Author: Mintel Group Ltd.
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Pet Food: Inc Impact of COVID-19 - UK - September 2020

OVERVIEW
Key issues covered in this report
COVID-19: Market context
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
Impact of COVID-19 
Figure 1: Short-, medium- and long-term impact of COVID-19 on cat and dog food, 29 September 2020
The market
COVID-19 brings little change to the market in 2020, a rise in ownership will support growth ahead
Figure 2: Retail value market size and forecast for the cat and dog food market, 2015-25
COVID-19 sees snacks and treats prosper
Little change in pet ownership in early 2020
Companies and brands
Pedigree retains top position in dog food, Butchers and Harringtons gain
Figure 3: Leading brands’ sales in the UK retail wet and dry dog food market, by value and volume, 2018/19 -2019/20
Whiskas and Purina post strong growth
Figure 4: Leading brands’ sales in the UK retail cat wet and dry foods market, by value and volume, 2018/19 -2019/20
Environmentally friendly packaging claims continue to climb
All-natural claims gain ground dialling up the need for brands to go beyond 
The consumer 
Manufactured cat and dog food is owners’ go-to choice
Figure 5: Types of cat and dog food bought, May 2020
Taste is top priority for dog/cat food buyers
Figure 6: Purchase drivers for pet food among dog/cat food buyers, May 2020
Strong potential for pet food positioned for pets’ needs, widespread interest in sustainability
Figure 7: Attitudes towards pet food among dog/cat food buyers, May 2020
Half of dog/cat food buyers think trading down is a good way to save money
Figure 8: Behaviours related to pet food among dog/cat food buyers, May 2020
Heart and digestive health are dog/cat food buyers’ top priorities
Figure 9: Ideal functional benefits of pet food among dog/cat food buyers, May 2020
ISSUES AND INSIGHTS
COVID-19 will put brands under pressure as trading down is widely deemed a good way to save money
Heart, gut and immune health hold potential for brands that can overcome scepticism
Over half drawn to sustainable ingredients – but few prioritise them
THE MARKET – KEY TAKEAWAYS
COVID-19 brings little change to the market in 2020
A rise in pet ownership will support volume growth
Little change in pet ownership in early 2020
MARKET SIZE AND FORECAST
COVID-19 fuels uptick in treats and snacks
Figure 10: Short-, medium- and long-term impact of COVID-19 on cat and dog food, 29 September 2020
COVID-19 boosts pet snacks and treats in 2020
Figure 11: Cat and dog food retail value and volume sales, 2015-2025 (prepared on 29 September 2020)
A rise in pet ownership ahead?
Figure 12: Cat and dog food retail value sales, 2015-2025
Market drivers and assumptions
Figure 13: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on 29 September 2020)
Learnings from the last recession
Figure 14: Value sales of cat and dog food, 2007-12
Forecast methodology
MARKET SEGMENTATION
COVID-19 sees snacks and treats prosper
Figure 15: UK retail value and volume sales of dog food, by type, 2018-20
Figure 16: UK retail value and volume sales of cat food, by type, 2018-20
MARKET DRIVERS
Little change in pet ownership 
Figure 17: Pet ownership, by type of pet, April 2015-May 2020
Ageing population and decline in child population pose a threat to pet ownership
Figure 18: Cat and dog ownership, by age and age of children, May 2020
Pressure on household incomes stands to prompt trading down in pet food
End of Brexit transition poses potential disruption for pet food market
COMPANIES AND BRANDS – KEY TAKEAWAYS
Pedigree retains top position in dog food, Butchers and Harringtons gain
Whiskas and Purina post strong growth
Environmentally-friendly packaging claims continue to climb
All-natural claims gain ground, dialling up the need for brands to go beyond 
MARKET SHARE
Pedigree retains top position, Butchers and Harringtons gain
Figure 19: Leading brands’ sales in the UK retail wet and dry dog food market, by value and volume, 2017/18 -2019/20
Pedigree and Good Boy retain the lead in dog snacks and treats
Figure 20: Leading brands’ sales in the UK retail dog snacks and treats market, by value and volume, 2017/18 -2019/20
Whiskas and Purina post strong growth
Figure 21: Leading brands’ sales in the UK retail cat wet and dry foods market, by value and volume, 2017/18 -2019/20
Dreamies retains the lead in cat snacks and treats
Figure 22: Leading brands’ sales in the UK retail cat snacks and treats market, by value and volume, 2017/18 -2019/20
Nestlé Purina PetCare acquires Lily’s Kitchen
Bella &amp; Duke secures £3.5 million in funding
Edgard &amp; Cooper wins Sainsbury’s listing, Paul O’Grady’s range moves into B&amp;M stores 
LAUNCH ACTIVITY AND INNOVATION
Environmentally friendly packaging claims continue to climb
Figure 23: Share of pet food launches with selected ethical claims, 2016-20
Figure 24: Examples of pet food launches with environmentally-friendly packaging, 2019-20
Environmentally-friendly product claims rising but still rare
All-natural claims gain ground
Figure 25: Share of pet food launches with no additives/preservatives and all natural product claims, 2016-20
Chilled and frozen launches remain rare
Figure 26: Examples of pet food launches suggesting natural connotations, 2019-20
Marleybones looks to blockchain for traceability and transparency
Figure 27: Marleybones’ personalised dog food uses blockchain technology for traceability, 2020
Premium launches ebb
Figure 28: Share of pet food launches with premium and seasonal claims, 2016-20
Figure 29: Examples of pet food launches with premium cues, 2019-20
Recent launches continue to explore textures to inject newness to the category
Figure 30: Share of pet food launches by texture reference, 2016-20
Figure 31: Examples of pet food launches focused on new textures, 2019-20
Protein, gluten-free and grain-free claims have posted some years of growth
Figure 32: Share of pet food launches with a high/added protein, gluten-free or grain-free claim, 2016-20
Purina launches allergy-reducing cat food
ADVERTISING AND MARKETING ACTIVITY
Wet cat food leads spend
Figure 33: Total and share of above-the-line, online display and direct mail advertising expenditure on pet food, by top 10 advertiser, 2019-20* (sorted by 2019)
Barking Heads debuts TV spot on Channel 4
Figure 34: Total and share of above-the-line, online display and direct mail advertising expenditure on pet food, by top 10 brands, 2019-20* (sorted by 2019)
Tails recruits Lorraine Kelly for TV ad
Harringtons creates short films for Just 6 range
Nestlé supports innovation …
Purina puts spend behind cat food TV ads 
… and announces BetterwithPets Prize
Pets At Home promotes Puppy &amp; Kitten club
Nielsen Ad Intel coverage
THE CONSUMER – KEY TAKEAWAYS
COVID-19 will put pressure on brands as half of dog/cat food buyers think trading down is a good way to save money
COVID-19 sees people limit time in-store and prompts shift to online
Taste is top priority for dog/cat food buyers
Strong potential for pet food positioned for pets’ needs, widespread interest in sustainability
Heart and digestive health are dog/cat food buyers’ top priorities
IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR
Focus on immune health and weight management extends to pets
COVID-19 sees people limit time in-store and prompts shift to online
Figure 35: Shopping online more and trying to limit time spent in-store since the start of the COVID-19 outbreak, 10-17 September 2020
Pets At Home and online specialists report growth
Shoppers limiting time in-store highlights the need for brands to be in the choice set 
Spotlight on the environment
PET FOOD FEEDING BEHAVIOUR
Manufactured cat and dog food is owners’ go-to choice
Figure 36: Feeding cats and dogs shop-bought and homemade food, May 2020
Wet food more popular for cats than dogs
Figure 37: Types of cat and dog food bought, May 2020
PURCHASE DRIVERS FOR PET FOOD 
Taste is top priority for dog/cat food buyers
Figure 38: Purchase drivers for pet food dog/cat food buyers, May 2020
Marketing centred on taste remains firmly warranted
Figure 39: Blink! Complete Meal Adult Cat Food Pouch Assortment provides instructions on pack for switching to its food, 2020
Healthiness sways three in five buyers
ATTITUDES TOWARDS PET FOOD
Strong potential for pet food positioned for pets’ needs
Figure 40: Attitudes towards pet food among dog/cat food buyers, May 2020
Over half drawn to sustainable ingredients – but few prioritise them
A role for alternative proteins
Three in 10 claim interest in lab-grown meat
Just 14% of launches made environmentally-friendly product claims in 2019
Figure 41: Examples of pet food launches featuring environmentally-friendly product claims, 2019-20
BEHAVIOURS RELATED TO PET FOOD 
Half think trading down is a good way to save money
Figure 42: Behaviours related to pet food among dog/cat food buyers, May 2020
Brands face growing pressure to prove their value 
… while many buy premium pet food as a treat
IDEAL FUNCTIONAL BENEFITS OF PET FOOD
Heart and digestive health are pet food buyers’ top priorities
Figure 43: Ideal functional benefits of pet food among dog/cat food buyers, May 2020
Heart health warrants more visibility
Figure 44: Examples of pet food products featuring heart & cardiovascular system claims, 2019-20
Interest in pet digestive health mirrors that in human digestive health
15% of launches made digestion claims in 2019
Figure 45: Examples of pet food products featuring digestion claims, April-June 2020
Over half want pet food to support immune health
Figure 46: Examples of pet food products featuring immune system claims, 2017-19
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SHARE
Figure 47: Leading manufacturers’ sales in the UK retail cat snacks and treats market, by value and volume, 2017/18 -2019/20
Figure 48: Leading manufacturers’ sales in the UK retail dry and wet cat food market, by value and volume, 2017/18 -2019/20
Figure 49: Leading brands’ sales in the UK retail wet and dry dog food market, by value and volume, 2017/18 -2019/20
Figure 50: Leading manufacturers’ sales in the UK retail dog snacks and treats market, by value and volume, 2017/18 -2019/20
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 51: Share of new product launches in the UK pet food market, by functional claim, 2016-20
Figure 52: Share of pet food launches by product sub-category, 2016-20
APPENDIX – ADVERTISING AND MARKETING ACTIVITY 
Figure 53: Total above-the line, online display and direct mail advertising expenditure on pet food, by type, 2019-20

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