Pet care’s top 10 markets: a mixed bag

Unsurprisingly, the US was the leading market in 2013, remaining key to the future of pet care. In value terms, the US market is the largest for pet care in the world, being nearly four times bigger than that of Brazil. North Americans are pet lovers and this is reflected in the region’s large pet population. Some 37 per cent of US households had a dog in 2013, compared with 35 per cent in Canada. For cats, the figures were 32 per cent and 38 per cent respectively.
A strong premiumisation trend is the main growth driver in this market. Real value sales of premium dog and cat food grew by 3 per cent in 2013, and hardly a week seems to pass without at least one new premium or super-premium brand being launched in what is becoming an increasingly competitive space. Many of these products are marketed as all-natural, biologically appro-priate, grain-free, raw, holistic or hypoallergenic.

Having overtaken the UK and Japan in recent years, Brazil is now the second largest pet care market in the world, behind the US. Driven by its burgeoning middle class, Brazil has one of the most dynamic pet care markets globally. In the dog and cat food category, dry products account for almost 95 per cent. Mid-priced products accounted for half of the market but premium dog and cat food exhibited real compound annual growth rates (CAGRs) of 5 per cent over 2008-2013, thus illustrating the degree of premiumisation in the market.
Western Europe is home to the third, fifth, sixth and seventh biggest markets, namely the UK, France, Germany and Italy. It comprises a varied scenario as many markets in the region are dealing with their own specific economic difficulties, ranging from gaping government deficits to housing market crashes and soaring unemployment rates. In spite of sluggish economic growth and significant reductions in government spending, both the French and UK pet care markets have seen significant premiumisation in recent years. In France, premium dog and cat food exhibited real value growth of 26 per cent over 2008-2013. In the UK, premium dog and cat food grew by 15 per cent.
In contrast, the German market has been characterised by polarisation rather than premiumisation, with real value sales of economy and mid-priced dog and cat food contracting by 1 per cent and 5 per cent respectively from 2008 to 2013, while real value sales of premium products expanded by 0.3 per cent. One main factor behind the relatively sluggish performance of the…