May 24th, 2008 by
Barbara
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| The market for dog and cat food continues to grow. In 2007 the worldwide retail sales exceeded 45 billion US dollars (Euromonitor International). This represents a total growth of about 40% as compared to 2002. |
Of course this can’t go on at such rates though analysts predict the dog and cat food will continue to grow in the upcoming 5 years to 52 million US dollars in 2012.
There is a major difference between countries. The more mature markets (US and Western Europe) grow at a slower pace compared to upcoming markets such as Latin America (107% growth in 5 years time).
In mature markets growth can be attributed to both the humanization trend as well as the private label production. People scale up the dog food they buy and more sales is done in the premium dog food segment.
Along with pet humanization as an evident trend we see pet obesity reaching record levels. This opens up new markets and we see an increasing success with health-focussed multi-functional dog food with ingredients such as omega 3 and 6 fatty acids. Also dog food with marketing claims such as gluten-free, hypoallergenic and organic is doing well.
Eastern Europe (Russia, Poland, Hungary, Romania) differs from Western Europe and this market is growing rapidly. Sales increased nearly 200% between 2002 and 2007. Euromonitor expects an increase of another 56% before 2012. This is mainly in the economy and mid-priced dog food segment.
Influencing factors in Eastern Europe are:
- Increasing levels of disposable income
- Changing perception of dogs and cats
- Increased demand for prepared dog and catfood
- Rising urbanization
- Improved distribution infrastructure
- Increased number of single person households has increased the need for companionship
Another result is the growth in pet superstores and the number of pet departments in garden centers. Where pet specialty stores used to dominate this market we now see an increase in sales in supermarkets and other points of sale.
In short, more dogs, more points of sale, the perception of dogs as companions and family members is driving this growth.
Posted in Dog Food Market Research |
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October 17th, 2007 by
Barbara
This post on dog food blog is about a complex technology (which I won’t dig into) and it amazes me that this technology is used ‘just’ to get dogs to say ‘mmmm… boss, that food you bought smells really nice‘ and at the same time I think this is so interesting and exiting. It makes me curious as to where dog food is going these days. Perhaps you recall my posts in July 2007 about K-9 Genetics and dog food in the age of the genome. I’ve heard ‘down to earth’ people say these developments are over the top, but I just love progression and fine tuning.
Several dog food companies are investigating how dogs respond genetically to a particular diet. They profile genes that are turned on and off in reaction to the dog food diet fed.
How does a dog decide whether or not he likes the food you poured into his dog food bowl? The main reason for like or dislike is the smell of it. Smell is even more important than taste as most dogs don’t chew very well. My dog is an exception to the rule as he chews kibble by kibble. I remember we met a very posh couple when we were walking and the man returned to his car to get a dog biscuit. Kensho accepted it very gently with his lips and then chewed for a long time. The woman was amazed. She said ‘that dog has more manners than most people’
Now back to my story. Most dogs display a gorging behavior when they eat. There are even special dog food bowls for sale so they can’t gobble up all of their food in just a second.
As dogs go by smell to decide whether or not to eat the dog food it’s important for dog food manufacturers that at least their dog food product has a nice smell to dogs. It’s only logical that they spend a lot of money researching what smells are a dog’s favorite.
These likes and dislikes are deeply rooted in his basic genetic composition. It is likely that there will be significant breed differences in flavor perception. A Maltese may have different preferences when it comes to smell than a Saint Bernard Dog. This would give the pet food industry another reason to have different dog food compositions for different dog breeds.
For more information about dog food, visit Best Dog Food Guide. When you subscribe to the free dog food newsletter you’ll get my e-book and a nice bonus in return.
Posted in Dog Food Market Research, Luxury Dog Food Products |
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July 26th, 2007 by
Barbara
When one designs a new product one should always have the customer or consumer in mind. This is perhaps lesson 1 in doing business. But several dog food manufacturers seem to think YOU are their target audience, the consumer! Why else would they come up with dog food names such as:
- Irish Stew with Beef
- Chinese Takeout with Vegetables and Chicken
- Southern Style Dumpling With Chicken
- Hobo Chili With Chicken
Dogs can’t read, can they? Looks like this food is designed especially for you! These four examples are the recalled types of Natural Balance Eatables that are being recalled because of the botulism fear.
It is pet food but it sounds like people food. This food is obviously designed to appeal to you when you are browsing the dog food isle in the shop. Nice marketing language but are they thinking about you or your dog, that’s the question. What’s inside the bag is what counts. Your dog couldn’t care less about the nice package, the buzz words, the appealing colors etc.
You are the decision maker (and the one with the actual cash
) and you have to make a choice which dog food will be best for your furry friend. Take the marketing buzz for granted and look for the dog food label. What does it say really? What ingredients are present and how much of them? Learn how to interpret the information on the dog food label and it will tell you a lot more than any fancy looking dog food bag.
Visit the dog food labeling section on Best-Dog-Food-Guide.com and get yourself prepared for your next stop at the pet shop.
Posted in Dog Food Market Research |
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July 16th, 2007 by
Barbara
For years there has been little change in the top players in the dog food industry. The list of top dog food manufacturers typically only changes due to acquisitions and mergers.
- Mars Inc. (Mars Petcare)
- Nestlé SA (Nestlé Purina Petcare)
- Procter & Gamble Co. (P&G Petcare)
- Colgate-Palmolive (Hill’s Pet Nutrition)
- Del Monte Foods Co.
For more information about market drivers (both in developed as well as in emerging markets) and the complete top 10 list of dog food companies visit the page about dog food manufacturers on Best Dog Food Guide.
Posted in Dog Food Market Research |
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July 12th, 2007 by
Barbara
It’s now 4 months after the largest recall in US history started and many cat and dog food products still are missing from store shelves.
According to Petco, US’ number 2 pet food chain, only 15% or recalled brands are available today and they expect half of them to be available by the beginning of August.
PetSmart is the biggest pet food chain in the US. Their spokeswoman, Michelle Friedman, says that some products take longer to return and that some have been discontinued. For instance, the recalled Iams products are not expected back until next year.
Sales in cat and dog food increased with 5-6% just before the pet food scare and, though numbers obviously dropped, these are still ahead of last year. For the last years pet food sales have grown by 4% year-over-year. With an only 2% increase in pet headcount this sales growth is attributed to the humanization trend. Pet owners in the US calling themselves pet parents and treating pets as furry children.
Menu Foods is the manufacturer of most of the recalled products. Their future cuts-and-gravy orders dropped significantly when Iams cancelled their orders. In 2006, Iam’s cuts-and-gravy products accounted for 11% of Menu Food’s revenue.
As one brand loses market share, another one will fill it up. David Lummis of Packaged Facts, a publisher of market research, states that “billions of dollars in pet food brands are now up for grabs as a result of the pet food recall and it’s ongoing effects”. Nestlé says it has gained share since the recall and premium-brand Evanger’s cat and dog food claims sales has quadrupled.
In general, premium, natural, organic and raw dog food products were on the rise before the recall and now gained even stronger momentum. Brands that are going to benefit these days will have to deliver quality products, have all the right track & trace controls in place and maintain a trustful attitude towards consumers (a.k.a. pet parents
).
Posted in Dog Food Market Research, Dog Food Recalls |
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June 20th, 2007 by
Barbara
Dog owners, like you
, are becoming more aware and educated about the health of their canine companion. After all… you’re here (again) at Dog Food Blog
!
Health and safety concerns drive caring consumers towards higher-quality dog food. Between wet and dry dog food, dry dog food continues to be the most popular variety as it is more convenient. Standard premium dry dog food has well-established brands and strong distribution channels and is therefore likely to remain the largest category. Super premium dry dog food will also grow but at a slower pace because it is more expensive and has limited distribution.
Elizabeth Higgins, from Euromonitor, predicts for the US a growth of 32% for premium dry dog food between 2006 and 2011. Especially premium dry dog food with more natural or organic qualities is forecasted to be a popular growth driver.
PS Euromonitor International publishes petfood and pet care reports on 52 country markets.
Posted in Dog Food Market Research |
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June 10th, 2007 by
Barbara
Did your dog never loose that puppy fat or is has he gained more weight over the years than is fit for his body? Then continue reading since overweight dogs have a higher risk of getting sick and having an overall lower quality of life.
In January 2007, the FDA approved a new liquid drug, Slentrol (dirlotapide). This drug blocks the absorption of fat plus it suppresses Fido’s appetite. This makes it easier for you to develop healthier feeding behavior.Slentrol is prescribed by veterinarians in conjuction with diet and exercise and is fit for dogs only. Not cats. And no, not humans either!
However, given the costs ($1 to $2 dollars a day) and the possible side effects (vomiting, diarrhea, lethargy and anorexia) I recommend to not let it get to this point. Also, at this moment the safety of Slentrol has not been evaluated beyond one year. |
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So here’s my advice to you:
Read the rest of this entry »
Posted in Dog Food Market Research, Obesity and Weight Control |
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June 5th, 2007 by
Barbara
The US pet care industry is a $40 billion a year industry which is growing rapidly with 10% a year. Last year, Americans spend $38,5 billion on their pets, which is an 83 percent increase as compared to the spending pattern last decade. Pet pampering, pet humanization, demand for convenience, one person households, working couples without kids, elderly persons living alone,…. all these trends contribute to having more dogs in the nation and spending more money on them.
Most luxurious item I’ve seen so far is a $18,000 Ralph Lauren pet carrier! I could not image carrying my Akita dog around in one, but those bags are probably not made in his size anyway
The American Pet Product Manufacturer’s Association (APPMA) estimated in their 2007-2008 National Pet Owners Survey that 71.1 million US homes have pets. About 45% of total US households has at least one dog, adding up to a total of 75 million dogs that all need to be fed !
With an average spending on dog food of $217 per dog the US market for dog food will be around $16 billion in 2007. Imagine the numbers worldwide!
This is a huge market that all dog food manufacturers will want to have a few bites from. With marketing campaigns they will try to sell you their products but it is not easy to read beyond the marketing buzz words and to not be distracted by gimmicky dog food packages.
For starters, it’s wise to learn how to decipher dog food labels and how to monitor the health condition of your dog using this 10-step dog health checklist. At times like this, you need objective information so you can make the right decision for your trustful canine companion.
Posted in Dog Food Market Research |
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