Global Pet Food Trends Presentation for PFIAA

GLOBAL TRENDS IN PET FOOD
PRESENTATION FOR THE PFIAA
11TH SEPTEMBER 2017

© Euromonitor International
2
Euromonitor International
EUROMONITOR INTERNATIONAL London
Singapore
Shanghai
Dubai
Vilnius
Cape Town
Santiago
Tokyo
Sydney
Chicago
Bangalore
London
Chicago
Singapore
Shanghai
Dubai
Vilnius
Cape Town
Santiago
Tokyo
Sydney
Bangalore
Sao Paulo
 Global provider of strategic market intelligence
 12 offices - 1200+ analysts in 100 countries
 Cross-country comparable data and analysis
 5 year forecasts with matching trend analysis
 All retail channels covered
 Subscription services, reports and consulting

3
The Structure of Euromonitor’s Pet Care Research
EUROMONITOR INTERNATIONAL
Pet Care
Pet Food
Dog
Food Cat Food Other Pet Food
Bird
Food
Small
Mammal
/reptile
Fish
Food
Pet Products
Cat
Litter
Pet
Dietary
Supple-
ments
Pet
Health-
care
Other
Pet
Products

INTRODUCTION
PET FOOD ACROSS THE GLOBE
TRENDS IN DEVELOPED MARKETS
TRENDS IN ASIA PACIFIC
OUTLOOK FOR PET FOOD
KEY TAKEAWAYS

5
Global Cat and Dog Food
USD74 bn
2016
Global Value Sales
3%
2011-2016
Constant Value CAGR
70%
2016
Global Pet Care

6
North America the Leader in Value Sales
Australasia
Asia Pacific
North America
Latin America MEA
Western
Europe
Eastern
Europe
Global Pet Care retail value sales in 2015
value retail sales (2015)
USD74 bn
2016
Global value sales

7
$37.00
$6.70
$242.80
$36.50
$49.80
$2.20
$222.10
$102.20
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
World Asia Pacific Australasia Eastern
Europe
Latin
America
Middle East
and Africa
North
America
Western
Europe
Cat and Dog Food Sales Per Household US$
2016 US$ Per Household
Australasia Leads in Terms of Per Household Sales

8
Popularity of Pets a Driver of Sales
0 50 100 150 200 250
Western Europe
Eastern Europe
North America
Latin America
Asia Pacific
Australasia
Middle East and Africa
Dogs per 1000 capita Cats per 1000 capita
*data based only on 54 researched countries

9
Developing Markets Hold Greatest Potential
0%
2%
4%
6%
8%
10%
12%
14%
0
5
10
15
20
25
30
35
USDbillion
(ConstantValue)
Cat and Dog Food Sales
Value Sales 2016 CAGR 2011-2016

10
Volume Driving Growth in Developing Markets
0%
1%
2%
3%
4%
5%
6%
-2% -1% 0% 1% 2% 3% 4% 5% 6%
Retailvalue
(USDconstant)
Retail volume
Pet Food CAGR 2011-2016
Eastern Europe
Western
Europe
Asia Pacific
Australasia
North
America
Latin America

11
0%
20%
40%
60%
80%
100%
0% 20% 40% 60% 80% 100%
Valuesharetotalretail
(Moderngroceryretailoutoftotalgroceryreatil)
Value share pet care
(Modern grocery retail out of total grocery retail)
% Share of Modern Grocery Retailing 2016
Share of Modern Retailing Important in Pet Care Value Sales
Western
Europe
Asia Pacific
Australasia
North
America
Latin America
Eastern Europe

INTRODUCTION
TRENDS IN DEVELOPED MARKETS
OUTLOOK IN PET FOOD
KEY TAKEAWAYS

13
$37.00
$6.70
$242.80
$36.50
$49.80
$2.20
$222.10
$102.20
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
Europe
Latin
America
Middle East
and Africa
North
America
Western
Europe
Premiumisation Driving Growth in Developed Markets

14
0%
1%
1%
2%
2%
3%
3%
4%
4%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Economy Mid-Priced Premium
EURmillion
(atconstant2016prices,fxed2016exchangerates)
Dog and Cat Food, Western Europe
2016 sales 2011-2016 CAGR
Market Maturity in Western Europe Continues to Push Trading-up

15
-2%
-1%
0%
1%
2%
3%
4%
5%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
USDmillion
(constant,fixed2016exchangerates)
Dog and Cat Food, North America
2016 sales 2011-2016 CAGR
Even More So in North America

16
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
0
200
400
600
800
1,000
1,200
USDmillion
Dog and Cat Food, Australia
2016 sales 2011-2016 CAGR
And the Most in Australia

17
Key Trends in Developed Markets
Premiumisation
Humanisation
Health &
Wellness

18
Pet Diets Resembling Human Diets
Sources: https://www.dogslove.com/; https://purepetgroup.co.uk; www.chewy.com
B.A.R.F. Organic Grain-free
Dog’s Love (Germany) Pure Pet Group (UK) Diamond Pet Foods (USA)

19
Pets Eating as their Human Owners Would
Seen at Global Pet Expo
March 2017
Instinct Raw Brand
Nature’s Variety
(USA)

20
Pet Food Immitating Human Sweet and Savoury Snacks
Hugo & Celine by Hugo & Celine AB
(Sweden)
Tom&Co Snac’o Olijf
Aniserco SA/NV (Belgium)
Source: www.hugoandceline.comSource: https://catalogue.tomandco.be

21
San Diego, California-based The Honest Kitchen
launched Beef Bone Broth with Turmeric for cats and
dogs in the US during November 2015.
Health and Wellness: Bone Broth for Joint Health

22
USA: Making Raw Easy
Nature’s Variety (USA) Stella & Chewy’s (USA) Merrick Pet Care (USA)

23
Jenny Craig for Dogs?
 UK based Tails.com
 Monthly subscription for customised dry dog food
 Does not cater to pet ‘foodies’
 Opportunities in internet retailing

25
$37.00
$6.70
$242.80
$36.50
$49.80
$2.20
$222.10
$102.20
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
Europe
Latin
America
Middle East
and Africa
North
America
Western
Europe
Taking a Closer Look at Asia Pacific

26
Dogs are Typically Preferred but Cats are More Suited for Urban Lifestyles
Cat population %
share of total dogs & cats:
 <50%
 50-70%
 >70%
Cat Population Share of Total Dogs & Cats
Population in Asia by Market, 2016
0%
2%
4%
6%
8%
10%
Cat food Dog food
Growth of Cat and Dog
Food, APAC 2016
Value Volume

27
0%
5%
10%
15%
20%
25%
30%
35%
40%
Value Growth of Dog and Cat Food, 2016
Emerging Markets Lead Growth, Established Markets Lead Innovation
Established Markets Emerging markets

28
Habits of snacking and reward
Humanisation
Key Trends in Asia Pacific
Polarisation
Indulgence
Family
Trading down to basics
Beginnings of premiumisation
Rising consumer sophistication
Pampering of furkids

29
Product Launches in Asia Tend to Prioritise Quality and Ingredients
iti Biti Beef Recipe
iti Biti Pet Food Co
Singapore
November 2016
USD 50 per 1kg
 GMO & grain-free, free-range
 Parsley, green lipped mussel,
dried chicory
I Pet Milk
Seoul Dairy Corp
South Korea
January 2017
USD 2 per 180ml
 Lactose-free
 Yucca extract, calcium,
Taurine, collagen, vitamins

30
Health and Wellness: Traditional Medicine in Pet Food
Ciao Collagen- Infused
Wet Cat Treat by Inaba
Foods Co Ltd
(Japan)
Nutripe Limited Edition
Blackfoot Abalone &
Chicken with Green Lamb
Tripe Formula
(Singapore)
AnisuWater by Pet Odor
Busters containing clover
tree extract, mushroom
extract, basil, parsley,
Actinidia Polygama etc.
(South Korea)

31
0%
9%
7%
6%
11%
20%
3%
14%
3%
1%
9%
4%
5%
9% 9%
35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Value CAGR of Pet Treats in APAC, 2017-2022
Cat treats Dog treats
Opportunities in Cat Treats in Asia Pacific

32
Seeds by Seeds Taiwan Co Ltd
(Taiwan)
- No added colours
- Affordable option for better
quality and healthier alternative
Kit Cat Purr Purree by Kit Cat
International Trading (Philippines)
- Grain-free, 100% natural
- Omega 3&6, Taurine, Prebiotics,
Vitamin E
Milk-Bone Good Morning Daily
Vitamin Treats by Big Heart Pet
Brands (USA)
- DHA, Vitamin C, Glucosamine
- Real chicken as no. 1 ingredient
Treats Following Trends in Developed Markets

33
Pet Food and Skin Care with a Human Angle in South Korea
Ginipet
2015
The Korea Ginseng Co
 East Asian consumers big
spenders on skin care
 Also extremely indulgent
towards pets
 South Korean skin care
companies entering pet food
market

34
Pet Food Targeted at Ageing Pets in Japan
Life expectancy of
dogs rose to a record
high of 13.2 years
- 2014 Tokyo University of
Agriculture and Technology
and the Japan Small Animal
Veterinary Association
Pet ageing
 Weakening joints
 Excess weight
 Vision health
 Urinary health
Average longevity of
cats in Japan reached
record 11.9 years
- 2016 Japan Small
Animal Veterinary
Association
Japan
 There are now more
dogs and cats than
children in Japan
 In 2015, pet toilet
supplies were added to
notional basket of
goods to calculate
official rate of inflation

INTRODUCTION
TRENDS IN DEVELOPING MARKETS
OUTLOOK FOR GLOBAL PET FOOD
KEY TAKEAWAYS

36
Asia Pacific Leads in Growth Over Forecast Period
0%
2%
4%
6%
8%
10%
12%
0
10
20
30
40
50
60
70
80
90
100
Europe
Latin
America
Middle
East and
Africa
North
America
Western
Europe
USDbilion
Dog and Cat Food Sales 2017-2022
Value Sales 2022 2017-2022 CAGR %

37
Growth Opportunities Across All Price Tiers in Asia Pacific
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Economy Mid-priced Premium
Value CAGR Asia Pacific, 2017-2022
Cat Food Dog Food

38
‘’Provides additional energy source to the brain
through the use of MCTs – medium chain
triglycerides”
2015
Purina Pro Plan Bright Mind
 Pets live longer
 Enhanced nutrition
 Reduction in pet euthanisation
 Many living indoors
Ageing Pets Provide New Opportunities

39
Pet Obesity: A Role for Targeted Diets
 Cuddly pets often seen as having a
healthy weight
 Around 58% of cats and 54% of dogs in
the US were overweight or obese in 2015
according to Association for Pet Obesity
Prevention (APOP)

40
 A trend in human packaged food
 Prominent in North America, Western
Europe and Australia
 Potential in pet food as well
Alternative Protein Sources Set to Proliferate

41
Premiumisation, humanisation
and health & wellness key
trends in cat and dog food
Asia Pacific holds greatest
potential in terms of value
growth
Growth areas in treats and
ageing pets
Key Takeaways

THANK YOU FOR LISTENING
Alice Yu
Research Analyst ANZ
alice.yu@euromonitor.com
https://au.linkedin.com/in/alice-yu-18042775

Global Pet Food Trends Presentation for PFIAA

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Global Pet Food Trends Presentation for PFIAA

Similar to Global Pet Food Trends Presentation for PFIAA (20)

More from Euromonitor International

More from Euromonitor International (20)

Recently uploaded

Recently uploaded (20)

Global Pet Food Trends Presentation for PFIAA