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
Single households are increasing and so are pets
The number of single households increased over the review period, especially
in urban areas in Sweden. In Stockholm, 66% of all households are single,
whilst, in Gothenburg, 63% are single households. According to industry
observers and official surveys, many single households keep pets. These pets
serve as companions and, in many cases, become part of the family. There is a
strong tendency amongst single household pet owners to seek information and
advice about how to improve the quality of their pets' lives. This behaviour
is affecting sales of premium pet food and pet care products in a positive way.
Continued trend towards premium products
In the market as a whole, there was generally increased interest in finding
improved ways of providing for companion animals over the review period. The
continuing introduction of new specialised food designed to help companion
animals through every conceivable lifestage/lifestyle also managed to further
fan the interest in optimising pets' health through premium pet food and pet
care products. Pet owners often bought human food in supermarkets/hypermarkets
and then went to specialist retailers to purchase animal food, thus making
convenience a lesser priority. This behaviour occurred because consumers
wanted the greater variety of premium pet food and professional advice from
specialist retailers when purchasing animal food.
Dry dog and cat food more popular than wet
There was a continuing increase in interest in dry dog and cat food over the
review period. The main reasons for this are that dry food will keep fresh
longer, does not smell and, above all, most premium food is launched as dry
food. In 2005, dry food is expected to account for 86% of dog food value and
34% of cat food value.
Cats increase the most over the review period
The Swedish cat population increased by 19% to approaching 1.6 million animals
over the review period. Industry observers claim this is because cats are low
maintenance animals, which fit in quite well in the more busy urban lifestyles
of the mid-2000s. They are independent animals, which do not require their
owners' attention all the time. They do not have to be taken for walks and
they do not take up much space. At the same time, cats can be interacted with
and can be cuddled, as a true companion pet should be. The Swedish cat
population is expected to continue growing over the forecast period.
Multinational producers and Doggy rule dog and cat food
Dog and cat food is dominated by multinationals Masterfoods Sweden (Mars Inc)
and Nestle Purina PetCare Sweden and domestic producer Doggy. These companies
focus their attention on dog and cat food as this is by far the largest
sector; as a consequence, they are present in cat litter as well. These three
companies accounted for more than half of value sales in the Swedish pet food
and pet care products market in 2004.
Continued forecast growth
Pet owners will continue care more for their pets well being over the forecast
period. Sales of pet food and pet care products are forecast to increase by 8%
in constant value terms. Like in the historic period sales of dog and cat food
will continue to dominate, rising by 8%. Of the two dog food will have the
strongest performance, whilst growth in cat food will be weaker, due to a
faster rising dog population. Other pet foods will rise by just over 8% in
constant value terms over the forecast period, they will benefit from
increasingly specialised and therefore higher value products. Other pet care
products meanwhile will rise slightly less than 8%. Although consumers will be
prepared to spend more on their pets, cheaper imports from Asia are likely to
put a downward pressure on prices.