0DECEMBER 2019

Trend Watch

PET CARE

∙ Perfume your world ∙

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Pet owners are increasingly treating their dogs, cats, and even small mammals like

members of their family. The opportunity to commercialize this trend into a vast range of

goods and services – from pet dating apps to commuter friendly services – is

outstanding. Industries like air care and fragrance are experiencing an uptick as

consumer lifestyle and life-stage choices change.

AT A GLANCE…

Pets are coming into focus as a supplementary symbol of adulthood and also of status.

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F R AG R A N C E C O L L E C T I O N

2 3T R E N D S

TABLE OF CONTENTS

1M AR K E T

O V E R V I E W

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MARKET OVERVIEW

1 w h a t t o k n o w

c a t e g o r y o v e r v i e w

f a c t s & f i g u r e s

p r o d u c t s h o w c a s e

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MARKET OVERVIEW - what to know

According to the American Pet Products Association,

almost 85 million households have a pet and over the last 30 years pet ownership has gone from

56% to 68% of all households.

The global pet care industry is expected to grow to

$164 billion by 2023 – a 31% increase from 2018, according to

Euromonitor.

In the US, pet odor motivates

36%of aircare users to use products –

increasing 46%

among adults 25-44, who are most likely to have pets

in the home.

Source: Mintel, April 2018

Millennials have surpassed Baby Boomers as the generation with the

most pets. Millennials make up the largest

segment,

35% of pet owners.

Source: Pet Age

In 2018, pet care was a

$225 billion business in North

America, according to market research firm Edge by Ascential.

Facts to consider…

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$48.35$50.96

$53.33$55.72

$58.04$60.28

$66.75$69.51

$72.56$75.38

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Valu

e (b

n U

SD)

Total US Pet Industry Expenditures(United States, 2010-2019)

Source: American Pet Products Association

• Pet market sales have steadily increased in the U.S. over past years and will continue to grow as sales can be attributed to the growing number of pet-owning households in the US.

Estimated

MARKET OVERVIEW - category overview

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Number of Pet-Owning Households(United States, 2011-2018)

• Pet ownership in the US continues to grow, with nearly 74 million households (58% of US households) reporting ownership of at least one pet, an increase of 11% from 2011-18.

• Despite the challenges and added responsibility of owning a pet, the unconditional love and loyalty associated with pets underpins the growing pet population.

• Millennials, a key demographic of pet lovers are delaying traditional milestones, like getting married, buying a house or having children thus boosting this lucrative market.

MARKET OVERVIEW - category overview

Source: Mintel, Pet Supplies: 2019

Base: 24,054-22,848 adults aged 18+

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Attitudes Towards Pet’s Health & Happiness

MARKET OVERVIEW - category overview

SPEND ON PET AND SELECT REASONS FOR SPENDING MORE, APRIL 2019

"Compared to a year ago, are you spending more, less, or the same on your pet?” -More

"Why are you spending more on your pet this year? Please select all that apply.“

Base: 1,582 internet users aged 18+ who are dog or cat owners and have purchased pet supplies

• Pet owners are invested in their pets’ health and overall wellbeing, with 32% of pet owners agreeing that they are spending more on their pet compared to a year ago.

• Pet owners’ desire to keep their pets healthy and happy influences them to spend more, contributing to market gains.

• In fact, more than half of pet owners that are spending more compared to a year ago are doing so to keep their pet healthy and/or improve their pet’s quality of life, while 45% are spending more to make their pets happy.

Source: Mintel/Lightspeed

Source: Mintel/Lightspeed

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Food , $31.68bn, 42%

Vet Care , $18.98bn, 25%

Supplies/OTC Medicine , $16.44bn, 22%

Live Animal Purchases, $2.01bn, 3% Other

Services , $6.31bn,

8%

Food

Vet Care

Supplies/OTC Medicine

Live Animal Purchases

Other Services

• Pet Food was the highest selling pet market product category in the United States in 2018 and is projected to maintain the top spot into 2019.

• The Vet Care segment brought in the second highest revenue, with sales amounting to around $18.98 billion dollars in 2018.

• Other Services include grooming, boarding, training, pet sitting, pet exercise, pet walking, and miscellaneous.

Market Segmentation for Pet Care (North America, 2018)

Source: American Pet Products Association

MARKET OVERVIEW - facts & figures

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• The ever-increasing pet parent spending and pet ownership trends indicate that not only are more people making pets are part of their family, but that pet ownership attitudes are evolving as well.

• Pets are fast becoming considered family members who deserve plenty of pampering, spoiling and care. Reason being why dogs and cats are the most popular pets.

Types of Pets in US Households (North America, 2018)

Source: American Pet Products Association

Dog42%

Cat33%

Freshwater Fish9%

Bird5%

Small Animal4%

Reptile3%

Horse2% Saltwater Fish

2%

Dog

Cat

Freshwater Fish

Bird

Small Animal

Reptile

Horse

Saltwater Fish

The Labrador retriever has topped the AKC's

list of most popular breeds in the US

since 1991.

MARKET OVERVIEW - facts & figures

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Pet Ownership in the US(2017-2018)

• Pet ownership is generally higher in rural states like Wyoming, West Virginia, and Nebraska.

• In contrast, highly dense areas like New York, New Jersey, and Connecticut have lower pet ownership rates.

Source: American Veterinary Medical Association

1. Wyoming (72%)

2. West Virginia (71%)

3. Nebraska (70%)

4. Vermont (70%)

5. Idaho (70%)

6. Indiana (69%)

7. Arkansas (69%)

8. Mississippi (65%)

9. Oklahoma (65%)

10. Colorado (65%)

1. Rhode Island (45%)

2. South Dakota (46%)

3. New York (50%)

4. New Jersey (47%)

5. Maryland (49%)

6. Illinois (49%)

7. Massachusetts (49%)

8. Connecticut (50%)

9. Georgia (51%)

10. New Hampshire (52%)

Pet ownership is highest in more rural states. The 10 states that had the highest percentage of

pet-owning households were:

Pet ownership is generally lower in urban states. The 10 states with the lowest percentage of pet-

owning households were:

MARKET OVERVIEW - facts & figures

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HEALTHY HEMPCannakit

SKOUT’S HONORHoneysuckle Probiotic Skincare 1

GREENSHIELD ORGANICGo Pet Stain/Odor Remover2

PEBBYSmart Ball4

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1. HEALTHY HEMPHealthy Hemp’s CannaKit is a starter hemp kit that containssample sizes of three hemp products. This is a great way tointroduce hemp to a pet, while also finding the best applicationfor your pet’s individual needs.

2. ORGANIC STAIN REMOVERGO by Greenshield Organic Pet Stain & Odor Remover OrangeBlossom is the safe and effective way to treat accidents,eliminating the stain and the odor that often lingers behind.Along with being USDA Certified Organic, Greenshield Organicdiscloses every ingredient.

3. PROBIOTIC TECHNOLOGYSkout's Honor NEW Probiotic Skin Care for Pets is designed tosupport your pet's natural defenses against shedding, itching,dryness, hot spots and odor - for a naturally-balanced andhealthier-looking skin and coat.

4. INTERACTIVE COMPANION BALLPebby is a new monitoring tool allowing on-the-go pet parentsto check up on and even play with their four-legged friends.Using the app, owners can maneuver the Pebby ball to interactwith their cat or dog from wherever they are.

5. DOG PERFUMEMaschio is a luxurious dog fragrance for the “man of the house”that embodies the ultimate expression of masculinity in anambience of bergamot, lavender, marine accord, and musk.

MARKET OVERVIEW - product showcase

MASCHIO Male Dog Perfume5

SURE PETCAREMicrochip Pet

Feeder Connect6

6. AN INTELLIGENT PET FEEDERThe SureFeed Microchip Pet Feeder Connect monitors theeating behavior of pets. The smart feeder monitors how muchand when a pet eats, sending real-time updates directly to thepet owner’s phone. It features integrated scales, which enableowners to provide accurate food portions to their pet.

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TRENDS

2 F o r P e t s

F o r O w n e r s

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FOR PETS

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TRENDS - food

Putting digestive health at the center of a product’s proposition is rarer still, but the current buzz around this is likely to make such products appealing to pet owners keen to boost the health of their pets. This spotlight on digestive heath is helping to put this facet of healthy eating on more consumers’ radars and boost the desirability of diets which actively support this.

It is no wonder that functional claims relating to digestive health are on the rise in pet food.

GUT HEALTHAn upswing in claims to support digestive health

FISH4DOGSMackeral Morsels

Digestive Aid

POOCH&MUTTHealth & Digestion

Grain-Free Complete Food

NATURE’S VARIETYFreeze Dried

Raw Boost Mixers

PUPPY SCOOPS

Doggie cookies, cakes and now ice cream.Companies, responding to dog owners looking for the latest

way to pamper their pooch, are pumping out jowl-licking treats modeled after human sweets.

Aldi’s is the latest food chain to release ice cream specifically for dogs. Their new Heart to Tail Dog Ice Cream will have your

dog’s tail wagging with excitement!

Dogs can now celebrate National Ice Cream Day

PUPPY SCOOPSIce Cream Mix

For Dogs

POOCH CREAMERYPeanut Butter Flavored

Ice Cream

ALDIHeart To Tail

Frozen Dog Treats

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TRENDS - customization

Mixlab provides personalized medications and wellness products for pets. When a prescription is received from a vet, Mixlab customizes the dosage for the pet’s size and type. Mixlab can often give the pet parent the opportunity to have the medication mixed into a flavored treat or other form that’s easier to administer. Mixlab presents its services to vets who recommend it to their pet owners. So far, a majority of the vets who have met a Mixlab representative have recommended it to their pet owners.

MODERN PET WELLNESSCustomized solutions for your pet

PERSONALIZED FUN

Pupjoy uses technology and data to offer mass customization of pet products. Its first offering is a

subscription box that is highly customizable based on users’ preferences and dogs sensitivities and include treats, chews,

toys, supplements, accessories as well as products for preventative care. Pupjoy guarantees a retail value in its

subscription box that is least double the price paid by the consumer.

Pet subscription box

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TRENDS - social

The influencer race is taking over the pet kingdom. Accounts for animals now often outperform verified humans on Instagram. The rise of furry superstars on social media began more than a decade ago.

Today, pet influencers merge the perfect formula of clickbait and memes and tie that with branding knowhow. Pet celebrities, like Juniper Foxx, Mr. Pokee the Hedgehog, Hamlet The Piggy or Pumpkin The Raccoon, spend their days starring in endorsement deals worth $2000+ per post.

PETFLUENCERS The growing market of Pet Influencers

LOVE DOGS? NEED A DATE?

Dig is a one-of-a-kind dating app designed to cater to the interests of dog lovers in the dating market. The platform supports single dog owners by offering dog-friendly date

suggestions, social events where people and dogs can unleash their fun side, and exclusive deals on pet products.

After a whirlwind year, Dig still has room to grow and help thousands of dog lovers find their packs.

A dating app for single dog lovers

@mr.pokee

@hamlet_the_piggy

28% of US pet owners agreethat they have created

or are interested increating a social media

account for their pet

Source: Mintel

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TRENDS - pet practices

Research has shown that having pets in the workplace improves productivity, collaboration, and alleviates stress. HABRI or the Human Animal Bond Research Institute released a fun take on how a pet-friendly policy benefitted their company’s culture!

Pet-inclusive workplaces are more likely to attract, engage, and retain employees, HABRI says, and typically result in improved employee satisfaction and interoffice communication and collaboration.

THE PET EFFECTThe Woofice

FOUR-LEGGED COLLEAGUES

Mars Petcare has opened its new headquarters in Franklin, Tennessee, dubbing it as the “Pet Friendly Workplace of the

Future.” The new building is geared to foster a collaborative working environment for associates and their pets.

Features of the new headquarters include a Wi-Fi enabled dog park with seating areas and room to run, two indoor dog play

areas, staffed so associates who may have a busy day can still bring their pets, and coffee bars on every floor that also

have automated “slurp stations” for pets.

Mars Petcare opens pet friendly headquarters

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TRENDS - events

SuperZoo is the most-attended pet industry trade show in North America, established by World Pet Association in 1950 as an annual gathering place for the entire industry to connect, learn and do business.

Ever since, the show has continued to grow and it now boasts more buyers and education hours than any other industry event on the continent. SuperZoo has earned its reputation as North America’s premier pet retail event—and the industry’s most productive and vibrant trade show.

UNITING THE PET INDUSTRYSuperZoo

Over 9,800attendees in 2018!

PREMIER PET EXHIBIT

Global Pet Expo is the pet industry's largest annual trade show featuring the newest, most innovative pet products

on the market today. More than 1,000 companies from around the world showcase the latest and greatest products

available for all types of pets including dogs, cats, birds, fish, reptiles, small animals and horses. The Show features 16

football fields’ worth of pet products, more than 3,000 product-launches and nearly 300 first-time exhibiting companies.

Global Pet Expo

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FOR OWNER

FOR OWNERS

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TRENDS - claims

According to the Vegan Society, veganism is "A philosophy and way of living which seeks to exclude – as far as is possible and practicable – all forms of exploitation of, and cruelty to, animals for food, clothing or any other purpose; and by extension, promotes the development and use of animal-free alternatives for the benefit of humans, animals and the environment. In dietary terms it denotes the practice of dispensing with all products derived wholly or partly from animals."

REASSURING SKEPTICAL CONSUMERS

Vegan labels

COMMON CRUELTY-FREE AND VEGAN LABELS

In the animal rights movement, cruelty-free can be applied to products, brands or activities that do not harm or kill animals anywhere in the world. Products not tested on animals are considered cruelty-free.

Cruelty-free labels

Animal welfare is increasingly becoming a strong indicator of how ethical a brand is.

Source: The Vegan Society

Animal-friendly products can carry certifications such as the Leaping Bunny. "Free from animal-derived ingredients" and "suitable for vegans" mentions are also popular.

The Leaping Bunny certification is the global gold standard for cosmetics, personal care products and household products. However, this does not mean the product is vegan.

PETA’s Beauty Without Bunnies program shows the company and their ingredient suppliers do not conduct, commission or pay for any tests on animals for ingredients, formulations or finished products, and do not contain animal ingredients.

Cruelty Free International Cruelty-free & VeganThe Vegan Society label means the product and ingredients do not contain any animal product, by-product or derivative and must not involve testing of any sort on animals by the manufacturers, on its behalf, or by any third parties.

Vegan Society

Sozio has created a collection of Clean fragrances that are Cruelty-Free and Vegan. Ask us about our latest collection!

Sozio Clean Fragrance

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TRENDS - ethical practices

Fur has long had a complicated relationship with the fashion industry. For some, it’s synonymous with old school glamour and luxury, while for others it represents brutal killing for the sake of vanity. However, there can be no doubt that the industry’s transition to a more ethical, fur-free future has upped its pace in recent years, with anti-fur stalwarts like Stella McCartney, Hugo Boss, Armani, The Kooples, Net-a-Porter and Michael Kors have committed to going fur-free.

This new wave of major brands championing sustainable fashion marks a great leap forward for consumers.

DITCHING THE FURBurberry, Gucci, Tom Ford… the list goes on

ENDING ANIMAL TESTING

The Estée Lauder Companies will team with the Humane Society International in efforts to end cosmetic animal testing

across the globe.

The corporation signed on to join the animal protection organization’s #BeCrueltyFree campaign, which seeks to

give the beauty industry a “cruelty-free makeover with a wave of animal testing bans supported by hundreds of companies

and millions of caring consumers worldwide”.

Estee Lauder partners with The Humane Society

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TRENDS - air care

More than one third of US consumers are using air care products to remove pet odor. While pet owners adore their pets, they are not too keen on the odors they may bring into the home, such as personal scents or tracking odor particles from a litterbox or outdoors.

Air care and air treatment brands have an opportunity to widen reach and appeal to pet owners’ needs for products that remove odors, for a clean and fresh-smelling home.

PET ODOR NEEDSCatering to odor removal needs

ONE FUR ALL PETSPet House Candle

Lavender Green Tea

INDIGO WILDY.U.M. Mist Doggie Spritzer

AIR QUALITY CHALLENGES

As pet owners prioritize their pet’s health and wellbeing, air care products could lose favor to safer options, like automated

indoor air purifiers, which pose less health risks for pets.

Automated indoor air purifiers are increasingly marketed on their ability to filter pollen, particles and air pollutants to provide cleaner air. Meanwhile, a handful of brands are

expanding portfolios and claims to focus on households with pets, for a clean and fresh-smelling home for

pet and owner.

Creating a cleaner, safer pet environment

WINIXUltimate Pet HR900

Air Purifier

ALEN BREATHSMARTFLEX Fur Family Smart

Bundle

FRESH WAVEOdor Removing Spray

HAMILTON BEACHTrueAir Compact

Pet Air Purifier

In the US, pet odor

motivates 36% of aircare users to

use products

Source: Mintel, Insight: Aircare’s Untapped Market: Pet Owners April 2018 Askabout Sozio’sAbsorbzio

odor-neutralizing technology!

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TRENDS - household

PETS, THE NEW CHILDRENUntapped market for specialty products

EVOLVEMulti-Clean Free &

Clear Natural Multi-Surface Cleaner

THE RESPET CO. Respet Republic

of Pets Magic

SENTRY Clean Up

Ultra+PheromonesStain+Odor Remover

WORRY-FREE INGREDIENTS

Modern lifestyles call for products that care for physical and mental health, which implies the need for safer products. In the US, 67% of adults view cleaning products with

natural ingredients as safer.

Meanwhile, we are seeing a growing number of household products made with recognizable and science-backed

ingredients, such as plant-based ingredients or enzymes, in response to increasing concerns about harsh chemicals.

Botanical Ingredients emphasize natural positioning

SAFE FOR CHILDREN & PETS

PROTECTS SENSITIVE PARTS OF PETS

AIDS IN CONTROLLING BEHAVIOR OF DOGS

SEVENTH GENERATIONPine & Sage Scented

Toilet Cleaner

EARTH FRIENDLYEcos All-Purpose Cleaner

EARTH CHOICEMulti Purpose Spray

Ask about Sozio’s Vegan

and Cruelty-Freefragrances for air care and cleaning

products!

As people become more inclined to treat their pets as children or as part of their extended family it means we will see a similar demand for pet safe household cleaners as we have seen emerging for child-safe products in other related categories over the past decade, especiallyfabric care.

Pets can inspire surface care innovation as owners have emerged as a demographic that are willing to pay

for sophisticated products and services.

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FRAGRANCECOLLECTION

FOR PETS

3 P a m - p u r r i n g R e m e d i e s

P a w s - i t v e l y F r e s h

F u r - r e a l I n g r e d i e n t s

P e t P e r f u m e

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FLO

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FRAGRANCE COLLECTION - Sozio analysis

FR

UIT

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AR

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AT

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CIT

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PAM-PURRING REMEDIES

Invigorating and stimulating scents that elevate the spirit and encourage a sense of tranquility.

WELL & GOOD Fragrance Dog Spray

Lavender

SKOUT’S HONORProbiotic Pet Shampoo

Honeysuckle

WILDWASHConditioning Shampoo

Ylang Ylang

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FRAGRANCE COLLECTION - pam-purring remedies

HAPPY TAILS

Lime & Sandalwood

FEEL GOOD PUR-FECTION

Eucalyptus & Sage

TOPZesty Lime, Lemon,

Fruity, Sea Salt

MIDDLECoconut, Peach,

Petitgrain, Waterlily

BASESandalwood,

Vanilla, Musks

TOPMandarin, Lemon,

Bergamot, Sage Leaves

MIDDLEEucalyptus,

Spearmint, Rose Petals

BASEOakmoss,

Woody, Musks

CUTE CUDDLES

Geranium & Chamomile

TOPCreamy Coconut,

Sweet Peach, Ripe Raspberry

MIDDLERose Petals, Violet Leaf,

Geranium, Palmarosa

BASESandalwood, Amber,

Vanilla Sugar, Cashmere Musks

Citrus/Fruity Aromatic/Fresh

Floral/Fruity

SZUSM000385

SZUSM000386

SZUSM000387

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From ears to tail, these refreshing scents are perfect to brighten up the moment.

PAWS-ITVELY FRESH(low/no a l lergen)

WELL & GOOD Fragrance Dog Spray

Lavender

TROPICLEANWaterless

Cat Shampoo

OUT!Body Mist

Clean Cotton

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FRAGRANCE COLLECTION - paws-itvely fresh (low/no allergen)

SOFT WHISKERS

PURE PET

FURRY FRESH

TOPCucumber, Mandarin, Melon, Dewy Greens

MIDDLEAloe Nectar,

Cyclamen, Violet Leaves

BASEFresh Musk,Sheer Vanilla

TOPGreen Apple,

Rhubarb, Watery Greens

MIDDLEWaterlily, Muguet,Rosewater, Peony

BASESheer Musks

TOPFresh Cotton,

Aldehydes

MIDDLERose, Violet,

Jasmine, Neroli

BASEVanilla Woods,Powdery Musks

Aldehydic/Floral Fruity/Floral

Floral/Green

SZUSM000388

SZUSM000389

SZUSM000390

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Gentle ingredients that are not only purposeful, but wholesome to your furry one.

FUR-REAL INGREDIENTS

WELL & GOOD Fragrance Dog Spray

Jasmine & Aloe

WAHLWaterless Shampoo

Oatmeal Formula

WILDWASHConditioning Shampoo

Manuka + Lavender + Aloe Vera

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FRAGRANCE COLLECTION - fur-real ingredients

PAWSOME VANILLA

FUR-EVERPAPAYA

PEACH PLEASE

TOPHoney Nectar,Almond Milk

MIDDLEShea Butter,

Magnolia Petals

BASESweet Vanilla,Sheer Musk

TOPPeach Nectar,Green Apple

MIDDLERose, Jasmine,

Cyclamen, Leafy Greens

BASECoconut, Almond

Gourmand/Oriental

TOPPapaya,

Mango, Peach

MIDDLECoconut Milk,

Banana Leaf, White Floral

BASEHoney Nectar, Vanilla,

Heliotrope, Musks

Fruity/Floral

Fruity/Gourmand

SZUSM000391

SZUSM000392

SZUSM000393

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Appealing and charming perfumes formulated for your pet to leave them smelling great all day long.

PETPERFUME

DOG FASHION SPAFemale Dog Perfume

Femmina

DOG FASHION SPAMale Dog Perfume

Maschio

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POOCH SMOOCH

FRAGRANCE COLLECTION - pet perfume (female)

SASSYKITTY

TOPBergamot,

White Tea Leaves

MIDDLECamellia,

Jasmine Petals, Soft Rose

BASEGolden Amber,

White Musk, Tonka Bean

Floral/FruityFruity/Oriental

TOPSea Salt, Dewy Greens,

Peach, Apple, Citrus

MIDDLEHoneysuckle, Magnolia,

Peony, Rose, Lily

BASEWoody,Musks

SZUSM000394 SZUSM000395

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DOGGIE DAZE

FRAGRANCE COLLECTION - pet perfume (male)

TOPZesty Orange,

Fresh Citrus, Marine

MIDDLEAromatic,

Aquatic Floral, Leafy Greens

BASEWoody,Musks

Marine/Aromatic

TOPLemon Zest,

Petitgrain, Aromatic

MIDDLEThyme, Rosemary,

Eucalyptus, Fir Needles

BASERosewood, Vetiver,

Amber, Oakmoss, Musks

FRISKY FELINE

Aromatic/Woody

SZUSM000396 SZUSM000397

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Latin & North AmericaSozio Inc

51 Ethel Road West Piscataway, NJ 08854 USAPhone: (+1) 732 572 5600

Fax: (+1) 732 572 0944

AsiaJ&E Sozio Asia Ltd

Unit C6, 15/F, TML TowerNo.3 Hoi Shing Road - Tsuen Wan, N.T.

Hong KongPhone: (852) 2111 0842

Fax: (852) 2111 0942

Europe, Africa and Middle East

Sozio SAS

6, Rue Barbès - CS8005092532 Levallois-Paris cedex - France

Phone: +33 (0) 1 81 93 00 60Fax: + 33 (0) 1 81 93 00 98

∙ Perfume your world ∙

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