What S Next For Pet Food Market

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What’s next for pet food market?
6th November 2017

By Karen Pickwick

Premiumisation and innovation will be key to encouraging value growth in UK pet food sales in the coming year, according to Euromonitor International. Dog treats could also potentially see strong growth if manufacturers continue to explore new options with less processed meats.

Year-on-year global growth in dog food sales slowed between 2015-2017, according to the research, much of this attributed to an increase in urban living coupled with a slow recovery to the financial crisis. This trend appears set to continue.

Paula Flores, head of pet care at Euromonitor, said: “Dogs have always been the most humanised animals. Traditionally considered man’s best friend, dogs increasingly share their owners’ lives. Dog food is largely comprised of premium pet food, particularly in North America, where niche products often experience fast growth. This was the case with freeze-dried and raw foods, which are perceived as more natural and capturing growth.

“Cats, on the other hand, are gaining popularity, particularly in more densely populated areas. Typically seen as less demanding than dogs, they are seen as companions. Gourmet-based innovation, as well as different textures and recipes, have been key to driving growth.”
 
The UK, France, Italy and Germany will remain the biggest markets for dog food in Western Europe, Euromonitor predicts. Dog treats and premium non-therapeutic wet and dry dog food have the strongest potential for further positive growth within dog food over the forecast period.

“In the UK, dog food is expected to follow a similar trend to the one experienced in 2016 and 2017,” Paula said. “Due to socioeconomic factors, including decreasing household sizes, small dogs are expected to account for a 59% share of the total dog population by 2022. Further, a new law which has made dog microchipping compulsory since April 2016 has had a significant impact on pet owners, who are already switching to other types of pet to reduce costs. Consequently, volume sales are predicted to decline by an annual average of 3% over the forecast period.

“Premiumisation, innovation and strategies towards higher specific value in dog food will, therefore, be key to encouraging value growth. Dog treats could potentially see strong value growth if manufacturers continue to explore new options with less processed meats. Many brands have successfully tried options such as meaty sticks (chicken or salami), which are likely to grow in the future, alongside other innovative options, such as wet dog treats.”