Canadian Pet Market Outlook, 2014
The economic fallout of the Great Recession continues to affect the Canadian pet products market, and price remains an overriding factor for many pet owners when considering pet-related purchases. Nevertheless, pet owners have displayed a willingness to go above and beyond for their four-legged, feathered, and scaly companions, with premium products fueling much of the growth in the Canadian pet market. Canadian pet market sales have grown at steady pace over the past five years, hovering around a 4% rate, representing solid growth for a large, mature market.
Packaged Facts’ proprietary survey data featured in Canadian Pet Market Outlook, 2014 reveals that the vast majority of pet owners are willing to spend more on products that support the health and happiness of their pets. A related trend is the market emphasis on natural products, a thrust illustrated by M&A activity and the entry of industry heavy hitters into this market sphere, with companies ranging from Purina and Hill’s Science Diet to Walmart focusing on natural products.
Pet health has proven to be a particularly attractive market segment as well. The aging Canadian pet population has benefited from increased market investment by big players such as Perrigo and Bayer. The Canadian pet healthcare industry was particularly impacted by VCA Antech’s 2012 acquisition of Canada’s largest animal hospital chain, Associate Veterinary Clinics. And shrewd marketing could allow the pet industry overall to benefit from the numerous studies that substantiate the positive impact of pets on human health. In the end, it all comes back to the “pets as family” sentiment and the continuing humanization and premiumization of pet products and services. Manufacturers and retailers are introducing everything from human-style food to couture pet accessories, with the media fueling this trend is the media through frequent news coverage and pet-themed network programming.
Scope and Methodology
Combining Packaged Facts’ extensive monitoring of the pet market with an exclusive pet owner survey, Canadian Pet Market Outlook, 2014 is the go-to source for a complete understanding of the Canadian pet industry. In its first Canadian edition, the report evaluates current trends and future directions for marketing and retailing, along with consumer patterns across the full spectrum of the market, including veterinary services, pet food, nonfood pet supplies, and non-medical pet services (grooming, boarding, training, etc.). The report forecasts market size and growth for each category, examines new product activity, surveys retail channel trends, and analyzes trends and shifts in the needs of today’s pet parents. The report tabulates pet product sales and market penetration using data from sources including the Pet Industry Joint Advisory Council of Canada (PIJAC Canada) and Statistics Canada, as well as Packaged Facts’ exclusive survey data. The report contains dozens of numerical tables and charts, as well as numerous photographs of new products and in-store promotional and merchandising initiatives across key channels.
Purchasers of this report will also receive a free supplement featuring data presented by Packaged Facts at the National Pet Industry Trade Show in Mississauga, Canada in September 2014.
Market Insights: A Selection From The Report
As in the U.S., retailing pet products in Canada has never been more competitive. Four trends have conspired to intensify the competitive landscape for pet product retailers: 1) expansion of pet superstores such as PetSmart and Pet Valu; 2) growth of mass merchandisers in pet retail, such as Walmart; 3) the Internet; 4) the sluggish economy. All of these factors have created shoppers who demand value in the products they buy, chart out shopping trips beforehand, and switch channels to make ends meet.
Packaged Facts’ March 2013 survey shows that today’s pet product shoppers are looking for deals. Among those who buy pet products, over two-thirds (68%) agree they look out for lower prices, special offers, and sales on pet products, while 22% have no opinion on the matter. One of the main ways in which pet owners are deal-seeking is by shopping around. Well over half (54%) of pet product buyers agree they shop for pet products at a variety of stores, with almost 20% indicating a strong level of agreement. What this means for retailers is that customer loyalty may very well be a thing of the past, and that to attract new consumers to the aisles, low prices are a must.
The Canadian Pet Market Goes International
Canada's $7 billion pet industry continues to grow despite being generally regarded as "mature" and is projected to exceed $8 billion by 2018 lead by solid growth in sales of pet food, pet supplies, and pet services, according to Canadian Pet Market Outlook, 2014, a report by market research publisher Packaged Facts.
In 2013, 57% of Canadian households--about 8 million households--owned pets (including dogs, cats and other household pets). Economic struggles and the rising costs of pet ownership haven't been enough to curtail spending by these pet owners. Indeed Packaged Facts' consumer survey data reveal that Canadian pet owners aren't scrimping when it comes to their companion animals. When asked if they were spending less on pet products due to the economy, only 26% agreed, and only 8% strongly agreed. Likewise, 69% of pet owners agreed that they were willing to spend extra to ensure the wellness of their pet--a claim Packaged Facts believes could translate into increased spending on health and wellness products and services, functional foods and treats, and veterinary visits.
For all the positives stemming directly from Canada itself, other countries are increasingly playing a role in the success of the nation's pet market, notes Packaged Facts research director David Sprinkle. For instance, as U.S. pet companies continue to look abroad northward for growth, and other foreign companies increasingly make inroads into Canada, the Canadian pet market is becoming even more global. And pet companies established in Canada are avidly mining less developed parts of the world for growth, especially the BRIC nations (Brazil, Russia, India and China). In addition, the U.S. pet insurance business now encompasses two major players crossing over from Canada-Pethealth and Trupanion (formerly Vetinsurance in Canada).
Canadian pet retailers have also been expanding into the U.S. market the past few years. Pet Valu, the third largest pet specialty store in North America, has made a major push into the U.S. market. The retailer, which operates close to several hundred stores in the two countries and focuses on smaller formats, noticeably grew its U.S. footprint during 2013. Another Canadian retailer, Global Pet Foods, entered the U.S. market just a few years ago.
For more information on Canadian Pet Market Outlook, 2014, please visit http://www.packagedfacts.com/redirect.asp?progid=86051&productid=7955280.
About Packaged Facts -- Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services. To learn more, visit: www.packagedfacts.com. Follow us on Facebook, LinkedIn, Twitter, and Google+.