The increase of pet humanization, wherein pets are treated with increased care and hygiene, is proving to be a major driver for the market and is leading to major changes in product packing and resourcing of ethically viable products. The development of private labels stores focusing on unique and locally sourced products to increase their overall appeal, and the increasing density of nuclear families are the other major drivers of the market. The increase in penetration of the e-commerce sector is proving to be a major opportunity for the low-cost marketing of the innovative and novel product line developed by these emerging companies.
Source: Mordor Intelligence Analysis
Dry food is the largest segment accounting for a largest share of the total market share, followed by snacks and wet foods. The wide variety of available formulations and health claims provide a stiff competition and offer a lot to consumers. The dry pet food segment, which was responsible for about 32 % of the market revenue, has been dominant, due to the established benefits associated with it, such as dental benefits, ease of storage, and energy efficiency. The organic product division has risen well over the past decade and currently accounts for about 7.2% of the revenue, with growing concerns for healthier substitutes to avoid the use preservatives.
On the basis of product type, free-from products, such as grain free, soy free, and low grain products, are gaining a major foothold, in regard to the increasing health consciousness among consumers. Pricing and sales mechanism, wherein the internet sales are gaining a strong hold, are the other major segments. About 70% pet food is sold through pet shops, superstore, and grocery stores.
The market is further segmented based on animal type, wherein dog and cat foods occupy the largest market, due to their increased domestication and appeal. There is a large interest in pet ownership across Canada, where cats continued to outnumber dogs (with 8.8 million household pet cats in 2016).
The Canada pet food market is characterized by a high level of consolidation and competition, thus posing a restraint of difficult entry for new players. Emerging manufacturers are countering this by developing high-end natural/organic products, targeting a specific market. The other constraints include the increased allergic reactions to pets, fierce competition from online vendors, governmental regulation, and a challenging economy.
Major Players: Mars Incorporated, Nestle SA, Hill’s Pet Nutrition, and Big Heart, among others
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