Pet food market in America, Europe and Japan

Recently, CSC released One of the Pet Series Studies: What are the characteristics of the overseas pet food and supplies market Research and report. It shows that the United States and Europe are the main markets in the pet food market.

The global pet industry is dominated by the United States and Europe, with leading enterprises concentrated in the United States. In 2020, the global pet food and supplies market will reach US $142.932 billion, up 8.7% year on year. It is expected to reach US $153.6 billion in 2021. From 2010 to 2020, the CAGR was 5.16%, and the industry entered a steady growth period.

North America and Europe are the main markets, and pet food consumption accounts for a large proportion

By region, the global pet market consumption is mainly concentrated in North America and Europe. In 2020, North America and Europe will account for 43.9% and 27.9% of the global pet consumption respectively. As an emerging market for pet consumption, Asia is developing rapidly, with its consumption proportion rising from 11.8% in 2015 to 16.2% in 2020.

From the perspective of pet consumption segment, pet food is a large pet care expenditure. According to Euromonitor's statistics in 2018, in the global pet industry segment, pet food consumption accounted for about 50%, pet hospital business (including pet diagnosis and treatment and pet medicine) accounted for 28%, pet supplies consumption accounted for 19%, and others accounted for about 3%.

Most pet food leading enterprises are concentrated in the United States, and Mars and Nestle almost form an oligopoly pattern. According to the top10 (revenue caliber) of global pet food enterprises released by Petfood industry, leading enterprises are mainly concentrated in the United States. Eight of the top 10 enterprises are American enterprises, and the other two are located in Spain and Japan.

In terms of scale, the revenues of Mars Petcare Inc. (Mars Food) and Nestle Purina PetCare (Nestle Purina) in 2020 were US $18.085 billion and US $15.422 billion respectively, much higher than other enterprises.

As a large global pet consumer market, the United States has entered a period of accelerated integration. In 2020, the US pet food and supplies market will reach US $58 billion, with a year-on-year growth of 8.6%; The pet food market is about 38.2 billion dollars. The growth rate of staple food in pet food is lower than that of snacks, and e-commerce sales are growing rapidly.

Sustained economic growth in the United States provides impetus for the growth of the pet industry

Statista statistics show that the US pet market showed a continuous positive growth from 2002 to 2017. During this period, the sustained growth of the US economy provided impetus for the development of the pet market. During the 2008 amount crisis, the US pet market still maintained a growth rate of nearly 5%, reflecting the industry's high growth and anti economic cycle attributes.

Pet food consumption accounts for a large proportion, and the growth rate of market segments is different

Pet food is the main pet care expenditure, with a compound growth rate of 7.78% in 10 years. According to the data disclosed by Statista and APPA, the consumption of the US pet industry segment is still dominated by pet food, and the proportion of US pet food expenditure in 2020 will be 41%.

From the perspective of growth, the 10-year compound growth rate of pet food consumption is 7.78%. In addition, pet products, live animals and other services also showed a relatively rapid growth, with a 10-year compound growth rate of 8.88% and 7.89% respectively; The growth rate of veterinary care and product sales is relatively low, with a 10-year compound growth rate of about 4.74%.

Pet food: the growth rate of staple food is lower than that of snack food, and e-commerce sales are growing rapidly

Dry food accounts for a large proportion, and pet snacks show a high growth. Pet food is mainly divided into dry food, wet food and snacks. Take cat and dog food as an example. In the US pet food market in 2020, the sales of dry food will reach 20.42 billion US dollars, accounting for 55% of the dog and cat food market; Next are wet food and pet snacks, accounting for 24% and 21% respectively.

From the perspective of the growth rate of the subdivided fields, the growth rate of snacks is high, with the CAGR of 6.8% in five years, followed by wet grain and dry grain respectively, and the 5-year compound growth rate is 5.4% and 3.7% respectively.

Dog food consumption is more than cat food, both of which show high growth

By pet type, dog food is still the main product in the US pet food market. In 2020, the consumption amount of dog food in the US will be 26.52 billion US dollars, accounting for 71%; Cat food consumption amounted to 10.7 billion US dollars, accounting for 29%.

From the perspective of the growth rate of subdivided fields, the growth rate of cat food in 2020 will be 9.0%, higher than that of dog food by 7.9%.

The price of wet food is higher than that of dry food, and high-end staple food accounts for 40% of the consumption of pet staple food in the United States.

According to the division of Euromonitor, after dividing the staple food for dogs and cats into wet food and dry food, it is found that the unit price of wet food is higher than that of dry food. After dividing cat food and dog food into high, medium and low grades, we found that the price of cat food in each grade was slightly higher than that of dog food.

By consumption level, the current US pet food market is still dominated by low-end products, and the consumption of low-end cat and dog food will account for 46% in 2020; The second is cat and dog food, which accounts for 40% of the consumption, while the middle end cat and dog food accounts for 14%.

Nestle Prena Pet Care and Mars Pet Care are two pet companies with high market share in the US pet market.

According to Euromonitor statistics, in 2020, Nestle Prena Pet Care Company occupied 27.3% of the market share in the US pet market, while Mars ranked second, accounting for 18.8% of the market share. From the perspective of brand share, in 2020, the brand CR10 in the US pet market will reach 40%, and the brand with a high market share will be Lanjue, which will reach 7.5%.

The European pet industry has entered a mature stage of development

In 2020, the market size of the European pet industry will reach 43 billion euros, with a year-on-year growth of 5.7%; The pet food market is about 21.8 billion euros. The proportion of pet cats in Europe is relatively high. The proportion of dry and wet food in pet food market is the same, and the market share of high-end staple food is large.

Pet food: the proportion of dry and wet food is the same, and the market share of high-end staple food is large

The scale of the European pet food market reached 21.8 billion euros, accounting for 50.7% of the total European pet consumption. According to the statistics of FEDIAF, the market size of European pet food is about 21.8 billion euros, up 3.8% year on year. In terms of output, the output of pet food in Europe has been stable at about 8-9 million tons in recent years.

In 2020, the number of pet food factories in Europe will increase, Mars and Nestle will still dominate, and local enterprises will have strong competitiveness. According to FEDIAF statistics, from 2016 to 2019, the number of pet food factories in Europe basically remained at 132, while in 2020, the number rose to 150.

According to the statistics in 2020, the CR10 of the Western European pet food market is 56%. Among the top ten enterprises, Mars and Nestle still occupy a large share of the Western European pet food market, accounting for 43% in total. Among the top ten enterprises in terms of market share, European local enterprises are basically ranked 4-10, and have strong competitiveness in the local market.

The proportion of dry and wet pet food in Western Europe is the same, and the market share of high-end staple food is large

According to Euromonitor data, in the Western European pet food market, according to the sales statistics, the market share of dry food and wet food is the same, 41%, and the market share of pet snacks is about 18%. From the price distribution of pet staple food, high-end pet staple food accounts for 48% of the market share, which is relatively large; The second is the mid tier products, accounting for about 38%; Low end pet staple food accounts for about 14%.

Slow growth of Japan's pet food industry

In 2020, Japan's pet food and supplies market will reach 6.18 billion US dollars, with a year-on-year growth of 2.6%; Among them, the pet food market is about 4.43 billion dollars, and high-end dog and cat food accounts for a large proportion in the pet food market.

Cat food market is larger than dog food, and high-end dog food accounts for a large proportion

The scale of Japan's pet food market is about 4.4 billion US dollars, which is expected to grow at a low speed in the future. According to Euromonitor, the size of Japan's pet food market grew slowly from US $3.98 billion in 2007 to US $4.43 billion in 2020, with a compound growth rate of about 0.8%. From the perspective of growth over the years, the growth rate of Japan's pet food market showed a trend from negative to positive, which is consistent with the change trend of Japan's pet industry. It is estimated that in the future, with the number of pets growing at a low speed and the amount of single pet consumption increasing year by year, the Japanese pet food market is expected to reach 5 billion dollars in 2026.

The overall dog food market showed a downward trend, with cat food accounting for more than dog food. Euromonitor data shows that the market size of dog food in Japan decreased from US $2.28 billion in 2007 to US $1.94 billion in 2020, while cat food increased from US $1.51 billion to US $2.32 billion. The main reason for this change is that people's demand for cats is stronger than that for dogs, which leads to more pet cats than dogs.

The category structure of Japanese pet food is similar to that of the United States, with a high growth of pet snacks. In 2020, the proportion of dry food, wet food and snacks in the Japanese dog and cat food market will reach 57%, 23% and 20% respectively. From the perspective of market segment growth, the growth rate of pet snacks is relatively high, with a year-on-year growth rate of 8.1% in 2020. The main reason is that the rising status of pets and the strong interactive nature of pet snacks stimulate pet owners' demand for snacks. In contrast, the market for dry food and wet food for dogs and cats is relatively saturated.

High end dog and cat food dominated and maintained a positive growth. Euromonitor statistics show that high-end staple food accounts for a large proportion in the Japanese market. Among the staple food for dogs and cats consumed in 2020, high-end staple food accounts for 62%, followed by middle staple food, accounting for about 34%, while low-end staple food accounts for only 4%. From the perspective of the growth rate of the market segments over the years, high-end staple food has continued to maintain a positive growth, while low-end staple food has shown a negative growth. The awareness of pet care and consumption upgrading trend of Japan's pet major is increasing.

From the perspective of brand concentration, the Japanese pet food market CR10 will reach 50.5% in 2020. The market brand concentration is high, and the brand market share is high for Inaba (11.1%). In terms of the number of brands, among the top ten enterprises in the Japanese pet food market, the brands with the first, fourth, eighth and ninth market share are local Japanese brands, while the rest are American brands.

The overall pet food market in the United States, Europe and Japan shows the following characteristics:

1) From the perspective of market scale of pet food, the United States>Europe>Japan; 2) The market concentration shows that pet food is more than pet products, and it is easier for the pet food industry in mature markets to create leading enterprises (or brands); 3) The consumption level of staple food highlights high-end. In Europe and Japan, high-end staple food accounts for a relatively high proportion, and the market share of high-end staple food in the United States is up to 40%