A booming market

The dog food business has evolved into a huge growth market. It comes as no surprise, therefore, that more and more companies want a slice of the sales action. In 2017, dog food generated revenue of nearly 50 bn dollars, according to reports by various market research companies. Every year the dog food market chalks up high growth rates, mostly in double digits. No end to this upward trend seems to be in sight. 
Since dog owners in an increasing number of countries only want the best for their canine companions, the premium market is going from strength to strength globally. The growing trend worldwide towards grain-free, sustainable and naturally produced dog food is likely to boost the premium segment even further. An added factor here is that premium food is falling in price; many online retailers offer the leading brands at prices that drastically undercut the manufacturer's re­commended retail price. As a steady stream of new players increases the competition, it will be diffi­cult to halt the decline in prices. On the positive side, the falling price of premium food means that more and more dog owners can afford high-quality food for their pets. This will make it hard for economy and mid-priced dog food products to survive in the market in the next few years.  
The most important sub-segment in the dog food market is dry food. Accounting for a volume of over 33.1 bn dollars, dry food generates more than double the sales of treats and moist food together. Premium food is now responsible for roughly half of all sales of dry dog food, and experts in the sector believe that this trend will continue in the future.

It is expected that the category of snacks, treats and reward products will also enjoy further growth in the next few years. Between 2013 and 2017 this category grew by 7.2 bn dollars to nearly 8.4 bn dollars. It is now bigger than the moist food market, which is still growing, but not as strongly as the dry food and treat segments. If one looks at the burgeoning assortment of dog treat products that has featured in pet shops in recent years and how new varieties are constantly being introduced into the market - and also at how the desire of dog owners to reward their pets during sport and play with regular treats has increased, it appears that no barriers…