The pet food market - France (2024)

1.2 A steadily growing global market

The global market

The global pet food market is valued at $***.* billion by MordorIntelligence. It is expected to grow at a CAGR of +*.**% over the period ****-****, approaching $*** billion in ****.

Using Mordor Intelligence's estimates, we have the following forecasts for the coming years:

Global pet food market World, ****-****, in billions of dollars Source: ****

The pet food market is dynamic, driven not only by thegrowing pet population, but also by the increasing humanization of pets by their owners, and the premiumization of their care and services.

Pet populations World, ****, in millions Source: ****

The North American region is the sector's leading market, with **.**% of the market in ****. [***] The market is dominated by two American giants, Mars Petcare and Nestlé Purina PetCare .

Revenues of leading companies in the pet food market World, ****, in billions of US dollars Source: ****

The European market

The European market represents another major share of the global pet food market. By ****, **.* million tonnes of pet food would have been sold in Europe, representing sales of **.* billion euros. The average growth rate over the past three years has been *.*%. [***]

Annual sales of pet food products Europe, ****-****, in millions of tons and billions of euros Source: ****

In ****, FEDIAF estimated that ...

1.3 A French market that is growing in terms of value but will decline slightly in terms of volume by 2023

The French pet food market is following the global trend, with similar growth to the national level.

Sales of cat and dog food in supermarkets France, **** - ****, in billions of euros Source: ****

The French cat and dog food market in supermarkets and hypermarkets thus grew by +*.*% in ****, driven by premiumization and the online sales segment. All channels combined, growth is even faster, with the petfood market reaching *.* billion euros in ****, up *% on ****. [***]

Total petfood sales France, **** - ****, in billions of euros Source: ****

The graph shows steady growth in petfood sales by value over the last three years, with a more pronounced increase in ****. Overall, the graph shows a positive dynamic for the French petfood industry over these three years. According to a **** Ifop study, food is the number one item on the French pet expenditure list, with an average annual expenditure of €*** (***). This budget increase may explain the significant rise in total petfood sales in ****.

However, in this period of generalized inflation, it is interesting to look at sales volumes. at P* ****, the evolution of petfood sales in volume terms was -*.*%, compared with an evolution in value terms of +**. *%[***]

Change in cat petfood sales vs N-* France, CAD to P* ...

1.4 Dynamic foreign trade with a large surplus

For the animal feed category (***).

French imports have been growing since **** and exports since ****, but imports have been growing faster than exports, as shown by the deterioration in the coverage rate (***). Nevertheless, France will still have a large surplus at the end of ****, and both imports and exports will continue to grow.

Foreign trade in animal feed France, ****-****, in billions of euros and percentage Source: ****

French exports are relatively diversified, with the majority going to Spain (***).

Main feed importing countries France, ****, in percent Source: ****

French imports are much more concentrated, with **.*% coming from the Netherlands, **.*% from Belgium and **.*% from Belgium. These three countries thus account for **.*% of French imports.

Main countries of origin of animal feed imports France, ****, in percent Source: ****

1.5 The impact of Covid-19 on the sector

Covid-** has had a positive impact on the pet food market. There was a peak in March ****, when manufacturers' sales were **.*% higher than in March ****. This then remained well ahead of the previous year, although the gap narrowed as the French became more accustomed to confinement.

The March peak can be explained by precautionary stockpiling. Frightened by the prospect of strict confinement and the impossibility of making these purchases for their animals, consumers bought much more feed for their pets. However, even after this peak, sales were still higher than the previous year, and the anticipatory spending of the French did not subsequently reduce their consumption and pampered their companions during the health crisis.

Variation in the sales index for animal feed manufacturing France, ****-****, in index base *** **** Source: ****

Pet food stores remained open throughout the containment period, whether in supermarkets, specialty stores or garden centers, which were only authorized to sell animal products until April *. So, like other industries in France, the sector did not suffer from the closure of its outlets.

Sales index for animal feed manufacturing France, **** - **** Source: ****

If we look at average variations from **** to ****, we can see that animal feed manufacturing is finally emerging as ...

2.1 The French, big fans of pets

The French are great fans of pets: **% of households had a pet in ****, and **% at least one dog or cat. [***] Between **** and ****, there will be a negative trend of -*.*% for cats, but a slight increase of *.*% for dogs. In France, the dog population has thus stabilized over the last ten years at around *.* million, but the cat craze has increased their population by **.*% between **** and ****.

The NAC population is estimated at * million in France, including *.* million mammals and *.* million other animals such as snakes, spiders and reptiles. [***]

The most popular pets in French households are cats and dogs. **% of French households will own a cat and **% will own a dog by ****. [***]

Growth in the number of dogs and cats France, ****-****, in millions of pets Source: ****

In Europe in ****, France is the *thcountry with the most dogs, with *.* million, and the *rd country with the most cats, with **.* million. [***]

In Europe, the Russians have the most pets (***).Germany and the UK are also in the top * countries for each type of animal.

Country rankings by dog population Europe, ****, in millions of dogs Source: ****

Country rankings by cat population Europe, ****, in millions of cats Source: ****

2.2 An increase in expenditure

Unsurprisingly, the most expensive pets are cats and dogs. According to Ifop, **% of dog and cat owners spend more than €*** a year on food.

Average annual expenditure by dog and cat owners France, ****, in percent Source: ****

In total, according to Ifop, they spend an average of €*** a year on food for dogs and €*** for cats, making food the leading item of expenditure, ahead of veterinary costs and accessories or toys.

Expenditure by the French on their pets France, ****, in euros Source: ****

Average monthly expenditure on pet food France, ****, in Source: IFOP very few respondents spend more than ** euros a month on pet food. The majority spend either less than ** euros per month, or between ** and ** euros per month.

On average, the French spend €** per month on pet food.

Breakdown of the budget French people spend on their pets France, ****, in euros Source: ****

2.3 Premiumization of pet food

The humanization of pets...

The new demand trends are driven by a common phenomenon: owners are placing ever greater importance on their pets. According to an Ipsos study, **% of dog and cat owners in **** consider their pet to be a fully-fledged member of the family. This figure rises to **% for dog owners and only **% for cat owners.

How do you regard your dog or cat? France, ****, percentage of respondents Source: ****

...which is reflected in the growing importance attached to their diet

Animals are becoming increasingly humanized, and **% of owners believe that the quality of their pet's food should be equal to their own.[***].

On the subject of your dog's/cat's diet and nutrition more broadly, would you say that the food you give your pet... France, ****, in percent Source: ****

...and by premiumizing their food accordingly

Owners are more eager to please their pets, which is illustrated, for example, by an increase in sales in the treats segment, growing by +**. *% for cats and +*.*% for dogs between **** and ****. There is also stronger growth in the wet food segment compared with dry food. In particular, sales of the latter grew by +**% between **** and **** in cats.

Lastly, this trend is illustrated in the ...

2.4 Geographical distribution of demand

Although INSEE does not provide us with specific information on the geographical distribution of pet food sales, we do have the geographical distribution of pet owners, as well as the number of veterinarians. This gives us an overall view of the regional distribution of the animals themselves, and thus of the demand for pet food, as food is an essential expense.

According to a **** Ifop study, dog and cat owners are most numerous as a proportion of the population in Bourgogne-Franche-Comté and Centre-Val de Loire, with **% and **% respectively, well above the national average of **%. On the other hand, fewer people in Ile-de-France (***) and Corsica own pets.

3.1 A market dominated by a few major players

The dog and cat food market is dominated by two giants, Nestlé Purina Petcare and Mars Petcare, which together will account for **.*% of the market by ****. The *rd main player is private label.

Dog and cat food market share by value France, ****, in Source: ****

Each of these two giants has its own specialty: while Nestlé Purina Petcare largely dominates the cat food market,Mars Petcare is number one in the dog food sector.

Preferred cat food brands France, ****, in Source: ****

Preferred dog food brands France, ****, in Source: ****

Food for other animals forms a completely separate market from dog and cat food, with different players. The bird food segment includes brands such as Erdtmanns and Versele Laga. The latter is also positioned in the hamster and rodent food segment, as are brands such as Hamiform and Feedeez. These brands are distributed by Jardiland.

3.2 Sector value chain

By ****, the pet food sector in France will represent *,*** direct jobs and over **,*** indirect jobs. [***] Here's an overview of the pet food value chain in France:

Source: ****

3.3 Distribution channels

Breakdown of petfood distribution channels France, ****, in Source: ****

The dominant distribution channel remains supermarkets, with **% of sales for cats and **% for dogs. E-commerce is a popular distribution channel for dog and cat owners, accounting for **.*% and **% of sales respectively.

The growth of future e-commerce sales is, however, open to question, since an analysis of Internet traffic to petfood sites by the Semrush website suggests a stagnation in the number of visitors. We have isolated the main pet food sites in order to observe a general market trend: Zooplus, la compagnie des animaux, Bitiba, Animaux market, Vetostore, Croquetteland, Wanimo and Zoomalia. We estimated traffic for each site using Semrush, which uses a variety of methods to estimate traffic, such as partner site data that measures visits from a customer panel. It will also use the number of searches on a given keyword and the site's position to estimate traffic. While there may be significant discrepancies between the results and reality (***), it nevertheless enables us to obtain market shares and trends in online activity in the French petfood sector.

One of the databases used by the Semrush site was updated in June ****, modifying the estimates proposed by the sites. In order to remain ...

3.4 A dynamic market

The "petfood" market, like the "petcare" market, has seen strong growth in recent years, driven by the demand for higher-quality products and by owners who pay more attention to their pets. It's also a dynamic market which, despite being dominated by a few major players, is attracting new players and investors. Witness the strong growth of startup Ultra Premium Direct, founded in ****, a pioneer in direct online sales of pet food. In ****, Eurazeo acquires a majority stake with an investment of ** million euros to enable the company's expansion in Europe. In the same year, Ultra Premium Direct invests * million euros to expand its factory in Agen and opens its first physical boutique in Montauban.

Ultra Premium Direct sales France, ****-****, in millions of euros Source: ****

Major new startups on the market include Japhy, Pettywell, and Caats, which specializes in customized cat food and raised * million euros in January **** from the Otium Capital fund. [***]

In the personalized, fresh meals segment, startup Pepette, created in ****, is making more and more headlines, notably with a €* million fundraising in **** from the Ambrosia fund, which specializes in agri-food and food-tech, and Go Capital funds.

Finally, another segment with potential seems to be insect-based food, on which ...

4.1 A range driven by the popularity of dry foods and new wet formats

In the dog and cat segment, there are different types of food, as mentioned in the introduction:

Dry foods: mainly croquettes. Dry foods enjoyed positive growth for feline nutrition (***). Wet foods: pâtés in particular, canned foods. Wet foods have captured the lion's share of growth in ****, with sales growth in value terms of *.*% for cats and *.*% for dogs. Snacks: cookies and other rewards. Snacks are the market's fastest-growing segment, particularly for cats, with a **.*% year-on-year increase, compared with *.*% for dogs.

Breakdown of cat food sales in supermarkets France, ****, in millions of euros Source: ****

Breakdown of the types of food French people feed their cats France, ****, % of total Source: ****

Breakdown of supermarket dog food sales France, ****, in millions of euros Source: ****

Breakdown of the types of food French people feed their dogs France, ****, % of total Source: FACCO Kibbles are the foods most consumed by dogs and cats, although wet foods such as cans/barquettes are given more to cats. Treats are also an important part of cat and dog diets.

4.2 The rise of the premium segment

Growth in recent years has been driven more by premiumization. In ****, the market grew by *.*% in value in supermarkets, while volumes rose by only *.*% that same year. [***]

Industry players are also highlighting the trend, since according to Simon Lesage (***) "**% of the category's growth is in valued segments: health & well-being and moments of pleasure and connection with one's pet".

We can draw up the following panomara of premium brands:

4.3 Organic and natural products: segments with potential

Natural and organic products are on the rise in the pet food market. Increasingly concerned about the health and well-being of their pets, owners are also aware of theecological impact of pet food. The number of organic and natural pet food products on offer is exploding, and this is helping to enhance the market's offering, despite the fact that sales volumes are sometimes lower in certain segments. Despite the meteoric rise of the organic food market in recent years, the organic petfood segment remains anecdotal. In ****, it will still account for just *.*% of the petfood market, compared with *.*% for all FMCG products. [***] However, many brands are trying to develop this market, accompanied by retailers such as Carrefour, which has launched its first organic snacks in **** under its own brand: Companino Naturally Bio. The term natural is not legally defined by French regulations on this market, but manufacturers are increasingly using it to present products without additives, colorants or artificial flavoring, for example. Examples of natural or organic offerings include: The **** launch of Purina Beyond, with its AB label; The entry into French supermarkets of the Dutch Yarrah group (***) under the Dano brand, also AB-labeled; The Ultima Nature range from Affinity Petcare, ...

4.4 Inflation-sensitive products

The rise in raw material prices that has affected all (***) sectors in **** has not bypassed the pet food sector - quite the contrary. Pet food is mainly made up of cereals and animal proteins.Grain inflation has had a major impact on the market. What's more, bird flu and swine fever in Europe have decimated some of the livestock farms that supply manufacturers of dog and cat food, putting a strain on the raw materials available. The price of poultry has risen by **% over ****. Finally, pet food is made up of animal fats, which are also increasingly used by the biofuels sector. Faced with rising demand and stable supply, the price of pet food has tripled over the past two years. [***]

As a result, pet food prices have also inevitably soared, and we're seeing more frequent stock-outs in stores. Pet food prices are said to have risen by **% between March **** and March ****. [***]

Rising prices for dog and cat food France, October **** - October ****, in % Source: ****

Pet owners' feelings on price increases France, ****, in Source : IFOP For all items, the most common response is a rise in prices. What's more, the total proportion of pet owners who see prices rising in at ...

4.5 Price analysis of online distributors

In this market, production is highly concentrated, and all online distributors offer similar or very similar products. To explain the differences in performance, we looked at the prices offered on several petfood distributor websites. To do this, we used a reference product present on almost all the sites: Royal Canin **k dog food. The prices in the following graph are per kilogram.

Price comparison of petfood e-commerce sites in France France, ****, price per kg for Royal Canin **k dog food Source: ****

Observation of this data highlights Zooplus' aggressive pricing, which is well below the average of other sites. This positioning helps explain Zooplus' dominance in a market where product differentiation is difficult.

5.1 European legislation on the marketing of pet food

Directive ****/**/CEhttps://www.businesscoot.com/backend/study/***/**/edit#study_component_form_translations_de_fields

European Directive ****/**/EC defines animal feed as "products of plant or animal origin in their natural state, fresh or preserved, and products derived from their industrial processing, as well as organic or inorganic substances, alone or in mixtures, with or without additives, which are intended for oral animal feeding. products of their industrial processing, as well as organic or inorganic substances, alone or in mixtures, with or without additives, which are intended for oral animal feeding."

This Directive also establishes a list of undesirable substances and a maximum content limit for each of them. For example:

Fluorine content must not exceed *** mg/kg of feed materials; Lead content must not exceed ** mg/kg of feed materials; Mercury content must not exceed *.* mg/kg of feed materials.

Regulation ***/****/EC

European Regulation n°***/**** of July **, ****, amended and consolidated in ****, **** and ****, concerns the marketing and use of animal feed. It lays down the following rules for labeling and packaging:

Labeling and packaging must not mislead the user as to the characteristics of the feed, its nature, production method, composition or effects on animal health; Information must appear legibly and be ...

5.2 The European Federation of the Pet Food Industry (FEDIAF)

This federation, which operates at European level, has also drawn up a set of standards for its members, grouped into two main texts:

Code of Good Labeling Practice, available here Code of good practice on product safety, consultable here

The Federation has also compiled an exhaustive list of all reference texts under European law applicable or relevant to pet food. [***]

6.1 Segmentation

• C&D Foods France
• Affinity Petcare France
• United Petfood Producers
• Pepette
• Ultra Premium Direct
• Botanic
• Nestor Bio
• Mars Petcare
• Royal Canin (Mars Petcare)
• Maxi Zoo France (groupe Fressnapf)
• Mondou
• Tom&co
• Tomojo
• Zoomalia
• Wanimo (Dôme Pharma)
• Croquetteland
• Vetostore, Le Bien Etre des Animaux
• Animaux Market
• La Compagnie des Animaux
• Bitiba France (Zooplus)
• Zooplus
• Hill's Pet Nutrition
• Affinity Petcare
• Normandise Pet Food
• Japhy
• Tails.com (Nestlé Purina)
• Nestlé Purina Petcare
• Iams (Spectrum Brands)
• Eukanuba (Spectrum Brands)
• FreshPet
• Reglo Pet Food
• Edgar Cooper
• Sopral
• Franklin Petfood
• Médor et Cie
• L’Animalerie - Do&Ka
• Alphia
• Huddle Corp
• Holidog Happybox
• ATM Petfood
• Hope Pet Food
• Bab’in Nutrition - Codico
• Natura Plus Ultra
• Nor-Feed
• Canichef & Felichef