A temperate growth
Overall, pet care showed positive growth rates, yet significantly lower than those seen before the onset of the economic recession. Even with pet owners shifting their consumption towards cheaper products, pet care in Spain is still an attractive market which draws new players and shows certain dynamism. Pet owners are strongly committed to taking care of their animals and feed them with quality products; especially this year with the cocooning trend and thus more time spent at home with them.
The market suffering from tightening margins
A general cost increase overran the pet care market in 2012 and 2013, especially in terms of price of raw materials. In a context of high consumer frugality and where price has become the key purchasing factor, companies act very cautiously, so as to maintain their volume sales. For that reason, the price increase of raw materials was not transferred to the final consumer, and consequently several pet food companies saw its margins decrease. New distribution methods and strategies, such as a value chain shortening, are emerging as a result.
The advance of grocery retailers as a result of consumers’ saving attitude has allowed private label to increase its overall volume share. By being strongly committed to quality and by offering a wide range of products with a high degree of diversification, private label has reached similar product excellence as regular branded pet products and is stealing consumers from specialist channels and from key market brands. As a result, the market is moving towards concentration, which is becoming an obstacle that is hard to overcome for small players within traditional distribution.
Reshaping the market
With more and more purchase planning and a population increasingly worried about how to manage its squeezed budget, retail grocery outlets continued to gain ground during the last year in Spain.
Veterinary clinics, pet stores and superstores traditionally offer a more expensive product range. On the other hand, private label has reached considerable market quality standards, being able to compete at the same level as leading brands do. Consequently, there was a consumption shift from specialist channels to grocery retailers which in addition caused a slight loss of value in the market.
Market stability in the coming years
No big changes are expected to occur within the pet care scope during the forecast period. By the hand of economic recession, private label is expected to increasingly gain ground to the detriment of branded players and sales through specialist channels. Stability of the pet population is also relied upon.
As a consequence of the market reshape, a dual trend is expected to govern consumption during the forecast period. On the one hand, further market concentration is expected as a result of the development of the grocery channel. On the other hand, new distribution methods which will allow manufacturers to reduce costs, are likely to keep on gaining weight.
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The Pet Care in Spain 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 Spain?
- What are the major brands in Spain?
- 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.