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?

Why shop for pet supplies online? There are many reasons why people are taking advantage of online shopping for their pet products.

You can buy pet products on the web that include: pet food, pet grooming equipment, pet furniture, pet carrying cases, pet accessories, aquariums and accessories, books about pet care and more. Many people are using the web to buy all sorts of items for themselves and are finding that purchasing other things they need online such as items for their households and their pets saves time. With a busy lifestyle, doesn’t the idea of ordering dog food for your household with the click of a mouse instead of braving the stores and the parking lots make much more sense?

What kinds of pet supplies?

Whether you have a dog, cat, hamster, rabbit, parrot or aquarium full of fish there’s surely a retailer who sells exactly what you want on the web. If you don’t do any online shopping due to not having a credit card, that’s ok, too. You can find some pet suppliers who even deal with PayPal which means that you don’t have to mess with lack of a credit card because paying by PayPal works just as effectively and gives you the ability to buy online and have your items shipped directly to your house. Simply transfer money over to your PayPal account or pay by e-check.

Variety

Variety of products available makes purchasing on the web a fantastic option. You can find things you wouldn’t usually see locally for your pet. This can be especially helpful for consumers who reside in rural areas.

Convenience

The idea of saving time from shopping is a good one. Because many specialized pet foods and pet goods come from specialty shops, doing shopping for your pets means an extra trip. The alternative is purchasing regular food from your grocery store and the commercial food available might not meet the needs of your pet adequately. The convenience of ordering pet goods online is increasing for this reason.

Prices

It once was that ordering something on the web and having it delivered to your house meant a inflated price. This just isn’t the case any more due to the sheer amount of online business owners who want your dollars. Prices are lower and coupons are sometimes offered to potential customers to win over their business. Factoring in the price of gas and parking as well as the price for your time running around to shop makes Internet shopping seem very worthwhile when you break the pricing down.

If you are still wary about buying pet accessories on the web, give it a shot once and see what happens. odds are, you’ll find the process so easy and hassle-free that you’ll begin looking into ordering more stuff on the internet. The marketplace that exists on the web offers plenty of options for your pets. Not only can you order pet supplies on the web but you can also purchase books as well as find handy info about the health of your pet as well.

Have you thought about buying pet supplies and getting helpful info through an online pet shop? With the right internet pet resources, dog food, toys, grooming items and even certain types of medications can be found. Sometimes, the best for your pet will require shopping online.

Dog Training and Grooming

Have you discovered that your local area stores are rather lacking in grooming tools and training paraphernalia for your dog? If so, look to an online pet shop that delivers in your area for a selection of items that will help you help your dog. Grooming in particular can be difficult unless you have the right tools. It doesn’t matter whether your dog has a thick coat or one that is long and wiry, having the best comb, brush, slicker or rake can make a difference. Nail clippers, shampoo and conditioner, toothbrushes and scissors are also key tools for a healthy, well-groomed dog.

Training aids such as head collars and leash training leads can greatly assist you in behaviour modification and other types of teaching for pets. Anti-bark sprays and collars can help curb your dog’s enthusiastic barking while whistles and clickers can offer assistance in walking and dealing with the public. There are also a number of toilet training products to help curb potty accidents indoors. These training items cannot always be found at a brick and mortar pet store around your neighbourhood.

Dog Food, Toys and Other Products

Your local pet shop will likely have a small selection of dog toys and kibble. However, shopping online will greatly expand your choices. What if your dog has special dietary needs or you cannot find the right formula that would provide the best health benefits? Moist and dry dog foods along with natural options that contain extra vitamins and minerals or even probiotics are available online.

Toys are a must for a happy dog ownership as they can keep your pooch occupied and out of trouble. Squeaky toys, balls, chew bones and ropes are quite popular and may not always be found at your local pet store. However, an internet shop would have a vast array of choices.

Other products for your pet’s health and happiness may include flea and tick medications, dog beds, dog doors, crates and kennels, bowls and feeders, identification tags and even food storage containers. Plus, there may be dog items that you did not even know existed if not for purchasing items through an online pet shop. Be the best dog owner you can be and look to the internet for all your pet needs. You could save time, effort, money, and find that there are great items on offer that could help you be a great pet parent.