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Euromonitor International
December 2011
PET CARE IN INDIA Passport I
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PET CARE IN INDIA Passport 1
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PET CARE IN INDIA Passport 2
Pet Care Expected To Achieve Robust Growth Over the Forecast Period
Over the forecast period, pet care is expected to register a positive performance. With pet
ownership on the rise, there will be greater demand for pet care products. The shift towards
prepared food will continue as pet owners search for convenience. Urban consumers may trade
up to premium products or specialised products, as they gain a better understanding of their
pets needs and the benefits of various products. Moreover, as the status of pets is elevated,
demand for pet care is expected to become more sophisticated, with pet owners buying not just
pet food, but also pet products to meet their needs in terms of healthcare, grooming and leisure.
Current Impact
The continued rise of disposable incomes in 2011 is having a positive impact on the overall
performance of pet care. Annual disposable income per household in India is expected to grow
by 17% in 2011 in current value terms. This is contributing to the strong performance of
premium dry dog food, which is set to grow by 26% in current value terms in the same year.
Premium dry cat food is also expected to register double-digit growth. Operators of premium
brands such as Royal Canin and Hills Science Diet expanded their offerings to capitalise on this
growing propensity to spend.
For the middle- and low-income consumer segments, pet owners are more budget conscious
and a large proportion of them still feed their pets table scraps or homemade food. However,
there was an increase in the proportion of prepared food consumed by cats and dogs over the
review period. For example, prepared dog food as a proportion of dog food consumption rose
from 1.1% in 2006 to 1.4% in 2011. While the humanisation of pets was a major factor for this
trend, rising income was also a contributing factor, as this group of pet owners has become
more willing to purchase economy or mid-priced pet food.
Growing disposable income is also driving sales of non-food pet products, with pet healthcare
and pet dietary supplements experiencing strong growth over the review period. Pet owners are
more willing to increase spending on their pets, not only to meet their basic needs, but also for
their health and wellbeing.
Outlook
The short-term outlook for the economy has become uncertain due to the debt crisis in
Europe and signs of global economic slowdown. However, over the long term, the Indian
economy is expected to benefit from growth drivers in Asia. Thus, disposable incomes are
expected to rise over the forecast period. This will enable more consumers to own pets, as well
as prompt increased expenditure on pet care among existing pet owners.
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Future Impact
The rising disposable income is expected to encourage pet ownership. With a better financial
situation, more consumers will be able to afford the costs associated with pet ownership. This
will, in turn, generate greater demand for pet food and pet products. Thus, pet care as a whole
is expected to post a CAGR of 14% in constant value terms over the forecast period. As the
trend evolves, urban consumers are expected to trade up to premium products or try new
products for their pets, including pet grooming kits and training equipment, within the other pet
products category. Premium dry dog food and premium dry cat food are projected to grow at a
constant value CAGR of 14% and 12% respectively over the forecast period.
In response to the trend, manufacturers of premium products are expected to increase
product specialisation and introduce new products. In addition to targeting high-income
consumers, manufacturers will also seek to attract middle-income consumers, who are likely to
buy mid-priced or economy products.
Current Impact
Dogs are set to be the fastest growing pet type in 2011, as well as over the review period,
followed by cats and fish. Although fish and birds are considered low-maintenance pets, dogs
are preferred due to the perception that they are loyal, understanding and hardworking, etc. The
portrait of dogs in the media, for example in Western movies and drama series, as well as
reports of celebrities owning dogs, has also helped to raise the popularity of dogs as pets. As
consumers view dogs, and sometimes cats, as companions, they give these pets human-like
treatments, such as grooming services or buying them prepared food. In comparison, the
populations of birds, fish and small mammals/reptiles are set to grow by between 2% and 6% in
2011. There is less demand for these pets because the rearing of fish, birds or small mammals
is viewed as a pastime for older people or young children.
As a response to this trend, manufacturers have imported or developed new pet care
products for dogs and cats, such as specific dog food for particular breeds that are in fashion, as
well as mid-priced and economy cat food brands, alongside toys for dogs. As consumers seek
to understand their pets better, especially dogs, manufacturers have made efforts to educate
them about matters such as different life stages and breeds. For example, Royal Canin India Pvt
Ltds website describes the life stages of dogs and cats and their dietary needs at each stage.
These education efforts are expected to boost the sales of more sophisticated pet care lines by
building awareness.
Outlook
Over the forecast period, the dog population is expected to grow faster than other types of
pets. The media will continue to bolster the perception of dogs as loyal companions. Young
working professionals are expected to marry later due to changes in lifestyle and career
commitment. As a result, they may turn to pets, especially dogs, for companionship.
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Future Impact
Dog and cat numbers are expected to be boosted by the trend of consumers turning to pets
for companionship. Dogs will remain the most popular pets and will contribute to the bulk of
spending on pet care over the forecast period, given their close relationship with pet owners.
Manufacturers of dog food are expected to record rising sales thanks to the growing
popularity of dogs. Pet owners will have access to not only premium specialised offerings, but
also mass market brands which target the large group of price-conscious owners.
With the trend of greater humanisation of pets, pet owners will become more interested in
understanding their pets and meeting their needs, including their dietary habits, nutritional needs
and entertainment needs. Pet grooming salons, popular in large metropolitan areas in
developed countries, are likely to emerge in India. These salons will provide an additional
channel for manufacturers to market their products and also for pet owners to gain exposure to
new pet care products.
Current Impact
Pet dietary supplements, a significant category within pet products, is set to grow by 18% in
current value terms in 2011. In urban areas there is growing demand for products that provide
skin care, digestive aids, immunity enhancement and weight management, etc. Most of the
health and wellness brands in India cater to dogs and cats. This is because many urban pet
owners treat cats and dogs as family members and would not hesitate to spend on products that
keep their pets in good health. Over the review period, organic brands have also started to
emerge in India, such as the Yarrah brand by Yarrah Organic Petfood BV.
Veterinary clinics remains the main distribution channel for pet products with a health and
wellness positioning. Hence, manufacturers have collaborated with veterinary clinics to promote
their brands by offering free samples when pets are taken for regular check-ups. Targeted
discounting is a core growth strategy implemented by dominant and niche health and wellness
brand providers in urban areas. For example, the majority of manufacturers offer 20-30%
discounts to veterinary clinics to improve brand awareness and build volume sales.
Outlook
The pet health and wellness trend is expected to become stronger over the forecast period
due to a combination of factors, such as rising disposable incomes, the humanisation of pets
and consumers projecting human health needs on to pets. The pet dietary supplements
category is expected to grow at a constant value CAGR of 11% during the forecast period. The
variety of health and wellness positioned brands is also expected to increase, with more
international players entering India. Demand will mainly be driven by high-income urban
consumers, with the distribution of niche health and wellness products likely to remain restricted
to large cities.
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Future Impact
As demand for health and wellness products grows, leading manufacturers are likely to
expand their portfolios to include such products or incorporate more functional benefits into
existing lines. They will also make efforts to educate consumers about pet health and product
benefits in order to boost volume sales. The development of the health and wellness trend will
attract the entry of niche international brands.
As health and wellness products are often priced higher than regular pet food lines,
manufacturers are expected to market health and wellness products mainly in urban areas,
through veterinary clinics and pet shops. Vets will play an important role in communicating the
health benefits of products and manufacturers will continue to adopt the strategy of offering free
samples to consumers to raise awareness.
Current Impact
International players hold a strong presence in pet care in India, with the top three players all
being multinationals and accounting for a combined value share of 52% in 2010. Compared with
local players, international players have more resources to invest in new product development
and marketing. Mars International India Pvt Ltd, for example, has advertised aggressively on
television and in print media, while Royal Canin India Pvt Ltd has worked closely with breeders
and pet clubs. Royal Canin India Pvt Ltd also benefits from its continued investment in research
and development. As a result of this, it has been able to introduce new pet food with functional
benefits or tailored for specific breeds and age groups.
Domestic players, as a means of contending with international brands, have mainly operated
in the economy or mid-priced segments. Notable domestic brands include Top Cat by Petsmart
Pet Products Pvt Ltd and Drools by Indian Broiler Group.
Outlook
The trend towards the further consolidation of pet care by international brands is likely to
continue over the forecast period. International players have more resources for product
development, consumer education and marketing, which will continue to give them an
advantage over domestic players. Smaller players may be squeezed out by the larger players
because of the formers limited product portfolio and distribution network, as well as a lack of
resources for marketing.
Future Impact
International companies are expected to gain an even stronger lead over domestic players
during the forecast period. They compete in all price segments, from economy to premium. It is
likely that major international players such as Royal Canin India Pvt Ltd and Mars International
India Pvt Ltd will strengthen their presence in India by expanding their distribution networks to
smaller cities. The multinationals, with their substantial resources, will contribute to consumer
education and stimulate the growth of pet care.
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Domestic manufacturers will be under increasing pressure to identify their own niches. They
are expected to gain strength in the economy segment where they are competitive, in part
because domestic manufacturers do not need to pay import duties.
With the growing prominence of multinationals, pet owners will enjoy a greater variety of
quality international brands. They will gain exposure to the latest pet care practices and
products, and their demand for pet care is expected to become more sophisticated.
Current Impact
Most of the major players in pet food have developed a wide variety of functional products, by
either launching extensions of existing brands or creating entirely new product lines. Hills
Science Diet, a premium pet food brand is a key driver of innovation in this area. Among the
functional products marketed in this range are dog food products that claim to clean teeth and
freshen breath (Oral Care Adult), maintain healthy skin (Sensitive Skin Adult) and are easily
digestible (Sensitive Stomach Adult). One of the emerging niches in functional pet food consists
of products that claim to have a positive impact on a pets behaviour. For example, the Hills
Science Diet range includes a product that claims to calm nervous dogs (Active Adult). Royal
Canin India Pvt Ltd also frequently introduces new products for popular breeds. This helps to
create a buzz in the dog food category from time to time and strengthens its brand equity.
Increasing product specialisation has helped to generate more interest in pet food and pet
nutrition.
Although specialised pet food is more expensive, pet owners, mostly those from high-income
backgrounds, are increasingly willing to buy them instead of standard brands. This is because
affordability is not a major concern for these consumers and they are keen to purchase pet food
that meets the needs of their pets at different growth stages. Demand is also boosted by rising
awareness of the benefits of specialised pet food through marketing and education efforts by
manufacturers.
Outlook
With rising ownership of dogs and cats in India and manufacturers continued efforts to
educate pet owners, consumers will have a better understanding of functional and specialised
pet food. Pet owners will also take greater interest in the needs of different breeds and pets at
different life stages, as humans form closer relationships with cats and dogs. These factors will
drive demand for greater product specialisation within pet food.
Future Impact
The ongoing humanisation trend will continue to drive demand for specialised and functional
products in pet food. The most common mode of specialisation will be by life stage, because
this is closely aligned with the changing nutritional needs of pets and is also easier to introduce,
given that there are fewer life stages than dog breeds. Outside pet food, pet products will be
likely see greater specialisation too, such as pet dietary supplements for pets at different life
stages, or pet clothing designed for specific breeds. However, product specialisation is not
expected to become significant for other pets such as small mammals, because pet owners will
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still consider them to be low-maintenance pets and will not see the need for specialised
products.
New players will enter the category to meet the demand for functional or specialised premium
products. The launch of Genesis and Chicopee pet food, manufactured by Harrison Pet
Products Inc, in January 2011 is an example of this development. Genesis pet products are
positioned as an ultra premium brand and Chicopee is positioned as a high premium brand.
Under the Genesis brand, pet food caters to different life stages and sizes. Genesis also offers a
functional variant that the company claims promotes a shiny coat and supple skin, as well as
one for healthy joint function.
MARKET INDICATORS
Table 1 Pet Populations 2006-2011
'000s of animals
2006 2007 2008 2009 2010 2011
MARKET DATA
Table 2 Sales of Pet Care by Category: Volume 2006-2011
Tonnes
2006 2007 2008 2009 2010 2011
Dog and Cat Food 9,735.2 10,718.1 11,533.9 12,883.6 14,692.1 16,867.7
Other Pet Food 6.4 7.0 7.7 8.6 9.8 11.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note: Pet Care volume sales not calculable at total market level
Rs million
2006 2007 2008 2009 2010 2011
Dog and Cat Food 1,141.7 1,268.8 1,485.8 1,782.3 2,251.2 2,838.2
Other Pet Food 2.5 2.7 3.1 3.6 4.3 5.1
Pet Food 1,144.1 1,271.5 1,489.0 1,785.9 2,255.5 2,843.4
Cat Litter - - - - - -
Pet Healthcare 212.5 238.0 267.7 302.5 343.4 391.4
Pet Dietary Supplements 63.3 71.9 82.0 95.1 111.2 131.2
Other Pet Products 179.7 197.6 219.4 247.9 282.6 330.6
Pet Products 455.5 507.5 569.0 645.5 737.2 853.3
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% volume growth
2010/11 2006-11 CAGR 2006/11 Total
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Table 11 Sales of Dog and Cat Food by Distribution Format: % Analysis 2006-2011
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Retailers
- Non-Grocery Retailers 91.0 90.2 91.4 92.6 92.6 91.3
- - Pet superstores - - - - - -
- - Pet shops 50.6 50.7 51.0 52.9 52.8 51.5
- - Veterinary clinics 39.5 38.6 38.3 37.3 37.3 37.8
- - Other Non-Grocery 1.0 1.0 2.1 2.5 2.5 2.0
Retailers
Non-Store Retailing - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 12 Sales of Dog and Cat Food by Category and Distribution Format: % Analysis
2011
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Retailers
Non-Store Retailing - - - - - -
- Homeshopping - - - - - -
- Internet Retailing - - - - - -
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 14 Sales of Pet Care by Category and Distribution Format: % Analysis 2011
Tonnes
2011 2012 2013 2014 2015 2016
Dog and Cat Food 16,867.7 19,214.7 21,788.5 24,603.8 27,665.8 30,977.0
Other Pet Food 11.2 12.6 14.1 15.7 17.3 18.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Pet Care volume sales not calculable at total market level
Rs million
2011 2012 2013 2014 2015 2016
Dog and Cat Food 2,838.2 3,296.5 3,793.4 4,344.9 4,953.3 5,620.4
Other Pet Food 5.1 5.9 6.7 7.6 8.5 9.5
Pet Food 2,843.4 3,302.4 3,800.2 4,352.5 4,961.8 5,629.9
Cat Litter - - - - - -
Pet Healthcare 391.4 428.6 465.1 499.9 534.9 569.7
Pet Dietary Supplements 131.2 148.3 166.1 184.4 202.8 221.1
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% volume growth
2015/16 2011-16 CAGR 2011/16 Total
DEFINITIONS
This report analyses the market for Pet Care in India. For the purposes of the study, the
market has been defined as follows:
Dog food
Cat food
Other pet food
Pet products
Dog and cat food sales are broken down by product type (wet/dry) and price platform.
Examples of key brands in each price platform in India are as follows:
Standard premium: Royal Canin, Eukanuba, Whiskas
Mid-priced: Top Cat, Regale Meal
Economy: Nutripet, Pedigree
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Sources
Sources used during research include the following:
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