Table of Contents

Executive Summary

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TABLE OF CONTENTS

Executive Summary

The Pet Market

STRUCTURE

CUSTOMER PROFILE

INDUSTRY SUPPLY

EXPENDITURE

RECENT DEVELOPMENTS

FUTURE PROSPECTS

Table 1.1: The UK Dog Population (million), 1987-1992

Table 1.2: The UK Cat Population (million), 1987-1992

Table 1.3: The UK Budgerigar Population (million), 1987-1992

Table 1.4: Pet-Owning Households (million and percent), 1988-1992

Table 1.5: Profile of UK Pet Owners by Social Grade (000 and percent), 1993

Table 1.6: Profile of UK Pet Owners by Age Group (000 and percent), 1993

Table 1.7: Regional Profile of UK Pet Owners (000 and percent), 1993

Table 1.8: Main Media Advertising Expenditure on Dog Food (£000), Year to September 1992 and 1993

Table 1.9: Main Media Advertising Expenditure on Cat Food (£000), Year to September 1992 and 1993

Table 1.10: Main Media Advertising on Other Pet Food and Pet Care (£000), Year to September 1992 and 1993

Table 1.11: Average Weekly Expenditure on Animals and Pets by UK Households (£ per household), 1988-1993e

Table 1.12: Estimated Total UK Annual Expenditure on Animals and Pets by Household at Current and Constant Prices (£m), 1988-1993e

Table 1.13: The UK Pet Market by Value (£000 and percent), 1987-1998

Consumer Profile

ATTITUDES TO PETS AND THE LAW

ATTITUDES TO PET OWNERSHIP

ATTITUDES TO PET CARE AND ANIMAL WELFARE

OTHER PET ISSUES

Table 2.1: Attitudes to Pets and the Law ( percent of adults agreeing with statement), 1994

Table 2.2: Attitudes To Pet Ownership ( percent of adults agreeing with statement), 1994

Table 2.3: Attitudes To Pet Care and Animal Welfare ( percent of adults agreeing with statement), 1994

Table 2.4: Attitudes To Other Pet Issues ( percent of adults agreeing with statement), 1994

Pet Food

INTRODUCTION

CUSTOMER PARTICIPATION

SUPPLY

EXPENDITURE

RECENT DEVELOPMENTS

FUTURE PROSPECTS

Table 3.1: Social Grouping of GB Pet Food Users (000), 1992/1993

Table 3.2: Income Grouping of UK Pet Food Users (000), 1992/1993

Table 3.3: Pet Food Usage by GB Housewives (000), 1992/1993

Table 3.4: Estimated Total Expenditure by All Households on Dog Food (£m), 1988-1993e

Table 3.5: Estimated Total Expenditure by All Households on Cat Food (£m), 1988-1993e

Table 3.6: Estimated Total Expenditure by All Households on Bird Seed and Other Pet and Animal Food (£m), 1988-1993e

Table 3.7: Estimated Total Expenditure by All Households on Pets and Animals at Current and Constant 1986 Prices (£m), 1988-1993e

Table 3.8: Estimated Breakdown of UK Pet Food Market by Value and Volume (£m and 000 tonnes), 1993

Table 3.9: Manufacturers' Brand Shares in the Moist Dog and Cat Food Market by Housewives' Usage ( percent), 1992/1993

Table 3.10: Manufacturers' and Brand Shares in the Moist Dog Food Market by Value (£m and percent), 1992/1993

Table 3.11: Manufacturers' Shares in the Moist Dog Food Sector by Value (£m and percent), 1992/1993

Table 3.12: Manufacturers' Brand Shares in the Moist Cat Food Market by Value (£m and percent), 1992/1993

Pet and Pet Product Retailing

INTRODUCTION

SUPPLY

EXPENDITURE

RECENT DEVELOPMENTS

FUTURE PROSPECTS

Table 4.1: Retail Distribution of Pet Food by Type of Outlet (£m), 1992

Table 4.2: Retail Distribution of Pet Products by Type of Outlet (£m), 1992

Pet Care

INTRODUCTION

CUSTOMER PROFILE

SUPPLY

EXPENDITURE

RECENT DEVELOPMENTS

FUTURE PROSPECTS

Table 5.1: Total UK Household Expenditure on Pet Care by Product Sector (£m), 1992

Table 5.2: Manufacturers' Shares in the Pet Care Market by Value (£m), 1992

Pet Equipment

INTRODUCTION

SUPPLY

EXPENDITURE

RECENT DEVELOPMENTS

FUTURE PROSPECTS

Table 6.1: Total UK Household Expenditure on Pet Equipment by Product Sector (£m), 1992

Pet Charities

INTRODUCTION

CUSTOMER PARTICIPATION

SUPPLY

EXPENDITURE

RECENT DEVELOPMENTS

FUTURE PROSPECTS

Table 7.1: Sources of Income of UK-Registered Animal Welfare Charities and Ranking by Level of Total Annual Voluntary Income (£000), 1992

Table 7.2: Sources of Income of The Royal Society for the Prevention of Cruelty to Animals (£000), 1992

Table 7.3: Sources of Income of the People's Dispensary for Sick Animals (£000), 1992

Pet Services

INTRODUCTION

SUPPLY

EXPENDITURE

RECENT DEVELOPMENTS

FUTURE PROSPECTS

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

ICC INFORMATION SOURCES

ICC INFORMATION GROUP LTD

GOVERNMENT PUBLICATIONS

OTHER SOURCES

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EXECUTIVE SUMMARY

UK PET POPULATION

Around 11 million households in the UK own at least one pet. Although cat-owning households are considerably less numerous than dog-owning ones, the latter own, on average, fewer animals than cat-owning households. This has the result that, on the basis of 1992 figures, the cat population of the country, at 7 million, is only slightly smaller than the dog population of 7.3 million.

Despite lack of precise information on numbers, it has been estimated that fish are third in the popularity stakes, with budgerigars occupying fourth place. Other popular pets include hamsters, gerbils, rabbits and guinea pigs, as well as other bird species.

Although the UK pet population has grown significantly over the past 20 years, this growth has somewhat declined recently. In fact, if the relatively modest growth in the number of households over the past 5 years is taken into account, there has been an actual decline in the numbers of pets per household over this period. In the case of dogs, the number of dogs per household has declined, but the total dog population has remained virtually static.

Within the dog population the trends are unclear, depending in part on how breeds are defined as `large' or `small'. Some commentators claim to detect an increase in the popularity of smaller dogs, attributed to a variety of causes, including the expense of feeding and the adverse publicity suffered by some of the larger, more aggressive, breeds. However, recent research suggests `a slow but discernible trend towards larger dogs -- which is being stimulated by a growing number of older people with extended leisure time'.

Another trend is towards the ownership of the more independent kinds of pets, which need less in the way of constant care and attention, and which can be left unattended for relatively long periods. This trend favours cat rather than dog ownership, and it is indisputable that the cat population has grown somewhat more rapidly than the dog population over the past 5 years.

REPORT COVERAGE

This report looks at all major sectors of the UK market for pets, pet product and services, and the products which meet the needs of those markets.

It, therefore, covers the activities of breeders, trade associations, pet food manufacturers, pet drug suppliers and veterinary surgeons, as well as suppliers of pet products such as cat litter, kennels, leads and collars. It also looks at pet shops, animal charities, and the suppliers of a variety of other pet services such as grooming, pet funerals and pet transport.

The needs of the pet market are served by several industries. For many of these, demand from the pet segment supports only a relatively minor part of total activity. For instance, most pet food operations form part of companies engaged in a wider set of food manufacturing activities. This is certainly true of UK market leaders Pedigree Petfoods, part of US-based Mars Inc. This is also the position of the number two firm, Spillers Foods, part of the Dalgety group, which describes itself as `a major food group with strong positions in agribusiness, food ingredients, consumer foods, pet foods and food distribution'.

The pet drugs industry similarly forms part of the broader pharmaceutical industry, with the major drug companies such as Bayer, CIBA-Geigy, Fisons Hoechst and SmithKline Beecham featuring strongly in the market.

Outside the pet food and drugs sectors, operations are conducted on a somewhat smaller scale by small independent companies, with both charitable foundations and commercial organisations participating in sectors such as dog homes and pet cemeteries, while some parts of the retail, equipment and services sectors are particularly dominated by the smaller firm.

Pet ownership varies considerably according to age, social grade, and type of household, and is higher in families with children, especially the larger families with four or more members, among the C2/DE social grades, and those in owner-occupied homes.

There are also differences in the consumer profile of the different pet-owning groups in the population, with cat and fish owners tending to be younger than dog owners, while the 35 to 45 age group provides the largest group of budgerigar owners.

FUTURE PROSPECTS

According to recent estimates, the UK dog population will reach 8 million by 1995, compared with the 1992 figure of 7.3 million. Large and medium-sized breeds will continue to form the bulk of the UK dog population, although there is no clear indication as to whether the balance between breeds of different sizes is likely to change significantly in the near future.

The debate about the control of dangerous dogs, and the control of dog-related diseases, is likely to continue.

The cat population is also likely to continue to grow, with cats and dogs remaining by far the most popular family pets.

Key Note predicts that the pet market will continue to grow at a faster rate than the rest of the economy, on the grounds that the market has yet to reach maturity, and will account for some £2.2bn of consumers expenditure at constant 1986 prices, or nearly £3.5bn at current prices, by the year 1998. This implies that as living standards increase, consumers will spend increasing proportions of their incomes on pets and pet-related services.

So far as pet food is concerned, it seems clear that there is scope for increased penetration levels, as some pet owners trade up to premium products, and as others, at the other end of the market, start to use proprietary pet foods for the first time. The complete dry dog food sector seems to be one that is set to grow fast over the next year or so. Similar influences are at work in other sectors of the market.

Over recent years, UK garden centres have been dealing increasingly in pets and pet products -- selling goldfish, pet toys, dog chews, etc. If the recent Sunday Trading Bill becomes law, this would restrict trading to just 6 hours. This is substantially down on the period of 9 or more hours during which many garden centres have been accustomed to opening in the peak season.

Changes in patterns of retailing are taking place in many product sectors in the UK, and pet retailing is no exception. Among possible changes that would have an impact on retailing patterns in the pet and pet product market is the introduction of legislation arising from EC Directives, which might have the effect of restricting sales of certain pet drugs to designated types of outlet such as veterinary surgeries.

Other trends already referred to which are likely to impact the retail sector are the move by multiple retailers to selling products, such as dry dog foods, hitherto sold mainly through the specialised outlets, and the increasing competition offered by garden centres in the retailing of a range of pet products.

The pet care market is likely to share fully in the growth predicted for the pet market as a whole, but there are one or two uncertainties. One that has already been mentioned is the possibility that the implementation of certain EC Directives might restrict sales of certain pet drugs to veterinary surgeries. Another is the extent to which `environment friendly' pet litters made from materials such as recycled newsprint are likely to replace the traditional fullers earth and lightweight clay products, as has been the case in The Netherlands and Germany.

As with other sectors of the pet market, the future development of the pet equipment and services markets depends on predicted levels of pet ownership, as well as changes in purchasing habits. The number of pets per household is expected to rise only slowly over the next few years, leading to a growth in the UK pet population at a rate only slightly above that of the human population.

Nevertheless, in this sector there is room for growth at a rate in excess of that likely to be experienced in the UK economy in general, as pet owners pass on to their pets some of the benefits they themselves receive as the country pulls out of recession. This is one of the sectors which benefits from the indulgence of pets by their owners.

Text © 1994 Key Note

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