Pet Food and Supplies - UK - February 2013

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Total UK retail volume sales of dog food, 2007-17
Figure 2: Total UK retail volume sales of cat food, 2007-17
Segment performance
Figure 3: UK retail value sales of pet food and accessories, by sector, 2012
Market factors
Pet population remains steady
Pet obesity is a concern
Companies, brands and innovation
Wet food NPD declines in dog and cat sectors
Pedigree’s value growth is dented by discounting
Figure 4: Leading brands’ shares in the UK dog food market*, by value, 2012**
Felix and Whiskas continue to battle it out for share of cat food
Figure 5: Leading brands’ shares in the UK cat food market*, by value, 2012**
Total adspend in pet food edges up in 2012
The consumer
Figure 6: Pet ownership, by type, December 2012
Tinned dog and cat food decline in usage
Dog owners prioritise naturalness and health benefits when choosing dog food
Added health ingredients offer value growth opportunities
Figure 7: Attitudes towards pet food and accessories, December 2012
Pet treats with health benefits appeal to half of cat/dog owners
Figure 8: Attitudes towards pet treats, December 2012
What we think
ISSUES IN THE MARKET
Which areas of NPD are likely to appeal to over-65s?
How can manufacturers continue to add value to wet pet food?
Where can manufacturers go next with dog snacks and treats?
How can wet foods in gravy improve on their image as inconvenient?
TREND APPLICATION
Trend: Simple Balance for Health
Trend: Life Hacking
2015 trend: East Meets West
MARKET DRIVERS
Key points
Population of cats and dogs remains steady over the economic downturn
A third of dogs are obese or overweight
Older generation set for growth
Figure 9: Projected trends in population growth, by age, 2012-17
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
NPD activity in overall dog and cat food remains steady
Figure 10: Share of new dog and cat food launches within the total UK pet food market, 2009-12
Snacks and treats account for biggest share of activity in dog food
Figure 11: Share of new dog food launches within the UK cat/dog food market, by product category, 2009-12
Share of wet cat food NPD continues to slide as snacks and treats rise
Figure 12: Share of new cat food launches within the UK cat/dog food market, by product category, 2009-12
Brands regain share in NPD in 2012
Figure 13: Share of new product launches within the dog and cat food market, by private label and brands, 2009-12
Applaws leads dog food NPD in 2012
Figure 14: Share of new product launches within the dog food* market, by brand (top ten), 2009-12
Figure 15: Share of new product launches within the dog food* market, by ultimate company (top ten), 2009-12
Marks & Spencer and Tesco lead NPD in cat food
Figure 16: Share of new product launches within the cat food* market, by brand (top ten), 2009-12
Figure 17: Share of new product launches within the cat food* market, by ultimate company (top ten), 2009-12
No additives/preservatives claim features on biggest share of dog/cat food NPD
Figure 18: Share of new product launches within the cat and dog food* market, by claim (top ten), 2009-12
Fortified food holds its share in NPD
Further potential for ‘light’ products
High-protein claims under-represented
Pouches continue to account for the bulk of NPD as cans flounder
MARKET SIZE AND FORECAST
Key points
Flat volumes ahead for dog food
Figure 19: Total UK retail value and volume sales of dog food*, 2007-17
The future of the dog food market
Cat food growth outpaces dog food
Figure 20: Total UK retail value and volume sales of cat food*, 2007-17
Future of the cat food market
Healthcare and accessories are forecast to continue struggling
Figure 21: Total UK retail value sales of pet accessories and healthcare, 2007-17
Future of the pet accessories and healthcare market
Market forecast
Dog food
Figure 22: Total UK retail volume sales of dog food, 2007-17
Cat food
Figure 23: Total UK retail volume sales of cat food, 2007-17
Pet accessories and healthcare
Figure 24: Total UK retail value sales of pet accessories and healthcare, 2007-17
Forecast methodology
SEGMENT PERFORMANCE
Key points
Cat food convincingly outperforms dog food in value terms in 2012
Figure 25: UK retail value sales of pet food and accessories, by sector, 2012
Figure 26: UK retail value sales of pet food and accessories, by sector, 2009-12
Wet dog food volumes continue to struggle
Figure 27: UK retail value and volume sales of dog food, by format, 2009-12
Cat snacks and treats enjoy a 33% volume jump
Figure 28: UK retail value and volume sales of cat food, by format, 2009-12
Cat litter sales rocket by 10.6% in 2012
Figure 29: UK retail value sales of pet accessories, by format, 2009-12
MARKET SHARE
Key points
Pedigree’s value growth is dented by discounting
Figure 30: Leading brands’ shares in the UK dog food market*, by value, 2012**
Figure 31: Leading brands’ sales and shares in the UK dog food market, by value and volume, 2011 and 2012
Misfits continues to impress
Figure 32: Leading brands’ sales and shares in the UK dog snacks and treats market, by value and volume, 2011 and 2012
Felix and Whiskas continue to battle it out for share of cat food
Figure 33: Leading brands’ shares in the UK cat food market*, by value, 2012**
Figure 34: Leading brands’ sales and shares in the UK cat food market, by value and volume, 2011 and 2012
Mars dominates cat snacks and treats
Figure 35: Leading brands’ sales and shares in the UK cat snacks and treats market, by value and volume, 2011 and 2012
BRAND COMMUNICATION AND PROMOTION
Key points
Total adspend in pet food edges up in 2012
Figure 36: Total advertising expenditure in the UK pet food market, 2008-12
Figure 37: Total advertising expenditure in the UK pet food and supplies market, by top ten advertisers, 2008-12
Dog food advertising declines, while cat food adspend drives growth
Figure 38: Total advertising expenditure in the cat and dog food markets, by animal, 2008-12
Figure 39: Total adspend on dog food and snacks, by company (top ten), 2008-12
Pedigree focuses on health with Wet Nose Week
Nestlé’s Bakers Complete produces an advert for canine ears
Big players ramp up adspend in cat food
Figure 40: Total adspend on cat food and snacks, by company (top ten), 2008-12
Social media has untapped potential for pet food
CHANNELS TO MARKET
Key points
Supermarkets are the most typically used retailer for pet food
Figure 41: Store used to buy pet food, 2008-12
Six in ten owners prefer to shop for pet food at supermarkets rather than specialist pet stores
Figure 42: Agreement with the statement ‘I prefer to shop for pet food at supermarkets rather than specialist pet stores’, by financial situation, December 2012
Pets at Home continues to expand
COMPANIES AND PRODUCTS
Butcher’s Pet Care
Mars Petcare
Nestlé Purina Pet Care
Procter & Gamble
 PET ACCESSORIES AND HEALTHCARE
Armitage Pet Care Ltd
Bob Martin
CONSUMER – PET OWNERSHIP
Key points
Over six in ten Brits own a pet
Figure 43: Pet ownership, by type, December 2012
Ownership of dogs declines with age
Figure 44: Ownership of dogs and cats, by age, December 2012
Pester power potential beckons with fish and small mammals
Figure 45: Ownership of fish and small mammals, by presence of children in household, December 2012
CONSUMER – SIZE OF DOG(S)
Key points
UK dog owners are most likely to own medium-sized dogs
Figure 46: Ownership of dog(s), by size, December 2012
Ownership of large dogs and small dogs peaks among over-55s
CONSUMER – TYPES OF PET ACCESSORIES BOUGHT
Key points
Toys top the list of pet accessories bought
Figure 47: Types of pet accessories bought, December 2012
One-person households are less likely to buy pet bedding
Figure 48: Selected pet care products purchased in the past 12 months, by age, December 2012
CONSUMER – USAGE OF PET FOOD
Key points
Usage of tinned dog food declines in 2012
Figure 49: Types of dog food bought, 2008-12
Pouches continue to dominate cat food as tins decline
Figure 50: Types of cat food bought, 2008-12
CONSUMER – CHOICE FACTORS
Key points
Dog owners prioritise naturalness and health benefits when choosing dog food
Figure 51: Factors considered important when choosing dog food, December 2012
Female dog owners prioritise health claims
Figure 52: Selected choice factors for dog food, by gender, December 2012
Only three in ten dog owners rate special offer as important
Cat owners prioritise naturalness and health
Figure 53: Factors considered important when choosing cat food, December 2012
Natural ingredients appeal to older age cat owners
Figure 54: Selected choice factors for cat food, over-55s vs average, December 2012
CONSUMER ATTITUDES TOWARDS PET FOOD AND ACCESSORIES
Key points
Special occasions have strong gifting appeal for pet owners
Figure 55: Attitudes towards pet food and accessories, December 2012
Added health ingredients offer value growth opportunities
Pouches are deemed more convenient than cans
Figure 56: Agreement with the statements ‘Pouches are more convenient than cans’ and ‘Meat chunks in jelly are easier to use than chunks in gravy’, by age, December 2013
Two fifths of owners see the value in homemade pet food
Figure 57: Agreement with the statements ‘Giving pets leftovers is a good way to save money’ and ‘Homemade pet food is a healthy alternative to manufactured pet food’, by age, December 2012
Gourmet pet food is deemed in short supply for three in ten under-35s
CONSUMER ATTITUDES TOWARDS PET TREATS
Key points
Pet treats with health benefits appeal to half of cat/dog owners
Figure 58: Attitudes towards pet treats, December 2012
Pet treats are relatively unaffected by the economy
One in five cat owners would like to see a wider variety of cat treats
TARGET GROUPS
Key points
 THREE TARGET GROUPS
Figure 59: Target groups, December 2012
Health and Hygiene (28%)
Gourmets (27%)
Value Seekers (45%)
APPENDIX – MARKET SIZE AND FORECAST
Figure 60: Total UK retail value sales of pet food and accessories, 2007-17
Figure 61: Best- and worst-case forecasts for UK value sales of pet food and accessories, 2012-17
Figure 62: Total UK retail volume sales of pet food and accessories, 2007-17
Figure 63: Best- and worst-case forecasts for UK volume sales of pet food and accessories, 2012-17
Figure 64: Total UK retail value sales of pet food and accessories, 2007-17
Figure 65: Total UK retail value sales of dog food, 2007-17
Figure 66: Best- and worst-case forecasts for UK value sales of dog food, 2012-17
Figure 67: Best- and worst-case forecasts for UK volume sales of dog food, 2012-17
Figure 68: Total UK retail value sales of cat food, 2007-17
Figure 69: Best- and worst-case forecasts for UK value sales of cat food, 2012-17
Figure 70: Best- and worst-case forecasts for UK volume sales of cat food, 2012-17
Figure 71: Total UK retail value sales of small animals/other* food, 2007-17
Figure 72: Best- and worst-case forecasts for UK value sales of small animals/other food, 2012-17
Figure 73: Total UK retail volume sales of small animals/other* food, 2007-17
Figure 74: Best- and worst-case forecasts for UK volume sales of small animals/other food, 2012-17
Figure 75: Best- and worst-case forecasts for UK value sales of pet accessories and healthcare, 2012-17
APPENDIX – CONSUMER – TYPES OF PET OWNED
Figure 76: Types of pet owned, December 2012
Figure 77: Most popular types of pet owned, by demographics, December 2012
Figure 78: Next most popular types of pet owned, by demographics, December 2012
Figure 79: Types of pet owned, by demographics, December 2012
Figure 80: Types of dog owned, by demographics, December 2012
Figure 81: Types of cat owned, by demographics, December 2012
Figure 82: Types of fish owned, by demographics, December 2012
Figure 83: Types of small mammals owned, by demographics, December 2012
APPENDIX – CONSUMER – SIZE OF DOG(S)
Figure 84: Size of dog(s) owned, by demographics, December 2012
APPENDIX – CONSUMER – USAGE OF PET FOOD
Figure 85: Types of dog food in tins, foil trays and pouches, 2008-12
Figure 86: Users of complete dry dog food, 2008-12
Figure 87: Users of dog biscuits, mixers and treats, 2008-12
Figure 88: Types of dog biscuits, mixers and treats, 2008-12
Figure 89: Types of cat food in tins, foils trays and pouches, 2008-12
Figure 90: Users of complete dry cat food, 2008-12
Figure 91: Users of dog food in tins, foil trays and pouches, by demographics, 2012
Figure 92: Users of complete dry dog food, by demographics, 2012
Figure 93: Users of cat food in tins, foils trays and pouches, by demographics, 2012
Figure 94: Users of complete dry cat food, by demographics, 2012
APPENDIX – CONSUMER – CHOICE FACTORS
Figure 95: Most popular factors considered important when choosing dog food, by demographics, December 2012
Figure 96: Next most popular factors considered important when choosing dog food, by demographics, December 2012
Figure 97: Most popular factors considered important when choosing cat food, by demographics, December 2012
Figure 98: Next most popular factors considered important when choosing cat food, by demographics, December 2012
APPENDIX – CONSUMER – ATTITUDES TOWARDS PET TREATS
Figure 99: Most popular attitudes towards pet treats, by demographics, December 2012
Figure 100: Next most popular attitudes towards pet treats, by demographics, December 2012
APPENDIX – CONSUMER – TYPES OF PET ACCESSORIES BOUGHT
Figure 101: Most popular types of pet accessories bought, by demographics, December 2012
Figure 102: Next most popular types of pet accessories bought, by demographics, December 2012
Figure 103: Other types of pet accessories bought, by demographics, December 2012
APPENDIX – CONSUMER – ATTITUDES TOWARDS PET FOOD AND ACCESSORIES
Figure 104: Agreement with the statements ‘It’s nice to treat your pet with a toy for special occasions’ and ‘Pet food featuring added health benefits is worth paying more for’, by demographics, December 2012
Figure 105: Agreement with the statements ‘Pouches are more convenient than cans’ and ‘I prefer to shop for pet food at supermarkets rather than specialist pet stores’, by demographics, December 2012
Figure 106: Agreement with the statements ‘I am concerned about my pet getting all of the right nutrients’ and ‘Meat chunks in jelly are easier to use than chunks in gravy’, by demographics, December 2012
Figure 107: Agreement with the statements ‘Giving pets leftovers is a good way to save money’ and ‘I’d cut back spending on my own food before I’d cut back on my pet’s’, by demographics, December 2012
Figure 108: Agreement with the statements ‘I would like to see a wider range of smaller packs of pet food’ and ‘Homemade pet food is a healthy alternative to manufactured pet food’, by demographics, December 2012
Figure 109: Agreement with the statements ‘It is difficult to tell if my pet is overweight’ and ‘There are not enough gourmet cat and dog foods’, by demographics, December 2012
APPENDIX – CONSUMER TARGET GROUPS
Figure 110: Target groups, by demographics, December 2012
Figure 111: Factors considered important when choosing dog food, by target groups, December 2012
Figure 112: Factors considered important when choosing cat food, by target groups, December 2012
Figure 113: Attitudes towards pet treats, by target groups, December 2012
Figure 114: Types of pet accessories bought, by target groups, December 2012
Figure 115: Attitudes towards pet food and accessories, by target groups, December 2012