Pet Food - UK - September 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
More strong growth in value, modest volume growth continues
Figure 1: Total UK retail value sales of cat and dog food, 2014-24
Further lacklustre growth ahead for volume sales
Snacks and treats lead growth in dog food in 2018
Figure 2: UK retail value sales of dog food, by type, 2017-19
Wet food maintains majority share of cat food sales
Figure 3: UK retail value sales of cat food, by type, 2017-19
Pet ownership remains stable
Impact of Brexit remains largely unknown
Industry reacts to the spotlight on plastic packaging
Companies and brands
Sales continue to fall for top three dog food brands
Figure 4: Leading brands’ sales in the UK retail wet and dry dog food market, by value, 2017/18 and 2018/19
Felix returns to growth, Whiskas remains in decline
Figure 5: Leading brands’ sales in the UK retail wet and dry cat food market, by value, 2017/18 and 2018/19
Ethical positioning gains ground in launches
37% of launches call out textures
‘Plus’ claims grow in treats launches, functional claims remain rarer
Advertising sees three years of decline
The consumer
Dry food remains favourite for feeding dogs, gap closes for cats
Figure 6: Types of pet food bought, by type of pet, May 2019
Most see digestive health as essential to overall health
Figure 7: Attitudes towards pet food, May 2019
All-natural ingredients are cat/dog food buyers’ top consideration
Figure 8: Choice factors when purchasing pet food, May 2019
Transparency fuels trust
Figure 9: Behaviours related to pet food, May 2019
What we think
ISSUES AND INSIGHTS
Opportunity for meal kits for making pet food at home
The facts
The implications
The pet food market can do more to tap into the buzz around digestive health
The facts
The implications
Environmentally friendly packaging warrants further attention
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
More strong growth in value, modest volume growth continues
Further lacklustre growth ahead for volume sales
Snacks and treats lead growth in dog food in 2018
Wet food maintains majority share of cat food sales
Pet ownership remains stable
Impact of Brexit remains largely unknown
MARKET SIZE AND FORECAST
More strong growth in value sales; modest volume performance continues
Figure 10: UK retail value and volume sales of cat and dog food, 2014-24
Further lacklustre growth ahead for volume sales
Figure 11: Total UK retail volume sales of cat and dog food, 2014-24
Strong value sales forecast on the back of rising prices
Figure 12: Total UK retail value sales of cat and dog food, 2014-24
Forecast methodology
MARKET SEGMENTATION
Snacks and treats continue to lead growth in dog food in 2018
Figure 13: UK retail value and volume sales of dog food, by type, 2017-19
Wet food maintains majority share of cat food sales
Figure 14: UK retail value and volume sales of cat food, by type, 2017-19
MARKET DRIVERS
Pet ownership remains stable
Figure 15: Pet ownership, by type of pet, April 2015-May 2019
An ageing population continues to threaten pet ownership
Figure 16: Cat and dog ownership, by age, April 2019
Marked slowing in growth of child population will dampen pet ownership
Figure 17: Cat and dog ownership, by presence of children in the household, April 2019
Impact of Brexit on pet food remains largely unknown
Industry reacts to the spotlight on plastic packaging
Figure 18: Share of new products in the UK pet food market carrying an environmentally friendly package claim, 2015-19
Raw pet food is further linked to risk to owners
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Sales continue to fall for top three dog food brands
Felix returns to growth, Whiskas remains in decline
Ethical positioning gains ground in launches
37% of launches call out textures
‘Plus’ claims grow in treats launches, functional claims remain rarer
Advertising sees three years of decline
MARKET SHARE
Sales keep falling for majority of leading dog food brands
Figure 19: Leading brands’ sales in the UK retail wet and dry dog food market, by value and volume, 2017/18 and 2018/19
Good Boy and Pedigree continue to lead dog snacks & treats
Figure 20: Leading brands’ sales in the UK retail dog snacks and treats market, by value and volume, 2017/18 and 2018/19
Felix returns to growth while Whiskas remains in decline
Figure 21: Leading brands’ sales in the UK retail wet and dry cat food market, by value and volume, 2017/18 and 2018/19
Dreamies returns to growth; Webbox closing in on Felix
Figure 22: Leading brands’ sales in the UK retail cat snacks and treats market, by value and volume, 2017/18 and 2018/19
START-UPS AND DISRUPTORS CASE STUDY – YORA 
Company Overview
What is it?
Figure 23: Sample of Yora product, 2019
Founded
Founder’s story
Financial metrics:
Sources of funding and support
Mintel Analyst Verdict
Mintel Trends
Why it could succeed
Why it could fail
The verdict
Product details
Figure 24: Yora product range, 2019
Stockists
LAUNCH ACTIVITY AND INNOVATION
Own-label grows share of launches while leading brands’ activity slows
Figure 25: Share of new product launches in the UK pet food market, by company, 2015-19
Ethical positioning gains ground
Yora launches ‘the world’s most sustainable pet food’
Figure 26: Yora pet food, 2019
Beco Pets launches MSC-certified dog food
Whiskas undertakes brand overhaul with a spotlight on natural and sustainable credentials
Figure 27: Whiskas 11+ range highlighting naturalness and sustainability, March 2019
Figure 28: Beco MSC-certified cod & haddock natural dog food, Jan 2019
Environmentally friendly package claims are in the minority
Figure 29: Share of new product launches in the UK pet food market, by environmentally friendly packaging and recycling claims, 2015-19
Some brands explore less common approaches from materials to tie-ups
Figure 30: Environmentally friendly packaging examples, 2018-19
Mars ups the game on naturalness with ‘clean’ and ‘ancestral’ diets
Mars launches ‘ancestral’ dog food brand Crave…
Figure 31: Mars Petcare UK’s new Crave brand, February 2019
…and brings clean eating trend to pet food with ‘Nutro’
Figure 32: Nutro Wild Frontier, Germany, 2018
Textures take centre stage in selected launches
Sheba launches ‘Craft’ collection, focusing on textures
Felix soup targets any time occasions
Figure 33: Sheba Craft Collection, Yakers Crunchy Bites and Felix Soups, 2018-19
New entrants put superfoods and functional benefits at the heart of treats
Denzel’s launches dog chew range, Miss Purfect puts functionality front and centre in cat treats
Figure 34: Denzel’s dog chews and Miss Purfect cat treats, January 2019 and December 2018
Selected launches find associations to emotional wellbeing
Wagg overhauls brand identity, highlighting wagging tails
Figure 35: Wagg overhauls brand identity, 2017-19
Naturediet launches ‘Feel Good’ variant to cover all bases
Figure 36: Naturediet’s Feel Good range, January 2019
Felix Play Tubes aim to combine play and snacking
Figure 37: Felix Play Tubes, March 2019
Baking kits appear in dog snacks and treats
Smoofl launches DIY treats for dogs
PawBakes releases Bakies Doggy Baking Gift Kit
Webbox launches ‘Decorate Your Own’ festive Gingerbread Bones
Figure 38: Examples of pet baking and meal kits, 2018-19
Mackle Petfoods adds Chef’s Selection range to Naturo brand
Figure 39: Naturo’s chef’s selection range, February 2019
Paul O’Grady and Burgess Pet Care launch dog food range
Pooch & Mutt launches sister brand Purr & Miaow
Figure 40: Purr & Miaow wet cat food, April 2019
ADVERTISING AND MARKETING ACTIVITY
Advertising sees three years of decline
Figure 41: Total above-the-line, online display and direct mail advertising expenditure on pet food, 2015-19
The adspend gap between cat and dog food narrows
Figure 42: Total and share of above-the-line, online display and direct mail advertising expenditure on pet food, by type, 2015-19
Whiskas continues to be the most heavily advertised brand
Figure 43: Total and share of above-the-line, online display and direct mail advertising expenditure on pet food, by top 10  brands, 2015-19
Tails.com highlights its personalised service in TV ad
Harringtons pushes natural positioning
Dreamies shows its power over cats in playful ad
Butcher’s campaign aims to improve affordability of natural food
Sheba continues with ‘Resistance is Futile’ expressions
Webbox highlights uniqueness of pet ownership
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Dry food remains favourite for feeding dogs, gap closes for cats
Most see digestive health as essential to overall health
All-natural ingredients are cat/dog food buyers’ top consideration
Transparency fuels trust
PET FOOD FEEDING BEHAVIOURS 
Homemade pet food gathers momentum
Figure 44: Feeding cats and dogs shop-bought and homemade food, May 2019
Dry food maintains its lead for dogs
Figure 45: Types of pet food bought, by type of pet, May 2019
ATTITUDES TOWARDS PET FOOD
Digestive health warrants focus given consumer interest
Figure 46: Attitudes towards pet food, May 2019
Three in 10 pet food launches reference digestive health…
…with a focus on calling out key ingredients
Figure 47: Cat and dog foods calling out digestive functionality, 2018-19
Need to move the conversation beyond naming ingredients
More room to call out good bacteria
Figure 48: Cat and dog treats and food calling out digestive functionality, 2018-19
Opportunity to further connect diet to emotional wellbeing
Plant-based offerings warrant more attention in dog food
CHOICE FACTORS IN PET FOOD PURCHASING 
All-natural ingredients are cat/dog food buyers’ top consideration
Figure 49: Choice factors when purchasing pet food, May 2019
Figure 50: Pet food products showing images of ingredients on-pack, 2019
Functional benefits chime with one in three
BEHAVIOURS RELATED TO PET FOOD
Transparency fuels trust
Figure 51: Behaviours related to pet food, May 2019
Figure 52: Nineteen 87 dog food highlights ingredient origin and production processes on-pack, 2018
British ingredients garner a positive response
Figure 53: Brands featuring references to British provenance on-pack, 2018
Interest in calming pet food highest among puppy and kitten owners
Figure 54: Cat and dog treats which claim calming benefits, 2018-19
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Figure 55: Best- and worst-case forecasts for retail sales of cat and dog food, by value, 2019-24
Figure 56: Best- and worst-case forecasts for retail sales of cat and dog food, by volume, 2019-24
Forecast methodology
APPENDIX – MARKET SHARE
Figure 57: Leading manufacturers’ sales in the UK retail wet and dry dog food market, by value and volume, 2017/18 and 2018/19
Figure 58: Leading manufacturers’ sales in the UK retail wet and dry cat food market, by value and volume, 2017/18 and 2018/19
Figure 59: Leading manufacturers’ sales in the UK retail dog snacks & treats market, by value and volume, 2017/18 and 2018/19
Figure 60: Leading manufacturers’ sales in the UK retail cat snacks & treats market, by value and volume, 2017/18 and 2018/19
APPENDIX – MARKET DRIVERS
Figure 61: Trends in the age structure of the UK population, 2014-19 and 2019-24