Euromonitor - Kemin Nutrisurance Symposium 2019 PDF

The Changing Face of
Global Pet Care

Uncovering Opportunity as a New Generation Disrupts the Market
Symposium. May 2019

Dewey Warner, Food and Nutrition Research Analyst
3
Euromonitor International
© Euromonitor International
4
Overview
State of the Industry
A New Generation Breeds New Opportunities
Conclusion
State of the Industry
6
Pet Care
Other Pet Pet

Dog Food Cat Food
Food Products
* Market coverage contained within is in terms of total retail sales through all channels
7
Industry stats
6% $123 bn 72%
CAGR between 2013-18 Pet care sales in 2018 of total market represented by
pet food in 2018
© Euromonitor International Retail Value RSP | US$ | Current Prices | Fixed 2019 Exchange Rates
8
Total Pet Care: Global Sales, 2013-18
$140 Pet Food Pet Products
$120
28.2%
Sales (USD billion)
$100 28.4%
28.4%
28.3% 28.3%
$80 28.1%
$60
$40 71.6% 71.8%
71.7% 71.7% 71.6%
71.9%
$20
$0
2013 2014 2015 2016 2017 2018
Source: Euromonitor International
Global pet care shows consistent growth

Retail Value RSP | US$ | Current Prices | Fixed 2019 Exchange Rates
9
Pet Care Packaged Food Fresh Food

31% 23% 16%
Growth 2013-18 Growth 2013-18 Growth 2013-18
Soft Drinks Home Care Tissue & Hygiene

24% 23% 28%
Growth 2013-18 Growth 2013-18 Growth 2013-18
10
$8 billion $1.7 billion $1.8 billion

April 2018 May 2018 February 2019
STATE OF THE INDUSTRY 11
Dry dog dominates; treats lead growth
Global Sales and Growth by Category

$40 Sales CAGR 10%
$35
2018 sales (USD billion)
8%
$30
CAGR, 2013-18
$25 6%
$20
$15 4%
$10
2%
$5
$0 0%
Dry Dog Food Wet Dog Food Dog Treats Dry Cat Food Wet Cat Food Cat Treats
12
Dog food
North America the giant; Asia as the next frontier
Dog Food Sales in 2018 Dog Food Forecast Absolute

Sales Growth
12,000
10,000
USD million
North 8,000 Rest of
America World
Rest of 6,000
World
4,000
2,000
Asia
Pacific
0
Absolute Forecast Sales Growth, 2018-23
13
Cat food
Diverse regional profile; Asia and Latin America to grow
Cat Food Sales in 2018 Cat Food Forecast Absolute

Sales Growth
7,000
6,000
Western North 5,000 Rest of
Europe America
USD million
World
4,000
3,000
Latin America
Rest of 2,000
World Asia
1,000
Pacific
0
Absolute Forecast Sales Growth, 2018-23
Leading Western European markets
Dog and Cat Food Sales

$5 Sales CAGR 5%
$4 4%
CAGR, 2013-18
USD billion
$3 3%
$2 2%
$1 1%
$0 0%

Pet ownership significant across Western Europe
Percent of Households Owning Dogs, 2018 Percent of Households Owning Cats, 2018
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%

A New Generation Breeds
New Opportunities
17
New owners will dictate future opportunities
▪ Urbanisation and pet ownership ▪ E-commerce and new

business models
▪ Premiumisation and trading-up
▪ Social media and word-of-
mouth
New markets Technology
Focus on
▪ Rise of the “green” shopper Sustainability ▪ A mindset shaped by the
value
recession
▪ Packaging, proteins and
provenance ▪ Finding quality at a value
▪ Corporate social responsibility ▪ Premium private label
18
New markets
19
World GDP in PPP Terms, 2000-30

100%
75%
% of world GDP
50%
Emerging markets: A new middle
class looks to trade-up
25%
0%
2000 2030
Developed Emerging and Developing
A NEW GENERATION BREEDS NEW OPPORTUNITIES 20
Socioeconomic trends drive new frontiers
Socioeconomic Indicator Growth by Market Pet Population: Fastest Growing Markets,

Type, 2018-30 2018-23
Developed Countries
India
5% Emerging and Developing Countries
China
4% Chile
Morocco
3%
CAGR
Mexico
2% Hong Kong, China
Vietnam
1%
South Korea
0% 0% 2% 4% 6% 8% 10% 12%
Number of Households Real GDP CAGR
21
Smaller, Urban Households in Emerging

and Developing Countries
Average Household Size Population Density
3.85 76
Cats are better suited 74
Population density (persons per sq km)

3.80
for modern lifestyles 72
Average household size

3.75
70
Busier lifestyles, urbanisation and growing
DINK and single populations are driving 3.70 68
demand for convenience, time savings and 66

less effort. 3.65
64
3.60
62
3.55 60
2018 2020 2022 2024 2026 2028 2030
Creating strong opportunities for

cats and small dogs
Projected Global Pet Population Growth by Emerging Regions: Projected Pet Population
Type, 2018-23 Growth by Type, 2018-23
40% 16%
35% 14%
12%
30%
10%
Total growth
CAGR
25%
8%
20% 6%
15% 4%
10% 2%
0%
5%
Asia Pacific Latin America Middle East &
0% Africa
Cats Small Dogs Medium Dogs Large Dogs Cats Small Dogs Medium Dogs Large Dogs
23
Trading-up to commercial pet food
27% +3pp 63%

Average caloric intake from Increase in calorie share from Average caloric intake from
commercial dog and cat food in commercially-made food from commercial dog and cat food in
emerging markets in 2018 2013-18 in emerging markets developed markets in 2018
24
Technology
E-commerce has emerged as a primary industry channel
Global Pet Care: Fastest Growing Global Distribution

Channels, 2013-18
Internet Retailing
Pet Shops
Warehouse Clubs
Veterinary Clinics
Pet Superstores
Hypermarkets
Supermarkets
Mass Merchandisers
0% 10% 20% 30% 40%

CAGR
Source Images: Zooplus.com, Chewy.com, Lazada.com,
Amazon.com
26
Global Internet Retailing: Dog and Cat Food
New disruptive online
Online Sales E-Commerce Channel Share
12% $9 shopping models
$8
10%
Channel share of dog and cat food
$7
Channel sales (USD billion)

8% $6
$5
6%
$4
4% $3
$2
2%
$1
0% $0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
© Euromonitor International Source Images:
Chewy.com
Custom models proliferate
Source Images: Company websites

28
Dog and Cat Food Internet Retailing: Major Western European Markets
25%
Turkey
20%
Channel share, 2018
Denmark
15%
Sweden France
Netherlands UK
10%
Finland
Belgium Spain
5% Germany
0%
$0 $50 $100 $150 $200 $250 $300 $350 $400 $450
Source: Euromonitor International Channel sales (USD million)
UK, France, Germany Turkey Scandinavia

The three largest and most Growth in incomes and trust in online Consumers flock to cost savings as
established markets unsurprisingly models is skyrocketing demand, leading internet retailers offer potential for
lead the way retailers like Pet Box to invest heavily value purchases of bulk packs
Subscription programs: The ultimate in both

value and convenience
zooplus Value Sales, 2013-18

1,400
1,200
1,000
USD million
800
600
400
200
0
2013 2014 2015 2016 2017 2018
New online shopping models: Customisation
Specific Formulas Therapeutic Diets Customised Formulas
Products formulated Food prescribed for Food designed

for a pet’s particular your pet’s specific specifically for a
features (i.e. breed, health conditions holistic profile of a
age, allergies) pet’s unique
tastes/needs
31
Focus on value
Grocery shoppers prioritise value for money
“Which features/attributes do you look for Global Growth in Full-Price vs Off-Price Retail
when buying packaged food?” Channels, 2013-18
Full-Price Off-Price
Value for money 50%
Health/nutritional benefits
Growth in retail sales, 2013-18

Superior taste 40%
No artificial flavors
30%
Low price
All natural 20%
Non-GMO
10%
Easy-to-understand labels
Strong/Well-known brand 0%
100% organic
-10%
0% 10% 20% 30% 40% 50%
Apparel & Footwear Department Stores Supermarkets*
% of respondents Specialists
Source: Euromonitor International Lifestyles Survey, 2017 n:14,221 Source: Euromonitor International *Note: Discounters are used here as a proxy for
© Euromonitor International “off-price” supermarkets
Premium private label: Quality for less
Premium Dog and Cat Food: Global Private

Label vs Branded Growth
Branded Premium Private Label Premium
25%
Germany: Fressnapf Norway: Europris Western Europe: Zooplus

20%
14.5% Pet Specialty Variety Stores E-Commerce
Y-on-y growth
CAGR
15%
10% 6.3%
CAGR
5%
Morocco: Carrefour USA: Chewy
0% Supermarkets E-Commerce
2013-14 2014-15 2015-16 2016-17 2017-18
34
Sustainability
35
Alternative ethics
The rise of the
“green” shopper Plastic-free
Religious label reinvented
Plant-based consumption
Clean label reformulation
An emerging class of new features
Global Sales of Organic Packaged Food,

2013-18
$50
8.2%
USA Austria Turkey Romania
$40 CAGR
Sales (USD billion)

$30
Egypt Ireland Hungary Germany

$20
$10
$0
2013 2014 2015 2016 2017 2018

Valuing local purchases and limiting “food miles”
USA: Number of Farmer’s Markets

10,000
9,000
Number of farmer’s markets
8,000
7,000 6.9% CAGR
6,000 Finland Estonia
5,000
4,000
3,000
2,000
1,000
Germany USA
0
Source: USDA
38
Vegan MSC Certified

50 International Platform of Insects for Food
and Feed (IPIFF) members
€355 million in funding raised
6 million kg of insects produced in 2018
Europe USA
Sustainable High-protein
Animal-free
living proteins diets
39
▪ Sustainable in a Generation Plan – $1 billion

investment
▪ 2020 target: 100% of fish and seafood will
be from sustainable sources
▪ Going totally green and reducing its
emissions to zero by 2040
Source Image: Mars.com
▪ Thailand Action Plan for the Responsible

Sourcing of Seafood
▪ 2030 ambition is to strive for zero
environmental impact in their operations
▪ Zuke’s is a member of the Pet Sustainability
Coalition
© Euromonitor International Source Image: Nestle.com

40
56.8% of global
consumers consider
“recyclable” a
trustworthy label on
products
© Euromonitor International Source Image: Packagingnews.co.uk (top), Nestle.com

(bottom)
Conclusion
42
Strong Industry Emerging Markets Younger Pet

Performance Provide Unique Owners Incite
Globally and in Frontiers for Disruption and
Western Europe Growth Opportunity
Topline growth led by emerging Rapid pet population growth, New generation valuing
markets while mature ones especially for cats and small dogs, customisation and convenience
sustain momentum in urban markets experiencing fuels surging growth for new
fastest economic development e-commerce models
Pet care outperforming many

other CPG industries, driving Variations in disposable income Financial and sustainability
active M&A environment result in premiumisation through concerns create opportunities for
trading up to commercial pet premium private label and
food “green” pet foods
Thank You
Related analysis
Dewey Warner, Food and Nutrition Analyst
www.euromonitor.com/pet-care
Facebook.com/Euromonitor For more information about Euromonitor

@Euromonitor International, send an email to:
info@Euromonitor.com

Euromonitor - Kemin Nutrisurance Symposium 2019 PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Euromonitor - Kemin Nutrisurance Symposium 2019 PDF

Загружено:

Авторское право:

Доступные форматы

The Changing Face of

Global Pet Care

Symposium. May 2019

A New Generation Breeds New Opportunities

Other Pet Pet

Global pet care shows consistent growth

Pet Care Packaged Food Fresh Food

Soft Drinks Home Care Tissue & Hygiene

$8 billion $1.7 billion $1.8 billion

Dry dog dominates; treats lead growth

Global Sales and Growth by Category

Dog Food Sales in 2018 Dog Food Forecast Absolute

Cat Food Sales in 2018 Cat Food Forecast Absolute

Leading Western European markets

Dog and Cat Food Sales

Source: Euromonitor International

Pet ownership significant across Western Europe

Source: Euromonitor International

New owners will dictate future opportunities

▪ Urbanisation and pet ownership ▪ E-commerce and new

▪ Corporate social responsibility ▪ Premium private label

World GDP in PPP Terms, 2000-30

Socioeconomic trends drive new frontiers

Socioeconomic Indicator Growth by Market Pet Population: Fastest Growing Markets,

Smaller, Urban Households in Emerging

Cats are better suited 74

Population density (persons per sq km)

Average household size

demand for convenience, time savings and 66

Creating strong opportunities for

Trading-up to commercial pet food

27% +3pp 63%

E-commerce has emerged as a primary industry channel

Global Pet Care: Fastest Growing Global Distribution

0% 10% 20% 30% 40%

Channel sales (USD billion)

Custom models proliferate

Source Images: Company websites

Source: Euromonitor International Channel sales (USD million)

UK, France, Germany Turkey Scandinavia

Subscription programs: The ultimate in both

zooplus Value Sales, 2013-18

New online shopping models: Customisation

Specific Formulas Therapeutic Diets Customised Formulas

Products formulated Food prescribed for Food designed

Grocery shoppers prioritise value for money

Growth in retail sales, 2013-18

Premium private label: Quality for less

Premium Dog and Cat Food: Global Private

Germany: Fressnapf Norway: Europris Western Europe: Zooplus

Religious label reinvented

Clean label reformulation

An emerging class of new features

Global Sales of Organic Packaged Food,

Sales (USD billion)

Egypt Ireland Hungary Germany

Source: Euromonitor International

Valuing local purchases and limiting “food miles”

USA: Number of Farmer’s Markets

Vegan MSC Certified

€355 million in funding raised

6 million kg of insects produced in 2018

▪ Sustainable in a Generation Plan – $1 billion