Pet Product Retailing UK pet product market trends Karen Pickwick - PowerPoint PPT Presentation

Pet Product Retailing UK pet product market trends Karen Pickwick Editor Pet Business World 1

The leading magazine and website for the UK pet trade 2

Website and Forum 3

Increased economic pressures Analysis of the vet market by the Fort Dodge Index shows: • falling client numbers, • fewer client visits • lower average transaction values. 4

UK pet population There are more than 125 million pets in the UK, including: • 100 million fish ( indoor and outdoor ) • 10.5 million dogs • 10.3 million cats • 7.5 million reptiles (including chelonia ) • 2.3 million small mammals (including rabbits, guinea pigs and hamsters ) • 1.6 million birds (including aviary, poultry and pigeons ) • 2.7 million others ( including horses and ponies ) 5

UK pet ownership About half of all UK households own pets, including: • 8 million households with dogs (that’s 31%) • 6.7 million households with cats (26%) • 0.4 million households with fish (14%) 6

Why do people have pets? • 60% of single people in the UK bought a pet for companionship. • Only 5% who had a pet for security reasons. • 21% of pet owners wanted a pet since childhood • 39% of London’s pet owners bought their pet for companionship – despite having 7.5 million neighbours across the city! 7

Where do people buy their dogs? • Rescue centre: 32% • Friend/acquaintance: 25% • Recommended breeder: 16% • Private ad: 16% • Internet: 8% • Pet shop: 7% 8

Classified ad FREE PUPPIES. Half Cocker Spaniel, half sneaky neighbour’s dog. 9

Classified ad FREE YORKSHIRE TERRIER. Hateful little bastard. Bites! 10

T op dogs 1. Labrador 2. Border Collie 3. Jack Russell Terrier 4. Yorkshire Terrier 5. German Shepherd 6. Bischon Frise 7. Rottweiler/Dalmation 8. Cocker Spaniel/Shiatzu 9. Labradoodle/Golden Retriever 10. Greyhound (incorporating Whippets) /Chihuahua

Financial health “Pets are an essential part of the social, cultural and economic fabric of our country” ProPets 2011 • Pet owners spend an average £87 million a week on pet care (including veterinary) • That’s nearly £4.7 billion pa in tax. • Owning pets saves the NHS £1.4bn a year. • With just these two examples, the economic value of pet ownership to the Exchequer exceeds £3.1bn a year – that’s equivalent to nearly 1p on the basic rate of income tax!

UK market value The UK pet market is currently worth just over £3bn 13

Prepared food Estimates suggest that as many as half of all dogs and about 75% of cats are still fed non-manufactured food 14

UK dog food market T otal UK dog food market is worth £1.05bn • Wet food: £325m (no growth on 2009) • Dry complete: £483m (+2% on 2009) • Mixers: £26m (-3%) • Treats: £223m (+4%) 15

UK cat food market Cat food has seen growth in value of 1% to £905 million. • Wet single-serve: £480m (+1%) • Wet multi-serve: £150m (-5%) • Dry complete: £232m (+4%) 16

Where Cat food is bought

Leading brands The T op 11 global dog and cat food brands (2006-2010) in descending order: 1. Pedigree 2. Whiskas 3. Friskies 4. Iams 5. Hill’s Science 6. Dog Chow 7. Royal Canin 8. Purina One 9. Hill’s Prescription Diet 10. Beneful 11. Eukanuba.

Global market share Share of the 2010 global pet care market (retail value) • Mars 18% • Nestle 18% • Colgate-Palmolive 4% • Procter and Gamble 4% • Private label 11% • Del Monte Foods 3% • Others 42%. 19

Raw/BARF diets 20

Natural/Organic Growth in natural and organic ranges mirrors trends in human foods 21

Age, size and breed specific diets 22

Health benefits 23

The environment A brand’s “green” credentials are becoming increasingly important to customers 24

Packaging There is great emphasis on convenience in packaging, from resealable bags to peel and serve 25

Small animal market Small furries are BIG business – UK market worth £66m 26

Accessories for small animals Accessories for small furries are becoming ever more elaborate 27

Pet accessories The pet accessories market is worth £285m 28

Reptile market The trade sells more than 20 million crickets and a million locusts as livefoods EVERY WEEK

Wild bird market Wild bird food and accessories are worth £250m – and growing 30

The fluffy bits near the end.. Our retail columnist Newshound 31

The opportunity Despite a static pet population, the market is growing in value due to innovation by the industry. As vets, you are uniquely placed to grab a share of this success thanks to your professional expertise. 32