Pulse Report Pet Q4 2012

7/21/2019 Pulse Report Pet Q4 2012

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Pet

SymphonyIRI

Welcome to the Pulse Q4 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 Q4 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, December 2012

Population in Millions Unemployment (%)

Average 12 Months

Inflation Rate GDP in Millions ()

January

2011

January

2012

Dec

2011

Dec

2012

Dec.

2011

Average

2012

2011

(Estimate)

2012

(Estimate)

France 65.0 65.3 9.7 10.2 +2.3 +2.2 1,987,699 2,029,877

Germany 81.7 81.8 5.9 5.5 +2.5 +2.1 2,567,000 2,643,900

Italy 60.6 60.8 8.4 10.7 +2.9 +3.3 1,586,209 1,565,916

Netherlands 16.6 16.7 4.4 5.3 +2.5 +2.8 607,435 601,086

Spain 46.1 46.1 21.6 25.0 +3.1 +2.4 1,074,940 1,048,490

United

Kingdom 62.4 62.9 8.4 8.0 +4.4 +2.8 1,747,315 1,898,520

The Pet macro-category is not hit hard by the economic recession: value

growth across Europe in Q4 2012 stays positive but keeps on slowingdown, to 2.9%. This result is worse than the growth of Q3 2012 (+3.1%).

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 together

with 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

+7.3%

+3.6%

+0.7%

+2.1%

+3.8%

TOTAL EUROPE +2.9%

Value Sales in Millions ()

Total EU 8,280

UK 2,145*

DE 2,090

FR 2,010

IT 1,203

ES 538

NL 296

520 536 530 527 530 557

72 75 73 72 7378

298 309 293 291 304314

522545 524 504 517

544

490497

480498

535

142134131131132125

518

0

500

1,000

1,500

2,000

2,500

2-Oct-11 1-Jan-12 2-Apr-12 1-Jul-12 1-Oct-12 30-Dec-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

+2.1%

Value sales and growth and decline in the last year

Value sales for the last six quarters

Source: SymphonyIRI Retail Databases; Period Ending 30 Dec, 12


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307

773

3.057

4.143

2,1

-1.02,93,8

Cat Food Dog Food Pet

Accessories

Other Pet

Food

Millions

-10

10

30

50

70

90

110

130

150

Total Sales % vs. YA

Category Evolution

50.0%

36.9%

9.3%3.7%

Cat Food Dog Food Pet Accessories Other Pet Food

Europe

Value Sales () and % Change vs. Yr Ago

4,143

3,057

773

307

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 by2.9% on average across the six countries

during the year ending Q4 2012; this is

slightly worse than the growth of Q3 2012

(3.1%)

Spain, UK and France are confirmed as the

top countries for growth in the year ending

Q4 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 atthe same pace; the growth of Pet

accessories is positive, whilst other Pet food

stays 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 ()

150.5

63.3

21.4

0 50 100 150 200

Cat Food

Dog Food

Pet

Accessories

Millions

-4.0

-5 -4 -4 -3 -3 -2 -2 -1 -1 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 (+150 million ),

whilst a smaller but relevant contribution comes from dog food (+63 million , where the driver

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

Dog Snacks & Treats segment is 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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931.46

125.20

621.48

331.66

5.63.4 3.2

1.1


Accessories

Other Pet

Food

Millions


46.3%

30.9%

16.5%6.2%


France


931

621

332

125

0

100

200

300

400

500

600

700

800

900

1,000

Category Evolution

MillionsEuros



Key trends

The market trend of Pet Food is in line withthe FMCG trend in 2012 (about +2.8%).

Growth is still mainly driven by Cat Food : Wet

Cat growth is moderate (+3%) whereas Dry

Cat continues to be very dynamic (+7%).

Snack and Treats is the fastest growing

category : Cat Snack & Treats(+19%)

growing through assortment development

(+28%) and Dog Care & Treats (+11%) 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%).

No change on other Pet Food.

The Dog Food trend continues. Wet Food is

negative (-6%) with Dry Food positive (+3)

thanks to Care and Treat.


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France


chg vs. Yr Ago ()


chg vs. Yr Ago ()

49.2

10.8

6.8

3.8

0 10 20 30 40 50 60

Cat Food

Pet

Accessories

Dog Food

Other Pet Food

Millions

0,0 0,0 0,0 0,0 0,0 0,0 0,0

Millions



Cat Food is the main contributor to the market value growth, showing 49 million Euros of new

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

Dry Cat +7%

Single Serve Wet Cat +6%

Snacks Cat +19%

The assortments in Pet Food tends to increase in all segment .This proves how strategic this

category continues to be for retailers, particularly with the development of the value offer.


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Germany


56,8%

32,7%

7,0%3,5%


1.187

73

683

146

0

200

400

600

800

1.000

1.200

1.400

1.187,27

683,01

146,1273,46-2.6

-11,5

2,5 0.0


Accessories

Other Pet

Food

Millions

vs. YA % vs. YA

Category Evolution

MillionsEuros



Key Trends

The Pet Food category in Germany is

growing at a nominal pace in value (+1.1%)which can be attributed to increase in

average prices by 2.1% and promotional

value growth of +8.1% while volume sales

show a slight decline (-1.0%)

Cat Food is the core business for Pet Food

Industry, it is the only growing category with

rising volume sales with the rise in avg.

prices of 2.4% and rate of sales in Euro by18.6%

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 with avg.

prices decline by -11.8%

Private Labels demonstrates good growth,

coming from increased promotional supportfor Cat & Dog Food


10/2010


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Germany


chg vs. Yr Ago ()


chg vs. Yr Ago ()

-0,3

-3,9

-9,5

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

Dog Food

Pet Accessories

Other Pet Food

Millions

28,5

0 5 10 15 20 25 30

Cat Food

Millions



Cat Food is the only driver of the growth in the Pet Market, Dog Food observes amarginal decline; all other Pet Food and accessories are declining in sales.

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

however Private Label are declining in volume sales in hard discounters.

Cat Food represents more than half of the Pet Market and is mainly driven by Wet

Food (with 70% share) which has grown by 3.1% in value sales and shows 2.3%

growth in volumes sales; the snack segment overcompensate for these losses with 9.2

% value and 9.9% volume growth mainly driven by product innovations (like natural

and liquid snacks). The dry segment declines by -4.3% in value and -9.7% in volume

Dog Food which holds around one-third of the sales in the Pet market, is mainly driven

by the growth in the Dog Snacks in value sales (2.8%),however it is declining in

volume sales(-1.8%); Chews are the main segment of Dog Snacks

Dog Wet Food declines by -1.3% in value sales, -1.7% in volume sales and Dog Dry

Food declines by -1.6% in value sales, main core size class is 2.5 4.9kg.

The subcategories of Bird Care, Small Animal Care and Fish Food are the strongest

drivers of the negative trend in the Pet market. All segments within Pet Accessories

show a negative trend in turnover resulting in an overall decline of -2.6% in value.


11/2011


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Italy

53.1%

33.6%

11.5%1.7%


639

404

138

21

0

100

200

300

400

500

600

700


Category Evolution

638.99

404.11

138.38

21.04 -1.72.3 2.3 1.1


Accessories

Other Pet

Food

Millions


MillionsEuros



Key Trends

Total Cat and Dog Food continues to

increase in value sales in the year endingQ4 2012 (2.3% for Cat and 2.3% for Dog);

but volume sales do not keep up (so: Value

grows as volume declines for Cat Food and

Dog Food )..

Cat Food remains the largest sector of the

category, accounting for 53.1% of the total

value sales, and shows an increase of 2.3%

just like Dog Food; Pet accessories turn to

positive and Other Pet Food are still losingvalue sales.

Dry Petfood is performing better than Wet;

Wet Single Serve drives the performance of

Cat Food with a growth of 4.2% in value

sales, whilst Dog Food still shows a limited

but positive trend for wet small and medium

products (+0.2%).

Snacks &Treats remains the fastest growing

segment of the category for both Cat(+55.4%) and Dog Food (+9.9%).


12/2012


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Italy


chg vs. Yr Ago ()


chg vs. Yr Ago ()

14.2

9.0

1.5

0 5 10 15

Cat Food

Dog Food

Pet

Accessories

Millions

-0.4

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

Other Pet Food

Millions


Italy


The main contribution to the growth of Pet Care category comes from Cat Food, with a 14.2million increase in sales; the growth of Dog Food is smaller at (9.0 million ). Pet

Accessories turn to positive after quite a few periods.

Products in small packages continue to drive the positive performance of the market, both in

Cat and in Dog Food. Confirming that the cluster of shoppers who keep on buying premium

products -with user friendly packages and special tastes- are not affected by the difficult

economic situation.

The increasing attention of pets health is reflected in the considerable growth of Dog

Functional Snack & Treats segment. Cat Snack & Treats is still a niche market with a good

potential of growth.

Pet Accessories are slightly growing whilst Other Petfood is losing value and volume sales,

with minimal scale 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 25.5 with +0.7 points vs last year. Private Label reaches a 41.9% volume

market share, with +1.0 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 still growing

above the average of FMCG products (food and non food; + 0.6% year ending dec 2012);however,the growth in value goes together with a decline in volumes.


13/2013


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Netherlands

50.7%28.7%

16.6%4.1%


150

85

49

12

0

20

40

60

80

100

120

140

160


Category Evolution

149,83

84,73

12,09

48,93

-2.4

3.9

7,4

2.9


Accessories

Other Pet Food

Millions

-4

-2

0

2

4

6

8


MillionsEuros


Key Trends

More than half of the total sales ofPet Food is from Cat Food that

continues to grow in Value terms,

we should realize that volumes are

decreasing.

The second largest segment is Dog

Food. This segment is decreasing in

sales by almost 2.5% now.

The main chances for growth is in

the Accessoires segment; thissegment is growing for a number of

quarters now, volume is still

growing. The share of this segment

is almost 17% now.



14/2014


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Netherlands


chg vs. Yr Ago ()


chg vs. Yr Ago ()

-1.8

-2.0 -1.5 -1.0 -0.5 0.0

Dog Food

Millions

3.9

3.4

0.6

0 1 2 3 4 5

Cat Food

Pet

Accessories

Other Pet Food

Millions


In the Netherlands the pet population is decreasing*. In 2006 there were 34.5 millionpets, while in 2012 this number has decreased by 14% to 29.6 million this year. The

number of households keeping pets increased, but the number of pets in a household

decreased.

The main drivers for the development of Pet Care is Cat Food and Pet Accessories due

to their good performance.

We have to keep in mind that the results are different when we track volumes: Cat

Food is decreasing in volumes, which is mainly effected by wet cat food. The

promotion of cat food was much higher than last year; especially for wet food. It is

remarkable that the number of cats has decreased; 400,000 less than six years ago. Intotal we have around 2.9 million cats in the Netherlands now.

Dog Food is decreasing for a long time now for both volumes and sales. The main

cause of the decrease is the loss of sales in Wet Food. The promotion of Dog Food

was a bit higher than last year, but compared to Cat Food the pressure was half the

pressure in Cat Food. The number of dogs decreased by 300,000; we have 1.5 million

dogs in the Netherlands.

Still, the trend of the sales of Accessories in the Netherlands is impressive with a

growth of more than 7%. When we take a look into the segments it is remarkable thatthis is caused by the success of Chewing Bones; both volume and sales are increasing

rapidly.

Source: SymphonyIRI Retail Databases; Period Ending 30 Dec, 12 * Source:

Ministry of Economic Affaires


15/2015


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Spain

60.0%

34.9%

5.1%

Dog Food Cat Food Other Pet Food

323

188

27

0

50

100

150

200

250

300

350

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

322.63

187.61

27.288.0

0.97.2

Dog Food Cat Food Other Pet Food

Milli

ons


MillionsEuros


Key Trends

The Pet Food market shows good behavior due to

the growth of its three segments: Dog Food (+8.0%),

Cat Food (+7.2%) and Other Pet Food (+0.9%).

Private label has reached 49.1% market share and

it is higher in the Dog Food segment (55,7%).

Dry Dog Food experienced a major growth (+9,2%)

Wet Dog Food increased by only a +4.1% in value

as this segment has a higher level of private label

presence (+76.5%). Wet food is a more expensive

product but private label is focused on formats with

major volume, where as the manufacturers arefocused on the single serve products with a higher

value but less weight.

Cat Food experienced a growth of 7.1 % in value.

This behavior in value is due to the success of the

single serve products.

The Snacks and Prizes segment is growing

significantly (+10.7 % for dogs and +32.9% for cats)

due to new launches in the market.

Other Animals has increased mainly due to Birds

(+4.6%) and Rodents (+7,8%).



16/2016


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Spain


chg vs. Yr Ago ()


chg vs. Yr Ago ()

23.9

12.6

0.2

0 5 10 15 20 25 30

Dog Food

Cat Food

Other Pet Food

Millions

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Millions


All categories continue to grow, Dry Dog Food (the most numerous and cheap) along

with Snacks for Dogs and Cats (the newest and more expensive) were the products

with major growth. On the other hand, the private label continue to gain positions,

absorbing most of the growth of the market.

Snacks and Prizes for Dogs and Cats continues gaining presence, increasing their

volume. Its important to highlight the relevance of the Prizes for Cats category,

which are still small, but that almost duplicated the sales. Both monopolize a big

part of the launches in this sector, as a way of gaining added value and

differentiation.

Private label brands are gaining share. This major increase is in value opposed to

volume, this demonstrates the impulse of the retailers own brands of major quality

and added value for their brands, that are not bought on low prices alone.



17/2017


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United Kingdom

48.9%

43.9%

5.0%

2.2%


1,048

941

10848

0

200

400

600

800

1000

1200


Category Evolution

941.34

107.86 47.67

1,047.81

4.29.9

2.8 2.7


Accessories

Other Pet

Food

Millions


MillionsEuros

Data for the United Kingdom does not include Northern Ireland


Key Trends

This quarter has seen a slight decline inthe rate of volume growth in the UK.

This fits with the more long term slow

down in volume growth. As volume

growth slows value shows the reverses

trend over the long term as Pet owners

pay more to keep their animals feed.

We see the major slowing of volume in

Dog Food showing a negative position

this quarter as value shows a steadygrowth around 2% .

In Cat Food we see stable growth in

volume terms but much stronger growth

in value terms, it is this that is driving

most of the value development at a total

category level.



18/2018


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United Kingdom


chg vs. Yr Ago ()


chg vs. Yr Ago ()

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Millions

42.0

25.7

9.7

1.3

0 10 20 30 40 50

Cat Food

Dog Food

Pet

Accessories

Other Pet Food

Millions

Data for the United Kingdom does not include Northern Ireland


Cat Single Serve continues to trade up buyers driving value far ahead of growth this

quarter.

While Cat Multiserve is still in decline the rate of decline has improved over the last

quarter.

Dry Cat has been driving volume this quarter as Care and Treats continue to build

well over the long term.

Dog Multiserve and Dry volume subside as value remains steady , with Dog Careand Treats doing better with volume than value over the last quarter.



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 FMCG manufacturers andretailers 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 Q4 2012