A market on the move

The Canadian pet industry continues to chug along, growing at a slightly better rate in 2012 than it did in 2011. Pet owners still have plenty of pet expenses that will only grow as the pet population expands. Total Canadian sales of pet products and services rose 4 per cent in 2012, and sales were forecast to be up 4.4 per cent in 2013. During 2012, Canadian pet industry sales totalled $6.3 billion, up from $6.06 billion in 2011, and 2013 sales were expected to reach nearly $6.6 billion. Sales of pet food should reach $2 billion after a 5.3 per cent increase. The expected 5.5 per cent increase in pet supplies will bring the category to $1.4 billion, although the veterinary category accounts for one of the largest shares of pet market sales. Looking ahead, all four pet market categories are expected to register equal or slightly improved performance in 2014. Considering the market as a whole, sales will rise to $8.3 billion by 2018, with annual increases of between 4.5 and 5 per cent.Market structureThe Canadian pet market comprises both products and services. Products further divide into pet food and non-food pet supplies. Services further segment into veterinary services and non-medical services (grooming, boarding, training, etc.). Thousands of companies compete in pet services, ranging from massive national players to the individual dog groomer or trainer operating in a local market. The products side of the global pet market encompasses over 2 500 companies and counting. As of May 2013, the Pet Industry Advisory Council of Canada (PIJAC Canada) had over 500 members, including pet product manufacturers, importers, manufacturers' representatives and livestock suppliers. Broadly speaking, the competitive structure of the pet products market has not changed in quite a few years.On the pet food side, Nestlé Purina and Mars control a little over half of the business, with Del Monte, Iams, Hill's and Lowblaws collectively garnering approximately one-quarter of sales. In non-food supplies, overall market leaders, most fielding broad lines covering multiple categories and animal types, include Central Garden & Pet, Hartz Mountain, Rolf C. Hagen, Coastal Pet Products, Petmate (Doskocil), Sergeant's Pet Care, and Van Ness.

Pet…