The pet food market
DATA AND FACTS IN BRIEF. Below is a focus on packaging of food for household dogs and cats. The two product types taken under consideration are: traditional pet food (wet and dry) and sweet & savory snacks.
The Italian pet food sector, specifically that for dogs and cats, continues to show a very dynamic demand trend, although in recent years its growth has leveled off somewhat: until 1994, the average annual growth rate was around 10%, while today that value is a yearly average of 3-5%.
The market’s growth potential in Italy is still very promising if one compares the use of these products with rates in other European countries: in Italy, pet food satisfies 70% of the calorie intake needs of dogs and cats, compared to 80-85% in major northern European countries.
At the moment, Italy is the fourth largest European market in this sector, with the strongest growth rates and medium-term growth prospects around 4-5% (yearly average). This also in consideration of a spreading attitude among Italians towards pets that treats them as loved ones and members of the family.
What’s happening in Italy?
It is estimated that there are approximately 48 million pets in Italy, including dogs, cats, fish, birds, rodents, etc.
Dogs and cats, the object of this analysis, number about 20 million: both in terms of volumes of food product and of turnover, this is the largest area in the sector.
In 2014 (the most recent available data), the sector had a turnover of approximately 1,830 million euro. Of the distribution of pet food for dogs and cats, about 70% is through major retailers and 30% through pet shops.
The 2015 numbers
• Trade balance. Italy’s total production of pet food for dogs and cats amounted to about 669 t/000 in 2015, a 2% drop compared to 2014. The decline affected both wet and dry food.
Consumption of both product types, on the other hand, increased by 2.5%.
The growth trend saw a 6% rise in imports (covering 34% of domestic consumption), while Italian products destined for the domestic market saw minimal growth (0.7%).
The trend of exports during the two-year period 2014-2015 was negative, -4% in the first year and -7% in the second. Exports currently represent 35% of production. The growth potential of pet food remains strong.
• Packaging
Packaging also has an essential role to play in the pet food sector, grabbing consumers’ attention and influencing their purchasing decisions as a communication tool, but also garnering loyalty with service content in relation to preservation capability and ease of product use.
The packaging used in this sector differs greatly according to whether it has been produced in Italy or imported.
Dry pet food is packaged in cardboard boxes (up to 1 kg format) or in paper/polythened bags (for larger formats, usually for dogs, especially breeders).
More sophisticated, on the other hand, are the packaging types for wet food.
Until 3-4 years ago, only tinplate cans were used, but the sector has recently been characterized by greater diversification.
Aluminium tubs coated with plastic film and top (consisting in a peelable aluminium cover) are also used, as well as glass jars and also flexible polylaminate bags (plastic/aluminium).
52.7% of Italian production (total dogs and cats) is estimated to be packaged with flexible polylaminates for converting, whose share is growing (in 2010 it was 45.5%).
In recent years, the sector has been oriented towards polylaminate bags. This trend affects the European market and the Italian one in particular.
Steel cans (the traditional packaging for pet food) currently account for 23.8%, in slight decline (24% in 2010).
The traditional paper bag, now at 16.2%, is also losing ground slightly (22.1% in 2010).
The aluminium can holds a 2% share, representing growth from the 1.2% of 2010.
Polylaminate “brick” containers are also used, with a share of 0.2%.
Plinio Iascone
Istituto Italiano Imballaggio
