EUROPE AT DIFFERENT SPEEDS
ZOOMARK INTERNATIONAL 2013
10 MAY 2013
PAULA FLORES
HEAD OF PET CARE RESEARCH
2
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INDUSTRY PERFORMANCE
WESTERN EUROPE
EASTERN EUROPE
BRAZIL
FUTURE PROSPECTS
4
INDUSTRY PERFORMANCE
Living In Uncertain Times
+5.2%
+3.8%
+3.6%
+ 3.5%
-0.6%
2009
2010
2011
2012
2013
Source: Euromonitor International from national statistics/Eurostat/OECD/UN/International Monetary Fund (IMF), World
Economic Outlook (WEO)
© Euromonitor International
5
INDUSTRY PERFORMANCE
The Troubles in the Eurozone
Real GDP Growth: 2012-2017
7.0
6.0
% growth
5.0
4.0
Emerging
Eurozone
3.0
2.0
1.0
0.0
-1.0
2012
© Euromonitor International
2013
2014
2015
2016
2017
6
INDUSTRY PERFORMANCE
Pet Care Posts Good Growth
4.5
96.0
4.0
94.0
3.5
3.0
92.0
2.5
90.0
2.0
88.0
1.5
86.0
1.0
84.0
0.5
82.0
0.0
2008
2009
Retail value sales
© Euromonitor International
2010
2011
2012
2013
Annual retail value growth (%)
% growth
US$ billion
98.0
Global Pet Care Retail Values: 2008-2013
INDUSTRY PERFORMANCE
And Pet Care at Different Speeds in 2013
© Euromonitor International
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8
INDUSTRY PERFORMANCE
Top 10 Largest Markets in 2013
Pet Care Top 10 Largest Markets by Retail Value
Australia
Canada
Russia
Italy
Germany
France
Japan
United Kingdom
Brazil
US
0
© Euromonitor International
5
10
15
20
US$ billion
25
30
35
9
INDUSTRY PERFORMANCE
Global Pet Care Drivers
Humanisation
© Euromonitor International
Premiumisation
INDUSTRY PERFORMANCE
Global Pet Care Drivers
© Euromonitor International
10
11
INDUSTRY PERFORMANCE
Global Pet Care Drivers
Saudi Arabia: Pet Facial Scrub
© Euromonitor International
Israel: Pet Head
12
INDUSTRY PERFORMANCE
Global Pet Care Drivers
Purina One Beyond
South Africa Q1 2013
© Euromonitor International
UAE Iams Pro Active Health
Launched 2012
13
INDUSTRY PERFORMANCE
Global Pet Care Drivers
Israel: Nature’s Variety Instinct
© Euromonitor International
Dog Bakery in Canada
INDUSTRY PERFORMANCE
WESTERN EUROPE
EASTERN EUROPE
FUTURE PROSPECTS
15
WESTERN EUROPE
North America and Western Europe are the Leaders
Pet Care Sales by Region
Asia Pacific
Western Europe
Latin America
North America
© Euromonitor International
Eastern Europe
16
WESTERN EUROPE
Mature Western European Markets
Pet Care Retail Value Sales in Western European
Markets: 2013
2.0
3,000
1.5
1.0
2,000
0.5
1,500
0.0
1,000
-0.5
500
-1.0
0
-1.5
US$ million
© Euromonitor International
2008-2013 CAGR
% CAGR
US $ million
2,500
WESTERN EUROPE
Strong Polarisation Across Europe
Pet Care Value Growth in Western Europe: 2013
8
6
% growth
4
2
0
-2
-4
-6
© Euromonitor International
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18
WESTERN EUROPE
Best Performing Dog and Cat Food Markets
Top Four Dog and Cat Food Markets 2013
France
Finland
Premium
Mid-Price
Economy
Norway
Turkey
0
2
4
% growth
© Euromonitor International
6
8
19
WESTERN EUROPE
With Humanisation Still Growing Strong
Gimdog
H von Gimborn GmbH
Germany
© Euromonitor International
Feline Young Adult Sterilised
Hill's Pet Nutrition SNC
France
20
WESTERN EUROPE
Worst Performing Dog and Cat Food Markets
Top Four Less Performing Markets 2013
Greece
Italy
Premium
Mid-Price
Economy
Spain
Ireland
-20
-15
-10
% growth
© Euromonitor International
-5
0
5
21
WESTERN EUROPE
With Private Label Becoming More Refined
Select Gold Senior
Fressnapf
Germany
© Euromonitor International
El Corte Inglés
Spain
22
WESTERN EUROPE
And Gaining Share
Private Label Share in
Germany: 2008-2012
35
35
30
30
25
25
% share
%share
Private Label Share in
Spain: 2008-2012
20
15
10
20
15
10
5
5
0
0
2008 2009 2010 2011 2012
Cat Food
© Euromonitor International
Dog Food
20082009 2010 2011 2012
Cat Food
Dog Food
INDUSTRY PERFORMANCE
WESTERN EUROPE
EASTERN EUROPE
FUTURE PROSPECTS
24
REGIONAL OVERVIEW
Eastern Europe: Vibrant Markets
6
US $ million
2,500
5
2,000
4
1,500
3
1,000
2
500
1
0
0
US$ million
© Euromonitor International
2008-2013
% CAGR
3,000
Pet Care Retail Value Sales in Eastern European
Markets: 2008-2013
7
25
EASTERN EUROPE
Bright Prospects in 2013
Pet Care Value Growth in Eastern Europe : 2013
12
10
8
6
4
2
0
Ukraine
© Euromonitor International
Russia
Romania Bulgaria
Poland
Slovakia
Czech
Republic
26
REGIONAL OVERVIEW
Buoyant Russian Market with Plenty of Potential
Russian Pet Care Retail Value Sales: 2008-2013
2,500
US$ million
2,000
1,500
1,000
500
0
2007
Cat Food
© Euromonitor International
2008
2009
Dog Food
2010
2011
2012
Pet Products
27
REGIONAL OVERVIEW
Russian Consumers Opt for Mid-Priced Pet Food
Russian Dog and Cat Food Sales
by Price Platform: 2008-2013
1,400
Russian market
accounts for nearly
60% of Eastern
European sales
1,200
US$ Million
1,000
800
Many consumers
trading up from
economy
600
400
200
0
2007 2008 2009 2010 2011 2012
Economy
© Euromonitor International
Mid-Price
Premium
International brands
hold good brand equity
INDUSTRY PERFORMANCE
WESTERN EUROPE
EASTERN EUROPE
BRAZIL
FUTURE PROSPECTS
29
REGIONAL OVERVIEW
Latin American Pet Care: A Rising Global Star
Latin American Pet Care Retail Values by
Major Market: 2008 vs 2013
8
US$ billion
7
6
5
4
3
2
1
0
Brazil
Mexico
Argentina Venezuela
2008
© Euromonitor International
2013
Chile
Colombia
30
REGIONAL OVERVIEW
Growing Pet Ownership Rates Means Plenty of Untapped Potential
% nutrition
% households
100
90
80
70
60
50
40
30
20
10
0
Proportion of Brazilian
Households Owning a
Dog/Cat 2013
Cat
2008
© Euromonitor International
Dog
2013
Brazilian Pet Nutrition
2013
100
90
80
70
60
50
40
30
20
10
0
Cat
Dog
Prepared
Unprepared
31
REGIONAL OVERVIEW
Latent Potential Further Strengthened by Distribution Channels
Percentage
Brazilian Distribution Channels:
2008-2013
Concentration in
100
90
80
70
60
50
40
30
20
10
0
Pet Shop
Other
Hypermarket
Supermarket
2007
© Euromonitor International
2012
modern grocery
creates opportunities
for “mass” premium
brands
Premium Pet Care
brands also favoured
by strength of:
Pet shop
Pet superstores
32
REGIONAL OVERVIEW
Leading Pet Care Companies in Brazil
Mars 26%
Nestlé 17%
Total
Alimentos 8%
Nutriara 8%
Mogiana 6%
© Euromonitor International
INDUSTRY PERFORMANCE
GLOBAL TRENDS
REGIONAL OVERVIEW
FUTURE PROSPECTS
34
FUTURE PROSPECTS
Globally Priorities Will Shift Up to 2016
• 66% of global GDP growth generated in
emerging markets
• 88% of the global population lives in
emerging markets
• Annual disposable income grows
rapidly in emerging markets
© Euromonitor International
FUTURE PROSPECTS
Power Shift to Emerging Markets Will Continue
70
Global GDP Contribution in PPP Terms: 2000-2020
60
% of world GDP
50
40
30
20
10
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Emerging and Developing Countries Developed Countries
© Euromonitor International
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36
FUTURE PROSPECTS
What Does the Future Hold for Global Pet Care?
Global Pet Care Retail Value Prospects: 2012-2017
120
US$ billion
100
80
60
40
20
0
2012
Cat Food
© Euromonitor International
2013
Dog Food
2014
2015
Other Pet Food
2016
2017
Pet Products
FUTURE PROSPECTS
Emerging Markets Remain Key to the Future of Pet Care
Pet Care Absolute Retail Value Gains by Region:
2013-2018
4.0
US$ billion
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
© Euromonitor International
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38
FUTURE PROSPECTS
Emerging Markets Remain Key to the Future of Pet Care
10 Strongest Growing Emerging Pet Care
Markets by Retail Value: 2013-2018
Brazil
Mexico
Russia
China
Taiwan
Thailand
Venezuela
Argentina
South Korea
Poland
0.0
© Euromonitor International
0.5
1.0
US$ billion
1.5
2.0
FUTURE PROSPECTS
Final Conclusions
In developed markets austerity
continues to bite
Premiumisation set to intensify in
most markets
But private label will become an
increasing threat
Emerging markets will remain key
to the future of pet care
© Euromonitor International
39
THANK YOU FOR LISTENING
Paula Flores
Global Head of Pet Care Research
paula.flores@euromonitor.com