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MP52259

MAPS PET ACCESSORIES AND INSURANCE OCTOBER 1999

Overview

Editor: Market Assessment
ISBN: 1-86111-274-2

Table of Contents

Executive Summary

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TABLE OF CONTENTS

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EXECUTIVE SUMMARY

The UK market for Pet Accessories and Insurance was worth an estimated £296m in 1999, with the market having grown by 36 percent since 1995. Much of this growth has been generated from the pet insurance sector, with the rate of growth in sales of pet accessories having been somewhat slower.

In the last 10 years there have been significant changes in lifestyles, which led to a trend for lower maintenance pets such as cats, small animals and fish. This has caused cat ownership levels to rise, largely at the expense of dogs. However, the rise in levels of personal disposable income (PDI) and greater consumer confidence, coupled with the rapid expansion of pet superstores, has meant that growth in the market has been maintained despite this factor.

The retail distribution of pet accessories is heavily biased towards the specialist pet trade and in particular towards pet superstores. In 1999, specialist pet shops accounted for 61 percent of sales of pet accessories while the next largest retailer, the grocery multiple, accounts for only 16 percent.

The pet accessories market is likely to remain very competitive and fragmented, with a large number of companies likely to remain in what is a very diverse market. This means that the barriers to entry should remain relatively low for new companies attempting to break into the market. The fastest growing sector within this is likely to continue to be in sales of pet toys and of pet housing/bedding and pet carriers. Sales of accessories via pet superstores and also by direct sales, either mail order or increasingly through the Internet, are likely to increase significantly over the next five years.

The Pet Insurance sector in the last five years has been characterised by a rapid growth in the number of policies available and the number of companies involved in the market. In response to criticisms that policy premiums were too high, there are now a number of products marketed as low cost insurance policies, and some insurance products are targeted at elderly pet owners and also have lower premiums.

In terms of prospects for the Pet Insurance market, it is likely that growth will remain strong over the next five years, as the market continues to become more competitive as new products are launched and other companies enter the market. As such, Market Assessment predicts that the market will grow by 31 percent over the next five years to reach £165m.

Exclusive consumer research, commissioned by Market Assessment in September 1999, showed that 59 percent of respondents did not own a pet, in other words 41 percent were owners of some kind of household pet. In terms of attitudes towards pet accessory retailers, a third of respondents think it important that pet accessory retailers are able to offer expert advice and a wide range of products in store.

With regard to frequency of purchasing, 29 percent of respondents buy products such as pet beds or feeding equipment regularly, ie once every 1-2 years, while 22 percent buy items such as toys more frequently, at least once or twice a year. The same proportion only buy pet accessories when absolutely necessary, ie when a product breaks or is lost or worn out. Just under one in ten believe that they spend more on their pets now than they did a few years ago.

In terms of attitudes to pet insurance, there are still a lot of negative attitudes present, with 18 percent of respondents considering it to be too expensive and/or a waste of money. Only 9 percent currently have pet insurance, but on a more positive note a further 8 percent are considering taking out pet insurance in the future.

Text © 2001 MAPS

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Last updated by Mandy Porteous September 2001