Modern Australian
Men's Weekly

.

Pet humanisation is fueling growth in the pet care sector

  • Written by Georgia Cook


Doggy want a (high-fibre, all-natural, organic) biscuit? 

-IBISWorld reveals premium pet foods fuelling new markets for pet-care sector- 

According to IBISWorld, the composition of pet food manufacturing and sales is changing, due to an increasing number of pet owners treating their pets like family members. 

“Pet humanisation – whereby pets are being treated more like humans than animals – is becoming increasingly common,” said IBISWorld Senior Analyst Sam Johnson. “As Australian consumers become progressively more concerned about their own health, particularly in relation to their diets, they are also becoming more concerned about the diet of their pets.” 

“Furthermore, pet owners are growing increasingly concerned about purchasing and consuming products that have their sources identified, as well as ensuring these products are made from ingredients perceived to be natural and of high nutritional value. This trend is giving rise to new markets for pet food and other pet-related products.” 

Although total pet ownership numbers in Australia are declining, ownership of dogs and cats, which are the largest pet categories and involve the highest average spend per pet, is rising. This is largely in line with growth in the number of households. The number of dogs in Australia is expected to exceed five million in 2018, while the number of cats is anticipated to exceed four million, both up from five years ago. 

While growth in the overall pet population has fallen, IBISWorld expects increased sales of premium pet foods, such as Ultimate Pet Nutrition (check out the Ultimate Pet Nutrition reviews), to boost the value of pet food production in Australia to $1.7 billion in 2017-18, up from $1.5 billion five years prior.

Pet food imports to Australia ($ millions)

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

276.3

320.5

312.0

371.5

378.5

386.4


This emerging trend presents a significant opportunity for the local industry. However, Australian producers have been relatively slow to capitalise on it, particularly compared with competitors in countries such as France, Hungary and New Zealand. Pet food produced in these countries is often sold at higher prices and incorporates new and premium ingredients, such as salmon, fibre and antioxidants. Furthermore, ingredients that are perceived as harmful, such as grains, are not used. 

“Despite the push of the Australian Made campaign, which encourages consumers to buy domestically produced products, IBISWorld expects the value of pet food imports to increase at an annualised 6.9% over the five years through 2017-18,” said Mr Johnson. 

In addition to pet food, dog and cat owners spend their pet budgets on a range of products and services, from veterinary services and pet healthcare products, to grooming, training, accessories and insurance. 

“As pet humanisation becomes more common, expenditure is rising across the range of pet-related spending categories. For example, the average dog owner is expected to spend over $150 on accessories for their pet in 2017-18. Meanwhile, pet insurance expenditure has grown particularly strongly over the past five years,” said Mr Johnson. 

At the other end of the market, lower cost pet food producers are facing strong price competition from large players and imports. The significant market shares held by major players Mars Australia, VIP Topco and Nestle Australia keep price competition fierce. Combined, these companies are estimated to account for over 85% of the Pet Food Production industry. Operators in Thailand generally produce lower cost pet food, and pet food from this country still accounts for a significant share of domestic pet food sales. 

Private-label pet foods produced by major supermarkets and retailers have also contributed to strong price competition. This is creating a division in the Pet Food Production industry, where large producers dominate the low-priced end of the industry, and smaller niche producers are performing well in response to changing pet owner preferences. 

For more information on sectors referenced in this release, visit www.ibisworld.com to access the following reports: 

C1192 Prepared Animal and Bird Feed Manufacturing in Australia

OD5476 Pet Food Production in Australia

OD5128 Pets and Pet Supplies Retailers in Australia

Business

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and scalability necessary for developing digital experiences...

Understanding Trade Insurance: Essential Protection for Businesses

Image by Drazen Zigic on Freepik In the current economic environment, trade insurance is an important element for companies trading both locally and internationally. This is a type of insurance that reduces...

Navigating the Digital Landscape: Managed IT Solutions and IT Services in Townsville

As technology advances at an unprecedented pace, companies must adapt to embrace the transformation ahead. With an evolving technology landscape, managing technology effectively is a strategic priority for every North...

Maximising Operational Efficiency: Electric Winch Hire Australia and Hydraulic Power Pack Hire Solutions

Image by jcomp on Freepik From urban construction sites and remote mining operations to coastal maritime facilities, specialised equipment solutions are integral across Australia's varying industrial landscape to deliver project success...

Designing Secure Content APIs in Headless CMS Environments

APIs are what enable content to be delivered from a headless CMS to anywhere digital content can exist from websites and apps to IoT and more. Yet while the headless...

The Role of Mining Equipment Suppliers in the Industry

Mining is one of the most essential industries, driving the global economy by providing raw materials for manufacturing, energy production, and infrastructure development. Behind every successful mining operation lies an...

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australia...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...

Understanding Trade Insurance: Essential Protection for Businesses

Image by Drazen Zigic on Freepik In the current economic environment, trade insurance is an important element for companies trading both locally an...

Choosing the Right Timber for External Cladding

Timber cladding is one of those finishes that pulls double duty: it makes a building look warm and welcoming, and it quietly shields the frame from ...

Top Services Offered by Diesel Mechanics in Brisbane

Keeping a diesel vehicle running at its best takes more than the occasional oil change. When you invest in regular specialist care, you protect the ...

Top 5 Benefits of Hiring Professional House Removalists

Moving day should feel like the start of a new adventure, not the end of your patience. Yet once the settlement papers are signed and the champagne ...

Navigating the Digital Landscape: Managed IT Solutions and IT Services in Townsville

As technology advances at an unprecedented pace, companies must adapt to embrace the transformation ahead. With an evolving technology landscape, mana...

Types of Catering You Should Consider for Your Next Event

Choosing the right type of catering service can elevate your event from ordinary to unforgettable. Whether it’s an elegant wedding, corporate func...

Understanding the Benefits of Split System Installation for Your Home

Climate control is essential to maintaining comfort in your home, especially during the extreme temperatures that many regions face. Whether you’r...

Best Aluminium Window Sliding Designs for Natural Light and Airflow

Bringing natural light and airflow into a space is one of the most efficient ways to create a healthy and comfortable home. In Sydney and across Aus...

Maximising Operational Efficiency: Electric Winch Hire Australia and Hydraulic Power Pack Hire Solutions

Image by jcomp on Freepik From urban construction sites and remote mining operations to coastal maritime facilities, specialised equipment solutio...

Navigating the System: Your Guide to Support Finding Work with a Disability Around Melbourne

Image by freepik Finding the right job can be a challenge for anyone, but it can feel particularly daunting when you're also navigating life with a ...

Say Goodbye to Draughts and Hello to Savings: Your Guide to Perth Window Replacement

Image by prostooleh on Freepik Are your windows looking worse for wear? Are you paying a hefty power bill due to sneaky draughts and poor insulation...

How to Choose the Right Horse Trailer for Your Riding Needs

Many horse owners travel long distances for riding lessons, competitions, or to move horses between properties. Having a safe and reliable trailer i...

Sydney Turf Installer for Instant Green Lawns and Long-Term Performance

Having a green lawn at home makes everything look better. Whether it’s the front yard, backyard, or a small patch beside the driveway, people in S...