Showing posts with label pet food. Show all posts
Showing posts with label pet food. Show all posts

11 January 2017

BUSINESS - US Pet Food Market to Reach $30B by 2022

A recent report by Zion Market Research states the “US pet food market is expected to reach USD 30.01 billion in 2022 and is anticipated to grow at a CAGR of 3.36% between 2017 and 2022.”

The US pet food market had a value of US$24.60 billion in 2016.

The report, Pet Food Market (Wet Food, Dry Food, Nutrition, Snacks and Others) for Cats, Dogs and Other Animals: US Industry Perspective, Comprehensive Analysis and Forecast, 2016 – 2022, defined pet food as ready to serve food for pets such as dogs, cats, fish, birds and others.

The predicted growth of the pet food market is based on a rise in discretionary income, the increasing variety of ready to serve food on the market, and continued increase in the number of owned pets.

The National Pet Owners Survey in 2015 indicated around 60% of US houses have pets.

The shift in preference for nutritious pet food over the conventional food is also expected to foster the demand for pet food in the U.S.

The report notes there are almost 300 manufacturers operating in pet food sector in US which in total produce approximately 7 million tons of pet food annually.

Some of the major global players in pet food are Mars Petcare Inc., Big Heart Pet Brands, P&G PetCare, Nestle Purina PetCare, Hill’s Pet Nutrition, Diamond Pet Foods, Deuerer, Blue Buffalo, WellPet and Heristo AG.

06 November 2016

RESEARCH - 3 Trends Driving Natural, Organic, & Eco-Friendly Pet Product Sales

According to a report by Packaged Facts, natural and organic products benefit from the consumer perception, whether real or imagined, that they are purer and safer than regular products.

The report - Natural, Organic and Eco-Friendly Pet Products in the U.S., 6th Edition - states 64% of dog owners and 56% of cat owners consider product safety and the potential for contamination when purchasing pet food.

As well, half (50%) of pet product purchasers agree that natural and organic pet foods are safer than regular pet foods.

“The widespread pet food recalls of spring 2007 thrust the issue of pet food safety into the spotlight,” said David Sprinkle, research director, Packaged Facts.

“Additionally, food recalls and pathogen outbreaks in the human food markets have left consumers leery of trusting the safety of the food products they are purchasing and caused them to question not just what they themselves are consuming, but their pets as well.”

Beyond lingering pet owner concern over product safety, Packaged Facts has identified three key trends that are shaping and growing the market for natural, organic and eco-friendly pet products:

  • Grain-Free Pet Food Proves More Than a Passing Trend: As of 2016, the grain-free movement has become such a large part of the pet food market that what began as a natural product phenomenon has crossed the boundaries into more conventional products. At the same time, the trend has become firmly entrenched as a crucial part of natural pet food market positioning. Packaged Facts’ pet owner survey reveals that 19% of dog owners and 15% of cat owners were using grain-free pet foods—percentages that will only continue to swell.

  • Increased Transparency Crossing Over From Human Market: The combination of consumer interest in the nutritional quality and safety of the pet foods and supplies they purchase has driven a demand for increased transparency in the contents and composition of products in the pet market. Mirroring trends in consumer packaged goods across the U.S., the more consumers educate themselves about the potential hazards that exist in the products they purchase, the more they desire to know exactly what it is that they are putting in, or on, their pets’ bodies, and are thus demanding labels that accurately reflect the contents of the product.

  • Availability of Grass-Fed and Free-Range Protein Sources: Like so many other human food trends, the appeal of meat protein that is ethically and sustainably sourced has crossed over into the pet food market. While the expense of grass-fed and free-range foods for pets may be off-putting, pet owners committed to both high quality foods and ethical food production see grass-fed and free-range proteins as worth the cost.

As reported in InfoStream, the Nielson study - Humanization of Pet Food - also emphasized the importance of natural pet food to consumers.

Seventy-four percent surveyed seek non-genetically modified organism (non-GMO), while – in descending order – the other top pet food criteria included claims of natural food and food containing enzymes.

25 June 2016

BUSINESS - Increase of Over 350% in Pet Food Spending in 30 Years

A recent blog by Debbie Phillips-Donaldson, Editor-in-Chief of Petfood Industry, analyzes an increase in pet food spending of US$18.91 billion in the 30 years from 1984 to 2014.

The historical data is from the US Bureau of Labor Statistics (USBLS) and compiled and analyzed by John Gibbons of PetBusinessProfessor.com.

Though not at all an apples-to-apples comparison, Phillips-Donaldson wrote, it’s worth noting that from 1992 to mid-June 2015, overall US grocery store sales grew 85%; in that same period, pet food spending rose 180%.

The humanization of pets and premiumization of products for them, has definitely been a factor in the spending increase.

In 1984, pet care spending represented 0.48% of all US consumer expenditures. By 2014, that had nearly doubled to 0.95%.



Read the full story.

03 May 2016

Open Farm Launches First Certified Humane® Dry Cat Food

Humane Farm Animal Care (HFAC), the leading non-profit certification organization dedicated to improving the lives of farm animals in food production from birth through slaughter, announced that Open Farm is launching the first ethically-sourced dry cat food in the U.S. and Canada with the Certified Humane® Raised and Handled® label.

Open Farm launched their Certified Humane® dog food products in stores across Canada and the U.S. in late 2014 and early 2015.

“Since then, cat owners have been begging for a Certified Humane® cat food option,” Adele Douglass, Executive Director for HFAC, said in a release.

This demand comes as no surprise with the trend of humanization of pet food and increase in popularity of more natural food sources.

Under the Certified Humane® label, Open Farm will use only meat and poultry products in their cat food that come from Certified Humane® farms and ranches.

The Certified Humane® label assures consumers that farm animals are raised on farms where they can express their natural behaviors, such as flapping wings and moving around freely in their environments, and where they can live free of cages and gestation crates.

The farm animals also must also be raised without antibiotics or growth hormones and must not be fed any animal by-products.

“Cats are obligate carnivores and require meat to survive, so giving pet parents a humane option allows them to be assured that their cat’s food is coming from a good place,” said Jacqueline Prehogan, President of Open Farm, in the release. “With the launch of our cat food, pet owners can finally provide their cats with premium nutrition while taking comfort in knowing that our entire farm-to-bowl supply chain is audited and certified.”

29 April 2016

RESEARCH - Natural, Non-GMO Pet Food Gaining Popularity

Doting dog and cat owners are buying into nothing but the best for their pets.

And in some cases, pets fare better than owners, with a little more than half (55%) of respondents in a recent survey claiming they would “give up chocolate to ensure they could buy a high-quality pet food” for their four-legged friend.

Another 34% of American owners and 24% of French owners says they are happy to buy vitamin-enriched waters for pets.

Nielsen, for its Humanization of Pet Food Survey, recruited 3,562 American and French pet owners (consumers between ages 18 and 65 who own at least one dog or cat) and found some will put their pet on a pedestal.

But many are not far behind in seeking high-end, quality fare.

Seventy-four percent seek non-genetically modified organism (non-GMO), while – in descending order – the other top pet grub criteria included claims of natural food and food containing enzymes.

A little more than half look to buy scientifically-formulated items (55%) for their pets, according to the survey.

Relying on Optimizer technology - “powered by an evolutionary algorithm,” Nielsen said it “evaluated more than 5 million product concept alternatives for dog and cat foods including different combinations of benefits, claims, consumer insights and flavors.”

Consumers were then asked to choose which concepts their preferred and eventually data was fine-tuned to reach a “set of top owner preferences.”

Of course, the findings are interesting as stand-alone information, but the aim is to offer them as a tool for pet food and product makers to harness when looking at how to best promote their wares.

Starting at the top priority - or what's good for the goose is good for the gander.

Both French (at 50%) and U.S pet owners (at 33%) ranked non-GMO products among the top three most important health-related pet food qualities they seek with nearly half willing to pay more for such products.

Many back buying that option because they “themselves don't want to eat GMOs, so their pets shouldn't have to,” as well as the belief non-GMOs are natural.

Next on the list are back-to-nature seekers.

Those are pet owners who want to know Fido's food contains ingredients like “natural digestive enzymes.”

And while “scientifically formulated,” once carried a lot of weight, the Nielsen survey noted a shift in favour to natural, chosen by 65% of owners compared to 55% attracted to scientifically formulated.

Several respondents included comments on why they shy away from the latter, including; “When I see the word ‘scientific,’ it makes me think the food has added preservatives and hormones” and “What does ‘scientifically formulated’ mean? It sounds unnatural.”

Respondents pamper their pets, for sure, but the majority claim they feel responsible to buy “healthy” options rather than over-the-top indulgent ones, with 85% believing that is a way to extend the lives of their beloved animals.

Looks mean a lot, too, with 90% of those surveyed saying it is crucial that their pet look healthy and sit at an ideal weight.

While pet owners profess to be pretty particular in what they buy, they are also eager to try new options – if the product claims to make health a top priority.

To that end, nearly half the respondents say they were interested in fruit or vegetable chews for pets and are intrigued and would be potential purchasers of everything from nutrient drop or powder supplements, soups and stews, energy-boosting snacks and protein bars.

A Harris Poll survey found 95% of American pet owners consider their pets part of the family – with the Nielsen study showing many certainly treat them like one of the clan.

By Nadia Moharib
Nadia Moharib is an animal lover who has adopted everything from birds to hamsters, salamanders, rabbits, fish and felines. She has written about all-things-pets for years and was a long-time editor of a pet magazine in a daily newspaper which featured a Q & A column, Ask Whit, penned by her pooch (ghost written, of course.) The serial dog owner lives in Calgary, Alberta and most days can be found at a dog park picking up after her rescue pooch, Scoots.

16 April 2016

BUSINESS - Leader in GMO-free, Organic Rice-based Products Enters Pet Market

St. Louis-based RIBUS, Inc., the global leader in GMO-free and organic rice-based alternatives to synthetic ingredients in human food uses, has expanded into the pet business, supplying manufacturers of cat and dog treats, livestock supplements, and specialty items.

RIBUS is supplying some of the largest companies in the world, and is able to bring 25 years of experience in human food applications to produce efficiencies, texture improvements, and cleaner labels for pet products globally.

With a heightened awareness of GMOs (genetically modified organisms) in human food, and the trend towards humanization of pet food, this move should not come as a surprise.

“Consumers want both clean hands and clean labels for anything they give their best friends, and manufacturers want ingredients that enable them to bake, extrude, or form treats, food, and nutritional products easily while providing the target taste and texture,” says Steve Peirce, RIBUS President. “The RIBUS ingredients make it a win-win situation for both.”

The rice-based ingredients also serve as alternatives to magnesium stearate, monoglycerides, and silicon dioxide – all prohibited in the manufacture of organic products.

RIBUS products are made from rice hulls and bran from California.

25 January 2016

WellPet to Acquire Sojos

According to petfoodindustry.com, WellPet L.L.C., manufacturer of natural and pet health-focused pet foods, has acquired Sojos, a family-owned company that specializes in homemade freeze-dried pet food.

WellPet, based in Tewksbury, Massachusetts, says Sojos will continue to be based in Minneapolis, Minnesota. Introduced in 1985, Sojos pioneered the fast-growing category of raw nutrition for pets.

WellPet says there will be no changes in the day-to-day operations of either company and Sojos co-owners Ward and Maggie Johnson will help with the transition.

“Ward and Maggie Johnson have built one of the most exciting brands in raw nutrition and a first class team and manufacturing facility,” said WellPet CEO Tim Callahan. “WellPet and Sojos share a mission to transform the lives of pets by providing the very best in natural nutrition and, now, our collaboration will enable them to grow and serve more pet families while staying true to the Sojos we know and love.”

The five brands now under the WellPet umbrella are Wellness, Holistic Select, Eagle Pack, Old Mother Hubbard and Sojos.

17 October 2015

PetSmart's Acquisition of Petco Encounters Roadblocks

PetSmart and Petco were in discussion to merge the two companies with PetSmart acquiring Petco. Financial analysts had mixed opinions over what this acquisition would mean for the North American pet supply market. The two companies are still interested in joining however the deal has met some roadblocks; according to Reuters the companies are reportedly having disagreements over sharing the risk of having the deal approved by American antitrust authorities. All parties involved have asked for confidentiality, declined to comment, or did not respond to comment requests from Reuters.

Petco has declined a proposal that requires compensation to PetSmart should the Federal Trade Commission require many store closures. Petco has asked several private equity firms to submit their acquisition offers within several weeks. The owners hope to sell Petco for at least $5 billion USD, including debt.
   
Petco filed for an initial public offering in September 2015 and this avenue will be opened if the company is not sold.

 

14 October 2015

Insight Into the Potential PetSmart-Petco Merger

Petco Holdings Inc will potentially be acquired by PetSmart Inc. The two companies have had informal discussion regarding PetSmart’s potential acquisition of Petco. However, neither company is publicly disclosing any information regarding a potential acquisition.

While Petco operates more stores in the United States their revenue does not compare to PetSmart. Petco has 1,400 stores in the US and had a revenue of $3.99 billion USD last year while PetSmart has 1,300 stores in the US and had a revenue of $6.9 billion USD.

If PetSmart acquires Petco then the resulting company would control approximately 30% of the American specialty pet retail market. Such dominance would probably result in store closure according Howard Davidowitz, CEO of Davidowitz & Co., a retail investment bank and consulting firm. Davidowitz said, "They would never even get to this point without having met with every smart merger lawyer and looked at this 1,000 different ways. When you go forward with this, you are spending tens of millions of dollars just to explore it."

Wedbush Securities Analyst, Seth Basham believes that a merger would increase market concentration which would be a warning sign for regulators. Regulators may require store closures. Even if they do not, PetSmart may close Petco locations. Basham said that approximately 72% of Petco locations are within five miles of a PetSmart.

Regarding a merger, Davidowitz said, "If you are asking me if things are going to be better after the merger, (the answer is) absolutely not. What they should be doing is perfecting their businesses, coming up with specialty niches within pets. I can think of a hundred things they ought to be doing."

Basham believes a merger is “feasible and very attract financially”. He said, "We believe a combination with Petco would buy PetSmart synergies, but would not solve its competitive dilemma, underscored by rapidly shifting shopping behavior and increasing online competition. In fact, an acquisition of Petco could distract PetSmart from addressing this issue and add increasing pressure. After all, Petco is a smaller and somewhat weaker competitor with generally higher in-store pricing."


10 October 2015

Texas A&M Holds Course on Pet Feeds

Texas A&M will be holding a one week course on Feeds and Pet Food Extrusion from January 31st to February 5th, 2016. The course will be led by university staff, industry representatives, and consultants.

The course will focus on:
  • Designing new feed mills.
  • Selecting conveying, drying, grinding, conditioning, and feed mixing equipment.
  • Production of pet foods.
  • Full-fat soy meal.
  • Recycling fisheries by-products.
  • Raw animal products.
  • Secondary resources.
  • Extrusion of floating, sinking, and high fat feeds.
  • Spraying and coating fats.
  • Digests and preservatives.
  • Encapsulated ingredients.
  • Preparation of premixes.
  • Least cost formulation.


06 October 2015

Lawsuits Spread Regarding Allegedly Using Fish Caught by Slave Labourers

Right on the heels of the lawsuit against Nestlé for allegedly using fish caught by slave labourers is a lawsiut against Big Heart Pet Brands (owned by Smuckers) for allegedly importing pet food from suppliers that use slave labour.

One of the suppliers that Nestlé uses, Thai Union Frozen Products, has exported almost 30 million pounds of pet food into the United States. Thai Union has been linked with slave labour. Hagens Berman alleges that Big Heart Pet Brands also imports products from Thai Union and is therefore using products that were caught by slave labourers. Bergman said Big Heart Pet Brands does not disclose that they use fish caught by slave labourers and that violates California law.

The law firm that is representing Bergman states, “Based on our investigation and media reports, Hagens Berman attorneys believe that Thai Union relies on forced or slave labor to catch the fish used in fish-based Meow Mix-brand wet cat foods. These men and boys are victims of many human rights violations: they are trafficked from countries neighboring Thailand, sold to fishing boats by brokers and smugglers, and forced to work under physical violence, emotional abuse, and verbal threats. Reports by the New York Times and The Guardian have recently shed light on these inhumane working conditions.”


04 October 2015

AFIA Holds Seminar Linked to Food Safety Modernization Act

The American Feed Industry Association (AFIA) holds several Regulatory Training Seminars (RTS) each year. The next RTS will take place on December 8th, 2015, and is entitled “Phase III The Future is Now”. This seminar provides information to assist industry professionals with the new Food Safety Modernization Act.

RTS allows for industry professionals to group and develop new skills and knowledge. It is designed for regulatory directors with several years of experience in the pet food industry. “Phase III The Future is Now” will include discussions with industry experts regarding Food and Drug Administration inspections, reportable food registry and recalls, and how to work with regulatory bodies and the Association of American Feed Control Officials.

AFIA Director of Ingredients, Pet Food and State Affairs, Leah Wilkinson said, "It is important for regulatory professionals to have the opportunity for continued education, learning the latest changes in regulations and honing their skills by working through case studies. This seminar will help participants wade through regulations, ask questions, get answers and learn from each other's best practices."


18 September 2015

Canada Changes Pet Food Importation Policy

As of September 1st, 2015 the Canadian Food Inspection Agency (CFIA) stopped issuing import permits for US pet food, treats, and chews that do not contain bovine ingredients. The affected products now need to have a health/export certificate that has been issued by the United States Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS).

For the time period between September 1st, 2015 to June 30th, 2016, APHIS will issue health/export certificates for the necessary products. These certificates will be based upon a notarized affidavit from manufacturers. Beginning July 1st, 2016, APHIS will issue certificates based upon their own inspections.

APHIS certificates will not be restricted to single shipments but all applicable shipments within seven days. President and CEO of the Pet Food Institute, Cathleen Enright, PhD, said, “The pet food industry is grateful for the effort by APHIS and CFIA to find a timely, workable process that meets Canada’s new import requirements without disrupting the supply of safe, nutritious food for Canada’s cats and dogs.”


16 September 2015

Nestlé Sued for Allegedly Using Fish Caught by Slave Laborers

The class action suit has been filed in the Central District of California for violation of California consumer protection laws. The case file states, “America’s largest and most profitable food conglomerates should not tolerate slave labor anywhere in their supply chains. These companies should not turn a blind eye to known human rights abuses or shirk from investigating potential human rights abuses by their suppliers, especially when the companies consistently and affirmatively represent that they act in a socially and ethically responsible manner. When these food conglomerates fail to uphold their responsibility for ensuring the absence of slave labor in their supply chains, their misconduct has the profound consequence of supporting and encouraging slave labor. And when these food conglomerates fail to disclose the use of slave labor in their supply chains to consumers, they are deceived into buying products they would not have otherwise and thereby unwittingly supporting slave labor themselves through their product purchases.”

Nestlé has a partner in Thailand, Thai Union Frozen Products PCL (Thai Union). According to United States custom documents Thai Union shipped in excess of 28 million pounds of seafood-based pet food into the United States. Thai Union is a vertically integrated producer, processor, and exporter of canned seafood and pet food. Thai Union uses fish that are sourced from “motherships”; motherships are large boats that collect fish from smaller fishing vessels and markets. Director of Anti-Slavery International, Aidan McQuade said, “If you buy prawns or shrimp from Thailand, you will be buying the product of slave labor.”

The case file states, “In the course of marketing and selling its pet foods, however, Nestlé materially omits and does not disclose the likelihood that much of the fish in its pet food is the product of slave labor. Furthermore, Nestlé does not disclose that despite its awareness that slave labor is being used in its supply chains, Nestlé has not required its suppliers to remedy this human tragedy.”


12 September 2015

Particle Size: What is its Importance in Pet Food?


Research has been performed on particle size and digestibility in livestock feed but little research has been done on the impact that particle size has in dog food. Dr. Aulus Carciofi and colleagues studied particle size and digestibility of maize, rice, and sorghum. Particle size was categorized as fine, medium, and coarse. 
The results concluded that particle size is important for maize and sorghum but not for rice. Rice is easily digested and does not require significant processing, unlike maize and sorghum. The research demonstrated that maize and sorghum are "dependent on a proper raw material particle size and need to be appropriately extruded to produce highly digestible foods" according to Carciofi. Carciofi said, “If properly processed, maize and sorghum are as easily digested as rice-based food." Regarding most pet food manufacturers, Carciofi said they "have only one grinding condition for all recipes, and do not change the extrusion size,based on the type of cereal used."


06 September 2015

What Are Americans Feeding Their Pets and Why?

Pet Food Industry reported that according to GfK, sales of raw freeze-dried pet food increase 64% in the past year. Raw frozen pet food sales increased 32% in the same time period. These numbers clearly show that raw foods are becoming more popular with pet owners.

Allprovide (a pet food manufacturer) surveyed 1,826 pet owners in the United Sates asking about their pet food preferences, knowledge, and interests. Here are the summarized Allprovide study results:
  • Thirty-three percent would be interested in feeding their 
    pets a fresh, raw food diet.
  • Forty-six percent said they hadn’t heard of the raw pet food diet prior to the survey.
  • Thirteen percent of those surveyed already do feed their pets raw food.
  • Pet health is the number one factor (94%) for consumers when choosing their pet’s food.
  • Freshness and quality (89%) are the second motivating factors for purchase.
  • Cost is the third consumer consideration (65%) in purchase.
  • Eighty-nine percent of pet parents currently feed their pets processed foods and fillers.
    • Twenty-three percent of those who feed their pets processed foods report their pets suffer from skin problems, arthritis, kidney problems or food allergies.
    • The same number of respondents (23%) report that their veterinarians have suggested a change in diet to treat those illnesses.
  • Thirty-three percent would prefer to have their pet food delivered on a regular schedule, as opposed to 
    buying it in-store.
  • Fifty-five percent would prefer to give their pets fresh 
    food that can be served naturally or cooked.

While 33% of dog and cat owners are interested in feeding their pets a raw diet, several large organizations including the United States Food and Drug Administration and the American Veterinary Medical Association warn people about the potential dangers of raw food. In the end, only time will tell how the evolution of pet food develops and the long-term risks/benefits associated with different foods.