Price pressure hits pet food sector

The love of the Germans for their pets is unfaltering: in 2004 the number of dogs, cats, birds and small animals rose by 1.3 per cent to currently 23.1 mio – and this figure does not include ornamental fish or terrarium pets. This was the result of a survey carried out on behalf of the association representing the interests of the German pet product industry, the Industrieverband Heimtierbedarf.
According to the survey, the dog population rose in comparison with the previous year by 6 per cent to 5.3 mio (13.4 per cent of German households). The number of cats increased by 2.7 per cent to 7.5 mio (15.3 per cent of households), and the population of small animals increased by 3.3 per cent to 6.1 mio (5.9 per cent of households). Ornamental birds, on the other hand, have decreased by 8.7 per cent to 4.2 mio (5.8 per cent of households).  In addition, there are 1.95 mio aquariums in 4.4 per cent of German households, ornamental fish are kept in 1.25 mio garden ponds (3.6 per cent of households), and 420 000 terrariums were found (1.1 per cent of households).
Total turnover of the pet products market (in € mio)(download pdf-file)
Total market for pet accessories and other products (in € mio)(download pdf-file)
Pet population in Germany 2004 (in mio)(download pdf-file)
The socio-demographic profiles of households with pets remained almost constant: 10 per cent of pet owners are 29 years old or younger, 23 per cent fall into the age group of 30- to 39-year-olds, and 25 per cent of pet owners are between 40 and 49 years old. 18 per cent fall in the age range from 50 to 59 and 24 per cent are 60 or over. The spread over household types in the period from 2003 to 2004 has not changed significantly either. 24 per cent of pet owners live alone, 33 per cent in two-person households and the majority (43 per cent) in households with three or more persons.
The pet product market did not entirely escape the generally rather poor economic trend in Germany during 2004. Increasing price pressure in all segments led to a downturn in total sales of 2.3 per cent to € 2 912 mio. Whilst the market for pet accessories and other products remained stable with sales of € 760 mio (-0.1 per cent), the market for pet food experienced a downturn of € 2 152 mio or 3.1 per cent compared with 2003.
The market for cat food remains the largest single sector, with sales of € 1 013 mio despite a downturn of 3.1 per cent. In the second largest segment, dog food, the overall market trend was similar…