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
Dog and Cat Food Continues to Dominate the Market in 2007
With almost one in every two of Austria' s three and a half million households
owning a cat or a dog, dog and cat food continued to dominate the country' s
pet food and pet care products market in 2007, accounting for 72% of total
current value sales. Commonly favoured as companions by elderly people, the
numbers of small and medium sized dogs grew steadily throughout the review
period in line with Austria' s ageing population. Growth in the cat population
meanwhile was driven by an increase in the number of single-person households,
as cats require less attention than dogs and are therefore a more suitable pet
for consumers who live alone.
Current Value Decline is Mainly Due to Falling Demand for Wet Cat Food Products
Pet food and pet care products showed a small decline in current value terms
in 2007. This was mainly due a fall in demand for wet cat food products, which
accounted for a market value share of 55%. In general, wet cat food products
tend to be more expensive than dry products. Towards the end of the review
period, many consumers showed an increasing preference for dry cat food
products, which offer a number of advantages over wet products. In particular,
they are lighter to carry, easier to store (especially after opening) and
allow for more accurate measuring of portions. Additionally, wet cat food
showed a trend towards polarisation, with many consumers opting for either
premium or private label products at the expense of mid-priced brands. The
decline in total pet food and pet care products current value sales was also
driven by a reduction in the large dog population, as large dogs tend to eat
more than small and medium sized breeds. Moreover, an increase in the
penetration of private label products within dog food, other pet food and pet
care products also contributed to the negative development of the market as a
whole.
Larger Players Look to Innovation to Resist the Advance of Private Label Products
In order to improve their competitiveness against private label products and
smaller companies offering standard mid-priced brands, towards the end of the
review period larger dog and cat food manufacturers invested more in
innovation. In general, there were two main focal points for new product
developments: product quality and packaging. While some manufacturers
introduced added-value products with functional or healthy ingredients, others
launched more convenient packaging formats. This latter trend was particularly
evident in the growing popularity of dog and cat food products packaged in
single-serve pouches. Rising demands for convenience were also reflected in
the shift towards dry products in both dog and cat food. In general,
innovations by larger manufacturers were intended to reinforce the premium
positioning of their brands, or else to reposition mid-priced products in the
premium segment. However, private label products proved increasingly adept at
copying convenient and added-value innovations by branded manufacturers
throughout the review period, without having to invest large amounts in the
research and development process.
Supermarkets/Hypermarkets Remains the Leading Distribution Channel in 2007
Supermarkets/hypermarkets remained the leading retail distribution channel for
pet food and pet care products in Austria in 2007, followed by other non-food
stores. The value share of supermarkets/hypermarkets remained relatively
stable over the review period, thanks to rising demands for convenience among
consumers and the fact that most outlets in this channel offer a wide
assortment of both private label and branded products at different price
points. Other non-food stores, consisting mainly of chemists/drugstores
outlets, made distribution value share gains throughout the review period,
mainly at the expense of pet shops and other food stores. Once again, these
gains were attributable to the fact that many other non-food stores outlets
offer a wide range of branded and private label products in different price
segments. For similar reasons, the value share of pet superstores increased at
a gradual pace over 2002-2007.
Trend Towards Pet Humanisation Will Provide New Opportunities for Producers
During the review period, demand in the pet food and pet care products was
increasingly driven by the tendency of Austrian consumers to treat their pets
more like human companions than animals. Although the market as a whole is
expected to see a decline in constant value terms over the forecast period,
this trend towards pet humanisation will provide individual manufacturers with
new opportunities to boost constant value sales. In particular, it should
facilitate an increase in demand for premium and even super premium products
in dog and cat food, as well as for healthcare products and higher priced pet
accessories products (other pet care products).
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