Pet Care in India - Briefing
Pet Care in India - Briefing
Pet Care in India - Briefing
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Pet Care Expected To Achieve Robust Growth Over the Forecast Period
Over the forecast period, pet care is expected to register a positive performance. With pet ownership on the rise, there will be greater demand for pet care products. The shift towards prepared food will continue as pet owners search for convenience. Urban consumers may trade up to premium products or specialised products, as they gain a better understanding of their pets needs and the benefits of various products. Moreover, as the status of pets is elevated, demand for pet care is expected to become more sophisticated, with pet owners buying not just pet food, but also pet products to meet their needs in terms of healthcare, grooming and leisure.
KEY TRENDS AND DEVELOPMENTS Rising Disposable Income Stimulates Sales Growth
Pet care is expected to register strong growth of 24% in current value terms in 2011. The growing affluence in urban areas has boosted consumer confidence and driven more consumption in many areas, including pet care. As disposable income increases, consumers are more likely to trade up to premium pet care products and specialised products. There is also a large base of pet owners who are gradually shifting from homemade food to prepared food as their spending power increases. Current Impact The continued rise of disposable incomes in 2011 is having a positive impact on the overall performance of pet care. Annual disposable income per household in India is expected to grow by 17% in 2011 in current value terms. This is contributing to the strong performance of premium dry dog food, which is set to grow by 26% in current value terms in the same year. Premium dry cat food is also expected to register double-digit growth. Operators of premium brands such as Royal Canin and Hills Science Diet expanded their offerings to capi talise on this growing propensity to spend. For the middle- and low-income consumer segments, pet owners are more budget conscious and a large proportion of them still feed their pets table scraps or homemade food. However, there was an increase in the proportion of prepared food consumed by cats and dogs over the review period. For example, prepared dog food as a proportion of dog food consumption rose from 1.1% in 2006 to 1.4% in 2011. While the humanisation of pets was a major factor for this trend, rising income was also a contributing factor, as this group of pet owners has become more willing to purchase economy or mid-priced pet food. Growing disposable income is also driving sales of non-food pet products, with pet healthcare and pet dietary supplements experiencing strong growth over the review period. Pet owners are more willing to increase spending on their pets, not only to meet their basic needs, but also for their health and wellbeing. Outlook The short-term outlook for the economy has become uncertain due to the debt crisis in Europe and signs of global economic slowdown. However, over the long term, the Indian economy is expected to benefit from growth drivers in Asia. Thus, disposable incomes are expected to rise over the forecast period. This will enable more consumers to own pets, as well as prompt increased expenditure on pet care among existing pet owners.
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Future Impact The rising disposable income is expected to encourage pet ownership. With a better financial situation, more consumers will be able to afford the costs associated with pet ownership. This will, in turn, generate greater demand for pet food and pet products. Thus, pet care as a whole is expected to post a CAGR of 14% in constant value terms over the forecast period. As the trend evolves, urban consumers are expected to trade up to premium products or try new products for their pets, including pet grooming kits and training equipment, within the other pet products category. Premium dry dog food and premium dry cat food are projected to grow at a constant value CAGR of 14% and 12% respectively over the forecast period. In response to the trend, manufacturers of premium products are expected to increase product specialisation and introduce new products. In addition to targeting high-income consumers, manufacturers will also seek to attract middle-income consumers, who are likely to buy mid-priced or economy products.
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Future Impact Dog and cat numbers are expected to be boosted by the trend of consumers turning to pets for companionship. Dogs will remain the most popular pets and will contribute to the bulk of spending on pet care over the forecast period, given their close relationship with pet owners. Manufacturers of dog food are expected to record rising sales thanks to the growing popularity of dogs. Pet owners will have access to not only premium specialised offerings, but also mass market brands which target the large group of price-conscious owners. With the trend of greater humanisation of pets, pet owners will become more interested in understanding their pets and meeting their needs, including their dietary habits, nutritional needs and entertainment needs. Pet grooming salons, popular in large metropolitan areas in developed countries, are likely to emerge in India. These salons will provide an additional channel for manufacturers to market their products and also for pet owners to gain exposure to new pet care products.
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Future Impact As demand for health and wellness products grows, leading manufacturers are likely to expand their portfolios to include such products or incorporate more functional benefits into existing lines. They will also make efforts to educate consumers about pet health and product benefits in order to boost volume sales. The development of the health and wellness trend will attract the entry of niche international brands. As health and wellness products are often priced higher than regular pet food lines, manufacturers are expected to market health and wellness products mainly in urban areas, through veterinary clinics and pet shops. Vets will play an important role in communicating the health benefits of products and manufacturers will continue to adopt the strategy of offering free samples to consumers to raise awareness.
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Domestic manufacturers will be under increasing pressure to identify their own niches. They are expected to gain strength in the economy segment where they are competitive, in part because domestic manufacturers do not need to pay import duties. With the growing prominence of multinationals, pet owners will enjoy a greater variety of quality international brands. They will gain exposure to the latest pet care practices and products, and their demand for pet care is expected to become more sophisticated.
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still consider them to be low-maintenance pets and will not see the need for specialised products. New players will enter the category to meet the demand for functional or specialised premium products. The launch of Genesis and Chicopee pet food, manufactured by Harrison Pet Products Inc, in January 2011 is an example of this development. Genesis pet products are positioned as an ultra premium brand and Chicopee is positioned as a high premium brand. Under the Genesis brand, pet food caters to different life stages and sizes. Genesis also offers a functional variant that the company claims promotes a shiny coat and supple skin, as well as one for healthy joint function.
MARKET INDICATORS
Table 1 '000s of animals 2006 Dog Population Cat Population Bird Population Fish Population Small Mammal Population Reptile Population
Source:
MARKET DATA
Table 2 Tonnes 2006 Dog and Cat Food Other Pet Food
Source: Note:
9,735.2 6.4
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Pet Care volume sales not calculable at total market level
Table 3 Rs million
2006 Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements Other Pet Products Pet Products 1,141.7 2.5 1,144.1 212.5 63.3 179.7 455.5
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Pet Care
Source: Note:
1,599.6
1,779.0
2,058.0
2,431.4
2,992.6
3,696.7
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Pet Care volume sales not calculable at total market level
14.8 14.0
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Pet Care volume sales not calculable at total market level
Table 5
% current value growth 2010/11 Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements Other Pet Products Pet Products Pet Care
Source: Note:
2006-11 CAGR 20.0 15.8 20.0 13.0 15.7 13.0 13.4 18.2
2006/11 Total 148.6 107.8 148.5 84.2 107.2 84.0 87.3 131.1
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Pet Care volume sales not calculable at total market level
2008 39.2 3.1 2.9 4.0 3.5 2.2 0.1 1.1 0.9 0.9 -
2009 43.1 4.3 3.8 3.9 2.8 2.0 0.1 1.0 0.8 0.8 0.1
2010 43.1 12.0 10.5 4.8 3.4 2.7 2.1 1.7 0.9 0.9 0.8 0.7 0.2
Mars International India Pvt Ltd Royal Canin India Pvt Ltd Provimi Animal Nutrition India Pvt Ltd Procter & Gamble Co, The Asian Diet Products Ltd Indian Broiler Group Venky's India Ltd Naughty Pet Petsmart Pet Products Pvt Ltd Creative Pet Products Co Life Laboratories Bento Kronen ProductsVersele Laga Midwestern Pet Foods Inc
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Tetragon Chemie Pvt Ltd Ruskin Pet Products Pvt Ltd Effem India Pvt Ltd Purina Pet Care India Pvt Ltd Private Label Others Total
Source:
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
Table 7 % retail value rsp Brand Pedigree Adult Pedigree Puppy Royal Canin Nutripet Eukanuba Pedigree Stylam Choostix Drools Whiskas Naughty Pups Nutribix Economy Treats Regale Meal Regale Pup Happidog Probisk Bento Maxx Advantage Nutribix Dog Rolls Iams Propett Pro Pac Sportmix Nutripet Royal Canin Nutribix Economy Treats Pedigree Adult Pedigree Puppy Whiskas Royal Pup Royal Meal
Company Mars International India Pvt Ltd Mars International India Pvt Ltd Royal Canin India Pvt Ltd Provimi Animal Nutrition India Pvt Ltd Procter & Gamble Co, The Mars International India Pvt Ltd Asian Diet Products Ltd Indian Broiler Group Mars International India Pvt Ltd Naughty Pet Provimi Animal Nutrition India Pvt Ltd Venky's India Ltd Venky's India Ltd Creative Pet Products Co Life Laboratories Bento Kronen ProductsVersele Laga Petsmart Pet Products Pvt Ltd Provimi Animal Nutrition India Pvt Ltd Procter & Gamble Co, The Petsmart Pet Products Pvt Ltd Midwestern Pet Foods Inc Midwestern Pet Foods Inc Tetragon Chemie Pvt Ltd Ruskin Pet Products Pvt Ltd Tetragon Chemie Pvt Ltd Effem India Pvt Ltd Effem India Pvt Ltd Effem India Pvt Ltd Venky's India Ltd Venky's India Ltd
2007 2.3 3.8 2.6 1.3 1.3 0.6 0.2 1.9 0.1 7.4 9.4 1.4 17.7 16.0 2.5 2.1 2.0
2008 18.9 17.0 2.4 2.8 0.7 4.0 2.3 2.2 1.6 1.7 1.1 0.9 0.9 0.2 8.4 7.3 1.5 -
2009 19.4 17.5 3.4 3.6 3.7 3.9 2.2 2.0 1.4 1.4 1.0 0.8 0.8 0.2 0.1 0.0 8.8 6.2 1.4 -
2010 19.7 17.5 9.6 8.7 4.5 3.7 3.4 2.7 2.0 1.7 1.4 1.0 1.0 0.9 0.8 0.7 0.6 0.3 0.3 0.2 0.2 0.0 -
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Private Label
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources
2006 2.2 3.4 3.8 2.5 1.2 1.4 0.5 5.7 8.8 11.2 33.6 1.1 1.4 23.0 100.0
2007 2.4 3.8 4.2 2.6 1.3 1.3 0.6 2.0 9.2 11.8 37.3 1.5 22.0 100.0
2008 39.3 3.1 3.0 4.0 3.5 2.2 0.1 1.1 0.9 0.9 10.4 9.2 1.5 20.9 100.0
2009 43.2 4.3 3.8 3.9 2.8 2.0 0.1 1.0 0.8 0.8 0.1 10.6 7.9 1.4 17.2 100.0
2010 43.2 12.0 10.5 4.8 3.4 2.7 2.1 1.7 0.9 0.9 0.8 0.7 0.2 1.1 14.9 100.0
Mars International India Pvt Ltd Royal Canin India Pvt Ltd Provimi Animal Nutrition India Pvt Ltd Procter & Gamble Co, The Asian Diet Products Ltd Indian Broiler Group Venky's India Ltd Naughty Pet Petsmart Pet Products Pvt Ltd Creative Pet Products Co Life Laboratories Bento Kronen ProductsVersele Laga Midwestern Pet Foods Inc Tetragon Chemie Pvt Ltd Ruskin Pet Products Pvt Ltd Effem India Pvt Ltd Purina Pet Care India Pvt Ltd Private Label Others Total
Source:
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Table 9 % retail value rsp Brand Pedigree Adult Pedigree Puppy Royal Canin Nutripet Eukanuba Pedigree Stylam Choostix Drools
Company Mars International India Pvt Ltd Mars International India Pvt Ltd Royal Canin India Pvt Ltd Provimi Animal Nutrition India Pvt Ltd Procter & Gamble Co, The Mars International India Pvt Ltd Asian Diet Products Ltd Indian Broiler Group
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Whiskas Naughty Pups Nutribix Economy Treats Regale Meal Regale Pup Happidog Probisk Bento Maxx Advantage Nutribix Dog Rolls Iams Propett Pro Pac Sportmix Nutripet Royal Canin Nutribix Economy Treats Pedigree Adult Pedigree Puppy Whiskas Royal Pup Royal Meal Private label Others Total
Source:
Mars International India Pvt Ltd Naughty Pet Provimi Animal Nutrition India Pvt Ltd Venky's India Ltd Venky's India Ltd Creative Pet Products Co Life Laboratories Bento Kronen ProductsVersele Laga Petsmart Pet Products Pvt Ltd Provimi Animal Nutrition India Pvt Ltd Procter & Gamble Co, The Petsmart Pet Products Pvt Ltd Midwestern Pet Foods Inc Midwestern Pet Foods Inc Tetragon Chemie Pvt Ltd Ruskin Pet Products Pvt Ltd Tetragon Chemie Pvt Ltd Effem India Pvt Ltd Effem India Pvt Ltd Effem India Pvt Ltd Venky's India Ltd Venky's India Ltd Private Label
2.6 1.3 1.3 0.6 0.2 1.9 0.1 7.4 9.4 1.4 17.7 16.0 2.5 2.1 2.0 1.5 26.0 100.0
2.3 2.2 1.7 1.7 1.1 0.9 0.9 0.2 8.4 7.3 1.5 1.5 24.4 100.0
2.2 2.0 1.4 1.4 1.0 0.8 0.8 0.2 0.1 0.0 8.8 6.2 1.4 1.4 20.7 100.0
2.0 1.7 1.4 1.0 1.0 0.9 0.8 0.7 0.6 0.3 0.3 0.2 0.2 0.0 1.1 17.8 100.0
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1.0 1.4
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2006 Store-Based Retailing - Grocery Retailers - - Supermarkets/ Hypermarkets - - Discounters - - Other Grocery 100.0 9.0 8.0 0.9
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Retailers - Non-Grocery Retailers - - Pet superstores - - Pet shops - - Veterinary clinics - - Other Non-Grocery Retailers Non-Store Retailing - Homeshopping - Internet Retailing - Direct Selling Total
Source:
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Table 12
Sales of Dog and Cat Food by Category and Distribution Format: % Analysis 2011
% retail value rsp CF Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Other Grocery Retailers Non-Grocery Retailers Pet superstores Pet shops Veterinary clinics Other Non-Grocery Retailers Non-Store Retailing Homeshopping Internet Retailing Direct Selling Total
Source: Key:
DF 100.0 9.0 7.6 0.0 1.4 91.0 0.0 50.1 38.8 2.1 0.0 0.0 0.0 0.0 100.0
100.0 1.9 1.9 0.0 0.0 98.1 0.0 90.2 7.9 0.0 0.0 0.0 0.0 0.0 100.0
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources CF = Cat Food; DF = Dog Food
2006 Store-Based Retailing - Grocery Retailers - - Supermarkets/ Hypermarkets - - Discounters - - Other Grocery Retailers - Non-Grocery Retailers - - Pet superstores - - Pet shops - - Veterinary clinics - - Other Non-Grocery 100.0 8.4 7.4 1.0 91.6 49.1 41.6 1.0
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100.0
100.0
100.0
100.0
100.0
100.0
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PF Store-Based Retailing Grocery Retailers Supermarkets/Hypermarkets Discounters Other Grocery Retailers Non-Grocery Retailers Pet superstores Pet shops Veterinary clinics Other Non-Grocery Retailers Non-Store Retailing Homeshopping Internet Retailing Direct Selling Total
Source: Key:
PP 100.0 7.5 6.5 0.0 1.0 92.5 0.0 47.0 45.5 0.0 0.0 0.0 0.0 0.0 100.0
100.0 8.7 7.4 0.0 1.3 91.3 0.0 51.5 37.7 2.0 0.0 0.0 0.0 0.0 100.0
Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources PF = Pet Food; PP = Pet Products
Table 15 Tonnes
16,867.7 11.2
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Pet Care volume sales not calculable at total market level
Table 16 Rs million
2011 Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements 2,838.2 5.1 2,843.4 391.4 131.2
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Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Pet Care volume sales not calculable at total market level
12.0 9.0
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Pet Care volume sales not calculable at total market level
Table 18
% constant value growth 2011-16 CAGR Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements Other Pet Products Pet Products Pet Care
Source: Note:
2011/16 TOTAL 98.0 84.2 98.0 45.5 68.4 61.0 55.0 88.1
Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Pet Care volume sales not calculable at total market level
DEFINITIONS
This report analyses the market for Pet Care in India. For the purposes of the study, the market has been defined as follows: Dog food Cat food Other pet food Pet products Dog and cat food sales are broken down by product type (wet/dry) and price platform. Examples of key brands in each price platform in India are as follows: Standard premium: Royal Canin, Eukanuba, Whiskas Mid-priced: Top Cat, Regale Meal Economy: Nutripet, Pedigree
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15
Sources
Sources used during research include the following: Summary 1 Research Sources Official Sources
Animal Quarantine & Certification Service Animal Resources Development Dept Bengal National Chamber of Commerce & Industry Bharat Chamber of Commerce Calcutta Chamber of Commerce Dept of Animal Husbandry & Dairying Government of India Ministry of Agriculture Indian Chamber of Commerce
Trade Associations
Animal Welfare Board of India Calcutta Canine Club Indian Veterinary Association, The PetSetGo Veterinary Council of India
Trade Press
Business Standard Dogs & Pups Magazine Economic Times, The FnB News Hindu Business Line India Times Petcareindia.com The Hindu The Telegraph
Source:
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