Pet care in 2013 shows a world at different paces: developed and emerging markets grow at different paces and entail different opportunities. Retail prospects remain strong, as urbanisation continues, disposable incomes rise, and more consumers turn to pets for companionship. Overall, dog and cat food still account for the majority of sales but increasing indulgence by pet parents leads to cat and dog treats posting the highest growth.
Overall, pet care is expected to achieve a good performance with a 2% increase in real terms in 2013. This was a slight acceleration on the previous year, with much of the increase due to emerging markets.
Growth in regions such as Western Europe and North America has been harder to find, as a poor economic performance has undermined consumer confidence, and consumers are looking for better value for money.
The humanisation trend has been a key driver for pet care. Its importance can be seen in the way consumers in emerging markets increasingly treat their pets as a member of the family. This is manifest in dog and cat treats – the categories which posted the highest growth in 2013.
Premiumisation has been key to driving growth, and has resulted in more convenient packs and the use of functional ingredients. Premium dog and cat food were the fastest growing categories after treats.
Dog food is the largest category in pet care. Emerging markets, such as those in Latin America, have been key to driving growth, as they have high levels of dog ownership.
Different characteristics have caused markets to move at different paces. For example, while dog food is more popular in Latin America, it is pet products that make Asian markets tick.
Despite the still challenging economic times, pet care is forecast to see continued growth.
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