UK cats get the cream

Author: Eric Combelles

Date published: 19 Oct 2004

UK cat products

According to the latest research by global market analyst, Euromonitor International, the cat population numbers approximately 8 million in the UK, with 18% of households owning at least one cat. With increasingly better care being provided to cats (and more generally, to pets) throughout the country, senior cats now represent about two-thirds of the population. In fact a cat’s life span is now typically 12-15 years, with a growing proportion reaching 15 and beyond.

Convenience

Euromonitor’s 2004 report on the UK market for Pet Food and Pet Care Products found that cat food sales reached £855 million in 2003, corresponding to an annual average value growth of nearly 5% between 1998 and 2003. Retail sales of cat food are largely being fuelled by convenience. Cats are more demanding than dogs when it comes to pet food quality and therefore, cat owners opt more easily for prepared food as opposed to home-cat food. Moreover the vast majority of cat owners are 34-44 years old, an age group where time, family and career are precious.

Premium dry cat food boosted retail sales significantly. This is because pet owners see an extra level of convenience with premium dry cat food. Firstly, the "premium" nature of the product guarantees and secures the consumer in the sense that their cat is eating high quality food. Secondly, dry food generates less wastage than wet food, where it is impossible to remove 100% of the packaging content. Additionally, dry food is odourless and can be stored longer once open. And finally, dry food has better health properties, such as being healthier for the teeth and for the digestion.

Wet cat food also supported retail sales development thanks to packaging innovation. Single-serve pouches proved very popular among cat owners, with active brand extension and communication helping to promote this packaging type.

Product development

Euromonitor International has found that companies have been focusing more and more on the life stage of pets and this has been especially the case for cats, as a significant proportion of the UK cat population is senior in age. The food is specifically formulated according to the age or life stage of the pet, with the objective of feeding the right level of calories for a kitten, adult or old cat. Pet owners are far more educated today and as a result of communication programmes concerning the benefits of prepared food, they chose the right product for their companion.

New flavours have also appeared in the market for well-educated cat owners, who are concerned about the wellbeing of their cats. These owners "picture" themselves as eating the same meal everyday and the idea is not very appealing. In this context they seek new flavours and varieties for their cat.

Accessories and services

Cat accessories accounted for £410 million in 2003 and Euromonitor International sees this market growing because pet owners continue to spend more on their companion. This is the result of the "humanisation" trend, where pets receive increasing attention from their owners to the point that a pet is sometimes treated like a child. The product growth is valid for all product types within cat accessories including dietary supplements, cat litter and collars, among many others.

Pet services are an interesting trend to monitor. Recently pet owners, including cat owners, began to subscribe to pet insurance. This trend is likely to rise as pet owners perceive pet insurance as a means to reduce vet fees. Mars is also planning to launch MyPetStop, a pet hotel chain, while Virgin Atlantic Airways has introduced a pet air mileage scheme. Examples of pet services are mulitplying.

Future outlook

Euromonitor expects the market for cat food to break the billion pound sterling point by 2008. Convenience will remain the key driver for growth, with for instance single-serve portions, new flavours and new product textures to suit even the most sophisticated cat’s palate. But one main issue remains as yet unknown - namely will current owners of senior cats opt to replace their companion? The outcome of this decision will impact the market significantly.