Pet care grows despite economic downturn
Pet care grew at a stable pace in 2012 and will continue to do so in 2013. This once again underlines that pet care in Denmark is a relatively crisis-proof market. Just as the financial crisis in 2008-2009 led to only minor declines in value growth rates for pet care, the renewed economic downturn, which hit Denmark in 2012 following the eurozone debt crisis, has not significantly impacted pet owners’ spending. A major reason for this is the widespread pet humanisation, which makes pet owners willing to spend extra on premium products for their pets, even in times of economic hardships.
Private label drops for the first time in years
2012 marked an exception to the rule that private label is always growing, as retailers’ own products saw a minor drop in value share for the first time in the 10 years covered by Euromonitor International’s data for value shares. This illustrates how major branded players, first and foremost the market leader Mars Danmark A/S, responded to the competition from private label by intensifying marketing activities, among other things through increased presence in grocery retailers’ weekly brochures. At the same time, it is possible that the fierce price competition in the economy dog and cat food category has led to private label products of an unacceptable quality, which are not able to attract consumers over a longer period of time.
Mars Danmark A/S remains the market leader in pet care in Denmark
Pet care in Denmark is a relatively fragmented market with the leader Mars Danmark A/S being the only company holding a double-digit value share in 2012. The rest of the market is split between a mixture of multinational and domestic players with value shares below 10%. Mars Danmark A/S has almost all its sales in dog and cat food where the company is the clear leader, mainly thanks to its popular mid-priced brands Pedigree Pal and Whiskas. While Mars Danmark A/S’s value share has been slightly dropping over the review period, the company managed to post a marginal increase in 2012, as marketing campaigns successfully countered the competition from private label.
Grocery retailers dominate as pet superstores and pet shops grow
2012 saw a continuation of the trend for value growth in pet superstores and pet shops. These channels benefit from the increased interest in the premium segment, which is a consequence of the widespread pet humanisation trend. Nevertheless, grocery retailers remain the largest channel in pet care in Denmark with a value share of 55% in 2012. Grocery retailers offer a wide selection of economy and mid-priced products, including several popular private label products. A weak point for grocery retailers in Denmark is their relatively low presence in internet retailing, which makes them vulnerable to competition from domestic pet shops’ websites as well as foreign websites like Amazon.
Slight increases in value growth rates expected
Pet care is set to grow by a constant value CAGR of 1% over the forecast period, which is a slight improvement compared with that of the review period. This illustrates how pet care, will react positively to the expected improvements in Danish economy over the forecast period. At the same time, new launches in the mid-priced and premium segments of dog and cat food are expected to positively impact these categories, restrict further value growth in the economy segment, and drive total value sales upwards.
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The Pet Care in Denmark market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Pet Care in Denmark?
- What are the major brands in Denmark?
- How did the downturn affect pet care spending?
- Which is the best-performing category within pet care?
- Which is the fastest-growing pet food manufacturer?
- How have pet specialists fared in recent years?
- What are growth prospects for pet care in the next 5 years?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Pet Care market research database.