Pet Food Market - India May 2010
Executive Summary
Market
Total market for pet food in India was valued at INR X mn in 20--; Expected to reach INR Y mn by 20-- at a CAGR of A% Pet food market is categorised into three major segments – Dog Food, Cat Food and Others including fish food, bird food and food for other animals
E L P M A S
The market is at a nascent stage in India but increasing pet ownership and humanisation trend of pets has made the domestic market attractive with major focus on key urban cities
Drivers & Challenges
Trends
Competition
Drivers: • Low penetration of branded pet food • Increasing pet ownership • Increasing consumer awareness • Increasing organized retail chains
Challenges: • High import duties and frequent bans on imports
Dominance of non-vegetarian dog food Players providing customized products and services Increasing promotional activities Market is categorized by high influx of foreign brands Major players like X and Y have a sizeable base of consumers in the Indian market P food dominates the pet food segment Players are devising product categories and services to increase their revenues PET FOOD MARKET IN INDIA 2010.PPT
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•Market Overview •Drivers & Challenges •Trends •Competition •Key Developments
PET FOOD MARKET IN INDIA 2010.PPT
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Pet food market in India is dominated by X food and with changing outlook of pet owners it is set to grow rapidly Overview
Market Size & Growth
•Pet food market in India is at a nascent stage with strong growth potential in the future
INR mn 4,000
E L P M A S
•Changing outlook of people towards animals and increasing ownership of pets is fuelling growth in the market
•Pet owners are now more willing to spend on pet diet and health which has led to a gradual shift towards packaged pet food rather than home cooked food
•The market in India is largely concentrated on dried and moist food
Y A%
3,000 2,000
X
1,000 0
2008
2012e
Segmentation of Pet Food Market Segment 3 C%
Segment 2 B%
•Indian pet food market is dominated by P food •Consumption of branded pet foods is concentrated in urban towns and major cities A% Segment 1 Source: PET FOOD MARKET IN INDIA 2010.PPT
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Large amounts of pet food is imported in India dominated by premium brands from various countries Overview - Import
Import of Pet food
•India imports branded pet food from X and other countries
INR mn 250
E L P M A S
•Due to the increase in the number of pets and growing health concerns, foreign brands are readily entering the Indian market •Premium and sub-premium brands give the consumers a choice of distinctive product based on quality and price •Foreign manufacturers majorly focus on segmenting products according to the lifestages and activity levels of pets to further capitalize on the pets humanization trend
s
200
A%
r
150 100
q p
50 0
2005-06
2006-07
2007-08
2008-09
Major Brands Imported Brand 1 – Company 1
•Large variety of imported food products are being offered like rolls, treats, in both wet and dry dog food categories
Brand 3 – Company 3
Brand 2 – Company 2
Brand 4 – Company 4
Source: PET FOOD MARKET IN INDIA 2010.PPT
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Drivers & Challenges – Summary
Drivers Low penetration of branded pet food Increasing pet ownership
Challenges High import duties and frequent bans on imports
Increasing awareness among pet owners Increasing organized retail chains
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Key Trends – Summary
Dominance of nonvegetarian dog food
Trends
Players providing customized products and services
Increasing promotional activities
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Players are stepping up services and product categories, however the market is led by the P food players Competition – Overview
Share of Branded Dog food
• Market is categorized with high influx of foreign brands • Pet food is prepared keeping in mind specific requirements based on age, weight and activity • X pet nutrition is the category catered for by most of the players because majority of the pet ownership in India consists of X • Dog food includes treats and snacks such as biscuits, chews and bones • Online stores are gaining prominence over the period and strategies like home deliveries are being devised by players • The key market lies in the urban towns where people are prone to own pets • Advertising and promotional activities are also on the rise to make consumers aware of brands • Players are also offering related services in pet care segments to win the consumers trust and confidence
INR X mn
Company 1 Company 2
E L P M A S
Q%
P%
2008
Players in the market Company
Brand
Price Range (INR/kg)
Company 1
• Brand 1 • Brand 2
•X–Y •P
Company 2
• Brand 3
•Q–R
Company 3
• Brand 4
• More than X
Company 4
• Brand 5
•A
Source: PET FOOD MARKET IN INDIA 2010.PPT
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Major Domestic Players (1/2) Company
Business Description
Company 1
• It is based in State 1 • Their production plant is located X kms from State 2 • Products include natural X food, dried Y chews, Z, dried A treats and rewards in India • They also export pet food from India
Company 2
• It was formerly known as Company 3 • Established in 19-- and is a part of the X group • Has primarily 3 divisions namely X, Y, and Z • It has set up X as a separate division to control the pet food segment • Has its manufacturing facility at state 1 • It tied up with Company 1 and Company 2 to further enhance its manufacturing range of pet foods • It operates A brands of pet foods with popular ones being ‘Brand 1’ and ‘Brand 2’ • Manufactures X pet food as well as Y pet food Financials: • Turnover of INR X mn and Profit after Tax of INR Y mn in FY09 • Turnover for pet food segment was INR A mn and Profit was INR B mn in FY09
Source: PET FOOD MARKET IN INDIA 2010.PPT
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Thank you for the attention The Pet Food Market - India report is a part of Research on India’s Food & Beverage Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: E-Mail:
+91 96191 00122
[email protected]
Phone: E-Mail:
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