Good prospects for the pet product trade

Even if the size of the pet population has declined markedly in some cases in the last few years, the British continue to be great pet-lovers. According to official figures, there are approx. 21 mio pets in the UK, but the real number is probably far higher. Dogs in particular are in great demand, so it's not without reason that the world's biggest speciality dog show, Crufts, takes place every year in Birmingham. The British are happy to lavish money on their beloved four-leggedfriends, and this has a positive effect on the sale of treat products. According to the latest market data, the volume of this segment is estimated to be around 330 mio €, with dog snacks and treats accounting for the lion's share.Pets at home is the undisputed number 1 in the UK pet product sector, with 155 stores.Sustained growthLast year sales of pet products rose by 4 per cent compared with 2002. This very high growth compared with market data for Europe is a sign that the global economic crisis has largely bypassed the UK economy so far. Another contributory factor is the pronounced desire of pet owners in the UK to spoil their pets. The UK is regarded as a classic wet food country. Wet food and mixer products, which are very popular, account for around 60 per cent of the market in the dog segment. With regard to cat food, the market share of wet food is as high as 80 per cent. In spite of this, even manufacturers of dry food have recorded good sales growth rates in recent years.Even garden centre chains like Garden & Leisure have attractive pet product departmentsAccording to current figures from the market research institute Euromonitor, 52 per cent of all pet product sales are made through food hypermarkets and supermarkets. However, pet shops and veterinary clinics are on the way up. The reason why the speciality pet trade has succeeded in gaining market shares from the food retailers lies in the growing trend towards large pet product stores. The speciality trade has managed to differentiate it-self qualitatively from Tesco, Sainsbury and other supermarket chains with renowned premium brands such as "Eukanuba" and "Hill's". The arrival of Royal Canin in the UK market, starting with the takeover of pet food manufacturer James Wellbeloved, has also given a new impetus to the market.A variety of chainsIn contrast to some European countries, franchising plays virtually no part in the UK market. The undisputed leader of the pet retail chains is Pets at home, which…