EU terminates anti-dumping measures on China's PET products
European grain associations host grain outlook workshop
In 2016, the europe pet food market was valued at USD 23.74 billion and is estimated to register CAGR of 5.2%, maturing into USD 32.17 billion markets, by 2022.The Europe is an important pet food market, occupying about 32% of the share and Western Europe as the major contributor. It ranks second in the pet food sales, after the United States, with around 780,000 direct and indirect jobs, generated by pet ownership like veterinarians or breeders or connected supply industries throughout Europe.
Growing pet humanization = Higher pet food requirement
The rising trend of pet humanization, wherein, pets treated with utmost care and hygiene is a major market driver and is changing the product packing and resourcing ethically viable products. Further, it remains the key area in developing the new products & services for pets. Furthermore, the healthcare products & medicines for pets were very dynamic, during the review period, addressing the common conditions in pets as for humans. The activity tracking applications, reaching the pet space, has proved to be beneficial, owing to the increased smartphone usage. A positive growth expected in the pet care value sales, during the forecast period, is driven by the increased health-related concerns of consumers for their pets. The sales value of pet food grew in line, with the trends of premiumisation and humanization. The consumers are buying more expensive and exclusive products for their pets. The natural & fresh food, small packaging and food supplemented with vitamins & minerals have become the most popular sellers, in terms of value. This trend of premiumisation and humanization is expected to continue in 2017, owing to the introduction of several innovative products.
Increase in innovative pet food
The pet food industry is continuously growing, globally, creating a need for constant innovations and the ability to stay ahead of consumer demands. Further, generating around 30% of the total pet food and pet care sales, worldwide, Europe is considered as one of the leaders in the industry. The industry players have ensured to provide innovative products, designed for specific health conditions, age groups and sizes. As, the premiumisation has shifted consumer preferences, towards the organic and natural products. In spite of having constrained budgets, pet owners are immensely interested in providing the best care for their pets. In addition, the consumers are showing interest in the convenience and luxury, which is offered by the premium products in single-serve portions and, further, gaining great popularity. The concerns about ingredients, used in pet food & sources, are driving the all-natural and organic pet food sales. For instance, one of the most progressive areas of pet food research, in Europe, uses insects as a possible protein source. Protix, a pet products company in the Netherlands, presented information on this research and announced that it is participating in the launch of the first commercial pet food product that uses insects as a protein ingredient: a therapeutic, hypoallergenic diet for dogs. The product is scheduled to launch in September.
High-quality, healthy products gain ground as focus on product
Ingredients in Europe increases
The functional ingredients present in pet foods have special nutritional benefits, in the terms of general wellness and health issues such as digestion, joint & cartilage function, immune system strength or dental health in pets. In addition, there has been specialized pet food formulations for different life stages, breed sizes activity levels, weight control, specific ingredients avoidance and other issues. Further, the increased attention to the health issues, in both, humans and pets, is fueling the trend of functional food. Especially, these ingredients in the food are few of the consumers’ preferences, therefore leading the manufacturers are using more such ingredients in pet food. Further, the human food trends have influenced the pet food trends such as the idea of eating food with special nutritional benefits. According to a research, the pet food manufacturers are selecting specific ingredients to focus on the ingredients, contributing best to the pet food market. With this trend boosting so rapidly, there has been a constant search for new functional ingredients in pet food products. Therefore, the companies are individualizing efforts, playing to their maximum strengths and choosing ingredients that will contribute the best to the complex market.
Swedish brand Husse is the ﬁrst European company approved by the USDA to export pet food from Europe to the United States
Swedish brand Husse is the ﬁrst European company to export pet food from Europe to the United States market, approved by the USDA. The company Husse was founded in 1987 by Tom Eliasson and since then it has grown to be the best European player in the home delivery of quality pet food. Through, the sophisticated franchise system of the company has expanded in over 40 countries, with more than 500 unit-franchisees, entering the largest pet food market in the world is a leap for the company. It plans to start in Arizona and California, where master franchisees have invested in the brand. Husse's dry food products are manufactured in the European Union and are anticipated to be available in Arizona and California by April. The pets in the United States are soon going to get a taste of Europe. Besides the mergers and expansions etc., large investments are being made in R&D sector, concentrating on innovative products and pet or breed specific products. These plans are expected to provide a platform for growth and development of the new players.
Notable market developments
Our report on European pet food market covers the following: