Petcare - UK - July 2015

OVERVIEW
What you need to know
Products covered in this report
EXECUTIVE SUMMARY
Owners increasingly indulging their pets
Figure 1: Consumer spend on petcare, 2010-20
Diverse market catering for a range of needs
Figure 2: Market for pet care and accessories, by segment, 2015 (est)
Pets at Home dominates pet accessories retailing
Growth of buying online
Ocado and Waitrose build web presence
Figure 3: Distribution of pet accessories, by retailer, 2015 (est)
Fragmented supply of brands and products
85% of pet owners bought pet accessories in the last year
Figure 4: Purchases of pet products, December 2012 and April 2015
Figure 5: Shopped in-store or online for pet accessories, any, April 2015
People use a wide spread of retailers
Figure 6: Retailers used for pet accessories, any purchases, April 2015
People are motivated by great choice and competitive prices
Figure 7: Factors that influence choice of retailer for pet accessories, April 2015
Technical products – Yes please
Figure 8: Interest in tech products for pets, April 2015
ISSUES AND INSIGHTS
Interest in monitoring pet activity levels
The facts
The implications
Remote interaction with pets
The facts
The implications
Will online trading for pet accessories keep growing?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market to grow 3.3% in 2015
Comment on the forecast
Pet health accounts for 23%
Basics are the most price-sensitive
Pets at Home dominates with 39% market share
Dogs and cats are the nation’s most popular pets
Rise in rented dwellings could suppress pet ownership
MARKET SIZE AND FORECAST
Humanisation of pets spurs market growth
Figure 9: Consumer spend on petcare accessories, 2012-15
Figure 10: Consumer spend on petcare accessories, 2010-20
Figure 11: Consumer spend on petcare accessories, 2010-20
MARKET SEGMENTATION
Figure 12: Market for petcare and accessories, by segment, 2015 (est)
Pet beds and cages benefit from styling and bigger sizes
Figure 13: Market for pet beds and housing, by segment, 2015 (est)
Innovative products for pet feeding
Sundries dominated by cat litter
Figure 14: Market for pet sundries, by segment, 2015 (est)
Stylish clothes, collars, leads and harnesses
Figure 15: Market for apparel, collars and leads, by segment, 2015 (est)
Low cost imports drive volume for toys
Mental stimulation for pets
Cats need to scratch
Figure 16: Market for dog and cat toys, by segment, 2015 (est)
A fashion for fish
Pet health
Flea and worm treatments boosted by OTC products
Awareness of dental care growing
Supplements £37 million
Toiletries
Figure 17: Market for pet healthcare, by segment, 2015 (est)
MARKET DRIVERS
Stable pet population
Figure 18: UK pet population, by type (excluding fish), 2014
Rise in private renting suppresses pet ownership
Figure 19: Current housing situation, December 2014
More households, smaller households
Figure 20: UK households, by size, 2008-18
Pets are part of the family
KEY PLAYERS – WHAT YOU NEED TO KNOW
Fragmented supply
Innovative market
Own brand
Small advertising spend
KEY PLAYERS
Fragmented market place
Healthcare brands
Figure 21: Examples of healthcare companies and brands
Brands of pet products
CHANNELS TO MARKET
Pets at Home truly dominant
3,000 independent pet stores
Grocers focus on foods and treats
Bargain retailing
Different customer journeys for commodity, impulse and considered purchases
Figure 22: Distribution of pet accessories, by retailer, 2015 (est)
Figure 23: Pet retail specialists, turnover (excluding VAT), 2010-14
Figure 24: Pet retail specialists, operating profit, 2010-14
Figure 25: Pet retail specialists, operating margin, 2010-14
The leading pet specialists plot store expansion
Figure 26: Pet retail specialists, store numbers, 2010-15
Figure 27: Pet retail specialists, sales per outlet, 2010-14
BRAND COMMUNICATION AND PROMOTION
Fluctuating spend on petcare advertising
Figure 28: Recorded above-the-line, online display and direct mail total advertising expenditure on petcare, 2011-14
Pets at Home dominates in terms of advertising spend
Figure 29: Recorded above-the-line, online display and direct mail total advertising expenditure on petcare, by advertiser, 2011-14
Television adverts account for 84% of spend
Figure 30: Recorded above-the-line, online display and direct mail total advertising expenditure on petcare, by media type, 2011-14
Figure 31: Recorded above-the-line, online display and direct mail total advertising expenditure on petcare, by media type, 2013 and 2014
A note on ad spend
LAUNCH ACTIVITY AND INNOVATION
Retail innovation
Dogs take centre stage
Beco-friendly retail
Supermarkets prioritise petcare
Helpful online store locator tool
Product innovation
Tracking devices reassure owners on their pet’s location
Tracking pets’ health and fitness
Figure 32: PitPat dog fitness tracking app
Pets left at home are no longer alone
Figure 33: PetChatz Greet & Treat Videophone
Giving cats the thrill of the chase
Spray-on plasters
Double-sided extra strong pet wipes
Bed refresher eliminates pet odours
Calming pet acoustics
Microchip cat flap
THE CONSUMER – WHAT YOU NEED TO KNOW
Vibrant market with high levels of purchasing
Toys top the list
People treat pets as if they were human
High use of online shopping
Pets at Home is the most-used store
Choice, competitive prices and convenient location
High-tech pets
PURCHASING AND SPENDING
Plenty of impulse buying
Time for bed
Encouraging more replacement of collars and leads
People buy gifts for their pets
Figure 34: Purchases of pet products, December 2012 and April 2015
Figure 35: Repertoire of purchases of petcare products, May 2015
WHAT PEOPLE SPENT ON PET PRODUCTS
Figure 36: Spend on pet products, April 2015
WHERE THEY BOUGHT PET ACCESSORIES – IN-STORE OR ONLINE
Figure 37: Shopped in-store or online for pet accessories, any, April 2015
Figure 38: Repertoire of retailers used for petcare purchases, May 2015
Pets at Home tops the list of retailers used
Convenience counts
General retailers
Figure 39: Retailers used for pet accessories, any purchases, April 2015
Comparing in-store and online by retailer
Figure 40: Retailers used for pet accessories, in-store or online, April 2015
FACTORS INFLUENCING WHERE THEY SHOP
Figure 41: Factors that influence choice of retailer for pet accessories, April 2015
Interest in high tech products for pets
Getting pets moving
Monitoring lonely pets
Leave pets watching telly
High tech games have young and upscale appeal
Remote feeding
Figure 42: Interest in tech products for pets, April 2015
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Market sizing and segment performance
Fan chart forecast
Abbreviations