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PET CARE ANNUAL UPDATE: TRENDS AND GROWTH OPPORTUNITIES FRANK JIANG COUNTRY ANALYST PIJAC, MISSISSAUGA, ON SEPTEMBER 19, 2016
PET CARE ANNUAL UPDATE: TRENDS AND GROWTH OPPORTUNITIES
FRANK JIANG
COUNTRY ANALYST
PIJAC, MISSISSAUGA, ON SEPTEMBER 19, 2016
© Euromonitor International 3
What We Cover In Pet Care INTRODUCTION
Pet Care
Pet Food
Dog Food
Other Pet Food Cat
Food
Pet Products
Bird Food
Small Mammal /
Reptile Food
Fish Food
Cat Litter
Pet Dietary Supplements
Pet Healthcare
Other Pet Products
GLOBAL OVERVIEW
NORTH AMERICA: GROWTH CONTINUES
PREMIUMIZATION, HUMANIZATION AND MORE
THE FUTURE
GLOBAL OVERVIEW
NORTH AMERICA: GROWTH CONTINUES
PREMIUMIZATION, HUMANIZATION AND MORE
THE FUTURE
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Pet Care: Growing Despite Economic Challenges GLOBAL OVERVIEW
USD $100 Bn
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Global Pet Food Trends GLOBAL OVERVIEW: KEY GLOBAL TRENDS
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Global Potential for E-Commerce in Pet Care GLOBAL OVERVIEW: KEY GLOBAL TRENDS
15%
10%
5%
20%
GLOBAL OVERVIEW
NORTH AMERICA: GROWTH CONTINUES
PREMIUMIZATION, HUMANIZATION AND MORE
THE FUTURE
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North America: Heavy Spender and Growing GLOBAL OVERVIEW
Retail Value RSP | US$ mn | Constant 2016 Prices | Fixed 2016 Exchange Rates
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Values Over Volumes NORTH AMERICA: GROWTH CONTINUES
Y-O
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Pet Population Declining and Smaller Breeds Gaining Popularity NORTH AMERICA: GROWTH CONTINUES
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Premium offerings outperform the rest of the market and mimic human food trends; natural, free from, clean label, raw, etc.
Nature’s Variety Instinct Fridge USA
Opportunities Lie in Premiumization and Humanization NORTH AMERICA: GROWTH CONTINUES
Retail Value RSP | US$ mn | Constant 2016 Prices | Fixed 2016 Exchange Rates
GLOBAL OVERVIEW
NORTH AMERICA: GROWTH CONTINUES
PREMIUMIZATION, HUMANIZATION AND MORE
THE FUTURE
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Premiumization Continues in North America PREMIUMIZATION, HUMANIZATION AND MORE
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Premium Manufacturers Gain Share PREMIUMIZATION, HUMANIZATION AND MORE
*Note: Mars acquired Procter & Gamble’s Pet Business in April 2014
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Nutro Rotations by Nutro Products Inc Premium Dry Dog Food USA, July 2015
People enjoy variety in their diets, and Nutro Rotations allows them to give this same variation to their dogs.
The product allows seamless transitions between its various formulas
through consistent protein, fat and fibre profiles.
Open Farm Certified Humane by Open Farm Inc Premium Dry Dog Food Canada, January 2015
Resembles with the socially conscious trend in human food
Uses meat certified humane: No antibiotics, No Animal By-Products and free range
Premium packaging: Recyclable Cartons; BPA-Free
Flavours: Homestead Turkey & Chicken, Catch of the Season Whitefish & Green Lentil,
Farmers Market Pork and Root Vegetable
Humanization Continues: Quality & Variety in Pets’ Diet PREMIUMIZATION, HUMANIZATION AND MORE
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Humanization: “Treats” And “Other Pet Products” Outperforms PREMIUMIZATION, HUMANIZATION AND MORE
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Natural Trend Percolates Down To Treats PREMIUMIZATION, HUMANIZATION AND MORE
Orijen Original treats by Champion Petfoods Canada, 2012
Basics Limited-ingredient Dog Treats by Blue Buffalo Co, Ltd USA 2010
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Hypermarkets Has Shown An Impressive Growth In Canada PREMIUMIZATION, HUMANIZATION AND MORE
Internet retailing: 1.6% in 2015
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Since recent years, Freshpet has worked to install refrigerated retail units for its premium foods in supermarkets and hypermarkets, allowing the channels to mirror the storage that has historically only been present in the speciality pet channels.
These channels draw pet owners with lower prices, on the other hand have also leveraged the premiumization trend
Convenience remains key; supermarkets and hypermarkets still offer a one shopping trip.
More Mainstream Channels Also Capitalize on Premiumization PREMIUMIZATION, HUMANIZATION AND MORE
A retail refrigerator unit with pet food at a Wal-Mart store in Toronto, ON Canada
GLOBAL OVERVIEW
NORTH AMERICA: GROWTH CONTINUES
PREMIUMIZATION, HUMANIZATION AND MORE
THE FUTURE
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Global: Growth Expected to Continue in Pet Care THE FUTURE
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Canada: Overall Positive Outlook and Strong Development in Pet Products THE FUTURE
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THANK YOU FOR LISTENING
Frank Jiang
Country analyst
Euromonitor Chicago
224 S. Michigan Ave, 15th fl
Chicago, IL 60604
