Pulse Report Pet Q3 2012

7/29/2019 Pulse Report Pet Q3 2012

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Pet

SymphonyIRI

Welcome to the Pulse Q3 2012 edition for Pet.

We hope you find it useful. Please do not hesitate to

contact us if you have any questions or comments [email protected]

Pulse


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Pet SymphonyIRI Pulse Q3 2012

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About the Report

This Pet report is one of 10 super category reports designed to show high-

level comparison and analysis for retail markets across major countries in

Europe.

This report contains data gathered from around Europe. This market was split

into the following categories: Dog Food, Cat Food, Other Pet Food and Pet

Accessories.

The report highlights key metrics such as total sales figures, market trends,

category shares, winners and losers for Europe and for individual countries.

The data has been sourced from SymphonyIRI Group retail databases andEurostat the statistical branch of administration for the European

Commission.

The countries included in the report are: France, Germany, Italy, Netherlands,

Spain and the UK.

The market channels used for each country in this report are as follows:

For analytical purposes the data sourced from available retail databases has

been consolidated to provide consistent results. However, for some countries it

has not been possible to source data pertaining to certain categories. Whenthis has occurred it has been documented in the Notes section found at the

end of the report.

Country Channels used

UKHypermarkets, Supermarkets, Drugstores and

Impulse Outlets

ESHypermarkets, Supermarkets, Hard Discounters,

Drugstores and includes the Canary Islands

DEHypermarkets, Supermarkets, Hard Discounters

and Drugstores

NLHypermarkets, Supermarkets, Hard Discounters

and Drugstores

ITHypermarkets, Supermarkets, Small Self Service,

Hard Discounters and Drugstores

FRHypermarkets and Supermarkets


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In the Radar

Economic figures influencing consumer behavior

Source Eurostats, October 2012

Population in Millions Unemployment (%)

Average 12 Months

Inflation Rate GDP in Millions ()

January

2011

January

2012

Dec.

2011

Average

2012

Dec.

2011

Average

2012

2011

(Estimate)

2012

(Estimate)

France 65.0 65.3 9.7 10.3 +2.3 +2.5 1,987,699 2,033,702

Germany 81.7 81.8 5.9 5.5 +2.5 +2.4 2,567,000 2,645,862

Italy 60.6 60.8 8.4 10.7 +2.9 +3.5 1,586,209 1,565,770

Netherlands 16.6 16.7 4.4 5.3 +2.5 +2.8 607,435 609,133

Spain 46.1 46.1 21.6 25.1 +3.1 +2.3 1,074,940 1,050,211

United

Kingdom 62.4 62.9 8.4 7.9 +4.4 +3.7 1,747,315 1,913,070

The Pet macro-category is not hit hard by the economic recession: valuegrowth across Europe in Q3 2012 stays positive but is slowing down to

3.1%. This result is worse than the growth of Q2 2012 (+3.4%). The Pet

macro-category does not grow like in the past, but once more its trend is

better or at least in line with the trend of FMGC products.

The value growth is driven by a an increase in prices more than by an

increase in volumes. Price inflation and more premium sectors in small

sizes matter in this value growth.

Different tendencies coexist: smaller premium products grow togetherwith convenience products by private labels.

The PET Community of Interest- Symphony IRI Group

Contact: Paolo Garro

Business Insights Director/ +39 02 52.579446 / mob: +39 335 12.80.902;

[email protected]


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Global Trends

+7.1%

+3.5%

+1.4%

+2.3%

+4.2%

TOTAL EUROPE +3.1%

Value Sales in Millions ()

Total EU 8,103

DE 2,091

UK 2,003*

FR 1,992

IT 1,197

ES 528

NL 293

469 487 521 484 497 501

70 7275 73 72 73

285 298309

293 291 304

494522

545524 504 517

455

517

497 479 498

134131131132

125121

490

0

500

1,000

1,500

2,000

2,500

3-Jul-11 2-Oct-11 1-Jan-12 2-Apr-12 1-Jul-12 1-Oct-12

Millions

Period Ending

France

Germany

Italy

Netherlands

Spain

UK

*based on an exchange rate of 1.150 to the pound

Positive Trend

Static Trend

Negative Trend

+1.0%

Value sales and growth and decline in the last year

Value sales for the last six quarters

Source: SymphonyIRI Retail Databases; Period Ending 01 Oct, 12


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279

4.073

2.990

760

4,12,3

-5.3

2,7

Cat Food Dog Food Pet

Accessories

Other Pet

Food

Millions

-7

13

33

53

73

93

Total Sales % vs. YA

Category Evolution

50.3%

36.9%

9.4%3.4%

Cat Food Dog Food Pet Accessories Other Pet Food

Europe

Value Sales () and % Change vs. Yr Ago

4,073

2,990

760

279

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom

MillionsEuros

Category Value Sales and Share of Value in the Last Year


Key Trends

The value of the European market grew by3.1% on average across the six countries

during the year ending Q3 2012; this is

slightly worse than the growth of Q2 2012

(3.4%)

Spain, UK and France are confirmed as the

top countries for growth in the year ending

Q3 2012 .

Cat food remains the core business and the

trend setter of Pet Care, showing the fastest

growth. Dog food is also growing but not at

the same pace; the growth of Pet

accessories is positive, whilst other Pet

food is negative.

The marketplace continues to become more

competitive for branded products due to

the increased promotional activity and the

growth of Private Label.

Pet Care is not as promotionally reliant as

most major FMCG markets, but promotionsare growing across most of the countries

and pushing sales.


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Europe

Top Losers: Value Sales

chg vs. Yr Ago ()

Top Winners: Value Sales

chg vs. Yr Ago ()

161.3

77.7

17.2

0 50 100 150 200

Cat Food

Dog Food

Pet

Accessories

Millions

-15.6

-18 -16 -14 -12 -10 -8 -6 -4 -2 0

Other Pet Food

Millions

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom


Category Key Findings

The main contributor to the growth of Pet Care across Europe is Cat Food (+161 million ),

whilst a smaller but relevant contribution comes from dog food (+77.7 million , where the

driver is snacks and treats) and a limited contribution from Pet Accessories.

Dog Snacks & Treats segment are becoming increasingly more important and significant due

to its growth in Value and Volume in all European Countries

Wet cat single serve is the driver for Cat food, where brands are investing most, and to a

lesser extent dry cat food.

The main focus of NPD by major brands is on new premium tastes in small sizes or on new

user friendly packages; no real new concept innovations in the market unless we consider the

growing importance of oral care concept in snacks and treats.

Private Label is growing across most of the markets and represents a cheaper but acceptable

alternative offer compared to major brands, in the tough economic climate were living.

Pet Care appears to be an increasingly polarised category; economy products are growing

(Private Label) as well as Premium products in small sizes. The shopper is not unique and

the shopper of Dog food may behave very differently from the shopper of Cat food.


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918

123

620

330

5.54.4

-2.8

1.3


Accessories

Other Pet

Food

Millions


46.1%

31.1%

16.6%6.2%


France


918

620

330

123

0

100

200

300

400

500

600

700

800

900

1,000

Category Evolution

MillionsEuros



Key trends

The market trend of Pet Food is similarto the FMCG trend (about +3%).

Growth is still mainly driven by the Cat

Food : Wet Cat growth is moderate

(+3.5%) whereas Dry Cat continues to

be very dynamic (+8%).

Snack and Treats is the fastest growing

category : Cat Snack & Treats(+21%)

grow through assortment development

(+28%) Dog Care & Treats (+12%)

benefit from more NPD and more

promotions.

The growth of the cat population has a

positive impact on Cat Food, Pet

Accessories , and Cat Litter (7.5%).

No change on other Pet Food. This

decrease is due to all types of products.

The Dog Food trend continues. Wet food

is negative (-6%) with dry food positive

(+4) thanks to Care and Treat, Main meal

(+2%) has also made a contribution to

growth.


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France


chg vs. Yr Ago ()


chg vs. Yr Ago ()

48.2

14.0

7.9

0 10 20 30 40 50 60

Cat Food

Pet

Accessories

Dog Food

Millions

-3.5

-4.0 -3.5 -3.0 -2.5 -2.0 -1.5 -1.0 -0.5 0.0

Other Pet Food

Millions



Cat food is the main contributor to the market value growth showing 48 million Euros of new

sales. With the exception of multi-serve, all cats technologies are very positives :

Dry Cat +8%

Single Serve Wet Cat +7%

Snacks Cat +21%

Pet food volume sales are increasing, driven by promotional activity, this is key for

manufacturers.

The assortments in Pet Food tends to increase in each segment with the exception of Wet

Dog. This proves how strategic this category continues to be for retailers, particularly with

the development of the value offer.


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Germany


56,7%

32,7%

7,0%3,6%


1.186

76

683

146

0

200

400

600

800

1.000

1.200

1.400

1.185,87

683,49

145,9075,55

-3.6 -11,5

3,5 0.7


Accessories

Other Pet

Food

Millions

vs. YA % vs. YA

Category Evolution

MillionsEuros


Key Trends

The Pet Food category in Germany is

growing at a steady pace in value (+1.9%)

which can be attributed to increase in

average prices by 2.1% while volume

sales show a slight decline (-0.2%)

Cat food maintains its position of the

leading category within pet food and is the

only category with rising volume salesdespite the rise in average prices

Decline of Other Pet Food and Pet

Accessories is mainly driven by birds and

rodents, fish food is growing in volume

however declining in value sales

Private Labels Pet Food grows due to

increase in average price

while volume declines for all thecategories except for the cat food



10/2010


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Germany


chg vs. Yr Ago ()


chg vs. Yr Ago ()

-5,5

-9,8

-12,0 -10,0 -8,0 -6,0 -4,0 -2,0 0,0

Pet Accessories

Other Pet Food

Millions

39,6

4,9

0 10 20 30 40 50

Cat Food

Dog Food

Millions


Cat Food & Dog Food are the only drivers of the growth in the Pet Market and allother pet food and accessories are declining in sales

Hypermarkets & Hard discounters are the most important sales channel for Pet

Food private label products are driving the growth of Hard discounters

Cat Food which holds more than half of the sales share of the Pet Market is mainly

driven by wet food which grows by 4.1% in value sales and 3,3% in volume sales;

however declining in dry food by -4.1% in value sales and -8.6% in volume sales.

Single packs are compensating the loss done by multipacks, indicating the that

consumers prefer convenience Dog Food which holds around one-third the sales of the Pet market is mainly driven

by the growth in the Dog Snacks in value sales(3.5%),however is declining in

volume sales(-1.0%);Chews is the main segment of Dog Snacks

Dog wet food declines by -1.8% in value sales and -3.7% in volume sales and Dog

Dry Food grows by 1.2% in value sales, primarily based on the core size class of 2.5

4.9kg(3.6% growth in value sales). The trend is contrary to the Cat Food where

wet food grows and dry food declines

The subcategories of Bird Care, Small Animal Care and category Cat Litter (-3.5%)are the strongest drivers of the negative trend for the Pet market.



11/2011


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Italy

53,2%

33,7%

11,4%1,8%


636

403

137

21

0

100

200

300

400

500

600

700


Category Evolution

636,31

402,81

136,65

21,16-1.52.7 3 -0.9


Accessories

Other Pet

Food

Millions


MillionsEuros



Key Trends

Total Cat and Dog Food continues to

increase in value sales and in the year endingQ3 2012 (2.7% for Cat and 3.0% for Dog);

but volume sales do not keep up (so: less

kilograms sold but more value sales for Cat

Food and Dog Food ).

Cat Food remains the core business of the

category, accounting for 53,2% of the total

value sales, and shows an increase of 2.7%.

Dog Food performes slightly better (+3.0%)

while both Pet accessories and Other Pet

Food are losing value sales.

As a general comment, Dry Petfood is

performing better than Wet Petfood but inside

Wet Petfood two trends -which relate to

premium products- are remarkable : Wet

Single Serve drives the performance of Cat

Food with a growth of 4.6% in value sales,

whilst Dog Food is still driven by wet small

and medium package products (+1.1%).

Snacks &Treats remains the fastest growing

segment of the category for both Cat

(+51.8%) and Dog Food (+10.3%).


12/2012


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Italy


chg vs. Yr Ago ()


chg vs. Yr Ago ()

17,0

11,7

0 5 10 15 20

Cat Food

Dog Food

Millions

-0,3

-1,3

-1,4 -1,2 -1,0 -0,8 -0,6 -0,4 -0,2 0,0

Other Pet Food

Pet Accessories

Millions



The main contribution to the growth of Pet Care category comes from Cat Food, with a

17.0 million increase in sales; the growth of Dog Food is smaller, but anyway relevant

(11.7 million ).

Products in small packages are still driving the positive performance of the market both in

Cat and in Dog Food, confirming that there is a cluster of shoppers who keep on buying

premium products -with user friendly packages and special tastes- regardless of the

difficult economic situation.

The increasing attention of the shoppers to pets health is reflected in the considerable

growth of Dog Functional Snack & Treats segment. Cat Snack & Treats still is a nichemarket, as if it shows highly positive trends.

Pet Accessories and Other Petfood are losing value and volume sales, thus confirming

their marginal weight in comparison to Cat and Dog food.

The growth of promotional activities and the increasing importance of DOBs in most of

the segments make this market a highly competitive one (the % of promoted volumes in

Pet food gets up to 25.0 with +0.5 points vs last year. Private Label reaches a 41.8%

volume market share, with +1.2 points vs last year in Hyper+Super+Small Self Service).

So Petcare is not a category that is highly impacted by the recession, as it is growingabove the average of FMCG products (food and non food; +1.1% year ending Oct 2012);

however,the growth in value goes with a decline in volumes.

Italy


13/2013


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Netherlands

50.7%29.2%

16.3%3.9%


148

85

48

11

0

20

40

60

80

100

120

140

160


Category Evolution

148,19

85,32

11,42

47,60

-1.2

-14,0

5,52.2


Accessories

Other Pet Food

Millions

-15

-5

5

15

25

35

45

55

65

75

85


MillionsEuros


Key Trends

Cat Food is still the most importantcategory within Pet Food. This year

this category increased by 2.2% to

a total of more than 148 million

euro. The increase is caused by the

increase of Dry Cat Food.

The second largest category, Dog

Food, is decreasing for a couple of

periods now and decreased by

more than 1%.

The segment Pet Accessoires is

growing for a long time now. The

total turnover is now more than 47

million euro; an increase of 5.5%



14/2014


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Netherlands


chg vs. Yr Ago ()


chg vs. Yr Ago ()

-1.0

-1.9

-2.0 -1.5 -1.0 -0.5 0.0

Dog Food

Other Pet Food

Millions

3.2

2.5

0 1 2 3 4

Cat Food

Pet

Accessories

Millions


The total sales of Pet Food in the Netherlands is growing very little. The total sales of

supermarkets is growing faster in total than in Pet Food.

The volume of Pet Food in the Netherlands is decreasing; so the increase of the sales

is mainly caused by higher prices combined with higher sales in the mix of Pet Food

Both Cat and Dog Food volumes are decreasing; it is striking that both Cat and Dog

Food sold from the freezers are increasing in volume. This may be caused by the

crisis; shoppers are buying cheaper food for their pets and food which can be stored

easily. Also a much higher promotion share of freezing pet food has caused this.

Promotions in total Pet Food have increased as well. In the third quarter of 2012 the

promo share is higher than in the same quarter in 2011: from 30% to 31%.



15/2015


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Spain

59.8%

35.0%

5.1%

Dog Food Cat Food Other Pet Food

316

185

27

0

50

100

150

200

250

300

350

Value Sales () and % Change vs. Yr AgoCategory Evolution

315.67

184.84

27.127.5

1.17.4

Dog Food Cat Food Other Pet Food

Millions


MillionsEuros


Key Trends

The Pet Food market shows a good behavior due

to the growth of its three segments: dog food

(+7.5%), cat food (+7.4%) and other pet food

(+1.1%). Private label has reached a 48.3% market

share and it is higher in the dog food segment

(54,8%).

Dry dog food experienced major growth (+8,2%)

wet dog food increased by only a +5.1% in value

since this segment has a higher level of private

label presence (+76.8%). Wet food is a moreexpensive product but the private label is focused

on formats with major volume, whereas the

manufacturers are focused on the single serve

products with a higher value but less weight.

Cat food experienced a growth of 8.1 % in value.

This behavior in value is due to the success of the

single serve products.

The snacks and prizes segment is growing

significantly (+10.2 % for dogs and +29.5% for cats)

due to new launches in the market.

Other Animals has increased mainly due to Birds

(+4.1%) and Rodents (+6,5%).



16/2016


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Spain


chg vs. Yr Ago ()


chg vs. Yr Ago ()

22.0

12.7

0.3

0 5 10 15 20 25

Dog Food

Cat Food

Other Pet Food

Millions

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Millions


Notwithstanding four years of economic crisis, the pet food market continues to

demonstrate good health, it is experiencing growth over the FMCG market (+2.2 %).

There are several factors that have a direct influence in the mentioned growth; for

example the continuous innovation of companies that offer products with more

added value. This added value 48.3% market share that the private label has is

leading to lower pricing. The decrease in prices is also influenced by the dry food for

dogs since it is the lowest priced product in the market, it experienced a growth of

+8.2%.

Meanwhile, cat food experienced a growth of 8.1 % in value due to the wet single

serve success stimulated by the latest launches. But, it seems that the

manufacturers are concentrating their efforts in innovating the snacks and prizes

segment, which has had an increase of +10.2% for dogs and +29,5% for cats.



17/2017


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United Kingdom

49.9%

44.1%

5.0%

1.0%


1,000

883

10021

0

200

400

600

800

1000

1200


Category Evolution

883

100 21

1,000

4.28.1

3.8-1.8


Accessories

Other Pet

Food

Millions


MillionsEuros

Data for the United Kingdom does not include Northern Ireland


Key Trends

The Uk has been experiencing anextremely wet summer , with localised

flooding.

These poor conditions are helping to

keep volumes in Pet Food buoyant, with

Pets staying in the home more we have

seen volumes for Dry Food, Care and

Treats along with Litter all do well this

year.

Price inflation is also a large factor

driving value growth.

Cat Treats continues to grow well with

Nestle now launching into this growth

market.



18/2018


www.SymphonyIRI.eu

United Kingdom


chg vs. Yr Ago ()


chg vs. Yr Ago ()

-0.4

-0.5 -0.4 -0.4 -0.3 -0.3 -0.2 -0.2 -0.1 -0.1 0.0

Other Pet Food

Millions

40.5

32.3

7.5

0 10 20 30 40 50

Cat Food

Dog Food

Pet

Accessories

Millions

Data for the United Kingdom does not include Northern Ireland


Own Brand ranges continue to develop, with Waitrose launching their own label offer

in the UK with a two tier price strategy for Own Label.

We continue to see trading up into premium cat food sectors encouraged by

significant promotion.



19/2019


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Final Notes

Notes on Category Definitions for Countries

Due to the diverse products found in individual countries across this market it was necessary to

consolidate the available data into the categories in this report. In some cases it wasnt always

possible to align products across all 6 countries hence the need to highlight any anomalies in the

report. Those exceptions are listed below:

Other Pet Food

The UK data in this report only includes bird food where the other countries include fish food and

rodent food

Pet Accessories

The UK data in this report only includes cat litter and does not include pet hygiene products,aquarium accessories or pet toys

The Spain data in this report does not include this category

The Germany data in this report does not include pet toys


20/20


Resources

To gain insight into opportunities across specific categories, segments, channels or retailers, contact

your SymphonyIRI client service representative regarding custom analyses leveraging the following

resources:

InfoScan Census is a syndicated retail tracking service that enables manufacturers and retailers

to acquire industry insights used to make better business decisions. InfoScan Census utilizes the data

that SymphonyIRI Group collects from grocery, drug, and mass merchandise retailers to provide the

most comprehensive and accurate syndicated data offering in the Fast Moving Consumer Goods

(FMCG) sector. With access to accurate, granular detail by category, geography, measure, and time

period, clients have the tools needed to develop marketing and sales strategies based on product

performance, distribution, and promotion responsiveness. All data about pet comes from InfoScan

Census.

SymphonyIRI Consulting provides strategic insights and advice leveraging a variety of data

sources, predictive analytics, enabling technologies, and business analyses to help FMCGmanufacturers and retailers address significant sales and marketing issues effectively

Contact: SymphonyIRI Group, [email protected], Tel: +33 1 30 26 23 62

About SymphonyIRI Group

SymphonyIRI group, formerly named Information Resources, Inc. (IRI), is the global leader in

innovative solutions and services for driving revenue and profit growth in CPG, retail andhealthcare companies. SymphonyIRI offers two families of solutions: core IRI solutions for

market measurement and symphony advantage solutions for enabling new growth opportunities

in marketing, sales, shopper marketing and category management. SymphonyIRI solutions

uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI

helps companies create, plan and execute forward-looking, shopper-centric strategies across

every level of the organisation.

For more information, visit www.SymphonyIRI.eu

Documents

Pulse Report Pet Q3 2012