry experimental zone in the city’s Jianggan District. The experimental zone will pilot the reforms on the regulation and approval of cross-border imports. It will explore the introduction of national standards in the industry and promote the exportation of domestically made products. Moreover, more than 35 enterprises, including the cross-border e-commerce sites like Tmall, Kaola Beibei, and related logistics & warehousing companies, have been established in the experimental zone. The zone, basically, enables one-stop services and aims to enroll open, transparent, and smart pet food import channels and regulatory policies. Similar efforts are being taken by the countries to focus on the growing pet population and trends. The market players are taking complete advantage of this situation and investing in R&D for innovative product launches.

NOTABLE MARKET DEVELOPMENTS

1. Nestlé Purina launched a new production hall at its facility in Bük, in Hungary’s northwest, making the plant the largest production center in Europe and opened the USD 86 million factories in Brazil. This step is expected to boost 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 innovative 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 new generation of high potency veterinary cancer medications and nutraceuticals for pets, announced that it is 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 joint venture, named Happy Pet (Thailand) Co Ltd, with partner Technic Pet Holding, reported Pets International. Interquell holds 49% of the joint venture. Interquell owns the Happy Dog and Happy Cat premium brands.

TOPICS COVERED IN THE REPORT

How will face-to-face interaction boost the pet food market in Digital Age?
Is low thiamine cat food the cause for Australian cat deaths?
Gluten free foods, GMO foods making their mark in the pet food industry.
Edible insects creeping into pet food popularity.
Humanization and premiumisation on peaks in the pet industry.
Will the US and China continue their dominance in the pet food market? What are the emerging markets?
Will growing market connectivity in Asian countries of Vietnam, Thailand etc. boost the Asia-Pacific pet food market?

Tips To Organize Living With Multiple Pets

A family with a lot of furry members is really a heavenly abode with lots of enjoyment every day. However, with it comes – greater responsibilities, as the pet family requires lot of care and efforts to keep them all fit and fine, maintaining their overall wellbeing. Whether you have to take care of two kitties or a pack of four dogs or a whole farm, you need to take care of each vital thing ranging from food, preventive medications, and litter boxes to beds and toys.

Here are a few tips that fully aid you in organizing your day to day activities for taking care of multiple pets. Following the tips, you can definitely have time for yourself along with having a quality playtime with your furry pal.

Arrange for Multiple Beds

Having multiple pets in your home means a special place to provide all for a nap. Get beds for each and every pet in your home. Multiple bed will discourage pets from laying or bouncing on sofas.

Protect Furniture

It is crucial to cover your furniture. Tiny dog or cat hairs are more likely to get easily stick to the furniture. Cover them with fleece blankets and throws on tables, chairs and couches to keep pet hair to minimum. Additionally, when it comes to your car, it’s good to cover the seat in order to keep that mud away in case your dog must have brought it from the dog park.

Keep Food in Air-Sealed Containers

Different pets mean different requirements of various kinds of foods. To easily recognize the food, it is better to label the plastic bins for different food types. Ensure to store them in a pantry or in a kitchen counter shelf. Keep it away from damp place and check that it is not accessible to your furry pal or either to your children. Ensure that you keep the feeding place well organized and mess free. To avoid fights among your pets, maintain a feeding schedule.

Separate Feeding Locations

You are wrong if you are thinking that there is no need for separate feeding locations for your multiple pets. It is to avoid food hostility as dogs and cats are quite territorial so try to feed pets in different rooms. Some pets may go along well, but if it seems there is some tension, then it is better feed them at separate places. This helps to avoid unwanted accidents.

Keep A Folder for Pet Records

Don’t mess your pets’ medical records. Organize different pets’ health records including vet visits, adoption papers, vaccination cards, microchip registration, licenses and pet insurance policies in different folders for various pets. It would be quite helpful in case of any emergency.

Provide Litter Box for Each Cat

Cats are inclined too much towards cleanliness. They are too picky about clean litter boxes. Provide each of your cat a separate litter box, which they are sure to appreciate. If you want them all to use litter box, then it is better to provide them each a separate one.

Stock Up First Aid Kit

Always have your pet’s first aid kit in handy. With so many pets in the house, there can be accidents at some times. Providing them first aid will largely cut on the vet bills. The important things that your pet’s first aid box should include are Gauze of various sizes; scissors; first-aid tape; wound disinfectant; antibiotic ointment; eye wash solution; hydrogen peroxide; cotton balls or swabs; cortisone spray or cream; thermometer.

Parasitic Preventive Treatments

A home with multiple pets mean that there is a huge probability of spreading disease due to fleas, ticks or worms from one animal to another. Missing treatment of flea and tick infestation or heartworm preventive for a few of them is of no use as gradually they too will be infected by the infected animals, and the cycle of recurring infestation will continue. Treating all the pets in the household will deploy the occurrence of parasitic infestations.

Multiple pets mean taking various responsibilities and providing the best care. Always keep a stock of essential medications including preventive treatments along with proper food and nutritional supplements. This ensures a great health and happiness for your big family of humans and four-legged companions.

Animals in Distress: They Are Stilling Suffering

A few days ago a beautiful small female dog was brought to a precinct scared and shivering. A good Samaritan witnessed the dog being abused by youngsters in a park and brought her to the nearest precinct. They were kicking her and bullying her. It was heartbreaking to see the tears in the dog’s eyes as she sat there on the floor in the precinct in pain and bewilderment. We can only imagine what thoughts were going through her mind. Maybe she sat there wondering what has she done to those young individuals for them to abuse her like that. Because animals cannot verbally tell us their feelings we have to observe their behavior, facial expressions, and actions. Animals have feelings just like human beings; they feel pain, and know fear.

It is unfortunate, but every day there is a pet that is being abused by their owner. Or a pet has been abandoned by their owner, or they stray the streets until they passed away. Others have been fortunate, where they are rescued by animal centers and animal shelters, and nursed back to health and adopted by caring individuals. Some animals have been euthanized because they were in the shelters too long.

Just recently a man was charged with beating his girlfriend’s poodle to death. The autopsy divulged that the dog had nine broken ribs, a pulverized kidney, and immense internal bleeding.

There are a lot of individuals who would probably love to adopt a pet but they do not have the space or financial means to maintain the up keep. I urge everyone who is in a position to care for those animals to please consider adopting one before it is too late.