PET CARE IN PERU

Euromonitor International November 2013

PET CARE IN PERU

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LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1 Pet Care Posts Strong Rate of Growth ..................................................................................... 1 Cat Population Continues To Increase ..................................................................................... 1 Local Companies Dominate Sales ............................................................................................ 1 Other Grocery Retailers Remains the Leading Distribution Channel ........................................ 1 Bright Outlook for Pet Care ....................................................................................................... 1 Key Trends and Developments .................................................................................................... 2 Pet Pampering Continues To Drive Growth .............................................................................. 2 Local Companies Continue Dominating Pet Food in Peru ........................................................ 3 the Resilience of Other Grocery Retailers ................................................................................ 3 Wet Pet Food Continues To Attract More Consumers .............................................................. 4 Increasing Demand for Pet Services ........................................................................................ 5 Definitions..................................................................................................................................... 6 Market Indicators .......................................................................................................................... 6 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Summary 1 Pet Populations 2008-2013 .......................................................................... 6 Sales of Pet Food by Category: Volume 2008-2013 .................................... 6 Sales of Pet Care by Category: Value 2008-2013 ........................................ 7 Sales of Pet Food by Category: % Volume Growth 2008-2013 .................... 7 Sales of Pet Care by Category: % Value Growth 2008-2013 ....................... 7 NBO Company Shares of Pet Food: % Value 2008-2012 ............................ 7 LBN Brand Shares of Pet Food: % Value 2009-2012................................... 8 NBO Company Shares of Dog and Cat Food: % Value 2008-2012 ............. 8 LBN Brand Shares of Dog and Cat Food: % Value 2009-2012 .................... 9 Distribution of Pet Care by Format: % Value 2008-2013 .............................. 9 Distribution of Pet Care by Format and Category: % Value 2012 .............. 10 Distribution of Dog and Cat Food by Format: % Value 2008-2013 ............. 11 Distribution of Dog and Cat Food by Format and Category: % Value 2013 ........................................................................................................... 12 Forecast Sales of Pet Food by Category: Volume 2013-2018 ................... 13 Forecast Sales of Pet Care by Category: Value 2013-2018 ....................... 13 Forecast Sales of Pet Food by Category: % Volume Growth 20132018 ........................................................................................................... 13 Forecast Sales of Pet Care by Category: % Value Growth 2013-2018 ...... 14 Research Sources ...................................................................................... 14 Market Data .................................................................................................................................. 6

Sources ...................................................................................................................................... 14

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PET CARE IN PERU

EXECUTIVE SUMMARY Pet Care Posts Strong Rate of Growth
Pet care in Peru registered strong growth rates in 2012, driven by the trend towards pet pampering, as well as the higher disposable incomes of consumers. Consumers are progressively seeking to provide the best nutrition and care to their pets in order to improve their wellbeing and extend their lifespan. As a result, consumers are increasingly purchasing pet food with added-value ingredients and there was increased demand for other products, such as cat litter, pet healthcare and other pet products.

Cat Population Continues To Increase

Given the fact that more Peruvians from urban areas are living in small living units and leading busy lifestyles, they are increasingly opting for cats as pets as they satisfy the need for companionship but they require less care than a dog. Manufacturers offering food and products oriented towards cats are benefiting from this trend and are seizing the opportunity to expand their sales by increasing their products availability and more frequently engaging in product development.

Local Companies Dominate Sales

Rinti and Alicorp continued to lead pet care in Peru in 2012. Their advantageous positions are explained by the fact that they provide several economy and mid-priced brands within pet food, appealing to a large consumer base. In addition, they rely on excellent distribution networks that guarantees their presence both within traditional and modern grocery retailers, the latter being the most important distribution channel for pet care. Finally, they periodically engage in product innovation in order to appeal to more demanding consumers that are looking for products that provided added-value benefits for their pets. Nevertheless, international companies accounted for an important share of sales thanks to supporting their brands with advertising, frequently engaging in innovation and by offering almost all the premium products available in Peru.

Other Grocery Retailers Remains the Leading Distribution Channel

Other grocery retailers, represented by market stalls, constituted the most popular channel for dog and cat food in Peru in 2012. Their strong penetration is explained by the availability of products in loose format, which makes them affordable to a large consumer base. In addition, other grocery retailers carry a wide range of economy and mid-priced brands and the outlets are favoured due to their proximity to consumers households.

Bright Outlook for Pet Care

Pet care in Peru is expected to expand at strong rates of growth over the forecast period, as all the categories were still underdeveloped at the end of the review period. The main growth drivers will be the increasing demand for packaged food from all socioeconomic groups due to the rising awareness of these products nutritional benefits for pets, increasing disposable incomes and busier lifestyles. In response, manufacturers are expected to focus on developing more products with added-value ingredients, supporting their brands with marketing campaigns and improving their distribution networks.

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KEY TRENDS AND DEVELOPMENTS Pet Pampering Continues To Drive Growth

According to industry sources, Peruvians are increasingly treating their pets as part of the family. While in the past, dogs were purchased to deter burglars and cats were used to control rodents, in more recent times, owners refer to their pets as their children, rather than animals. The trend is supported by the increasing number of singles living by themselves and by couples who choose to delay having children, as these two groups strongly value the company provided by pets. This position has resulted in expenditure on pet products continuing to rise, with consumers spending more on nutrition, healthcare and other type of products and services for their pets. Current impact The trend towards pet pampering is clearly seen in Peru, with all socioeconomic groups increasing their expenditure according to their budget restraints in order to improve their pets diets, as well as providing them with additional pet products and services. This trend has a very strong impact on dry dog and dry cat food. For instance, it is observed that low-income consumers who own a pet are gradually incorporating buying dry pet food in loose format into their daily budgets. In turn, middle-income consumers are increasingly demanding dry food with functional properties and they are targeting specific features of their pets, such as their age group, breed and lifestyle. In addition, premium dry food, which used to be only purchased by upmarket consumers, is gradually attracting some middle-income pet owners into searching for the best nutrition for their pets, particularly for those that have specific ailments. Moreover, the desire to pamper pets also manifests itself in increasing expenditure on pet products, which are progressively attracting a wider consumer base and gaining penetration into modern grocery retailers, while in the past, these products were mostly found within veterinary clinics and pet shops. Furthermore, pet owners are more willing to spend money on pet grooming and veterinary care, in order to improve their pets well -being. In response, the number of veterinary clinics continues to increase within the main cities of the country. Marketing campaigns are also reflecting the trend towards pet humanisation. For instance, international brands, such as Master Dog, with the latest TV advertisement for the product highlighting the emotional connection between dogs and their owners and stressing the idea that owners should provide the best nutrition to these family members. Outlook The trend towards pampering pets is expected to continue developing in Peru, with the potential to grow for both pet food and pet products, as they remain underdeveloped in the country. In order to benefit from this trend, manufacturers are expected to improve their distribution, increase targeting of specific consumer groups and increase their investments in marketing campaigns. Future impact Value sales of pet care are expected to grow at a constant CAGR of 10% over the forecast period, helped by the trend towards pampering pets, as well as the rising disposable incomes of Peruvian consumers. Within dog and cat food, some consumers are expected to increase their frequency of purchases of such products, while others are expected to trade up to added-value brands that offer products for dogs or cats according to their pets age, breed or lifestyle, in order to take better care of their pets nutrition. In turn, pet products will also benefit from pet

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pampering and it is expected that players involved in such products will extend their portfolios and provide a wider range of packaging sizes and formats to cater to different consumer preferences, as well as budgets. Moreover, manufacturers are expected to continue supporting their brands and new product developments with marketing campaigns that focus on the close relationship between pets and their owners, in order to benefit from the pet pampering trend.

Local Companies Continue Dominating Pet Food in Peru

Pet food in Peru is led by local companies, with the two most important Peruvian companies, Rinti and Alicorp, combined accounting for a 53% value share of pet food in 2012. These two companies benefit from the perceived good quality of their products, affordable prices, carrying a wide range of economy and mid-priced brands and their excellent distribution networks that ensure their products availability within traditional and modern grocery retailers. In turn, multinationals dominate premium pet food and maintain an important share within mid-priced pet food. Current impact In order to maintain their privileged positions in Peruvian sales, local companies focus on maintaining attractive prices within every price group in which they compete. In turn, multinational brands, which carry higher unit prices, are more often the subject of marketing activities, such as in-store promotions and TV advertisements in order to have a closer relationship with their customers. In addition, manufacturers of both local and international brands continuously improve their distribution networks to appeal to a larger consumer base. Furthermore, in an effort to better compete with multinationals; local companies are engaging with more frequency in product development, further segmenting the industry to appeal to consumers looking for products that better suit the needs of their pets in terms of age, lifestyle and breed. Outlook Over the forecast period, it is estimated that competition between local companies and multinationals will become more intense, as middle-income consumers increase their demand for added-value pet food, especially in the case of dry pet food for both dogs and cats. In response, both local and international brand manufacturers are expected to launch products with characteristics that meet this growing demand. Moreover, local companies are expected to improve their production processes in order to reduce costs and therefore continue to offer more attractive prices than those of multinationals. Future impact Multinational companies are expected to remain as leaders in premium dog and cat food over the forecast period as they have the financial resources to invest in developing products with high added value. In addition, brands such as Hills, Royal Canin and Eukanuba will continue to benefit from their excellent worldwide reputation. In turn, local companies are expected to increasingly focus on specific consumer groups and maintaining competitive prices to attract even more consumers to their products. Although some local companies could strengthen their efforts to better position their premium brands, the core consumer groups for these players will continue to be purchasers of economy and mid-priced pet food.

the Resilience of Other Grocery Retailers

Other grocery retailers, represented by market stalls, accounted for a 62% value share of pet care in 2012. These types of outlets basically focus on the sale of pet food and are favoured by

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their proximity to consumer households, cheaper prices than modern grocery retailers, as well as the sale of food in loose format, which allows consumers within every socioeconomic group to afford these products. Nevertheless, supermarkets and hypermarkets are gradually increasing their value shares thanks to their expansion throughout the country, their practicality, offering a wide range of brands and periodical discounts offered on bulk sales. Current impact Given the strong penetration achieved by other grocery retailers, manufacturers of leading local and international brands are focusing on improving their presence in this distribution channel and generally introducing their new product developments both within traditional and modern grocery retailers, in order to cater to a wider consumer base. In response to the strong competition from modern grocery retailers, other grocery retailers have increased the variety of brands they carry and are focusing on maintaining affordable prices that are noticeably lower than those offered by supermarkets and hypermarkets. Outlook Other grocery retailers is expected to continue representing the largest proportion of sales of pet care in Peru, benefiting from lower unit prices of loose dry dog food and dry cat food. Despite this, it is expected that supermarkets and hypermarkets will gradually gain value share over the forecast period thanks to their wide range of pet care products, and the offer of formal credit and discounts when using store credit cards. Future impact Other grocery retailers is expected to remain the leading distribution channel for pet care products in Peru. While it is expected that supermarkets and hypermarkets will continue to gain share due to the reasons given above, the value share of other grocery retailers will only slightly decrease, thanks to the increasing number of this type of outlets offering pet food. In response, supermarkets and hypermarkets may concentrate on in-store promotions to try to attract consumers with offers on pet products to increase their pet care product sales.

Wet Pet Food Continues To Attract More Consumers

Over the review period, value sales of wet dog food and wet cat food saw volume growth at CAGRs of 20% and 10% respectively. These types of products still had low sales penetration in Peru at the end of the review period and therefore have plenty of space to develop at fast rates. In addition, the increasing purchasing powers of consumers will allow some to increase their frequency of purchases. Moreover, wet pet food benefits from the trend of pampering pets, because it is perceived as a treat. Current impact In response to growing demand, leading manufacturers, such as Rinti, Nestl Per and Master Foods Per, have increased the availability of their brands both within modern and traditional grocery retailers. Moreover, in-store promotions have been periodically run in supermarkets and hypermarkets to increase product awareness. In the particular case of Master Foods Per, the company is progressively attracting more consumers due in part to offering wet dog food and wet cat food in stand-up pouches, as this packaging format appeals to consumers due to its practicality, light weight and ability to reseal.

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Outlook Wet dog and cat food is expected to register a 12% volume CAGR during the forecast period. The rising disposable incomes of Peruvian consumers will allow some of them to gain access to this type of food for their pets. Moreover, competitors of Master Foods Per are expected to begin to offer their wet pet food in pouch format to benefit from the rising interest in this packaging. Future impact It is expected that the leading players will gradually invest in developing a wider variety of flavours available in different packaging formats and sizes in order to appeal to the requirements and budgets of different types of consumers. In addition, the already-existing targeting of products according to age group, lifestyles or ailments of dogs and cats could be intensified in an effort to bring innovation to these categories and raise brand awareness.

Increasing Demand for Pet Services

According to the Ministry of Economy and Finance in 2012, Peru registered real GDP growth of 6%, with an inflation rate of below 3%. The increasing disposable incomes of Peruvians coupled with the trend towards pampering pets boosted the development of different types of pet services, such as veterinary consultations, grooming, dog training and dog walking. In addition, pet hotels are increasing their awareness amongst consumers, as they constitute a practical solution when owners go on trips away. Current impact At the end of the review period, pet services were still in their early stages, and therefore had a modest impact on retail pet care sales. On the one hand, the fact that Peruvians are taking their pets more often for veterinary consultations is having a positive impact on sales of premium food as well as pet products, as generally these types of products are found within veterinary clinics and are recommended by veterinarians. On the other hand, the rise in demand for pet grooming poses an important threat to the growth of pet care accessories, such as shampoos. Outlook Given the fact that the Peruvian economy is expected to continue growing at a healthy rate during the forecast period, there is expected to be plenty of leeway for consumers to increase their expenditure on their pets, both on products and services that can provide their pets with a better quality of life. As a result, the demand for grooming services for dogs and cats, periodical veterinary care and dog walking will continue to increase and be adopted by more middleincome Peruvians over the forecast period. Future impact Companies offering pet services are expected to continue expanding in the various districts of Lima as well as in the wealthiest cities of the provinces, in order to benefit from the trend towards pet pampering. In addition, it is expected that more promotions and discounts will be available in order to encourage middle-income consumers to take up these services for their pets. Premium pet food and other pet products are two areas of pet care expected to be positively impacted, as consumers will enjoy increasing disposable incomes and seeing their pets as extensions of their family, will be driven to provide better care for them.

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DEFINITIONS
Dog and cat food sales are further broken down by product type (wet/dry) and price platform. Examples of key brands in each price platform in Peru are as follows: Premium: Hills Science Diet, Eukanuba, Royal Canin Mid-priced: Ricocat, Mimaskot, Purina Dog Chow Economy: Ricocan clsico, Bandido, Thor Explanations of words and/or terminology used in this report are as follows: Bodegas: Local grocery stores or corner shops in Peru. In 2012, it was estimated that there were approximately 176,100 bodegas throughout the country. Concentration was highest in the more densely-populated areas of the capital, Lima, namely the north, south and east districts. Bodegas are independent, typically small family businesses with a wide range of products. In them, it is possible to find products ranging from artisanal bread and fresh food to beverages, cosmetics and toiletry products. In all cities and every town in Peru, a bodega can be found within a few streets of wherever a person is located; therefore, these retail outlets have an extremely wide geographic coverage. In addition, they are popular among and adapt themselves to all socio-economic groups. There is no single, specific classification for a bodega. They can be very different and distinct from one another, coming in a range of sizes and serving a range of purposes from larger, grocery-based outlets to much smaller sweets and drinks outlets to hardware stores.

MARKET INDICATORS
Table 1 '000s of animals 2008 Dog Population Cat Population Bird Population Fish Population Small Mammal Population Reptile Population
Source:

Pet Populations 2008-2013

2009 3,336.5 958.9 735.5 291.0 96.0 9.0

2010 3,426.0 1,008.7 754.5 302.1 99.6 9.0

2011 3,519.1 1,071.3 775.4 314.7 103.4 9.2

2012 3,607.2 1,133.4 793.2 324.2 107.1 9.4

2013 3,686.5 1,178.8 815.4 335.5 110.3 9.6

3,260.3 927.4 718.7 280.8 92.8 9.1

Euromonitor International from official statistics

MARKET DATA
Table 2 Tonnes 2008 Dog and Cat Food Other Pet Food Pet Food
Source:

Sales of Pet Food by Category: Volume 2008-2013

2009 24,016.4 821.6 24,838.0

2010 26,938.8 847.1 27,786.0

2011 30,621.9 874.5 31,496.4

2012 35,482.6 903.2 36,385.7

2013 40,081.5 933.3 41,014.8

22,518.1 628.2 23,146.3

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

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Table 3 PEN million

Sales of Pet Care by Category: Value 2008-2013

2008 Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements Other Pet Products Pet Products Pet Care
Source:

2009 144.7 18.3 163.1 0.8 0.2 0.1 0.0 1.1 164.1

2010 168.4 19.3 187.7 0.9 0.2 0.1 0.0 1.2 188.9

2011 202.5 20.6 223.1 1.1 0.2 0.1 0.0 1.4 224.5

2012 247.9 21.7 269.6 1.3 0.3 0.1 0.0 1.7 271.2

2013 287.4 23.0 310.4 1.7 0.3 0.1 0.0 2.0 312.4

133.9 16.6 150.4 0.7 0.2 0.0 0.0 1.0 151.4

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 4 % volume growth

Sales of Pet Food by Category: % Volume Growth 2008-2013

2012/13 Dog and Cat Food Other Pet Food Pet Food
Source:

2008-13 CAGR 12.2 8.2 12.1

2008/13 Total 78.0 48.6 77.2

13.0 3.3 12.7

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 5

Sales of Pet Care by Category: % Value Growth 2008-2013

% current value growth 2012/13 Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements Other Pet Products Pet Products Pet Care
Source:

2008-13 CAGR 16.5 6.7 15.6 17.7 6.9 6.4 10.6 15.3 15.6

2008/13 Total 114.7 38.4 106.3 126.1 39.5 36.1 65.1 103.5 106.3

16.0 5.6 15.1 25.0 8.5 7.5 16.0 21.7 15.2

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6 % retail value rsp Company

NBO Company Shares of Pet Food: % Value 2008-2012

2008 36.4 14.7 12.7 9.9 3.0

2009 35.7 15.6 13.0 10.2 3.1

2010 35.0 15.7 13.4 9.7 3.1

2011 35.8 16.1 13.8 10.4 3.1

2012 37.0 15.8 14.3 10.4 3.1

Rinti SA Alicorp SAA Nestl Per SA Master Foods Per Srl Inversiones

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Veterinarias SA Acuario Real SRL Hallmark SA Sera Per SAC Zapata Llona Rocio Vetpharma Per EIRL Bang SA Others Total
Source:

3.7 1.7 2.1 1.6 1.3 1.2 11.6 100.0

3.4 1.8 2.0 2.1 1.4 1.3 10.4 100.0

3.1 1.9 1.9 1.9 1.4 1.2 11.7 100.0

2.8 2.0 1.7 1.7 1.3 1.2 10.0 100.0

2.4 2.0 1.5 1.5 1.3 1.2 9.6 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7 % retail value rsp Brand

LBN Brand Shares of Pet Food: % Value 2009-2012

Company Alicorp SAA Rinti SA Rinti SA Rinti SA Master Foods Per Srl Nestl Per SA Nestl Per SA Alicorp SAA Rinti SA Master Foods Per Srl Rinti SA Acuario Real SRL Rinti SA Inversiones Veterinarias SA Nestl Per SA Hallmark SA Sera Per SAC Zapata Llona Rocio Vetpharma Per EIRL Bang SA Inversiones Veterinarias SA Nestl Per SA Nestl Per SA Rinti SA Rinti SA Rinti SA Rinti SA Rinti SA

2009 12.0 9.8 9.1 7.2 7.6 5.8 3.3 3.5 3.6 2.6 2.2 3.4 2.3 2.2 1.6 1.8 2.0 2.1 1.4 1.3 0.9 1.1 1.2 0.7 0.4 0.3 0.1 10.6 100.0

2010 12.2 9.6 8.7 7.4 7.0 6.2 3.3 3.5 3.2 2.6 2.2 3.1 2.3 2.1 1.7 1.8 1.9 1.9 1.4 1.2 1.0 1.1 1.2 0.7 0.4 0.1 0.3 0.1 11.8 100.0

2011 12.5 9.3 8.9 7.6 7.6 6.5 3.3 3.6 3.2 2.7 2.2 2.8 2.4 2.1 1.8 1.9 1.7 1.7 1.3 1.2 1.0 1.0 1.2 0.8 0.5 0.4 0.3 0.1 10.2 100.0

2012 12.5 9.6 9.5 8.1 7.6 7.0 3.5 3.4 3.1 2.8 2.4 2.4 2.3 2.1 2.0 1.9 1.5 1.5 1.3 1.2 1.0 0.9 0.8 0.7 0.5 0.5 0.3 0.1 9.8 100.0

Mimaskot Ricocat Nutricin Completa Ricocan Cordero y Cereales Ricocan Multisabores Pedigree Purina Dog Chow Purina Friskies Nutrican Ricocan clsico Whiskas Ricocan Nutrafin Supercan Hill's Science Diet Purina Cat Chow Nutram Dog Sera Nutri Pets Eukanuba Royal Canin Hill's Prescription Diet Purina Pro Plan Purina Gourmet Bandido Canbo Rico Crack Thor Supercat Others Total
Source:

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8 % retail value rsp

NBO Company Shares of Dog and Cat Food: % Value 2008-2012

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Company Rinti SA Alicorp SAA Nestl Per SA Master Foods Per Srl Inversiones Veterinarias SA Hallmark SA Vetpharma Per EIRL Bang SA Others Total
Source:

2008 40.9 16.6 14.3 11.1 3.3 1.9 1.5 1.4 9.0 100.0

2009 40.2 17.5 14.7 11.5 3.5 2.1 1.6 1.4 7.6 100.0

2010 39.0 17.5 15.0 10.8 3.4 2.1 1.5 1.4 9.3 100.0

2011 39.5 17.7 15.2 11.5 3.4 2.2 1.5 1.3 7.7 100.0

2012 40.3 17.2 15.5 11.3 3.3 2.2 1.4 1.3 7.5 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 9 % retail value rsp Brand

LBN Brand Shares of Dog and Cat Food: % Value 2009-2012

Company Alicorp SAA Rinti SA Rinti SA Rinti SA Master Foods Per Srl Nestl Per SA Nestl Per SA Alicorp SAA Rinti SA Master Foods Per Srl Rinti SA Rinti SA Inversiones Veterinarias SA Nestl Per SA Hallmark SA Vetpharma Per EIRL Bang SA Inversiones Veterinarias SA Nestl Per SA Nestl Per SA Rinti SA Rinti SA Rinti SA Rinti SA Rinti SA Nestl Per SA

2009 13.6 11.0 10.3 8.1 8.6 6.6 3.7 4.0 4.0 2.9 2.4 2.6 2.4 1.9 2.0 1.6 1.4 1.0 1.3 1.3 0.8 0.4 0.3 0.2 7.7 100.0

2010 13.6 10.7 9.7 8.2 7.8 6.9 3.6 3.9 3.6 2.9 2.5 2.6 2.4 1.9 2.1 1.5 1.4 1.1 1.2 1.3 0.8 0.5 0.1 0.3 0.2 9.4 100.0

2011 13.7 10.3 9.8 8.4 8.4 7.1 3.6 4.0 3.6 3.0 2.5 2.7 2.3 2.0 2.1 1.5 1.3 1.1 1.1 1.3 0.8 0.5 0.5 0.3 0.2 0.1 7.9 100.0

2012 13.6 10.5 10.3 8.8 8.2 7.6 3.8 3.7 3.3 3.0 2.6 2.5 2.3 2.1 2.1 1.4 1.3 1.1 1.0 0.8 0.7 0.5 0.5 0.3 0.1 0.1 7.7 100.0

Mimaskot Ricocat Nutricin Completa Ricocan Cordero y Cereales Ricocan Multisabores Pedigree Purina Dog Chow Purina Friskies Nutrican Ricocan clsico Whiskas Ricocan Supercan Hill's Science Diet Purina Cat Chow Nutram Dog Eukanuba Royal Canin Hill's Prescription Diet Purina Pro Plan Purina Gourmet Bandido Canbo Rico Crack Thor Supercat Purina Beneful Others Total
Source:

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 10

Distribution of Pet Care by Format: % Value 2008-2013

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10

% retail value rsp 2008 Store-Based Retailing - Grocery Retailers --- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets --- Supermarkets --- Traditional Grocery Retailers --- Independent Small Grocers --- Other Grocery Retailers - Non-Grocery Retailers --- Pet superstores --- Pet shops --- Health and Beauty Specialist Retailers --- Beauty Specialist Retailers --- Chemists/Pharmacies --- Parapharmacies/ Drugstores --- Other Healthcare Specialist Retailers --- Home and Garden Specialist Retailers --- Home Improvement and Garden Centres --- Furniture and Homewares Stores --- Mixed Retailers --- Department Stores --- Mass Merchandisers --- Variety Stores --- Warehouse Clubs --- Other Non-Grocery Retailers Non-Store Retailing - Direct Selling - Homeshopping - Internet Retailing Non-retail channels - Veterinary clinics Total
Source:

2009 91.7 87.8 24.2 13.1 11.1 63.6 63.6 3.9 3.9 0.0 0.0 8.3 8.3 100.0

2010 91.2 87.2 24.7 13.4 11.3 62.5 62.5 3.9 3.9 0.0 0.0 8.8 8.8 100.0

2011 91.2 87.3 25.3 13.7 11.6 62.0 62.0 3.9 3.9 0.0 0.0 8.8 8.8 100.0

2012 91.2 87.3 25.7 13.9 11.8 61.6 61.6 3.9 3.9 0.0 0.0 8.8 8.8 100.0

2013 91.3 87.2 26.0 14.0 12.0 61.2 61.2 4.0 4.0 0.0 0.0 8.7 8.7 100.0

91.6 87.7 23.8 12.9 10.9 63.9 63.9 3.9 3.9 0.0 0.0 8.4 8.4 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 11 % retail value rsp

Distribution of Pet Care by Format and Category: % Value 2012

PF

PP

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11

Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery Retailers Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Pet superstores Pet shops Health and Beauty Specialist Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Healthcare Specialist Retailers Home and Garden Specialist Retailers Home Improvement and Garden Centres Furniture and Homewares Stores Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Non-retail channels Veterinary clinics Total
Source: Key:

91.4 87.5 26.0 0.0 0.0 0.0 14.0 12.0 61.5 0.0 61.5 3.9 0.0 3.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 8.6 8.6 100.0

66.1 51.3 34.0 0.0 0.0 0.0 18.4 15.6 17.3 0.0 17.3 14.8 0.0 14.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 33.9 33.9 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources PF = Pet food; PP = Pet products

Table 12 % retail value rsp

Distribution of Dog and Cat Food by Format: % Value 2008-2013

2008 Store-Based Retailing - Grocery Retailers --- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets --- Supermarkets --- Traditional Grocery Retailers --- Independent Small Grocers --- Other Grocery Retailers 91.9 88.6 25.4 13.7 11.7 63.2 63.2

2009 92.0 88.8 25.8 14.0 11.9 63.0 63.0

2010 91.4 88.0 26.2 14.2 12.0 61.8 61.8

2011 91.4 88.0 26.6 14.4 12.2 61.4 61.4

2012 91.5 88.0 26.9 14.5 12.4 61.1 61.1

2013 91.5 87.9 27.1 14.6 12.5 60.8 60.8

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- Non-Grocery Retailers --- Pet superstores --- Pet shops --- Health and Beauty Specialist Retailers --- Beauty Specialist Retailers --- Chemists/Pharmacies --- Parapharmacies/ Drugstores --- Other Healthcare Specialist Retailers --- Home and Garden Specialist Retailers --- Home Improvement and Garden Centres --- Furniture and Homewares Stores --- Mixed Retailers --- Department Stores --- Mass Merchandisers --- Variety Stores --- Warehouse Clubs --- Other Non-Grocery Retailers Non-Store Retailing - Direct Selling - Homeshopping - Internet Retailing Non-retail channels - Veterinary clinics Total
Source:

3.3 3.3 0.0 0.0 8.1 8.1 100.0

3.2 3.2 0.0 0.0 8.0 8.0 100.0

3.4 3.4 0.0 0.0 8.6 8.6 100.0

3.4 3.4 0.0 0.0 8.6 8.6 100.0

3.5 3.5 0.0 0.0 8.5 8.5 100.0

3.6 3.6 0.0 0.0 8.5 8.5 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 13 % retail value rsp

Distribution of Dog and Cat Food by Format and Category: % Value 2013

CF Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery Retailers Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Pet superstores Pet shops Health and Beauty Specialist Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other Healthcare Specialist Retailers 91.0 88.0 28.0 0.0 0.0 0.0 15.6 12.4 59.9 0.0 59.9 3.1 0.0 3.1 0.0 0.0 0.0 0.0 0.0

DF 91.6 87.9 26.9 0.0 0.0 0.0 14.3 12.5 61.0 0.0 61.0 3.7 0.0 3.7 0.0 0.0 0.0 0.0 0.0

Euromonitor International

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Home and Garden Specialist Retailers Home Improvement and Garden Centres Furniture and Homewares Stores Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Other Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Non-retail channels Veterinary clinics Total
Source: Key:

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.0 9.0 100.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 8.4 8.4 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources CF = Cat food; DF = Dog food

Table 14 Tonnes

Forecast Sales of Pet Food by Category: Volume 2013-2018

2013 Dog and Cat Food Other Pet Food Pet Food
Source:

2014 44,326.1 967.5 45,293.6

2015 48,806.2 1,000.6 49,806.8

2016 53,420.8 1,036.5 54,457.2

2017 58,212.9 1,072.6 59,285.5

2018 63,083.5 1,109.6 64,193.1

40,081.5 933.3 41,014.8

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 15 PEN million

Forecast Sales of Pet Care by Category: Value 2013-2018

2013 Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements Other Pet Products Pet Products Pet Care
Source:

2014 319.7 23.6 343.4 1.9 0.3 0.1 0.0 2.3 345.7

2015 353.7 24.4 378.1 2.2 0.3 0.1 0.0 2.6 380.7

2016 388.9 25.1 414.0 2.5 0.3 0.1 0.0 2.9 417.0

2017 425.5 25.9 451.4 2.8 0.4 0.1 0.0 3.2 454.6

2018 462.9 27.0 489.8 3.1 0.4 0.1 0.0 3.6 493.4

287.4 23.0 310.4 1.7 0.3 0.1 0.0 2.0 312.4

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 16 % volume growth

Forecast Sales of Pet Food by Category: % Volume Growth 2013-2018

2017/18 Dog and Cat Food Other Pet Food 8.4 3.4

2013-18 CAGR 9.5 3.5

2013/18 Total 57.4 18.9

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Pet Food
Source:

8.3

9.4

56.5

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 17

Forecast Sales of Pet Care by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR Dog and Cat Food Other Pet Food Pet Food Cat Litter Pet Healthcare Pet Dietary Supplements Other Pet Products Pet Products Pet Care
Source:

2013/18 TOTAL 61.0 17.6 57.8 86.0 32.3 26.5 70.3 76.4 57.9

10.0 3.3 9.6 13.2 5.8 4.8 11.2 12.0 9.6

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

SOURCES
Sources used during research include the following: Summary 1 Trade Press Research Sources Andina de Noticias El Comercio Gestion La Republica Semana Economica
Source: Euromonitor International

Euromonitor International