Pet Food Market – India (Part II)

May 2010
Executive Summary

Total market for pet food in India was valued at INR 876 mn in 2008; Expected to reach INR
3,243 mn by 2012 at a CAGR of 39%

Pet food market is categorised into three major segments
Market – Dog Food, Cat Food and Others including fish food, bird food and food for other animals

The market is at a nascent stage in India but increasing pet ownership and humanisation trend
of pets has made the domestic market attractive with major focus on key urban cities

Drivers: Challenges:
Drivers & • Low penetration of branded pet food • High import duties and frequent bans on
• Increasing pet ownership imports
Challenges
• Increasing consumer awareness
• Increasing organized retail chains

Dominance of non-vegetarian dog food

Trends
Players providing customized products and services

Increasing promotional activities

Market is categorized by high influx of foreign brands

Major players like Pedigree and Royal Canin have a sizeable base of consumers in the Indian
Competition market

Dog food dominates the pet food segment

Players are devising product categories and services to increase their revenues

PET FOOD MARKET IN INDIA 2010.PPT 2

•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

PET FOOD MARKET IN INDIA 2010.PPT 3

Key Trends – Summary

Dominance of non-
vegetarian dog food

Trends

Players providing
Increasing promotional
customized products and
activities
services

PET FOOD MARKET IN INDIA 2010.PPT 4

 Dog food market in India is dominated by the non-
vegetarian category
Dominance of non-vegetarian dog food
• Dog food market in India is dominated by non vegetarian food with vegetarian food category
almost negligible Non vegetarian
food occupies
• Pedigree relaunched its series of vegetarian food for dogs realizing a large untapped market major portion of

Many owners prefer putting their dogs on the same vegetarian diet as them dog food

Tamil Nadu and Gujarat are fast emerging as states with greater demand for vegetarian dog food

Segmentation of Dog food market

15%
Non vegetarian
Branded food
Vegetarian
Branded food

85%

Source: The Hindu Business Line “Pedigree relaunches vegetarian dog food”, Dec 2008; Financial Chronicle “Dog food brand Pedigree goes vegetarian, eyes niche markets”,
Apr 2009

PET FOOD MARKET IN INDIA 2010.PPT 5

 Players are customising their products and devising
strategies to suit the needs of the pet owners
Players providing customized products and services
• Pet food manufacturers primarily cater to the preferences of the Indian pet owners

Large number of pet owners feed their pets based on their own preferences
Players
introducing
• Primarily, Indian consumers feed their pets with fresh home cooked food and major companies
need based
are eyeing the opportunity it provides
products
•~96 per cent of pet owners feed their pets with snacks and treats in various forms

Most of these on a daily basis largely motivated by their own snacking habits
• Major players in the market have devised products which cater to the health of the pets and is
in accordance with the needs of pet owners

Pedigree launched a range of healthy snacks like ‘Snacks & Treats’, which also provide functional benefits
like reducing the risks of dental diseases, development of bones and teeth or strengthening immune systems
• Some players have customized their services and have devised strategies to deliver fresh
cooked food on an order basis to relieve the pet owners from the burden of preparing pet food
on a regular basis

Scooby Corporations – They are based in New Delhi and deliver food items like brown rice to biryani,
zucchini and broccoli, inter alia, oatmeal with scrambled eggs, liver and meat
• Pet lovers have also come up with services like a dog restaurant which has been recently
launched in The Milestone Resort of Delhi called ‘Bow Wow Club’ serving delicacies to pets

Source: HT Media Ltd “Now, home delivery of meals for your dog”, Feb 2010; The Printers (Mysore) Limited “Mars India launches new pet food brand”, Aug 2009

PET FOOD MARKET IN INDIA 2010.PPT 6

 Manufacturers are eyeing the print media and pet shows to
showcase their products and enhance brand value
Increasing promotional activities
• Companies are promoting their products through various channels and mediums to achieve a
larger volume of sales Print media an

Pedigree is using television, print campaigns, hoardings as well as retail merchandising for publicity effective tool for
• Most of the promotion is targeted at a niche audience through pet magazines such as “Indian promotion
Kennel Gazette”, “Dogs and Pups”, and “Creature Companion”
• Large scale shows and fairs are also increasing

Various dog shows and workshops are conducted to showcase products

India’s largest fair India – International Pet Trade Fair (IIPTF) is conducted on a wide scale to showcase pets,
pet food products and pet care products
• Television ads have also been an effective medium to showcase the variety of products by the
some leading players like Pedigree

Source: Thaindiannews “Delhi all set to host pet trade fair next month”, Jan 2010; The Hindu Business Line “Sniffing for more”, Feb 2006

PET FOOD MARKET IN INDIA 2010.PPT 7

•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

PET FOOD MARKET IN INDIA 2010.PPT 8

Players are stepping up services and product categories,
however the market is led by the dog food players
Competition – Overview Share of Branded Dog food
• Market is categorized with high influx of foreign INR 701 mn Pedigree
brands Others
• Pet food is prepared keeping in mind specific 30%
requirements based on age, weight and activity
• Dog nutrition is the category catered for by most of
the players because majority of the pet ownership in 70%
India consists of dogs
• Dog food includes treats and snacks such as biscuits, 2008
chews and bones
• Online stores are gaining prominence over the period Players in the market
and strategies like home deliveries are being devised
Price Range
by players Company Brand
(INR/kg)
• The key market lies in the urban towns where people • Pedigree • 70 – 110
are prone to own pets Mars International
• Royal Canin • 200
• Advertising and promotional activities are also on the Provimi Animal
rise to make consumers aware of brands • Nutripet • 70 – 100
Nutrition India Pvt. Ltd.
• Players are also offering related services in pet care Nestle Purina PetCare
• Purina • More than 100
segments to win the consumers trust and confidence Company
Midwestern Pet Foods,
• Pro Pac • 200
Inc

Source: The Hindu Business Line “Sniffing for more”, Feb 2006; Company websites Others include: Nutripet, Eukanuba and Royal Canin

PET FOOD MARKET IN INDIA 2010.PPT 9

 Major Domestic Players (1/2)

Company Business Description

Agro Food • It is based in Uttar Pradesh

Industries • Their production plant is located 40 kms from Delhi
• Products include natural dog food, dried dog chews, smoked bones, dried dog treats and
rewards in India
• They also export pet food from India
Venky’s India • It was formerly known as Western Hatcheries Limited
Ltd. • Established in 1976 and is a part of the VH group
• Has primarily 3 divisions namely poultry, animal health products, feed and feed ingredients
• It has set up Royal Pet as a separate division to control the pet food segment
• Has its manufacturing facility at Pune
• It tied up with Australian Food Rite Pty and Natures Gift Pty to further enhance its
manufacturing range of pet foods
• It operates 5 brands of pet foods with popular ones being ‘Regal Pup’ and ‘Regal Meal’
• Manufactures cat food as well as dog food
Financials:
• Turnover of INR 5752.6 mn and Profit after Tax of INR 205.6 mn in FY09
• Turnover for pet food segment was INR 551.2 mn and Profit was INR 98.8 mn in FY09

Source: Company Websites and Articles Note: This list is not exhaustive

PET FOOD MARKET IN INDIA 2010.PPT 10

 Major Domestic Players (2/2)

Company Business Description

• It was originally formed in under Tetragon Chemie Pvt. Ltd. and is today known as Vetcare
Provimi Animal • It is based in Bangalore, Karnataka
Nutrition India • Entered into a joint venture with Provimi, Netherlands becoming a global player
Pvt. Ltd • The company holds the distinction of being the first to introduce binomial anthelmintics,
acaricides, nutritionals, therapeutic, supplements and pet food in indian market
• It has a wide distribution network with 8 branches located in Bangalore, Namakkal, Hyderabad,
Baroda, Pune, Noida, Delhi and Kolkata
• It manufactures ‘Nutripet’ brand
• Nutripet Adult Dog Food is made for canines of all ages and breeds based on their energy,
vitamins and mineral requirements

Source: Company Websites and Articles Note: This list is not exhaustive

PET FOOD MARKET IN INDIA 2010.PPT 11

 Major Foreign Players (1/3)

Company Business Description

Del Monte • A US based organization established in 1916

Foods • Engaged in the production, distribution, and marketing of food and pet products
• Its pet products segment manufactures, markets, and sells branded and private labels including
dry and wet pet food as well as pet snacks
• Its pet snack product portfolio includes brands such as ‘Milk-Bone’, ‘Pup-Peroni’, ‘Pounce’
Snausages, Jerky Treats, Canine Carry-Outs and Meaty Bone
Midwestern Pet • It is a US based company
Foods • Produces a large variety of meals and snacks, biscuits and treats for pets with products available
for cats and dogs
• Owns 2 brands: ‘Pro Pac’ and ‘Sportmix’ pet foods
• It operates online food bookings and also has retail outlets
• Products are available in 2, 3, 7, 15 and 20 kgs bags
• It has an online calendar and reminder system designed to help pet owners keep track of
appointments and other information pertinent to the care of their pets
• Alliances International are the distributors of this brand in India

Source: Company Websites and Articles Note: This list is not exhaustive

PET FOOD MARKET IN INDIA 2010.PPT 12

 Major Foreign Players (2/3)

Company Business Description

Mars • A US based organization, launched its pet food brand ‘Pedigree’ in India in 2001
International • Has a manufacturing facility at Hyderabad
• Owns total 51 brands under the pet care and pet food segment including cat food brand
‘Whiskas’
• It makes vegetarian pet food only in India
• It acquired Royal Canin pet food company in 2002
• Effem India Pvt Ltd, Hyderabad-based fully owned subsidiary, retails the brand Pedigree in India
Royal Canin:
• Established in 1968 and in 1980 it was the first company in the world to launch a dog food
designed for the growth needs of large breed puppies
• Operations in India started in 2000 and its products are distributed by Ruskin Pet Products
Nestle Purina • Wholly-owned subsidiary of Nestlé S.A., established after Ralston Purina Company was merged
PetCare with Nestle in 2001
Company • Owns 26 brands of pet food for cats and dogs
• It has a range of wet and dry food for pets

Source: Company Websites and Articles Note: This list is not exhaustive

PET FOOD MARKET IN INDIA 2010.PPT 13

 Major Foreign Players (3/3)

Company Business Description

Proctor and • Present in various segments like beauty, health and well-being and household care
Gamble • Owns 2 brands of pet care and pet food ‘Iams’ and ‘Eukanuba’
Company Eukanuba:
• Began in 1969, makes food for dogs and cats
• Foods contain primarily high-quality, animal-based proteins and is non vegetarian
• Their nutritional range includes special veterinary prescription diets and tailored nutrition for
life stage, breed size, sensitivities and activity levels of pets
• Has established partnerships with breeders and with key organizations like the Federation
Cynologique Internationale (FCI) and American Kennel Club (AKC)
Versele-Laga NV • They manufacture cat and dog food under the ‘Bento Kronen’ brand
• Have 6 distinct production units equipped with the most modern technology
• Products are exclusively available from specialists (pet food shops and garden centers) in more
than 75 countries
• They have a total of 13 brands for pet food ranging from food for pigeons to horses to rodents to
pond fish
• Have breeding centres and a large team of specialized veterinarians and nutritionists who
perform continuous nutritional research to improve the quality of food

Source: Company Websites and Articles Note: This list is not exhaustive

PET FOOD MARKET IN INDIA 2010.PPT 14

•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments

PET FOOD MARKET IN INDIA 2010.PPT 15

 Key Developments

Date Development
The environment ministry has made a license for each species of pet mandatory and allowed sale of only
May 2010
sterilized pets, except where a veterinary doctor allows and the license will be valid only for 12 months
‘IAMS’ company, owned by Proctor and Gamble , developed an artificially produced canine milk
Apr 2010 substitute composition comprising, on a dry matter basis, from 35 to 45% protein, from 25 to 35% fat,
and from 10 to 25% carbohydrates
Mars International, the pet food manufacturer, launched ‘Snacks and Treats’ which are vegetarian in
Aug 2009
nature with the same nutritional and calorie levels as in non vegetarian category

Source: Press Articles

PET FOOD MARKET IN INDIA 2010.PPT 16

 Thank you for the attention
The Pet Food Market - India report is a part of Research on India’s Food & Beverage Industry
Series.
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PET FOOD MARKET IN INDIA 2010.PPT 17