Of the 12 broad factors covered in Packaged Facts/WATT Publishing’s
Global Pet Food Industry Survey, New Product Trends tops the list, with over
two-thirds (67%) of survey respondents considering this trend “very
important” to the pet food industry during the next five years. The most
important new product trends are functional/condition-specific/novel
ingredient types of foods (e.g., life-stage, weight-loss, breed-specific,
therapeutic) and high-growth segments such as treats, followed by
hyper-premium products and human-grade ingredients. The other factor viewed by
more than 60% of respondents as “very important” is Cultural
Shifts, at 61%, for which the most important trends are the human-pet
relationship (i.e., the “humanization” trend) and the ability of
consumers to afford pets and pet care.
Based on an exclusive in-depth survey of hundreds of pet industry executives
from around the world, this report examines the direction the global pet food
market will take through 2011, both from an overall perspective and based on
four respondent classifications: company type, job role, region, and level of
country development. Following an introductory chapter, the analysis is
organized into chapters corresponding with the 12 factors examined in the
survey, which in rank order are:
New Product Trends (functional/condition-specific/novel ingredient types,
high-growth segments such as treats, human-grade ingredients, hyper-premium
products, fresh/baked foods, new product forms).
Cultural Shifts (human-pet relationships/“humanization,”
affordability of pets and pet care, changing domestic policies on pet
ownership, pets as fashion/identity statement, specially trained pets).
Product Pricing (premium/value-added vs. economy/mid, price/quality value
ratio, rising/declining production costs, availability of ingredients, cost
barriers to foreign markets).
Globalization (import/export trends, production outsourcing, role of China
as product supplier/marketer, foreign suppliers selling into developed
markets, information flow, homogenization of product preferences, trade
barriers, harmonizing of global pet food regulations).
Branding (introduction of new brands, brand support through consumer
advertising/promotion, extension of pet food brands into non-foods, growth of
private label lines, human brands entry into market, licensed brands entry
into market).
Marketing and Trade (consumer advertising and promotion, trade advertising
and promotion, educational and informational programs).
Demographic Trends (suburban/rural to metro shifts, aging populations,
declining household size/number of children, postponing marriage, growth in
dual-worker households).
Retail and Supply Chain Shifts (retailer consolidation creating buying
clout, mass market vs. pet specialty, veterinary channel as sales venue,
buying consortiums/clubs, growth of non-traditional sales channels, role of
brokers/distributors, value of in-store promotion).
Internet Use (Internet as sales venue, Internet as marketing tool,
Internet for information sharing among consumers, Internet for information
exchange among companies).
Marketer Shifts (mergers and acquisitions, international expansion, market
entry by human-product manufacturers, cross-category expansion between
food/non-food, production trends, increasingly importing vs. manufacturing).
Organic Pet Food (consumer demand, marketing, global production).
Table of Contents
Table of Contents
Chapter 1: Market Outlook
Introduction
Survey and Report Methodology
Twelve Global Market Factors
Three Levels of Development: Mature, Mid-Level, and Emerging
Table 1-1: National Pet Food Market Characteristics: Mature, Mid-Level,
and Emerging
Survey Data on National Markets
Survey Data on Regional Perspectives
Other Resources
Table 1-2: Ranking of Selected Countries by Level of Pet Food Market
Development
Survey Highlights
“New Product Trends” Is No. 1 Global Factor
Table 1-3: Top Global Pet Food Industry Forecast Factors (percent)
Humanization Is Top Trend, Followed by Packaging Convenience and Special
Ingredient Foods
Table 1-4: Top Global Pet Food Industry Forecast Trends (percentage)
Market Outlook: Cross-Market Trends
Mature Markets Dominate, But Mid-Level and Emerging Markets Charting
Faster Growth
Global Marketer Shares and Shifts
The Wild Card
New Pet Food Products Surging Worldwide
Figure 1-1: Number of Global Pet Food Product Introductions: Lines and
SKUs, 2002-2006 (number)
Figure 1-2: Share of Global Pet Food Product Introductions: Non U.S. vs.
U.S., 2002-2006 (percent)
Figure 1-3: Share of Global Pet Food Product Introductions by Region,
2002-2006 (percent)
Top Regulatory Issues: Product Safety and Lack of Uniformity
Key Country Issues
Looking Ahead
Heightened Focus on Product Safety
Longer-Term Effects
Premium Product Differentiation Dependent on Product Credibility
Private-Label Growth Strongest in Less Developed Regions
The Urban Effect
Catering to Local Tastes
The Internet Effect
More Direct Selling
Market Outlook: Mature Markets
Humanization Trend at Core of Value Growth
Figure 1-4: Top Trends in Mature Country Markets, 2007-2011 (percent)
Table 1-5: Share of Pet Food Product Launches in Mature Markets: By
Country, 2002 vs. 2006 (percent)
Aging Pet Population Driving Humanization, Functional Foods
Ingredients Targeting Age-Related Conditions to the Functional Foods Fore
The Next Big Thing: Probiotics
Research Needed to Head Off Potential Snafus
Looking Ahead: Nutrigenomics
The Price of Specialization
Fresh, Natural/Organic, and Raw Pet Foods
The Future of Organic Pet Food
The Future of Raw/Frozen Pet Food
The Future of Fresh Pet Food and Ingredients
Big Opportunities in Pet Overweight/Obesity
Focus on Indoor and Smaller Pets
Breed-Specific Formulas: From Niche to Mainstream
Treats Riding High on “Functional Pampering” Wave
Focus on Australia: Treats the Top Trend
Figure 1-5: Top Pet Food Industry Trends: Australia, 2007 (percent)
More Veterinary Channel Involvement, Clinical Brands
Convenience Packaging to Drive Premium Market Growth
Tapping High-Income Demographics
Figure 1-6: Share of U.S Pet Food Expenditures by Income Bracket: 1994,
1999, 2004 (percent)
“Mid-Priced Premium” a Possible Drag on Value Growth
Crossing Traditional Pet Market Lines
Table 1-6: Number of Pet Food Product Introductions in Mature Country
Markets, 2002-2006 (number)
Table 1-7: Global Pet Food Industry Trends: Mature Markets, 2007-2011
(percent)
Market Outlook: Mid-Level and Emerging Markets
Above Average Growth in Many Countries
Market Drivers
Market Challenges
The Cultural Divide
Marketing, Pricing, and the Human/Pet Relationship
Table 1-8: Global Pet Food Industry Trends: Mid-Level Markets, 2007-2011
(percent)
Table 1-9: Global Pet Food Industry Trends: Emerging Markets, 2007-2011
(percent)
Focus on China: Marketing, Cultural Shifts Spurring Sales
New Product Launches on the Ups
Figure 1-7: Share of Global Pet Food Product Launches: By Level of
Market Development, 2002, 2004, 2006 (percent)
Table 1-10: Share of Pet Food Product Introductions in Mid-Level
Markets: By Country, 2002, 2004, 2006 (percent)
Table 1-11: Number of Pet Food Product Introductions in Mid-Level
Markets: By Country, 2002-2006 (percent)
Table 1-12: Share of Pet Food Product Introductions in Emerging Markets:
By Country, 2002, 2004, 2006 (percent)
Table 1-13: Number of Pet Food Product Introductions in Emerging
Markets: By Country, 2002-2006 (number)
Focus on India: Heavy Marketing Driving Growth
Figure 1-8: Top Pet Food Industry Trends: India, 2007 (percent)
Economy-Priced Fare to Drive Volume Growth
But Premium Influx Already Underway
Focus on Mexico: Consumer Education to Drive Pet Food Sales at All Price
Levels
The Wal-Mart Effect
Emerging Pet Specialty Channel to Drive Premium Growth
Focus on Russia: Pet Specialty Booming in Urban Markets
Chapter 2: Survey Overview
New Product Trends Is No. 1 Global Factor
Figure 2-1: Global Pet Food Industry Forecast: Ranking of Factors (percent)
76% of Manufacturers Rank New Product Trends as Very Important
Figure 2-2: Percentage Ranking New Product Trends as Very Important: By
Job Role of Respondent (percent)
Different Takes on New Product Trends by Geographic Region and Level of
Market Development
Figure 2-3: Percentage Ranking New Product Trends as Very Important: By
Geographic Region(s) Within Job Role of Respondent (percent)
Top Factors by Respondent Group
Humanization of Pets as Top Trend
Figure 2-4: Top Global Pet Food Industry Forecast Factors: By Percentage
of Respondent Group Ranking Factor as Very Important (percent)
Table 2-1: Global Pet Food Industry Forecast: Ranking of Trends by Type of
Business/Organization of Respondent (percent and index)
Table 2-2: Global Pet Food Industry Forecast: Ranking of Trends by Job
Role of Respondent (percent and index)
Table 2-3: Global Pet Food Industry Forecast: Ranking of Trends by Level
of Market Development in Country of Respondent (percent and index)
Table 2-4: Global Pet Food Industry Forecast: Ranking of Trends by
Geographic Region(s) Within Job Role of Respondent (percent and index)
Table 2-5: Global Pet Food Industry Forecast: By Percentage of Respondents
Ranking Trends as Very Important (percent)
Chapter 3: New Product Trends
New Product Trends Is Top Global Factor
Figure 3-1: Global Pet Food Industry Forecast: Ranking of New Product
Trends (percent)
Special Ingredient Foods Most Important for South Asia
Figure 3-2: Percentage Ranking Functional/Condition-Specific/Novel
Ingredient Foods as Very Important: By Top Respondent Groups (percent)
Treats in Second Place
Figure 3-3: Highest- and Lowest-Indexing Respondent Groups by Ranking of
High-Growth Segments Such as Treats (index)
Human-Grade Ingredients and Hyper-Premium Products at Mid-Scale in
Importance
Other New Product Trends
Table 3-1: Global Pet Food Industry Forecast: Ranking of New Product
Trends by Type of Business/Organization of Respondent (percent and index)
Table 3-2: Global Pet Food Industry Forecast: Ranking of New Product
Trends by Job Role of Respondent (percent and index)
Table 3-3: Global Pet Food Industry Forecast: Ranking of New Product
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 3-4: Global Pet Food Industry Forecast: Ranking of New Product
Trends by Geographic Region(s) Within Job Responsibility of Respondent
(percent and index)
Chapter 4: Cultural Shifts
Cultural Shifts Is No. 2 Global Factor
Figure 4-1: Global Pet Food Industry Forecast: Ranking of Cultural Shift
Trends (percent)
Humanization of Pets as Top Cultural Trend
Affordability of Pets and Pet Care in Second Place
Figure 4-2: Top Respondent Groups by Percentage Ranking Affordability of
Pets and Pet Care as Very Important (percent)
Changing Domestic Policies on Pet Ownership: Third at 30%
Figure 4-3: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Changing Domestic Policies on Pet Ownership (index)
Pets as Fashion and Function
Table 4-1: Global Pet Food Industry Forecast: Ranking of Cultural Trends
by Type of Business/Organization of Respondent (percent and index)
Table 4-2: Global Pet Food Industry Forecast: Ranking of Cultural Trends
by Job Role of Respondent (percent and index)
Table 4-3: Global Pet Food Industry Forecast: Ranking of Cultural Trends
by Level of Market Development in Country of Respondent (percent and index)
Table 4-4: Global Pet Food Industry Forecast: Ranking of Cultural Trends
by Geographic Region(s) Within Job Responsibility of Respondent (percent and
index)
Chapter 5: Product Pricing
Product Pricing Places Third as Global Factor
Figure 5-1: Global Pet Food Industry Forecast: Ranking of Product Pricing
Trends (percent)
Mid-Level Countries Prioritize Premium/Value-Added Trend
Figure 5-2: Top Respondent Groups by Ranking of Premium/Value-Added vs.
Economy/Mid-Priced Products (percent)
Marketing/Sales Professionals Single Out Price/Quality Value Ratio
Figure 5-3: Top Respondent Groups by Ranking of Price/Quality Value Ratio
(percent)
Diverging Viewpoints on Rising/Declining Production Costs
Figure 5-4: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Rising/Declining Production Costs (index)
Ingredient Availability a High Priority for Researchers
Figure 5-5: Top Respondent Groups by Percentage Ranking Individual Product
Pricing Trends as Very Important (percent)
Premium/Value-Added vs. Economy/Mid-Priced Trend Most Often Tops
Three-Quarters Mark
Table 5-1: Global Pet Food Industry Forecast: Ranking of Product Pricing
Trends by Type of Business/Organization of Respondent (percent and index)
Table 5-2: Global Pet Food Industry Forecast: Ranking of Product Pricing
Trends by Job Role of Respondent (percent and index)
Table 5-3: Global Pet Food Industry Forecast: Ranking of Product Pricing
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 5-4: Global Pet Food Industry Forecast: Ranking of Product Pricing
Trends by Geographic Regions(s) Within Job Responsibility of Respondent
(percent and index)
Chapter 6: Globalization
The Fourth-Place Factor: Globalization
Figure 6-1: Global Pet Food Industry Forecast: Ranking of Globalization
Trends (percent)
Africa and Emerging Markets Index Highest for Information Flow,
Import/Export Trends
Figure 6-2: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Import/Export Trends (index)
Africa and Emerging Markets More Attuned to Harmonizing of Pet Food
Regulation
Figure 6-3: Highest Indexing Groups by Ranking of Harmonizing of Global
Pet Food Regulations (index)
Spikes Among Secondary Trends
Figure 6-4: Highest Indexing Secondary Globalization Trends by Respondent
Group (index)
Table 6-1: Global Pet Food Industry Forecast: Ranking of Globalization
Trends by Type of Business/Organization of Respondent (percent and index)
Table 6-2: Global Pet Food Industry Forecast: Ranking of Globalization
Trends by Job Role of Respondent (percent and index)
Table 6-3: Global Pet Food Industry Forecast: Ranking of Globalization
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 6-4: Global Pet Food Industry Forecast: Ranking of Globalization
Trends by Geographic Region(s) Within Job Role of Respondent (percent and
index)
Chapter 7: Branding
Global Factor No. 5: Branding
Figure 7-1: Global Pet Food Industry Forecast: Ranking of Branding Trends
(percent)
Consumer Advertising/Promotion Seen as Most Crucial in Emerging Markets
Marketers Most Concerned with Growth of Private-Label Lines
Marketers and Mid-Level Markets Are Keenest for New Brands
Figure 7-2: Highest- and Lowest-Indexing Groups by Ranking of Introduction
of New Brands (index)
Marketers Have Eye on Human-Market Brands
Licensed Brands of Greatest Interest in Mid-Level Markets
Figure 7-3: Highest- and Lowest-Indexing Groups by Ranking of Entry of
Licensed Brands Into the Market (index) Highs and Lows
Figure 7-4: Selected Highest- and Lowest-Indexing Branding Trends by
Respondent Group (index)
Table 7-1: Global Pet Food Industry Forecast: Ranking of Branding Trends
by Type of Business/Organization of Respondent (percent and index)
Table 7-2: Global Pet Food Industry Forecast: Ranking of Branding Trends
by Job Role of Respondent (percent and index)
Table 7-3: Global Pet Food Industry Forecast: Ranking of Branding Trends
by Level of Market Development in Country of Respondent (percent and index)
Table 7-4: Global Pet Food Industry Forecast: Ranking of Branding Trends
by Geographic Region(s) Within Job Responsibility of Respondent (percent and
index)
Chapter 8: Packaging Trends
Packaging Trends in Sixth Place as Global Factor
Figure 8-1: Global Pet Food Industry Forecast: Ranking of Packaging Trends
(percent)
Convenience Rates Highest in Emerging Markets
Figure 8-2: Percentage Ranking Convenience as Very Important: By
Respondent Group (percent)
Package Size Least Important to Suppliers
Mid-Level Markets Out Front for Single-Serve
Figure 8-3: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Single-Serve and Pouched Foods (index) Table 8-1: Global Pet Food Industry
Forecast: Ranking of Packaging Trends by Type of Business/Organization of
Respondent (percent and index)
Table 8-2: Global Pet Food Industry Forecast: Ranking of Packaging Trends
by Job Role of Respondent (percent and index)
Table 8-3: Global Pet Food Industry Forecast: Ranking of Packaging Trends
by Level of Market Development in Country of Respondent (percent and index)
Table 8-4: Global Pet Food Industry Forecast: Ranking of Packaging Trends
by Geographic Region(s) Within Job Scope of Respondent (percent and index)
Chapter 9: Marketing & Trade Trends
Marketing & Trade in Seventh Place as Global Factor
Figure 9-1: Global Pet Food Industry Forecast: Ranking of Marketing &
Trade Trends (percent)
Less Mature Markets Place Premium on Promotion, Education
Figure 9-2: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Consumer Advertising and Promotion (index)
Figure 9-3: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Educational and Informational Programs (index)
Figure 9-4: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Trade Advertising And Promotion (index)
Table 9-1: Global Pet Food Industry Forecast: Ranking of Marketing & Trade
Trends by Type of Business/Organization of Respondent (percent and index)
Table 9-2: Global Pet Food Industry Forecast: Ranking of Marketing & Trade
Trends by Job Role of Respondent (percent and index)
Table 9-3: Global Pet Food Industry Forecast: Ranking of Marketing & Trade
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 9-4: Global Pet Food Industry Forecast: Ranking of Marketing & Trade
Trends by Geographic Region(s) Within Job Role of Respondent (percent and
index)
Chapter 10: Demographic Trends
Demographic Trends as Global Factor
Figure 10-1: Global Pet Food Industry Forecast: Ranking of Demographic
Trends (percent)
Africa/Middle East, North America Are Most Attuned to Aging Populations
Declining Household Size Key in North America, Southeast Asia
Figure 10-2: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Declining Household Size/Number Of Children (index)
Marketers, Researchers Focus on Suburban/Rural/Metro Shifts
Figure 10-3: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Suburban/Rural To Metro Shifts (index)
Dual-Worker Households in Spotlight in North Africa/Middle East
Figure 10-4: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Growth In Dual-Worker Households (index)
Postponing Marriage at Issue in Mid-Level Markets
Figure 10-5: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Postponing Marriage (index)
Table 10-1: Global Pet Food Industry Forecast: Ranking of Demographic
Trends by Type of Business/Organization of Respondent (percent and index)
Table 10-2: Global Pet Food Industry Forecast: Ranking of Demographic
Trends by Job Role of Respondent (percent and index)
Table 10-3: Global Pet Food Industry Forecast: Ranking of Demographic
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 10-4: Global Pet Food Industry Forecast: Ranking of Demographic
Trends by Geographic Region(s) Within Job Scope of Respondent (percent and
index)
Chapter 11: Retail/Supply Chain Shifts
Retail/Supply Chain Shifts as Global Factor
Figure 11-1: Global Pet Food Industry Forecast: Ranking of Retail/Supply
Chain Shift Trends (percent)
75% of Marketers Rate Mass Market vs. Specialty Trend as Key
Africa Tops List for Retailer Consolidation Creating Buying Clout
Value of In-Store Promotion Highly Ranked in Oceania
Table 11-1: Global Pet Food Industry Forecast: Ranking of Retail and
Supply Chain Trends by Type of Business/Organization of Respondent (percent
and index)
Table 11-2: Global Pet Food Industry Forecast: Ranking of Retail and
Supply Chain Trends by Job Role of Respondent (percent and index)
Table 11-3: Global Pet Food Industry Forecast: Ranking of Retail and
Supply Chain Trends by Level of Market Development in Country of Respondent
(percent and index)
Table 11-4: Global Pet Food Industry Forecast: Ranking of Retail and
Supply Chain Trends by Geographic Region(s) Within Job Responsibility of
Respondent (percent and index)
Chapter 12: Internet Use
Internet Use as Global Factor
Figure 12-1: Global Pet Food Industry Forecast: Ranking of Internet Use
Trends (percent)
Internet for Information Exchange Ranks Highest in Mid-Level Markets
Figure 12-2: Percentage Ranking Internet as Sales Venue as Very Important
by Level of Market Development (percent)
Table 12-1: Global Pet Food Industry Forecast: Ranking of Internet Use
Trends by Type of Business/Organization of Respondent (percent and index)
Table 12-2: Global Pet Food Industry Forecast: Ranking of Internet Use
Trends by Job Role of Respondent (percent and index)
Table 12-3: Global Pet Food Industry Forecast: Ranking of Internet Use
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 12-4: Global Pet Food Industry Forecast: Ranking of Internet Use
Trends by Geographic Region(s) Within Job Role of Respondent (percent and
index)
Chapter 13: Marketer Shifts
Marketer Shifts as Global Factor
Figure 13-1: Global Pet Food Industry Forecast: Ranking of Marketer Shift
Trends (percent)
Mid-Level Markets Top List for Interest in Production Trends,
International Expansion
Figure 13-2: Highest-Indexing Respondent Groups by Ranking of Production
Trends (index)
Interest in Mergers and Acquisitions Peaks in South Asia
Figure 13-3: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Secondary Marketer Shift Trends (index)
Table 13-1: Global Pet Food Industry Forecast: Ranking of Marketer Shift
Trends by Type of Business/Organization of Respondent (percent and index)
Table 13-2: Global Pet Food Industry Forecast: Ranking of Marketer Shift
Trends by Job Role of Respondent (percent and index)
Table 13-3: Global Pet Food Industry Forecast: Ranking of Marketer Shift
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 13-4: Global Pet Food Industry Forecast: Ranking of Marketer Shift
Trends by Geographic Region(s) Within Job Role of Respondent (percent and
index)
Chapter 14: Organic Foods
Organic Foods as Global Factor
Figure 14-1: Global Pet Food Industry Forecast: Ranking of Organic Pet
Food Trends (percent)
Mid-Level Markets Show More Interest in Global Production
Figure 14-2: Highest- and Lowest-Indexing Respondent Groups by Ranking of
Organic Pet Food Trends (index)
Table 14-1: Global Pet Food Industry Forecast: Ranking of Organic Pet Food
Trends by Type of Business/Organization of Respondent (percent and index)
Table 14-2: Global Pet Food Industry Forecast: Ranking of Organic Pet Food
Trends by Job Role of Respondent (percent and index)
Table 14-3: Global Pet Food Industry Forecast: Ranking of Organic Pet Food
Trends by Level of Market Development in Country of Respondent (percent and
index)
Table 14-4: Global Pet Food Industry Forecast: Ranking of Organic Pet Food
Trends by Geographic Region(s) Within Job Responsibility of Respondent
(percent and index)
Global Pet Food Industry Outlook published by Packaged Facts in April 1, 2007. This report consists of 250 pages and the price starts from US $ 3900.
