The pet food market - Spain (2023)

1.2 A growing global market

The global market

The global pet food market is valued in **** at $**.** billion byGrand View Research. It is expected to grow at a CAGR of +*. *% over the period ****-****, meaning that it would have exceeded $*** billion in **** and would approach $*** billion by the end of the decade.spherical Insights gives similar estimates in terms of growth, with a CAGR of +*.*% over ****-****, but is more optimistic about the current market size, estimated at around $*** billion in ****, which should reach $*** billion in ****.

Using Grand View Research'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: ****

North America 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 ...

1.3 Growth in the Spanish market

Spain had over ** million pets in ****, according toANFAAC (***). Over **% of Spanish households own a pet.

Moreover, data corroborate this fact, particularly in Madrid: the Official Order of Veterinarians counts ***,*** pets (***)

Breakdown of the number of pets Spain, ****, in millions Source: ****

In ****, dog food represented **% of the pet food market, cat food **% and food for other species only *%. [***]

Breakdown of pet market sales by type of animal Spain, ****, market share (***) Source: ****

The size of the pet food market can be estimated using the sales achieved by the dog and cat segments, which together account for **% of total market sales.

According to ANFAAC, the cat and dog food industry will grow from *.** billion euros in **** to *.** billion euros in **** , showing strong growth of almost **% in * year.

Thus, as a rule of three, we can estimate the pet food market at around *.** billion euros in ****.

Dog and cat food sales by value Spain, ****-****, in billions of euros Source: ****

Sales rose considerably in value terms from **** to **** (***). This shows that the market's dynamism is driven by the development of the premium segment, the enrichment of its offer and smaller portion sizes.

Dog and cat food sales by volume Spain, ****-****, in tons Source: ****

1.4 A small but dynamic foreign trade

For the "retail dog or cat food" category in ****, Spain exported around $*** million worth of products and imported $*** million. [***] Both imports and exports have increased quite considerably over the last three years, as shown in the graph below.

Evolution of the trade balance for cat and dog food Spain, ****-****, in millions of euros Source: ****

Exports of dog and cat food in Spain have grown faster than imports, leading to an improvement in the coverage rate, which reached ***% in **** with a positive trade balance but falls back in ****.

However, Spain is only the **th largest exporter of retail dog and cat food in the world, far behind Germany (***). Most of Spain's production is therefore destined for domestic consumption.

Spain is also the **th largest importer of dog and cat food in the world, again in much smaller quantities than Germany (***).

The main importers of Spanish dog and cat food are Portugal, France and Germany. [***] Spain's exports are therefore highly concentrated, leading to significant dependence on Portugal in terms of retail pet food revenues.

Main destination countries for Spanish dog and cat food exports Spain, ****, in Source: ****

On the other hand, most Spanish imports come from France, Germany and the Netherlands. [***] France ...

2.1 Spaniards love pets

Spaniards are pet lovers. In fact, around **% of the country's households own one. There are around ** million pets in the country, which represents more than one animal for every two people. [***] On the European scene, Spain ranks *th for dog ownership, *th for cat ownership and *rd for bird ownership.

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

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

2.2 Fish are the most popular pets in Spain

According to ANFAAC , fish are the most common pets in Spain. However, this is due to the fact that when purchasing an acquarium, households usually buy several fish, multiplying the total number. Birds are also very popular, followed by dogs and cats.

As can be seen in the table below, the population of each pet is decorated by the amount of money spent by owners on feeding them. Dog and cat food are in fact much more expensive than other pet foods, which explains why even though they represent only **.*% of the total population, they account for **% of the pet food market by value. Breakdown of pets by type Spain, ****, in millions Source: ****

However, to observe demand trends, we need to analyze the population growth of each type of pet. The graph below shows us that while the cat population remained stable from **** to ****, then rose sharply until ****, (***), where the dog population grew more gradually to increase by **% in **** compared to ****. Ornamental birds saw their population stagnate, while the number of reptiles owned as pets increased *-fold. Reptiles are therefore becoming increasingly popular, even if they remain the least preferred type of animal in Spain. This shows the Spanish population's new ...

2.3 Most pet food spending goes on cats and dogs

Cats and dogs are the most expensive pets to own, partly because of the food expenses involved.

According to Expansion , **% of pet food expenditure is devoted to dogs, **% to cats and *% to other animals (***), being completely disconnected from the actual population of these different species.

In fact, spending varies greatly according to the type of animal owned, and even according to the size of the animal.

A dog can cost around *** euros a year for food alone , according to La Razón . This includes all types of food (***), as people increased their overall food expenditure, fearing a food shortage. Cats are generally cheaper to feed. Its food generally costs between €*** and €*** a year, depending on quality, according to YoAmoaLasMascotas. Other sources estimate that it costs around €*** a year to feed a cat, but it's difficult to estimate exact expenditure as it depends on several factors. [***]

Annual expenditure on pet food, by type of animal Spain, ****, in millions of euros Source: ****

However, it is more difficult to find data on other animal species. IRI carried out a study in stores of over *** square meters and came to the conclusion that spending on ornamental birds in this segment in **** was **.** million euros, *.** million ...

2.4 Premiumization of pet food

Pet owners tend to regard their pets more and more as integral members of the family. Wamiz (***) conducted a study of over *,*** pet owners to find out more about their Christmas spending habits. It concluded that **% of dog owners and **% of cat owners gave their pets a Christmas present, treating them as an integral member of the family.

What's more, **% of owners gave their pets special food so they could enjoy Christmas as much as everyone else. Even more surprisingly, **% of families surveyed would like to be allowed to bring their pet to Mass . [***]

This reflects a premiumization of food products, as owners want to give their pets the best possible food

Between **** and ****, spending on premium brand food products increased by **%. According to GfK, more than *,*** new products were launched on the Spanish food market in ****, most of which were premium.[***]

This trend has continued to grow over the past three years. Manufacturers are using high-end ingredients in premium products, giving pet food the "human" dimension that consumers are looking for.

3.1 A market dominated by a few players and private labels

Private labels largely dominate the pet food retail segment in Spain, holding nearly **% of the dog food market share by value in **** and **% of the cat food market share.[***]

These **** figures are just as valid for ****, as according to Alimarket, private labels maintain their status in ****. Retail brands remain in the majority in the free service, while the top three companies in the sector (***) maintain their position, leaving little room for new competitors. The dominance of private labels is encouraging investment and new developments among suppliers - Bynsa being the largest - and attracting new investors, such as the Portobello fund, which acquired Elmubas.

affinity Petcare holds **% of the dog food market.

Breakdown of the dog food market by company (***) Spain, ****, in Source: ****

The cat food market in the self-service segment is also dominated to a lesser extent by private labels. Nestle Purina holds **% of the market and Affinity Petcare **%.

Cat food market breakdown by company (***) Spain, ****, in Source: ****

The small pet food market is very different from the first two seen above, and is dominated by other players. What's more, as this is a smaller market, private labels are less present. Thus, Prosandimas holds **.**% (***), while the other smaller brands hold ...

3.2 Pet food industry value chain

The pet food value chain can be divided into four main stages, the last of which is distribution, which takes several forms.

3.3 Distribution mainly through supermarkets and hypermarkets

In ****, **% of sales in the pet sector take place in physical stores.

According to IRI, in ****, sales of cat or dog food in self-service stores over *** m* in Spain totaled ***.** million euros. By contrast, sales in specialty stores totaled ***.** million euros. Out of total sales of *.*** billion euros for the cat and dog food segment, **.** million euros remained for online purchases and other types of distribution channels (***).

This seems to be in line with the consumption habits of Spaniards, since only *% of them have purchased food products online, according to theAsociación Española de Distribuidores de Autoservicio y Supermercados (***).[***]

Distribution channels for dog and cat food Spain, ****, in Source: ****

The rise of e-commerce:

the percentage of people preferring to shop online rose to *.*%, while those preferring to shop in physical stores fell from **.*% to **.*%. Consumers who like to buy their food both online and offline now account for **.*% of the population (***). Online shopping could well become part of Spanish habits.

Spanish pet food shopping preferences, by distribution channel Spain, ****-****, in Source : El Paìs ***% online stores are also being created, such as Zooplus, which today has over ***,*** customers in Spain The quest for omnichannelity:

More and more players in ...

4.1 Different pet food products

For cats and dogs, pet food can be divided into three categories: dry, wet and snacks.

Dry products (***) are the most popular, with sales of ***.* million euros in ****, up **% on ****, including *** million euros in the cat segment.

Wet products (***), on the other hand, are less popular, with sales ofjust ***.* million eurosin ****, and are often dedicated to special events or treats. They are, however, growing faster, by **% between **** and ****. This trend is set to continue, as wet foods contain more water and have a higher energy content. [***]

Snacks also grew by **% between these two years, reaching *** million euros in ****.

Sales of dog and cat food by type Spain, ****-****, in millions of euros Source: ****

It should be noted that snacks are less common for cats than for dogs, with wet products being more popular than cat snacks.

Sales volume of dog and cat food by type Spain, ****-****, in millions of euros Source: ANFAAC these growth trends in the wet food and snacks segments can be linked to the premiumization of pet food. Owners are buying their pets other types of food than kibble, as part of the trend towards the humanization of animals.

Other products include foods for other pets, such ...

4.2 Prices vary according to product type

The price of food products varies not only according to species, but also according to product range.

As we can see, the price per ton of snacks is much higher than that of other types of pet food.

It is **.* times more expensive than dry cat food and *.* times more expensive than dry dog food. This difference in cost is explained by the more unusual consumption of these snacks, which are considered to be treats. What's more, they are often sold in smaller quantities, driving up the price. Price per tonne of pet food products by category (***) Spain, ****, in thousands of euros per ton Source: ****

For other species, prices per tonne tend to be higher, due to the smaller quantities usually purchased and the relative scarcity of these products compared to those for cats or dogs. What's more, as we saw earlier, the small animal feed market is much more fragmented than that for dogs or cats.

Fish food is the most expensive of all, costing **.* thousand euros per tonne. Feed for other species is slightly more expensive than that for dogs and cats, but within the same ranges. However, this price per tonne needs to be put into perspective, as ...

4.3 Diversifying supply towards healthy, organic products

More and more brands are launching healthier or more natural product ranges for pets.

This follows directly on from the trend towards premiumization and humanization of pet food. Humans are eating more healthily, and want their pets to be able to do the same.

Lidl, for example, has launched its Pure Taste range of ***% natural products. These products are made with natural ingredients, high-quality protein content and a "grain-free" formula. They are ***% grain-free, with no artificial additives, sugar, preservatives, coloring or flavoring added. Many pets develop intolerances to cereals, which is why the supply of this type of food is increasing. Their high-quality foods are sold at €*.**/kilo, less than half the price of other similar products (***). [***]

Purina, one of the market leaders in this segment, also launched its line of natural products, called Beyond, in ****. It has since expanded its offering with seven varieties of wet food. [***]

Bruna Margall, partner at consulting firm Nielsen in Spain, pointed out that the healthy pet food segment was still in its infancy, accounting for just *.*% of the value of the dog or cat food market in Spain. However, significant growth is expected in the coming years. For example, in Germany, a more mature ...

5.1 European legislation on the pet food market

Directive ****/**/EC

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, used alone or in mixtures, even with additives, for oral animal feeding".products derived from the industrial processing thereof, as well as organic or inorganic substances, used alone or in mixtures, even with additives, for oral animal feeding".

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

Fluorine content must not exceed *** mg/kg of feed materials; The lead content must not exceed ** mg/kg of feed materials; The 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 foodstuff, its nature, production method, composition or effects on animal health; Information must appear legibly and be clearly visible, at least in the official language or one of the official languages of ...

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 labelling practice for pet food, available here Guide to good practice for the manufacture of safe pet food, available here

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

5.3 Asociación Nacional de Fabricantes de Alimentos para Animales de Compañía (ANFAAC)

ANFAAC was founded in **** and represents **% of all pet food manufacturers in Spain.

Its main objectives include defending the legitimate interests of its members and promoting the development of the pet food sector through various activities.

Member companies guarantee safety and quality throughout the process, from manufacture to marketing, including adequate information for the pet owner; they are at the forefront of research, development and innovation, and are firmly committed to the environment.

It has published all the manufacturing and labelling guidelines drawn up by FEDIAF on its website. [***]

6.1 Segmentation

• Mars Petcare
• Nestlé Purina Petcare Spain
• Affinity Petcare
• Productos para animales de compañia San Dimas
• Kiwoko
• Tiendanimal
• Zooplus Spain