Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Dog and cat food; Dog and cat food by price platform (excl treats and mixers);
Dog and cat food by price platform (incl treats and mixers); Dog and cat food
by type (excl treats and mixers); Other pet food; Pet care products
Executive summary
1. EXECUTIVE SUMMARY
Move to smaller homes results in trend for smaller pets
South African consumer confidence underwent a dramatic turnaround during 2004
and 2005. Lower interest rates and a strong Rand provided the economic
stability necessary to stimulate consumerism. The increase in disposable
income saw a boom in the housing market with owners moving to smaller suburban
townhouses and flats within the metropolitan areas.
This influenced consumer choice of pet as consumers moving to urban areas
changed to smaller dogs and other small pets such as cats and fish.
Increased variety in cat single-serve packs
The move to smaller pets was matched by an increase in product innovation by
manufacturers. The introduction of the single-serve wet pouch over the last
two years of the review period helped growth in the wet cat food sector as
consumers find it more affordable and convenient to supplement their cat's dry
food with wet food. The growth in single-serve wet cat food resulted in the
decline of tinned alternatives. However, the decline was not too severe and
this is likely to be due to the fact that tinned alternatives are more
affordable than pouches.
As the single-serve wet pouch becomes more popular, prices are likely to fall
to be more in-line with tinned options. The market share of tinned food is
likely to see a large drop in share as a result.
Drop in maize prices causes fall in economy dry food sales
Economy dry dog food constitutes the largest subsector of the pet food market
in South Africa. In June 2004 the price of maize almost halved and the
resultant decrease in value sales of economy dry dog food dragged down sales
overall in the dog food sector and pet food market.
The dramatic drop in the price of maize brought a huge jump in competition
from what are termed "backyard producers" of mainly dry dog food. These
producers are spread all over the country in both rural and urban areas and
are able to target the money-conscious consumer who is unconcerned about the
quality of their pet's food. This trend affected the economy dry dog food
sector the worst. However, it is a temporary situation that is likely to
rectify itself as maize price increases and no longer presents a viable
opportunity for the operations of "backyard producers".
Master Foods South Africa and Nestle Purina continue to lead
Master Foods South Africa (Pty) Ltd continues to lead the pet food market due
to its leading position in dry dog and cat food. However, Nestle Purina (Pty)
Ltd saw growth in its market value share in 2004, for the first time since
2001. Growth was secured by its performance in cat food, particularly wet cat
food.
Nestle s launch of Friskies Fine Cuts provided consumers with a good
alternative to Master Foods' Whiskas, and saw it take market share away from
Whiskas as well as Nestle s own Friskies Pamper (tinned alternative) brand.
The 2004 launch of Nestle Purina's Friskies Fine Cuts and the cat treat brand,
Friskies Lickin's, is likely restore share lost to Master Foods over the
review period.
Treats lead future growth, whilst healthcare will see decline
During the review period treats saw the greatest growth out of all the
sectors, albeit from a small base. With the move to smaller animals as well as
the improved financial situation amongst consumers, it is likely that growth
will continue at an increased rate as consumers use the option of treats to
spoil their pets.
The move to smaller homes resulted in pets spending more time indoors, or in
more confined gardens. This resulted in a drop in the value sales of pet
healthcare products. Pets are less exposed to parasites and hence are
healthier. This situation is likely to continue and the pet healthcare sector
is unlikely to see a turnaround over the forecast period.
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