Rondo Foods invests in expansion at Ireland pet treat production facility

Gaines Europe Ltd. has opened a new petfood production facility in Arklow, Ireland, that will create 15 new jobs in the region.
Parent company Rondo Food invested €6 million (US$8.1 million) in the new facility to double outputs and exports by 2015. Rondo plans to further invest €2.5 million (US$3.4 million) for additional production lines at the facility if this first stage of expansion is successful.
Dirk Wellen, managing partner of Rondo Food, said: "When we acquired Gaines Europe in 2011, we obtained with it a well-trained, hard-working factory staff and an ambitious, effective management team who have made enormous improvements to the company's outputs in a short time. The company's growth and development in Ireland has been a huge success story within the Rondo Food network and is testament to the commitment and skill of the workforce. We are committed to keeping the business and production of Gaines Pet Treats solely in Ireland. I would like to thank and acknowledge the invaluable support that we have received from Enterprise Ireland and from the local authorities."

Pet Fair Asia draws more than 15,000 pet industry trade visitors

Pet Fair Asia attracted 15,173 trade visitors to the Chinese pet trade show, held in Shanghai at the end of August. 
Attendance to the pet industry show increased by 9.2 percent over the previous year, and with the exception of East China, the number of Chinese visitors increased by nearly 12.3 percent. 
The show's organizer says consumers visiting the show rose from 36,000 in 2012 to 40,000 in 2013. Nearly 602 international and domestic companies exhibited at the fair, covering an exhibition area of 37,000 square meters. Pet Fair Asia was held alongside Petfood Forum China, which took place August 23. 

Registration open for Global Pets Forum 2014

Global Pets Forum has opened registration for the 2014 pet industry conference, which will focus on the theme of "Save your future!"
The 2014 conference will address shifts between global regions of the world, as the rapid growth of emerging markets has led to an increase in the demand for resources, with prices expected to rise. The conference will look at which areas to focus on, as well as new techniques, new marketing approaches and changes in the supply chain. Attendees will also have the chance to network with nearly 200 managers from 30 different countries.
Global Pets Forum will be held January 23-24, 2014, in Amsterdam, the Netherlands.

Euromonitor to host webinar on global pet care on October 2

On October 2, Euromonitor International will host a market research webinar on "Global Pet Care in an Age of Economic Uncertainty" at 9 a.m. CST. 
According to Euromonitor, economic recovery is still uncertain in 2013, with global GDP expected to grow by 3.5 percent but countries such as the US and Japan still struggling with high unemployment and recession. Although pet care remained resilient, challenges still loom. Pet humanization is driving pet owners to treat their pets, but the post-recession consumer is more price sensitive. 
The webinar will look at the development of the pet care industry, identifying emerging geographies, categories, leading trends and successful new products. It will also analyze different channels to help new strategy development in retailing, packaging, petfood, and health and wellness. It will feature Paula Flores, global head of pet care research, and Dr. Deborah Cross, food industry research analyst.
The presentation will provide: 

• Market prospects for pet spcialist retailers and Internet sales
• The gravitation from metal food cans to flexible pouches
• Opportunities for organic, fortifed/functional food
Register online to attend. 

Pet market worth US$49 billion in 2012, Mintel reports

According to the latest report by Mintel, the pet market is worth more than US$49 billion in 2012, up 15 percent since 2007, despite a turbulent economy. Spending on pet food and pet supplies continues to grow as pet ownership becomes more widespread, with 64 percent of Americans currently owning a pet.
Pet food accounted for the largest share of sales in 2011, 37.8 percent of the pet market, with a retail value of US$18.1 billion. Veterinary services represented the second-largest segment generating more than US$12 billion annually.
“Pets have many needs that are similar to human family members, including food and medical care,” said Bill Patterson, senior market analyst with Mintel. “Therefore, pet supplies and services are often necessities rather than discretionary purchases, which has helped shield this industry from the rocky recessionary environment. The strong bond between owners and pets offers significant marketing opportunities for manufacturers and retail outlets focusing on pet care and supplies.”

Global pet food market to reach US$74.8 billion in 2017

The global pet food market will grow by 4.2 percent annually over the next six years, increasing from US$58.6 billion in 2011 to US$74.8 billion by 2017, according to a report published by Transparency Market Research of Albany, New York, USA.
The report projects the US market for pet food sales will increase 3.2 percent in 2012, growing at an annual rate of 3.5 percent over the next six years, from US$21.7 billion in 2011 to US$26.6 billion in 2017. The report says that dry pet food accounts for the largest type of pet food consumed globally, followed by snacks and treats, and then wet food.
The report also projects the Asia Pacific market will grow at the fastest pace over the next six years, while the European market, second largest to the US, will grow at an annual rate of 4.4 percent from 2011 to 2017. The report attributes this global market growth to consumers' higher disposable incomes, changing lifestyles, and a trend of more "nuclear families" and other people having pets in their homes.

Report projects Brazil to pass Japan as world's second largest pet care market in 2016

Research and Markets added a new pet industry report, "Latin American Pet Care: The Rise of Emerging Markets," to its offerings.
The report from Euromonitor International says that the retail values in Latin America's pet care market are growing faster than any other region. In 2016, Brazil is projected to pass Japan as the world's second largest pet care market, behind the US.  
The report covers pet food and pet products with market sizes (historic and forecasts), a country focus, future market opportunities and challenges, future prospects and more. The "Latin American Pet Care: The Rise of Emerging Markets" report can be purchased online.

Pet Food Brazil Manual says 69 percent of 2011 pet industry revenue came from pet food

The Brazilian Association of the Pet Product Industry updated its Pet Food Brazil Manual, which says the country now has one pet for every two inhabitants, causing the pet industry to reach BRL12.2 billion (US$6.5 billion) in 2011, with 69 percent of the revenue from pet food.
The Pet Food Brazil manual was released as an update to the older, PIQ PET Manual, which was developed six years ago by the association's technical groups, comprised of professionals from petfood companies and universities. The manuals aim is to provide the public, academic and private institutions of the sector with a reference for food quality and safety, as well as to provide information on technical and quality standards of raw material, nutritional parameters, applicable analytical methodologies and the ideal production conditions in order to ensure safe pet food production.
"Our country holds important position and the quality of the products needs to meet consumers' expectations. The use of the Manual increases the reliability on the industry and also ensures the compliance with all rules and regulations in force," said the association's CEO, José Edson Galvão de França.

Global Pet Expo 2012 featured 3,000 new pet products, broke attendance records

The 2012 Global Pet Expo saw a record number of attendees with more than 5,000 buyers.

The Global Pet Expo 2012 saw record-breaking buyer and media attendance and total pet product exhibitor booths sold, say sponsors American Pet Products Association and Pet Industry Distributers Association.

The 2012 show, held in Orlando, Florida, USA, February 29-March 2, featured 5,011 buyers in attendance, more than 3,000 new pet product launches, 896 exhibitors and 2,487 booths sold – the highest post-show numbers reported in Global Pet Expo’s eight-year history. International attendance accounted for nearly 25 percent of the total buyer attendance rate, while 145 international companies exhibited at the show.

"The buyers, exhibitors and media who participated in this year’s show all contributed to making this our largest event to date,” said Andrew Darmohraj, American Pet Products Association senior vice president. “The overall success of this year’s show sent a clear message that the pet industry is stronger than ever, and continues to attract entrepreneurs and innovators offering pet owners more products than ever for their pets. As owners continue to demonstrate that they value pets as members of the family, demand for the latest and greatest products is at an all time high.”  
Special sections at the show included the “International Pavilion,” “Natural Pet,” “Boutique,” “Everything Aquatic” and “What’s New!” Additionally, "TODAY" show correspondent and animal advocate, Jill Rappaport, was honored with Global Pet Expo’s annual “Excellence in Journalism and Outstanding Contributions to the Pet Industry Award” for her commitment to the industry.  
The American Pet Products Association also announced its pet industry spending for 2011, which grew by 5.3 percent from US$43.35 billion in 2010 to US$50.96 billion in 2011. The American Pet Products Association projected a steady 3.8 percent growth rate through 2012, bringing overall pet spending to nearly US$53 billion.
The 2013 Global Pet Expo will take place February 20–22, 2013, in Orlando, Florida, USA.

Global Pet Expo to break records for 2012 pet products show

Global Pet Expo 2012, the annual pet products trade show presented by the American Pet Products Association and the Pet Industry Distributors Association, is set to break all previous show size records, with the highest number of booths sold to a record number of exhibitors, according to Andrew Darmohraj, senior vice president of the American Pet Products Association.
Global Pet Expo will feature 890 pet product exhibitors and 2,452 booths during the three-day event, taking place February 29 – March 2, at the Orange County Convention Center in Orlando, Florida, USA. Darmohraj also said that almost all of the show’s special sections have also sold out, some of which include: Natural Pet, Boutique, Everything Aquatic, International Pavilion and What’s New! “We are thrilled at the consistent and impressive growth Global Pet Expo has enjoyed over the years. With more exhibitors and booths than ever, and an expectation for high attendance numbers, 2012 is shaping up to be our largest Show to date on many fronts,” said Darmohraj. “As the pet industry continues to expand, Global Pet Expo offers buyers the opportunity to see more new product launches than any other industry show. Global Pet Expo is the must-attend pet industry show of the year.”

Global pet food market growth from product innovation, report says

The pet food industry has experienced much growth due to increased pet food market segmentation and pet product innovation, according to a new report on the global petfood industry from Global Industry Analysts Inc.
The research report, "Pet Foods: A Global Outlook," includes a collection of statistics, market briefs and research findings to provide an analysis of global pet food market trends and petfood market issues.
The report says factors like consumer receptiveness to premium foods, expanding health needs of aging pets, wide availability and exposure at retail, introduction of new products and increasing consumer preference for natural remedies over pharmaceuticals are all expected to drive pet food market sales in the future. Pet food market dynamics will change as pet food manufacturers focus on product innovations such as weight-loss foods, special diet and condition-specific functional petfoods, grain-free pet foods and innovative marketing schemes. In the past, market growth was driven by premium and super premium dry petfoods, the report says. The report also analyzes emerging markets, such as Latin America, Africa and the Middle East, where increased product availability across all price segments is expected to drive consumers to feed pets prepared foods. Growing disposable incomes in Brazil and China will make the shift to prepared pet food even greater in these countries, according to the report.

Canine health company receives nutrigenomics patent

Canine health company Hemopet received its fourth patent for the company's nutrigenomics portfolio.

Hemopet says its business strategy calls for launching nutrigenomic pet food supplements in 2012, formulas which are currently being tested in Europe.  
“Our intellectual property protects and confirms Hemopet as a leader in nutrigenomic petfoods. It validates our being at the forefront of petfood issues and further builds on our philosophy of individualized care for pets,” said Dr. Jean Dodds, president.

Global pet food industry worth $50 billion in 2010, Markets and Markets report estimates

In 2010, the global pet market was estimated to be worth more than US$50 billion in 2010, according to Markets and Markets' petfood industry report, "Global Pet Food Market by Type, Animal, Geography Trends & Outlook 2011-2016." 

The report says that North America dominates the global petfood market, with more than 40% of the total market share in 2010. Countries in the Asia-Pacific region, such as India and China, as well as Brazil are expected to be high-growth markets for petfood, according to the report. The report also includes trends in the global petfood market, such as the shift to organic and natural petfoods.

A copy of the report may be purchased online from Markets and Markets.

Pet ownership, pet care spending on the rise in Asia

Asia's aggregate pet population now exceeds 488 million, according to Euromonitor, evidence of the growing trends of pet ownership and pet care spending worldwide.

As people grow wealthier and couples have fewer children, pets become more popular, an article from Forbes says. The article points out that cultural differences affect pet ownership, such as those in Indonesia where many Muslims feel dogs are unclean, but that even in China, pet ownership is rising with 6.6% of households now owning a dog. The largest pet care market is found in Japan, where petfood, grooming and veterinary care were estimated to be worth US$18 billion in 2009. Euromonitor valued the pet market in America to be worth US$48.3 billion at that time.

Western companies like Mars and Nestle not only dominate most European and North American petfood markets, but also markets in Asia. Domestic competitors are emerging in Japan, where infant care and feminine hygiene company Unicharm now highlights its pet division on its website, and in South Korea, where food manufacturer CJ CheilJedang made Forbes' "Fab 50 companies for 2011" list.

Latin America pet care market grows

Pet care in emerging markets is booming as pet ownership rises among the middle class, an article in the Economist says. Specifically, Latin America’s spending on petfood and pet products increased 44% in the last five years to US$11 billion, according to Euromonitor.

The market research firm estimated that Chile has more pet dogs per person than in any other country. Rising incomes allow Latinos to treat dogs as members of the family because more of these young people are living alone, opting for pets as company and delaying marriage. These pet owners treat their animals as children, according to Euromonitor’s Emily Woon, who said that Latin America has become the “star market” in recent years. Despite their higher cost, Latinos choose dogs more often than cats, evident in the fact that dog food outsells cat food by almost six to one in this market.
However, there is room for further expansion in Latin America’s pet care market, as nearly three-quarters of Mexican dogs eat leftovers from burritos, the article says. Advertising campaigns like park billboards in Mexico City urge pet owners to switch to name-brand, packaged petfoods instead. The article also says that pet superstores make up more than one-fifth of pet product sales in America and Canada, but are seldom found in Latin America. The most popular stores in Latin America are still the small, independent pet shops, which retain customers by offering credit.

Nestle plans US$48 million wet pet food production investment in Russia

Nestle Purina PetCare annnounced plans to invest more than US$48 million to double the production of wet pet food at its manufacturing site in Russia.
The money will be used to add production lines at Nestle's pet food manufacturing facility in Vorsino, Russia. Company officials say the investment will double wet pet food manufacturing capacities within the next three years, as well as to produce the entire Purina range of pet food products sold in Russia and exported to other Commonwealth of Independent States countries.

PetSmart's 2010 financial results indicate continued growth in 2011

Although other specialty retailers have struggled in the tough economy, PetSmart's financial results have proved that Americans are not scaling back on spending money on their pets, according to financial analysts at seekingalpha.com. 
Part of PetSmart's success is due to the fact that the company has little "direct" competition. Petco is one of the few "direct competitors," and the "indirect" competitors are predominantly the big box retailers such as Wal-Mart, Costco and Target, as well as grocery store chains. PetSmart has remained competitive in the petfood market as the company expanded its private-label petfood products and is set to open 40 to 50 additional stores in 2011, according to the financial analysts. 
PetSmart's earnings grew 24%, 32%, 23% and 26% in the past four quarters of fiscal 2010, respectively, up from levels during the same period one year ago. The company's full-year sales rose 6.7% to US$5 billion, while operating income increased 16.2% to US$428.7 million and net income rose 20.9% to US$239.9 million, the company reported.
These successful earnings results span a decade, as PetSmart's sales have increased nearly 10% and profits have increased 12% annually over this period, financial analysts say, with this growth expected to continue during the 2011 fiscal year.

Japanese Nisshin Petfood reports sales decline in fiscal 2011

The Japanese Nisshin Seifun Group reported its consolidated financial results for the first six months of the fiscal year, ending March 2011.
The company reported a 7.8% decrease in net sales over the same period in fiscal 2010, to ¥ 209.16 billion (US$2.54 billion). Sales by Nisshin Siefun's pet food business, Nisshin Petfood Inc., also decreased from the same period in the previous year, which the company attributed to the continuing harsh market environment and the poor performance of cat food products. The company said it will continue to expand its premium petfood business with a focus on safety, reliability and health, by leveraging its advantages as a domestic manufacturer.

PFMA: Pet fish now in 16% of Britain households

Fish have overtaken rabbits, budgies and guinea pigs as the third most popular pet in Britain, according to the Pet Food Manufacturers' Association.
According to a PFMA study, 16% of people now own fish, only a few percentage points off the number two spot currently held by cats in 19% of households. Dogs still hold the number one spot with 23% of households owning a canine. “Now that more people are living in smaller homes and rented housing, it’s not always possible to have a cat or dog," said Tesco pet expert Clodagh Corbett. "By choosing a fish, children have all the enjoyment of looking after a pet without having to worry about space or scratched furniture and damaged walls.” Fish demand has increased by 17% over the last three years, according to the PFMA, with 12 million pet fish living indoors and another 18 million currently living in garden ponds.

Hear the latest global macroeconomic outlook

Dr. Bruce A. Scherr, chairman of the board and CEO of Informa Economics, will present his Global Macroeconomic Outlook in a webinar on December 9, 2010, at 8 a.m. US CST.
Scherr will address critical economic questions for animal agribusiness and other executives, such as whether the global economic recovery is on track or stalling, the shape of the US recovery, whether or not Asian expansion can lead the world recovery and others. See a full agenda and registration information.