Pet Products - Finland

Euromonitor International : Country Sector Briefing

September 2010
Pet Products Finland

List of Contents and Tables

Headlines................................................................................................................................................................. 1

Trends...................................................................................................................................................................... 1

Competitive Landscape..........................................................................................................................................2

Prospects................................................................................................................................................................. 3

Category Data.........................................................................................................................................................3
Table 1 Sales of Pet Products by Type: Value 2005-2010..............................................................3
Table 2 Sales of Pet Products by Type: % Value Growth 2005-2010.............................................4
Table 3 Sales of Healthcare Products by Type: % Value Breakdown 2005-2010...........................4
Table 4 Forecast Sales of Pet Products by Type: Value 2010-2015................................................4
Table 5 Forecast Sales of Pet Products by Type: % Value Growth 2010-2015...............................4

 Euromonitor International Page i

Pet Products Finland

PET PRODUCTS IN FINLAND

HEADLINES
 Pet product value sales to increase by 3% as sales reach almost EUR48 million in 2010
 New product launches and pet pampering trends provide a good growth base for pet products
 Other pet products to see the highest sales increase of 3% in current value terms to reach EUR27 million in
2010
 BestFriend GroupOy retains its lead with a value share of over 29% in 2009
 Pet products is expected to grow at a CAGR of almost 3% in constant value terms over the forecast period
to reach EUR54million in 2015

TRENDS
 Based on provisional 2010 estimates, pet care product sales will remain rather stable and record a 3% value
sales increase as sales are predicted to reach almost EUR48 million.Growth rates are not expected to
override the more dynamic growth rates of the review period. This is due to the fact that the category is
maturing and the effects of the recession are unlikely to allow any significant increases in sales.
 Pet product value sales increased by over 3% and sales reached EUR46 million in 2009. This was due to
new product launches and the pampering trend as pet owners were willing to invest in their pets.
Humanisation continued with many pet owners treating their animals as family members.The type of pets
consumers opted to get also played a part in boosting sales. The number of small dogs, for example, grew
quickest in Finland. If in 2008 there had been 214,000 small dogs, then in 2009 there were already 217,000.
Small dog owners tended to pamper their pets quite a lot and the sales of dog vests and clothing
increased well, especially in the very cold winter season 2009/2010. Another factor driving sales was
the convenience trend, as many products made taking care of pets easier, such as more efficient hair
brushes or better cat litter with improved odour-control.
 The growth rate in 2009 was slowerin comparison to 2008. This was due to the recession which forced
consumers to reconsider the needs of their purchases as well as compare prices and opt for more affordable
solutions.
 Cat litter sales are expected to increase by 3% in 2010, to reach EUR18 million.The increasing number of
cats was the main factor boosting sales. Efficiency of cat litter was obviously the quality consumers were
after and which too contributed to value sales. However, amid the economic downturn this meant finding
the best value-for-money products for acceptable odour-control.
 Pet healthcare products will be worth around EUR2 million in 2010, having grown by over 1% on 2009. In
comparison to the review period growth rates, the growth in 2009 was rather stable. Antibiotics could only
be sold with a veterinarian’s prescription in Finland while self-medication products could be sold in
pharmacies. Finnish veterinarians traditionally preferred selling products that cured sick animals, rather
than preventative products which somewhat limited the use of the veterinarian distribution channel.
However, also preventative healthcare products and products to treat less serious health complaints were
used in order to avoid the high costs of veterinarians. Finns tend to take their pets to a check-up when health
problems persist.
 Pet dietary supplementswill be worth less than EUR1 million in 2010 as sales stagnate. As the premium
products with functional and healthy ingredients have gained popularity, pet owners felt that the need for
pet dietary supplements became unnecessary.
 As pet shops offer thebest selection ofpet products, this channel is dominant, holding a 63% share of value
in 2010. However, this category saw a decline over the course of the review period as it lost share to the
other distribution channels such as internet retailing which had already managed to muster a 4% share in
2009. Also supermarkets/hypermarkets will increase its share to almost 19% in 2010, as the pet product
selections were widened and consumers found it very convenient to shop for these products while grocery
shopping.

 Euromonitor International Page 1

Pet Products Finland

 Flea/tick treatments share in 2009 stayed around 29% as worming treatments share remained around 21%
leaving other products with 50%. No major shifts took place in this category and Finns tended to consult a
veterinarianwhen health problems persisted.
 Successful product types included, for example, warm coats and interactive toys. Also, innovative products
gained attention, such as cat and dog beds which repelled dirt.

COMPETITIVE LANDSCAPE
 Based on provisional 2010 estimates, the leading Best Friend Group Oy is expected to retain its leading
position due to its good distribution and selection of products.
 Best Friend Group remained the biggest player with a value share ofover 29% in 2009. The company’s Best
Friend brand is competing in all the pet product categories and is trusted by pet owners. Its distribution was
excellent as its products were available not only in supermarkets/hypermarkets and pet stores, but also
online.
 The same leading company, Best Friend Group Oy, managed to increase its share the most, from 28% in
2008 to 29% in 2009. Its products were considered goodvalue for money, which was an important factor
during the recession. Moreover, some new product launches also helped to push brand sales.
 New and innovative product launches are important for pushing brand sales. Also, ensuring good and wide
distribution is essential as well, as is prominent shelf-positioning.
 In cat litter, new launches continued, such as Eco-Solutions Inc’s product, Odour Buster. This brand of cat
litter was launched in Finland and is advertised as being made from premium-grade clumping clay with no
chemical additives or synthetic perfumes and has a dust-free formula made from organic ingredients from
agricultural produce. As a result it was promoted as safer for cats, the home and the environment.
 New launches in pet healthcare also took place in 2009. Biopharm Oy launched Vibrac C.E.T. Enzymatic
Toothpaste in 2010. The toothpaste was meant for cats and dogs and came in poultry flavour. It was safe as
it was meant to be swallowed. It was advertised as preventing plaque and the build-up of harmful bacteria
as well as achieving fresh breath.
 Vitakraft Sun Seed Inc launched dietary supplements for birds such as Vitacraft Lebertran-Perlen, a vitamin
rich dietary supplement. Vitacraft Moulting Cocktail was meant as a vitamin rich dietary supplement for
birds during the moulting period, but could also be used as a complement with medication and to improve
the health of ill birds. Nutrolin dietary supplements on the other hand were meant for dogs and developed in
Finland and manufactured by the Finnish company Olini Oy. Nutrolin dietary supplements were meant for
different ages: Nutrolin Pentu was meant for pups, Nutrolin Ravintoöljy for adult dogs and Nutrolin Seniori
for elderly dogs.
 Metro Cooling Fan manufactured by the Metropolitan Vacuum Cleaner Co Inc, was meant to be attached to
the dog cage and works with batteries and was advertised to be ultra quiet and hence not frightening to pets
while keeping them cool in hot weather. Pro Collar by G&B Marketing Inc, is an inflatable collar to be used
after operations and is advertised as innovative, comfortable for pets, as well as more furniture-friendly than
the old fashioned lampshade-style collars. Dog Gone Smart cat and dog bedswere innovative launches from
Nano Pet Products LLC which use nano technology and are dirt and oil repellent, which helps to avoid
doggy smells and prevent bacteria growth. These are very easy to take care of products and are gathering
popularity as sales were supported by an infomerical running in pet stores as well as in online stores. The
new Furminator hair brush by Furminator Inc, was advertised as reducing cat and dog hair fall out by 90%
and thus helps to keep pets as well as the home, cleaner.
 Advertising was carried out through various mediums including M&M Express, the magazine of Finland’s
leading chain of pet shops, which was very important due to its large readership. Companies were required
to keep websites up to date with informative and attractive pages.
 Consumers remained interested in premium products they considered as worth the money and innovative.
Economy product sales interested too as increased unemployment forced pet owners to reconsider their
spending and the necessity of their products.

 Euromonitor International Page 2

Pet Products Finland

 Private label products gained popularity in 2009. Inex Partners Oy and Kesko Oyj managed to increase their
share to 7% and 6% respectively in 2009. Their share increases were mainly due to cat litter sales as their
sales in other pet care products, such as pet waste bags, were insignificant.
 Domestic manufacturers were present in healthcare and dietary supplements; with both categories led by
Orion Oyj which held 22% and 28% shares respectively in 2009. A far smaller Finnish market player,
Biofarm Oy, also ranked fifth in dietary supplements with a share of less than 8% in 2009.
 Some packaging innovation took place also. Best Friend Fresh & Easy cat litter was packaged in 15L
packaging which was advertised as lasting up to four months and only weighing one third of the weight of
normal cat litter.

PROSPECTS
 Pet products is expected to grow at a CAGR of almost 3% in constant value terms over the forecast period
to reach EUR54 million in 2015. Healthy growth rates are expected due to the caring and pampering trend.
New product developments are also expected to drive sales. Pampering pets and taking good care of their
health and wellbeing as well as making caring for pets more convenient will be essential reasons for pet
care product purchasing.
 Pet product sales are expected to carry on without big fluctuations, growing at a CAGR of 3% in constant
value terms over the forecast period.
 If the recession persists, this may pose a growth threat to pet care products as consumers may be pushed
into further saving and limiting purchases to the most essential and more affordable.
 Other pet products and cat litter are expected to perform best over the forecast period, each growing at
CAGRs of 3% in constant value terms over the forecast period. Other pet care product sales will be driven
by the pampering trend and new product launches whilst cat litter sales will be driven by the increasing cat
population in Finland.
 Companies are expected to promote and advertise their products in order to keep their products visible and
noticed by consumers. Also, offering a good variety of products and ensuring good distribution are essential
in driving brand sales.
 New product launches are expected to gain interest. More innovative products can be expected that will try
to cater to current consumer trends.
 Cat litter is expected to grow at a CAGR of less than 3% in constant value terms over the forecast period, to
reach well over EUR20 million in 2015. The sales will be driven by the increasing number of cats in
Finland. Consumers will be weighing up the prices against the quality; especially at the beginning of the
forecast period when the negative effect of recession will be clearest. Nonetheless, convenient and efficient
cat litter will be a strong consumer trend as providing maximum comfort for both cats and cat owners will
be very important indeed.
 Pet healthcare is predicted to be worth around EUR2 million in 2015 as its value is predicted to grow at a
CAGR of over 1%.No big consumption habit changes are expected in this category. Efficient products
which can be easily used and consumed are likely to gain the most interest.
 Pet dietary supplements is not expected to grow very much, with a CAGR of just 1% in constant value
terms predicted over the forecast period. The reason behind the stagnation is that premium food products
are already promoted as functional and enough to maintain good health.
 Product choices falling under other pet care products are varied. Vests for smaller dogs, for example are
predicted to perform well, as the number of small dogs in Finland is predicted to grow well.

CATEGORY DATA
Table 1 Sales of Pet Products by Type: Value 2005-2010

EUR million

 Euromonitor International Page 3

Pet Products Finland

2005 2006 2007 2008 2009 2010

Cat Litter 15.6 16.1 16.6 17.0 17.4 17.9

Pet Healthcare 1.7 1.7 1.8 1.8 1.8 1.8
Pet Dietary Supplements 1.2 1.2 1.2 1.2 1.2 1.2
Other Pet Products 20.7 22.1 23.3 24.7 25.8 26.6
Pet Products 39.1 41.1 42.9 44.8 46.3 47.6
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor International estimates

Table 2 Sales of Pet Products by Type: % Value Growth 2005-2010

% current value growth

2009/10 2005-10 CAGR 2005/10 TOTAL

Cat Litter 2.9 2.8 14.8

Pet Healthcare 1.3 1.4 7.3
Pet Dietary Supplements 0.8 1.5 7.8
Other Pet Products 3.0 5.2 28.7
Pet Products 2.9 4.0 21.6
Source: Official statistics, trade associations, trade press, company research, store checks, trade interviews,
Euromonitor International estimates

Table 3 Sales of Healthcare Products by Type: % Value Breakdown 2005-2010

% retail value rsp

2005 2006 2007 2008 2009 2010

Flea/Tick Treatments 30.0 30.0 29.0 29.0 29.0 29.0

Worming Treatments 20.0 20.0 20.0 21.0 21.0 21.0
Other Products 50.0 50.0 51.0 50.0 50.0 50.0
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International
estimates

Table 4 Forecast Sales of Pet Products by Type: Value 2010-2015

EUR million
2010 2011 2012 2013 2014 2015

Cat Litter 17.9 18.3 18.7 19.2 19.7 20.3

Pet Healthcare 1.8 1.9 1.9 1.9 1.9 2.0
Pet Dietary Supplements 1.2 1.3 1.3 1.3 1.3 1.3
Other Pet Products 26.6 27.3 27.8 28.4 29.1 30.2
Pet Products 47.6 48.7 49.7 50.7 52.1 53.7
Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International
estimates

Table 5 Forecast Sales of Pet Products by Type: % Value Growth 2010-2015

% constant value growth

2010-15 CAGR 2010/15 TOTAL

Cat Litter 2.5 13.2

Pet Healthcare 1.3 6.4
Pet Dietary Supplements 1.1 5.6
Other Pet Products 2.6 13.4
Pet Products 2.5 12.9

 Euromonitor International Page 4

Pet Products Finland

Source: Official statistics, trade associations, trade press, company research, trade interviews, Euromonitor International
estimates

 Euromonitor International Page 5