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PETS International Magazine - October 2023

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48 views84 pages

PETS International Magazine - October 2023

Uploaded by

maporaf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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OCT 2023

THE GO-TO PUBLICATION FOR PET INDUSTRY PROFESSIONALS SINCE 1988

GERMANY, AUSTRIA
& SWITZERLAND
Regional report &
retailer interview

FOOD &
INGREDIENTS
Machinery, preservatives
& freeze-dried treats

DEEP DIVE

PRIVATE
LABEL ON THE
RISE?
H IER TR
LT E

AT
HE

S
BAKE
HA

TS
P E
PI
ER P

DRY & COOK & BAKE SOLUTIONS


· New All-in-One technology:
Dehydrating, cooking and baking
by forced convection
· Acceleration of Innovation:
Allows to develop new foods
and treats for pets
· Great Versatility:
Possibility to dry & cook & bake
any type of product and format
· Process Optimization:
Continuous system, with superior
performance and lower energy consumption
· Full Connectivity 4.0:
Full control of the process

www.metalquimia.com
HIGHLIGHTS IN THIS ISSUE

9 37

Food and ingredients Global pet industry


Why does private label perform better in Europe than How’s the ‘hot’ category of CBD for pets doing?
in the US? We also look at the trend of freeze-dried What are the latest trends in beds and cushions?
treats and developments in pet food manufacturing How important is social media for pet brands? Can
equipment. Additionally, you’ll discover a research a lower VAT rate help combat rising prices? Find all
update on additives like copper and zinc, as well as the answers. Plus, more details on the GlobalPETS
preservatives. Forum and supermarkets entering the pet space.

65 Germany, Austria
and Switzerland
How is the pet industry doing in the DACH
region? We present some facts and figures
and a more detailed analysis of online sales
in Germany. We also sit down with the
largest European pet retailer, Fressnapf, for
an interview.

Freeze-dried treats Private label Retailer interview


Freeze-dried pet food is increasingly The private-label pet food category is What has Europe’s largest pet retailer been
popular. Is the same trend extending to performing better in Europe than in the US. up to? How are they performing in the
treats? We look at the data and the latest What are the reasons behind this difference? DACH region and what are their future
innovations. Page 10 Page 13 plans? An interview with Fressnapf. Page 76

PETS INTERNATIONAL  |  OCTOBER 2023  |  HIGHLIGHTS IN THIS ISSUE


AV R S
AIL
ABLE LOU
IN THREE NE W CO

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Primo Plus is a structured harness that offers


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2 PETS INTERNATIONAL  |  SEPTEMBER 2023  |  SECTION NAME

WWW.TRE-PONTI.IT
Is the pressure now on?
In the current inflationary environment, price is In this issue’s regional deep dive, we look at one of
becoming an increasingly important factor for Europe’s largest markets: the DACH region. How is
consumers. So what we all want to know is how pet the pet industry doing in Germany (D), Austria (A) and
owners will respond in the near future. Switzerland (CH)? There’s an update on Germany’s
online landscape. And we sat down with Europe’s
How will purchasing behavior change? Are private largest pet retailer, Fressnapf.
label products likely to become more popular? And
how does their popularity differ in Europe and the US? Finally, we are unveiling more details of our upcoming
There’s also considerable debate on the impact of GlobalPETS Forum in Venice. You’ll discover what
lowering VAT for pet food products to help alleviate the event is all about – its theme, the format, some
the financial burden for consumers. of the keynote speakers, and the nominees for the
GlobalPETS Forum award. Tickets are selling fast, so I
While there is some pushback around CBD in various hope to see you there!
countries, it is a segment that is definitely picking
up steam. So you’ll find a market overview that Happy reading,
makes interesting reading. And we’ve partnered with
Yummypets to ask consumers how they feel about
using CBD – and whether they’ve yet tried it for
their pets. Philippe Vanderhoydonck
Managing Director
On the pet food front, freeze-dried is all the rage.
This time, we take a good look at the data around P.S. If you don’t receive our newsletters yet, go to
freeze-dried treats. We also analyze how pet food globalpetindustry.com and sign up to keep a finger
machinery needs to evolve to meet changing on the pulse of the industry.
consumer demands. And you’ll learn more about
the preservatives used in food for pets.

Editorial team © Copyright 2023, Intermedium Publishers BV.


Philippe Vanderhoydonck (Managing Director) All rights reserved.
part of
PART OF David Palacios Rubio (Head of Editorial)
While we, as the publisher, aim for accuracy
Lisa van Roon (Head of Operations)
and completeness of the information presented,
Heiny van den Ham (Senior Editor)
Intermedium Publishers BV we cannot guarantee that. We cannot be held
Editors: Jessica Martindale, Lynn Radford,
James Cookstraat 13 liable for using this information. And we are not
Mandy Wolters-Savage, Elizabeth Youens
1056 RW Amsterdam (NL) responsible for the content of advertisements
or sponsored editorial.
+31-33-4225833 Graphic design
[email protected] Jack Waas globalpetindustry.com

PETS INTERNATIONAL  |  OCTOBER 2023  |  EDITORIAL


PET INDUSTRY HIGHLIGHTS

Stay up-to-date on what’s shaping the pet


industry. Subscribe to our newsletter:
globalpetindustry.com

3 out of 10 UK dog owners don’t know what they’re feeding their pets
A recent survey commissioned by UK-based fresh dog food
brand Butternut Box found that almost half of surveyed dog
owners (48%) could only identify up to 3 ingredients in their pet
food. And 3 in 10 did not know what they were feeding their pets.

A sizeable 36% of dog parents were worried that their pet wasn’t
receiving proper nutrition, while almost a quarter (23%) found it
hard to understand the listed ingredients.

4 out of 10 respondents admitted to finding their pet’s diet


more stressful than their own, and 41% wanted clearer labeling.
44% felt confused by contradicting advice on what makes a
dog’s diet healthy.

Latest round of investments


Private equity firm L Catterton continues its venture into In the US, Kansas City-based pet insurance and animal
the pet industry with a strategic investment in Withmal, one wellness company Companion Protect closed an investment
of Japan’s largest veterinary services groups. This puts the of $27 million (€24.9M) in a Series A round. The company said
veterinary group in a good financial position to accelerate its that the investment will help on its journey to “disrupt the pet
domestic expansion, while building on its service quality and health space and bring pet healthcare to the masses”.
relationships with pet parents.
Veterinary software company Otto closed a $43 million
Investment firm Jebsen Group has recently acquired Hong (€39.65M) Series B funding round with existing investors
Kong online retailer Vetopia. The group emphasizes that the Mercury Fund and Boehringer Ingelheim. Hill’s Pet Nutrition
deal aligns with its ambition to continue its investment “in the joined as a new investor in the start-up, which is based in
thriving pet care and retail industry” in Greater China. Austin, Texas.

London-based fresh dog food company Butternut Box has Los Angeles DTC firm Jinx has raised $17.85 million (€15.9M) in
raised £280 million ($351M / €327M), led by its new private Series B funding. The company believes that this new capital
equity investor General Atlantic, and existing investor injection underscores Jinx’s capacity to thrive in challenging
L Catterton. The company plans on using the investment environmental and economic conditions.
to expand its brand presence in Europe, including a new
US pet supplements company Native Pet has secured $11
manufacturing facility.
million (€10M) in a Series B round of funding to accelerate its
growth through category innovations and retail expansion.
Native Pet products are sold on the company’s website, as well
as through Amazon, Chewy, Thrive Market, CVS and Target.

German pet supplement company Mammaly has raised


€14 million ($14.9M) in a Series A round. At present, Mammaly
sells its supplements through German retailer Fressnapf, but
it wants to scale up its presence in the retail channel after the
capital injection.

4 PETS INTERNATIONAL  |  OCTOBER 2023  |  PET INDUSTRY HIGHLIGHTS


PET INDUSTRY HIGHLIGHTS

Fressnapf opens new logistic warehouse


Fressnapf’s new 47,500 sqm facility, located close to
Berlin, will supply products to more than 400 stores across
Northern and Eastern Germany, Poland and Scandinavia.

Christian Buschmann, Vice President of Logistics,


Engineering and Real Estate for the Fressnapf Group, says
the company is “pleased to now move into the property
and put it into operation quickly”. It is believed that the new
warehouse will create 150 new jobs. HelloFresh enters the pet food industry
Berlin-headquartered meal kit company HelloFresh has
launched a private label personalized pet food service in
the US called The Pets Table. This marks an expansion of its
home delivery portfolio into subscription-based premium
pet food.

For now, the service will be available in all US states,


excluding Alaska and Hawaii, to target the rapidly growing
premium dog food market.

The new private-label pet food brand currently offers 4 plans


– fresh, air-dried, mixed, and half of fresh – and the company
looks forward to developing a premium range of treats.

Canadian pet retailers to expand distribution


capabilities
Legault Group is setting up a new 400,000 sqf automated
warehouse and distribution center in Quebec to supply
products to Mondou stores and to fulfill online demand.
The plant will cost over CAN$90 million ($66.6M / €62.4M)
and is expected to be operational by 2025.

Pet Valu also announced the opening of a new distribution


center. The 670,000 sqf premises are located in Brampton,
Ontario, and will bring “unprecedented” scale and
automation to Canada’s pet sector. When in operation,
it will be the largest distribution center and robotic
Yes, Alphia has been acquired! automation installation dedicated to serving the pet
specialty industry in Canada. The company expects that the
The rumors circulating about a potential sale of US pet food
new plant will have the capacity to process all orders the
manufacturer Alphia turned out to be true. Private equity
same day, while improving productivity by more than 50%.
firm PAI Partners has agreed to acquire Alphia from its
owner J.H. Whitney. The terms of the deal have not been
disclosed, but previous reports suggested that the company
was looking to sell its business for $1 billion (€920M).

Alphia manufactures over 1 billion pounds of dry pet food


and treats yearly. The Denver-based company has 6 facilities
in the US.

PETS INTERNATIONAL  |  OCTOBER 2023  |  PET INDUSTRY HIGHLIGHTS 5


PET INDUSTRY HIGHLIGHTS

South Korea’s plan to expand the local pet


industry
South Korea has announced its latest plans to expand the
East Asian country’s pet industry to 15 trillion ($11.4B /
€10.3B) in 3 years’ time.

In a statement, the Ministry of Agriculture, Food and Rural


Affairs said that the plans seek to “address evolving market
trends, such as pet humanization”. Korean officials valued
the local pet industry at 8 trillion ($6B / €5.5B) in 2022.

According to a survey, South Korea’s annual expenditure


on pets reached an average of 353,000 ($269 / €244) per
Dehner gets into top of Bavaria’s best person in 2022.
dealers list
Garden and pet retailer Dehner has been ranked 20th
out of 371 firms in Bavaria, Germany’s largest state, in the
SZ Institute Best Dealers list. Dehner is one of the leading
groups of garden centers in Germany and Austria, with
around 130 stores.

The ranking system allowed customers to decide which


outlet they thought was the best, and Dehner had an
average score of 2.35. The study collected over 33,000
responses, and participants rated the best retailers based on
their personal experiences and expectations.

How prices of US canned pet food could


increase by up to 30%
A proposal to increase the tax applied to imported tinplate steel
by up to 300% is under consideration at the International Trade
Commission and the US Department of Commerce. If adopted,
it is expected to have a noticeable impact.

The Pet Food Institute warns that imposing these additional


tariffs on consumer goods will increase the production costs of
canned cat and dog food.

The Consumer Brands Association (CBA) has stated that if the


tariffs go into effect, companies will be forced to raise food
prices. It is estimated that the cost of canned food and products
could increase between 19% and 30% if the new tariff receives
the green light from US officials.

According to CBA, the additional cost would be mainly


transferred to the end consumer. The increase per can across
all food categories could be between $0.36 and $0.58 (€0.33–
0.53). So the tariffs could considerably impact the wet cat food
segment, as this accounts for the largest percentage of sales
after dry food, representing 45%.

6 PETS INTERNATIONAL  |  OCTOBER 2023  |  PET INDUSTRY HIGHLIGHTS


PET INDUSTRY HIGHLIGHTS

German medical firm SYNLAB sells vet business to


Mars
SYNLAB Vet will join the Mars Petcare portfolio and become
integrated into the services provided across veterinary health
and diagnostics, nutrition, innovation and technology. The move
also allows Mars’ Science & Diagnostics division to expand its
European footprint.

SYNLAB, which did not reveal the value of the deal, has allegedly
decided to sell the business to Mars to refocus on its core human
diagnostics operations. According to some sources, the firm’s
veterinary diagnostics unit generated only 1% of the group’s
€3.2 billion ($3.4B) revenue in 2022. SYNLAB operates across
40 countries.

Purina launches new Eastern European division


A new division within Purina Petcare Europe will cover Central
and Eastern Europe as well as Southeastern Europe.

Jean Grunenwald, who has been operating as Regional


Business Head of Nestlé Purina PetCare in Asia, Oceania and
Africa for the past 4 years, is leading the new division.

Safety and reliability are top priorities for pet owners when it comes to their
beloved animals. The increasing demand for premium quality, high flexibility
and limitless reliability is constantly presenting petfood producers with new
challenges!
Whether wet food in cups, cans, jars and thermoformed packaging or clipped
products, such as dog sausage and fresh petfood filled to the exact gram, or
snacks, such as filled and unfilled chews, treats, sticks or stripes:
VEMAG offers reliable solutions with flexible machine systems!

VEMAG: Boundless Passion for YOUR Solution!

www.vemag.com · [email protected]

PETS INTERNATIONAL  |  OCTOBER 2023  |  PET INDUSTRY HIGHLIGHTS 7


PET INDUSTRY HIGHLIGHTS

Study shows vegan cats are healthier than


meat-fed ones
Findings from a new study from the University of Winchester
(UK) suggest that cats are not “obligate carnivores”, as has
been previously claimed, and indicate better health and
lower vet visits among cats fed a vegan diet.

The research among 1,300 cats concluded that vegan cats


made 7.3% fewer visits to the vet at an unusual frequency,
suggesting less need for emergency treatment.

Vegan cats also had a 14.9% reduction in medication use


and were 54.7% less likely to progress onto therapeutic diets.

There was almost a 4%


reduction in the veterinary
assessment of cats being
unwell, and a drop of
8% in cats displaying
Chewy’s expansion into Canada: severe sickness. Owners’
an easy conquest? opinions of their cats
being unwell were also
Some months ago, US online retailer Chewy made a huge
23% lower.
announcement – saying it plans to expand operations into
neighboring Canada this year.

Toronto-based e-commerce expert Ran Ravitz believes that


– unlike other US companies like Target and Nordstrom that Pets Corner: expanding their wings in
have tried and failed to enter the market – the expansion of Europe and the US
Chewy into Canada sounds like a “more simple conquest”.
Under its Pet Family
parent company, Pets
Ravitz, the founder of e-commerce agency Ecommerce
Corner has been recently
Pathways, adds that Amazon dominates Canada’s
expanding across Europe
e-commerce market and believes it will stay like this after
and the US. The firm
Chewy’s arrival.
currently operates 150
However, he predicts that the presence of the US locations in the UK.
online pet retailer will initially take market share from
traditional retailers. “It will challenge and eat away at their One of the latest
e-commerce sales,” he comments. developments was the
purchase of 30% of the retailer Cats and Dogs. The Belgian
Online competition is expected to intensify as soon as retailer, that currently has 7 stores in the Antwerp region,
Chewy enters the country, with its competitors aiming will keep its own identity and operate independently. Pets
to retain as much market share as possible. Some well- Corner hopes to open 20 stores in Belgium over the next 5
established players will promote their e-commerce stores years with the new partnership.
more widely, and leverage omnichannel strategies to
capture more customers. The UK retailer has also reached an agreement with US
pet retailer Kriser’s Natural Pet to expand its footprint in
It is believed that 23% of Canada’s pet spending is online, North America, a market where it already sells its products
while this represents around 34% in the US. That presents to independent stores. The first opening will be in Raleigh,
a favorable opportunity for Chewy to enter the market as a North Carolina, and that state will remain the focus for the
new player, but it will need to adapt to a new reality. coming years.

8 PETS INTERNATIONAL  |  OCTOBER 2023  |  PET INDUSTRY HIGHLIGHTS


Food and
ingredients
Why does private label perform better
in Europe than in the US? We also look
at the trend of freeze-dried treats and
developments in pet food manufacturing
equipment. Additionally, you'll discover a
research update on additives like copper
and zinc, as well as preservatives.

US consumers are loving freeze-dried treats 10 Should there be a limit on the concentration
A European approach to pet-food private labels 13 of copper in dog food? 23
Dietary AGEs and their impact on pets 16 Grain-free diets re-visited: an update on pulses in pet food 25
Search for sustainable fish-oil alternative Trends revolutionizing pet food manufacturing equipment 29
leads to microalgae 19 Pet food labeling and preservative use 32
A balancing act: the nutritional seesaw of copper and zinc 21 Preserving pet food – safety and regulations 35
US consumers are loving
freeze-dried treats
Freeze-dried and air-dried pet food options have grown in popularity in the US pet
food space, and the trend has crossed over into the treats market as well.

While many marketers of frozen raw food have already nutritional benefits of raw products, in a cleaner,
been offering freeze-dried treat options, traditional significantly more convenient format. The treats don’t
treat and kibble manufacturers are now entering the require refrigeration and avoid the mess frequently
category too. This is a sure indication of the potential of associated with raw products.
these products.
Marketers offering freeze-dried options are tapping
Potential to meet today’s demand into a range of treats market trends, such as single and
Freeze-dried and air-dried (or dehydrated) treats limited ingredients, weight management, and health
are popular because they offer some of the same and wellness in general.

Purchase rates for treats and chews by specialty formulation


(past 12 months, % of dog and cat treats/chews purchasers)

Whole animal parts (such as rawhide, ears, snouts, bone, hooves) 900+= 30%

Freeze-dried/dehydrated 720+= 24%


660+= 22%
Refrigerated (as sold in store) 560+= 18%
420+= 14%
Raw (other than freeze-dried) 420+= 14%
240+= 8%
Frozen 360+= 12%
210+= 7%
Source: Packaged Facts May 2023 Survey of Pet Owners 50= Dogs 50= Cats

10 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


Because freeze-dried treats tend to feature simpler Freeze-dried treats also address pet
ingredients, they are also part of the humanization owners’ demand for ‘clean labels’ and
trend, offering owners a treat product with ingredient transparency.
recognizable ingredients and a finished product that
more closely resembles human food. These treats range from beef liver nibs to bully sticks. The company
also address pet owners’ demand for ‘clean labels’ and also sells VE RAW BAR selections of freeze-dried
ingredient transparency. animal parts – individually and in bulk containers.
Pet retailers are getting involved as well, with both
Purchasing to sample Petco (WholeHearted) and Chewy (Tylee’s and
Data from the Packaged Facts May 2023 Survey of American Journey) offering private-label freeze-dried
Pet Owners shows that – by specialty formulation treat options.
– freeze-dried/dehydrated treats were second in
popularity only to treats/chews made from whole The future
animal parts such as rawhide. Some 24% of dog owners Because freeze-dried, air-dried and dehydrated pet
and 22% of cat owners who had purchased treats treats align with so many overarching pet market
in the US in the past 12 months purchased freeze- trends, demand for these products is definitely
dried products. expected to grow.

This purchase rate is somewhat higher than that for pet Pet owners appreciate how the treats feature
foods in the same category, with Packaged Facts survey minimal processing and recognizable ingredients in a
data from February 2023 showing that 12% of dog and convenient format, allowing them to enjoy guilt-free
cat owners had purchased freeze-dried pet foods in the bonding time with their pets.
past 12 months.
Latest investments
The difference in purchase rates is probably due to Underscoring the positive outlook for freeze-dried
pet owners being much more likely to purchase treats treat products are the number of recent mergers
to sample than to make a major change to their pet’s and acquisitions, as well as investments that involve
food. Additionally, a small bag of treats is less of a market participants.
commitment than a large bag of pet food.
Last October, BrightPet Nutrition Group acquired Bravo
More varieties on offer Pet Foods, which manufactures frozen raw and freeze-
Illustrating the popularity of freeze-dried treats, dried pet foods and treats. And in September 2022, Ziwi
Global Pet Expo 2023 featured several new product Ltd, a premium pet food exporter and maker of air-
introductions from the likes of Made by Nacho, A Better dried food and treats in New Zealand – that also does a
Treat, and Montana Dog Food Co. lot of business in the US – acquired Freeze Dried Foods,
another New Zealand company.
A number of other companies are active in the freeze-
dried and air-dried treats category. One of these is One of the biggest acquisitions in this space, in
West Paw, which markets several freeze-dried treats, February 2023, was pet market giant Mars Petcare’s
including its superfood-based duck variety. Another acquisition of Canada-based Champion Petfoods and
is K9 Bros with “gently dried” treats in salmon, chicken its Orijen and Acana pet food brands, both of which
and beef as well as fruit-based and vegetable-based offer freeze-dried treat products. ◆
varieties. And PureBites has a wide range of freeze-
dried and air-dried treats.

Shannon Brown
One of the top raw food players in the pet treats Pet Brand Manager
and chews market is Vital Essentials, offering several Packaged Facts

varieties of packaged raw freeze-dried treats. These

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 11


Every detail
matters
Without the little things,
no great results.

Visit us!
Pet Fair South-East Asia
25-27 October
booth H09

PLMA Chicago
12-14 November
booth F8726

Private label producer of


high-quality dry & wet pet
food, biscuits and snacks
for cats and dogs.
12 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS
www.unitedpetfood.eu
A European
approach
to pet-food
private labels
The private-label pet food category is performing better in Europe than in the US.
What are the reasons behind this difference?

Private labels in the European pet food market have more premium image for their private label brands,
seen a notable year, crossing the $6 billion (€5.5B) which has helped them to differentiate themselves
mark and regaining ground in terms of market share. from manufacturers’ brands
• European retailers tend to work in a more
A well-established category centralized manner than US retailers. This gives
With a significant share of the market (55% in volume them greater control over their supply chains, which
and 34% in value), private label is a well-established makes it easier for them to develop and promote
category within the fast-moving consumer goods their own private label brands.
(FMCG) sector in Europe. The market share in North
America is considerably lower in comparison (38% in Evolution of pet-food private labels
volume and 17% in value). The dominance of the private label category is slightly
less pronounced in the European pet food segment,
There are a few reasons to explain this difference: with a 47% volume share and a 31% value share. The
• European retailers have been more aggressive than comparatively lower prevalence of private labels in
their US counterparts in promoting their private pet food has historically been attributed to consumer
label brands preferences. When it comes to caring for others,
• European consumers are more willing to try new consumers tend to focus more strongly on quality and
products and have less brand loyalty than American therefore choose manufacturers’ brands over private
consumers labels. This trend can be seen in segments such as
• European retailers have succeeded in building a baby care as well as pet care. see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 13


Performance of pet-food private labels (volume change/price change vs. 2022)
-0.4%
Europe (33 countries) 22.6%
+23%

-0.1%
UK 25.5%
+26%

4.4%
Germany 20.4%
+15%

11.7%
France 32.7%
+19%
3.7%
Poland 32.9%
+28%

Source: NielsenIQ strategic planner, 52 weeks to 16 July 2023 % Volume change % Value change % Price increase vs. last year

Over the last few years, more sophisticated and Countries to watch
premium ranges of private-label pet food products Pet-food private labels have achieved volume growth
have been developed. However, these have struggled in a number of European countries, specifically France
to secure a foothold in the market dominated by (11.7%), Germany (4.4%) and Poland (3.7%). These
manufacturers’ brands, with both the volume share and growth figures are accompanied by notable increases
value share declining by around 1 percentage point. in volume shares, with Poland witnessing a 5.1%
increase, while Germany and France each saw a 4%
Nevertheless, there are signs of a shift driven by the increase. These gains surpass those achieved by private
recent increase in inflation rates and the erosion of labels in the broader FMCG category.
consumer spending power. The purchase of private
label products has now become a primary strategy for Interestingly, the United Kingdom deviates from this
people looking to manage their household expenses. trend, with the nation experiencing relatively stagnant
This is having a positive impact on the share of the volume growth. This can be attributed to a significant
private label category, both in the broader FMCG sector reduction in the product assortment, which happened
and within the pet food segment. to a lesser extent in the other 3 major countries.

Cost-of-living crisis Slightly less price-competitive


Another coping behavior to navigate the cost-of-living The prices of pet-food private label products have been
crisis is the increased willingness of consumers to shop raised a little more aggressively than branded products:
at discounter stores. This is also benefiting the private by 23%, compared to 19% for manufacturers’ brands.
label category, since the share of private labels is bigger This equates to a 1.3 percentage points increase in the
in the discounter channel. value share, from 29.6% to 30.9%.

This increased interest in private label has not yet As a result, private labels in the European region
triggered substantial volume growth in the European have experienced a slight reduction in their price
region. Nevertheless, the category has shown competitiveness. Based on the price index for the pet
resilience amid the ongoing volume decline affecting food category, private labels are 34.1% cheaper than
both the FMCG and pet food sectors. Private labels the category baseline in 2023, whereas they were
have not been entirely immune to this downward trend, 35.9% cheaper last year.
but their overall decline has been less steep compared
to manufacturers’ brands (year-on-year volume change Upon closer examination of this trend, the United
of -0.4% versus -2.5%), resulting in an increased market Kingdom stands out once again, with relative prices
share by volume (rising from 46.4% to 47.3%). rising by 3.9 percentage points this year.

14 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


Conversely, the index shows that the price Given the likely sustained interest and growth in private
competitiveness of pet-food private labels in the other labels, it is key for branded manufacturers to pursue
3 major countries has improved slightly. For instance, strategies that will enable them to either maintain or
in Germany, where the relative price difference is the grow their market share. Obvious strategies include
smallest at around 25%, private labels became 0.5 offering their own value-for-money products,
percentage points cheaper than the baseline this year. implementing effective pack/price architecture or
For comparative purposes, the relative price difference having a portfolio of brands that can play in different
in North America has remained steady at 26%. price tiers.

What will the future bring? Besides these strategies, some manufacturers have
So the next big question is: Will private labels in the successfully managed to offer points of differentiation
pet food sector continue to do well in the future? The or added perceived benefits versus private label
answer seems to be yes, for 2 main reasons. products. Examples include initiatives related to
sustainably sourced ingredients or recyclable
First, pressure on people’s wallets will persist for the packaging. These are areas that the majority of
foreseeable future. This will encourage them to stick mainstream retailers are unlikely to pursue with their
with their money-saving strategies, which often involve private label ranges in the short term. ◆
choosing private labels. Secondly, as more shoppers
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Dietary AGEs
and their
impact on pets

Compounds known as AGEs are found in


varying amounts in pet foods. With these
substances linked to some chronic diseases
in people, should the focus be on reduction?

Advanced Glycation End Products, or AGEs, are intake of certain AGEs on a metabolic body weight basis
compounds made when proteins or lipids are exposed has been estimated to be over 100-fold that of humans,
to sugar. They become attached via a covalent according to the estimations of a study.
bond, or ‘glycated’. There are many pathways for the
development of AGEs. They can form in situ over days What is the concern?
to months, or can be taken in via dietary sources. AGE compounds can impart flavors and colors to food.
However, they have been implicated in chronic diseases
AGEs in food in people, especially inflammatory and oxidative
Dietary AGE formation tends to happen during cooking processes, such as in cardiovascular disease, diabetes
at high temperatures, with levels often higher in animal- and Alzheimer’s. The reactions can also reduce
based foods. However, this is not a simple formula, bioavailability of the original nutrient – a notable
as decreased cooking times, the presence of acidic example is lysine, an essential amino acid. In addition,
ingredients and inhibitor compounds can decrease AGE there is concern that these newly formed compounds
formation. Moisture is necessary for some reactions, can serve as a source of unexpected allergens. The
but conversely, higher levels can be inhibitory. potential ill-effects in pets are less well known, but the
same concerns are also extrapolated to pet food.
Dietary retention is similarly complicated. Studies have
shown varying levels of absorption and excretion, Next steps: improving knowledge and
and factors such as the influence of ingredients, reducing dietary levels
compound weight, anti-AGE factors, and interactions There are still many unanswered questions regarding
with other nutrients such as fiber are not yet AGE levels in pet foods. Filling these knowledge gaps
thoroughly understood. may be simpler than addressing the overarching
question: How do AGEs impact pet health? In vivo,
Compared against a human diet, the impact of a single the ability to study AGEs suffers from the same
food’s AGE content is multiplied in our pets who tend to limitation as studying any single nutritional factor: the
eat the same food day-to-day. The average canine daily difficulty in assessing and controlling for all potentially

16 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


confounding factors. However, it has been theorized consistent finding, however, further studies are needed.
that increased life span in mice with caloric restriction In personal communications with a variety of pet food
was related to reduced AGE consumption. manufacturers, few companies reported testing for
AGEs, and testing methods vary. In addition, examining
Although endogenous production remains a significant AGE content on a caloric basis is needed to accurately
source of AGEs, reducing the dietary component is estimate a pet’s overall intake.
associated with lowered overall levels. As pet food
production methods vary greatly in ways known to Further information regarding AGE formation and
affect AGE production, such as temperature and time, absorption, their role in disease, and the best ways to
it is logical to consider how this may affect levels in pet reduce dietary contribution as well as overall body stores
foods. While AGE content of individual ingredients has in our pets is needed in order to best guide pet diets.
been examined, studies looking at AGEs in pet food
have only begun relatively recently, with few studies As many pets suffer from obesity and overfeeding,
comparing different types of pet foods. ensuring pets are fed an appropriate amount would
be a simple first step to reducing the AGE burden.
More information needed Additionally, in the pursuit of healthier diets for our
In one study from the University of Georgia, AGE levels pets, considerations such as food safety, nutrient
were highest in a wet food, followed by an air-dried bioavailability, shelf stability, and patient-specific
food, kibble and a gently cooked/raw diet. However, nutritional needs should not be overlooked. ◆
the wet diet was the only diet found to be statistically
different. AGE type also varies between categories of
pet food. For example, certain AGEs may be higher Emily Luisana
Veterinary Nutritionist and Industry Consultant
in kibble than wet and vice versa. Overall, higher AGE
content in wet diets over extruded has been a relatively

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 17


18 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS
Search for sustainable
fish-oil alternative
leads to microalgae

When looking to increase the world’s access to beneficial omega-3 fatty acids
for cats and dogs, Veramaris found the solution in a potent natural source:
microalgae. The resulting algal oil supports pet food manufacturers’ innovation
and sourcing activities.

Scientists agree that omega-3 fatty acids – and in algal oil is rich in arachidonic acid (ARA) – an essential
particular EPA and DHA – offer proven metabolic and omega-6 fatty acid for cats – making it one of the few
health benefits for dogs and cats. However, dogs can rich vegetarian sources of ARA.
only generate limited amounts of EPA and DHA, and
neither can be generated in cats. Therefore, dietary Quality assurance
supplementation is recommended to ensure the pet’s The production process of Veramaris Pets Algal Oil
baseline nutritional requirements are being met. is relatively simple, presenting few critical control
points and allowing for superior quality and food
The challenge safety standards. A closed-vessel fermentation process
Traditionally, fish oil and fishmeal from wild fish ensures that the algal oil is free from ocean-borne
stocks have been the sole source of these essential contaminants such as heavy metals, dioxins and
fatty acids. “But the biggest roadblock with fish oil is polychlorinated biphenyls (PCBs). The fully controlled
that there simply isn’t enough of it,” says Gertjan de process also allows for minimal variation in the levels
Koning, CEO of Veramaris®. “It’s virtually impossible to of EPA and DHA, giving pet food manufacturers the
source enough fish from oceans without unacceptable opportunity to confidently claim these omega-3 fatty
overfishing. The animal nutrition industry is in dire need acids in their products.
of sustainable fish-oil alternatives.”
“The regenerative nature of the algal oil brings supply
Veramaris therefore embarked on a challenge: to assurance to a volatile market, meeting the needs of
sustainably increase the world’s access to EPA and DHA. a global market hungry for fish-oil alternatives,” states
To achieve this, scientists turned to one of the most George B. Josef, Global Head of Business Development
potent sources of these long-chain omega-3 fatty at Veramaris. “We are pleased to be able to support pet
acids: microalgae. food manufacturers’ innovation and strategic sourcing
objectives in this way,” he concludes. ◆
Research
More than 35 years of research resulted in a unique
algal oil that is both safe and sustainable. Veramaris George B. Josef
Pets Algal Oil provides staggering amounts of EPA and Global Head of Business Development
at Veramaris® V.o.f.
DHA, allowing the animal nutrition industry to become [email protected]
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PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 19


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A balancing act:
the nutritional
seesaw of
copper and zinc

We all know that trace elements


are important for various bodily
functions, and we can assume that
the same principles apply to pets.
When it comes to copper and zinc,
this is certainly the case.

Zinc is an important trace element for the development In fast-growing young dogs, a deficiency of zinc can
of epithelialization in the skin: the process whereby new be manifested as a condition called zinc-responsive
skin cells migrate to where they are needed, such as in dermatosis, which is characterized by hairless,
wound healing. Additionally, it serves as a cofactor in hyperkeratotic lesions commonly found around the
numerous vital enzymes. mouth and joints of the puppy. Although it can be quite
a scare for the owner, it is a simple condition to treat: all
Copper is also known to be a component of several that is needed is a growth-adjusted balanced diet that is
enzymes, and it is involved in hemoglobin formation highly digestible, and short-term zinc supplementation.
and immune function processes. It is one of the Generally, zinc deficiency in both growing and adult
elements required for melanin production and keratin cats and dogs is most visible in the skin – causing a
synthesis. However, you can have too much of a good rough impression of the hair and dry, itchy skin.
thing, and copper toxicity due to excessive dietary
intake is a rising concern for veterinarians. Interestingly, when it comes to copper deficiency, a
study in the Journal of Nutrition found no signs reported
Copper and zinc: their importance for pets in adult dogs. Nevertheless, in growing dogs and cats,
Zinc carries a vital role in tissues that undergo loss of hair pigmentation and rough, dull hair coat
cell renewal, such as the skin, where healing and were noted as the main clinical symptoms of copper
reparations are needed. Interestingly, the skin contains deficiency in the diet. However, copper deficiency is
approximately 20% of the total body zinc stores, where considered to be unlikely in pets, as commercial diets
the highest concentrations are in the nasal planum, contain adequate copper levels. The liver is the central
tongue and footpads. organ for copper metabolism, and see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 21


hepatic concentration of copper is the most reliable The copper content of pet food
reflection of pets’ copper intake and status. cannot be reliably evaluated by reading
the pet food label.
Maintaining the balance: Are we following
safe requirements? accumulations reported in the literature. Firstly, a
The availability of copper and zinc from different foods hereditary defect, as seen in Bedlington terrier dogs.
and supplements can vary, so the requirement for these Secondly, the altered biliary excretion of copper due
trace elements is difficult to define. The requirement to hepatic inflammation and fibrosis. The third cause
will depend on the source in the diet (organic versus of hepatic copper accumulation is excessive intake
inorganic form) and the level of other nutrients that can through the diet.
have interactions with both copper and zinc.
Excess copper levels lead to a high degree of
Copper and zinc are both known for their sensitive oxidative damage to lipids and proteins in the liver
balance, that can be easily thrown off by poor digestibility tissue, resulting in chronic hepatitis. Veterinary diets
of the diet, too high concentrations of calcium, or the are formulated to counteract excessive copper
presence of phytate, found in diets containing high deposition in liver tissue, using high concentrations
levels of soy. This can ultimately lead to poor absorption of zinc salts. These are effective in preventing copper
and deficiency of zinc and copper in the body. accumulation in the liver, as zinc has properties that
help with liver integrity. Additionally, zinc ions induce
However, an excess of these elements is also possible. the synthesis of metallothionein, which binds copper
It is hypothesized that the copper contents of many making it unabsorbable from the intestine and possibly
commercial dog foods are greater than the biologic detoxifying it in the liver. Zinc acetate or zinc gluconate
requirement of dogs – and can even exceed the is recommended as the preferred source of zinc
tolerance limit. It has been noted that the mean hepatic added to hepatic diets, since the sulfate form may be
copper concentration in dogs has progressively associated with gastric irritation and vomiting.
increased over the past decade and this can be
correlated to high copper content in commercial dog Expert recommendations
foods. At the same time, there is a growing body of Evaluating the copper content of pet food is
evidence suggesting an association between high considered challenging and it cannot be reliably done
hepatic copper concentrations and the presence of by reading the pet food label – as the value on the
hepatic abnormalities on a microscopic level that could label would represent added copper, and not the sum
lead to the development of chronic hepatic disease. of supplements and native copper already found in
feedstuffs in the diet. Another challenge lies in the
Recently, the current guidelines for copper content in fact that there is a wide bioavailability of copper from
commercial dog foods have been critically discussed, organic and inorganic sources, such as different salts
and an important question has been raised: Is there any (copper oxide versus copper sulfate).
correlation with the increased incidence of copper-
associated hepatopathy in dogs that has been noted over Some veterinary clinicians believe that the current
the past decade? Clinicians are looking into the possible recommendations for copper content in adult
relationship between the change in the type of copper maintenance canine diets are too high, and may
used in pre-mixes added to commercial dog foods, and exceed the upper tolerability limit for some dogs,
increased use of novel protein meats with high organ resulting in hepatic disease. They are calling for
inclusion rates, such as liver, that could significantly reconsideration of copper requirements for dogs set by
influence the final copper content in the diets. regulatory bodies. ◆

The dangers of excess


Diana Brozić
Copper toxicity manifests as copper accumulation in Assistant Professor
liver tissue, causing damage and negatively affecting University of Zagreb

liver function. There are 3 causes of hepatic copper

22 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


Should there be a limit on the
concentration of copper in dog food?
Despite a general consensus on the current rules, there is an ongoing debate
in the sector.

The Association of American Feed Control Officials limit or maximum tolerance" of copper in canine foods
(AAFCO) believes that existing guidelines for the copper was "insufficient”.
concentration in foods for average dogs are, at present,
properly and sufficiently regulated. However, it is open The AAFCO's Executive Director, Austin Therrell,
to monitoring the situation and eventually improving says the association remains reluctant to make
regulations after concerns were voiced in a study. regulatory recommendations "based on implications
or associations without definitive proof of cause and
How it all started effect”.
The minimum inclusion levels recommended by
the AAFCO, the organization that sets standards for Voluntary language
pet foods in the US, are 7.3 parts per million (ppm) PETS International learned that during the last AAFCO
or milligrams per liter (total diet) for adult dogs, and annual meeting, which took place in August, it was
12.4 ppm for growth, reproduction periods and all life decided a new workgroup would be formed to explore
stages. the development of voluntary language for “low
copper claims”.
However, a scientific article published in the Journal of
the American Veterinary Medical Association (JAVMA) "There's still not enough data to support a maximum
raised doubts over the existing regulations and called copper level, as evidenced by multiple experts who
for a maximum copper concentration in commercial all had different opinions at this meeting," highlights
dog food to be set. Therrell.

The article states that the copper level in dogs' livers The AAFCO will be paying "close attention" to
has risen in the past decades and warned that the veterinary literature on this topic but highlighted
copper contents of many commercial dog foods "are that until science "definitively shows" additional
greater than the biological requirement of dogs and controls or restrictions are needed, it believes that
exceed the tolerance limit for some of them”. copper concentration in foods for average dogs is
"appropriately and sufficiently" regulated at present. ◆
The reaction
The suggestions made in the article were analyzed by
an AAFCO expert panel.
David Palacios Rubio
Head of Editorial
After analyzing the relevant veterinary literature, the GlobalPETS

panel determined that the data for setting a "safe upper

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 23


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24 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


Grain-free
diets re-visited:
an update
on pulses in
pet food

Diets eliminating grains have attracted plenty of attention


in recent years, but for all the wrong reasons.

Pet foods marketed as ‘grain-free’ primarily use pulses, Their data addresses 3 main concerns associated with
protein-rich seeds such as peas, lentils, chickpeas, grain-free diets.
and various types of beans found in legume crops.
While they began as a popular and healthy alternative 1. Cardiac function
to grain-based pet foods, pulses quickly fell under The study found no negative impact on cardiac
scrutiny following a 2018 FDA investigation on function among the different dietary treatments
grain-free diets and their potential role in canine after 20 weeks. Even at 45% pulse inclusion, there
dilated cardiomyopathy (DCM). However, this 2022 were no changes to cardiac function (assessed using
investigation concluded no causal link exists between echocardiography) or to concentrations of biomarkers
grain-free diets and DCM currently. commonly associated with cardiomyopathy
(NT-proBNP and cTnI).
New research sheds further light on safety
Amidst the controversy, a 2023 study conducted at 2. Sulfur Amino Acid (SAA) status
the Ontario Veterinary College has brought fresh Taurine is a non-essential amino acid required for
insights into the use of pulses in grain-free pet food cardiac function and is synthesized from sulfur-
formulations, helping re-establish a prospective future containing amino acids like methionine and cysteine.
for pulses. To date, this is the longest controlled feeding Despite pulses being generally low in SAA, pulse-
study to assess the safety of pulse-based diets in containing diets did not cause deficiencies in plasma
healthy adult dogs. SAA concentrations when fed a complete and
balanced diet with 45% pulse inclusion. This means
The main focus of the study was to monitor the effect that pulses did not interfere with the absorptive
of increasing dietary pulse concentrations (primarily processes of the intestines, since adequate levels of
peas) on cardiac function, plasma sulfur amino acid SAA were maintained in the serum and available for
(SAA) concentrations, body condition, and blood taurine synthesis.
values over a 20-week dietary trial. Test diets contained
between 0%-45% pulse ingredients, reflecting 3. General safety and efficacy
concentrations in commercial diets that meet and/or The study concludes that balanced and complete diets
exceed guidelines from The Association of American containing pulses, specifically peas, were safe for
Feed Control Officials (AAFCO). healthy adult dogs over a 20-week study see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 25


74
YEARS
3
GENERATIONS
1
AMBITION

Berjé is a family-owned leader of the flavor and fragrance industry like no


other. Founded in 1949 by two brothers in the aftermath of World War II,
the company began life as little more than a tiny office in lower Manhattan.
Since then, we have grown into a multinational organization with over 150
employees spanning more than 100 countries.

26 The privatively-owned flavor and fragrance


PETS INTERNATIONAL  |  OCTOBER ingredient
2023  |  FOOD source since 1949.
AND INGREDIENTS
+1 973 748 8980 • www.berjeinc.com
period. No adverse effects on body condition, blood Pea production emerges as a promising
values, and biochemical changes occurred among the answer to sustainability.
different dietary treatments.
Encapsulation techniques for bioactive ingredients
Overall, the results of this study suggest that dog foods Bioactive compounds are secondary metabolites found
containing pulses are not a causative factor for DCM in in whole foods that are difficult to preserve due to pH
non-genetically predisposed dogs. It should be noted sensitivity, UV exposure, and thermal processing used
though, that this study is relatively small, using only in extrusion. This limits their use in pet food products
28 dogs – 7 in each dietary group – and should be unless they are preserved and encapsulated.
interpreted accordingly.
The main techniques include spray-drying, emulsion,
The value of peas and complex formation to stabilize lipophilic bioactive
Peas are the second most valuable legume (after ingredients like β-tocopherol, omega-3 fatty acids,
soybean), with a rich nutrient profile high in proteins and linolenic acid to incorporate them into pet food
and carbohydrates while remaining low in fats. They formulations. Encapsulation has also helped deliver
are particularly abundant in potassium, B vitamins, and water-soluble vitamins to the intestines for absorption.
essential amino acids. However, pea protein must be For example, pea protein microparticles cross-linked
supplemented with SAAs to formulate a complete and with transglutaminase have been used to encapsulate
balanced diet. riboflavin (vitamin B2), with 74% to 84% successfully
reaching the gastric and intestinal fluids.
As pet ownership continues to grow exponentially, the
need for sustainable and high-quality ingredients has Food emulsification
become a priority. Recent animal and grain production Pea protein can stabilize liquid emulsions and
shortages have presented challenges, sparking the microencapsulate oils to enhance the texture and
search for scalable solutions. palatability of pet food. Under the right conditions, pea
protein can reduce the surface tension between oil and
Pea production emerges as a promising answer to water, helping form stable emulsions that enhance the
sustainability. With high yields per acre, reduced water overall sensory experience for pets. A recent Agriculture
consumption, and nitrogen-fixing capabilities, peas and Agri-Food Canada study shows that pea protein
are not only eco-conscious, but also a cost-effective even outperforms soy as an emulsifying agent at a
option for pet food formulations. neutral pH.

Future applications Moving forward


The FDA’s inconclusive findings on grain-free diets and Pea protein has emerged as a sought-after ingredient
the safety demonstrated by recent controlled food in the food industry, driven by its versatile applications,
trials pave the way for innovative applications of pulses low cost, and nutritional benefits.
(and more specifically pea protein) in pet food. Some
examples include: As consumer demand for sustainable and allergen-
free options continues to grow, pea protein offers
Diet sensitivities a promising solution for the future of pet food
Nearly 30% of veterinary visits result from vomiting and formulations. With new studies addressing safety
diarrhea. Dietary elimination trials are commonly used concerns, pulses show great potential to shape the pet
both in diagnosis and management of gastrointestinal food industry. ◆
disorders. Current hypoallergenic diets often rely on
hydrolyzed or novel protein sources. Pea protein has
Ashkan Sadri
the potential to be incorporated into hypoallergenic Veterinary Researcher
diets as an additional tool to help manage food Vetabroad.org

sensitivities and avoid common dietary allergens.

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 27


Velvet Packaging italy
Green retortable pouches
Many pet food companies are still clinging to traditional rigid packaging
like cans or trays for wet food. However, in this ever-changing landscape,
the shift to retortable pouches presents a golden opportunity for those
looking to embrace the future.

This shift promises economic benefits through space efficiency, reduced


production costs and design flexibility. Retortable pouches are not
only flat and space-saving, but also lighter and more material-efficient,
helping to lower production and transportation expenses. They offer
creative packaging customization options, allowing brands to attract
consumer attention in a competitive market.

In the coming months, recyclable retortable pouches will be available,


reducing environmental impact and meeting the growing demand for
sustainability.

Adopting retortable pouches for wet pet food represents a leap forward
in modernization, efficiency, and commitment to a greener future.

Velvet Srl
[email protected]
velvetpack.com

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28 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


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Trends revolutionizing pet food
manufacturing equipment
The ongoing humanization of pets hasn’t just changed what consumers buy. It’s
also changing the way pet food is made.

Many manufacturers are discovering that their Equipment upgrades


existing production machinery requires an upgrade if Animal feed equipment firm KSE Process Technology
they want to remain competitive in today’s pet food attributes the trend to the ongoing humanization of
market. This is being driven by 2 main trends: the pets. Consumers increasingly make decisions based
rising demand for human-grade pet food, and the on the perceived healthfulness and quality of pet food,
growing importance of sustainability. We asked a few just as they would for other members of the family,
equipment manufacturers to share their insights into according to Martijn van Eijk, the company’s North
the market developments. America Area Sales Manager for the pet food group.

Explosion of interest Meanwhile, Todd Olmstead from processing equipment


As the name suggests, Pennsylvania-based Reading manufacturer Marlen says that this shift – and the
Bakery Systems started out as a bakery equipment demand for human-grade and fresh refrigerated
supplier; the founders didn’t initially intend to products that has come with it – has brought new
get into the pet food business. But when the companies into the pet food manufacturing equipment
company purchased a cookie/cracker equipment segment as well as prompting existing companies to
manufacturer in the early 2000s, the owners innovate to keep up with the competition.
realized the equipment could also be used to make
treats for pets. Over the past few years, the firm Higher standards among consumers, the introduction
has seen an explosion of interest from pet food of a wider array of ingredients – including more
companies looking to make human-grade and vitamins and minerals – and the greater diversity of
human-like baked pet food. recipes, have all increased the complexity of pet food
manufacturing. This is driving manufacturers to upgrade
“The machinery is more expensive, but profitable in their equipment and software.
the longer term. People are willing to pay more for
the end products, so you can make a lot more money Inspiration from human food processing
even though production capacity of the line is lower,” “With the increase in demand for human-grade pet
says Dulcie Freymoyer, VP of Marketing. food, we’ve seen companies looking see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 29


Farm Company italy Yantai China Pet Foods china
Più Buono functional snacks Spinning treats for cats
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30 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


at new equipment that they previously wouldn’t have Manufacturers are looking to the ready-
needed or even thought of when producing pet food,” to-eat sector to identify new technologies.
Olmstead comments. The technology in general
might not be new, he says, but it’s new to pet food The wave of the future
manufacturers. While the human-grade and sustainable pet food
trends are already here, the biggest trend on the
Freymoyer has noticed interest in co-extrusion horizon for manufacturers is automation, believes
equipment that can create filled treats for pets. “We’re Olmstead. Automation can help manufacturers cope
seeing a lot of high meat content. But besides that, with many of the challenges they face in today’s
if you’ve walked through the pet treats aisle, you’ve market, such as high costs for materials and labor.
probably seen Oreo-type cookies: filled pretzels
without the salt,” she states. “They’re not just human- “Manufacturers are embracing sustainable practices
grade; they actually look like human treats.” and addressing labor shortages through automation,”
agrees Martijn van Eijk. Automation can also reduce
To identify technologies that can be applied to pet food human error, leading to enhanced product quality
production, manufacturers are not only looking to and reliability, while also increasing efficiency and
the baking sector for inspiration – as Reading Bakery reducing waste.
Systems has experienced – but also to the ready-to-eat
sector. According to Olmstead, a growing number of Moreover, automated equipment is increasingly
customers are looking at buying equipment like spiral intelligent, offering potentially innovative solutions
ovens and dicers. such as fully automatic container transfer and flexible
container weighers. This kind of smart equipment can
Concern about environmental impact allow manufacturers to take advantage of automation
It’s not just human-grade pet food that is affecting without losing the flexibility that is needed to shift
manufacturers’ equipment choices though. With between products and adapt to rapid changes in
consumers increasingly concerned about the market expectations.
environmental impact of the pet foods they buy, more
manufacturers are asking about energy-efficient Versatile and intelligent
equipment and other sustainable options, including the According to Van Eijk, equipment must be versatile,
use of alternative fuels. intelligent and capable of handling various products
and recipes. Reporting tools associated with smart
This has prompted Reading Bakery Systems to offer technology can also help manufacturers gain greater
more energy-efficient ovens, says Freymoyer, and insight into their production processes to further
also to begin looking at the next generation of baking lower costs, reduce errors, manage maintenance and
equipment. The company has recently added electric energy use, and support compliance with supply chain
ovens with gas penthouses to its line of offerings. This traceability requirements.
should make it easier for pet food manufacturers
to reduce their carbon emissions by switching “Responsible pet owners are conscious of what
from gas to all-electric operations. In response to they feed their furry companions and demand
customer inquiries, Reading Bakery Systems has also transparency in the ingredients used,” comments
experimented with other alternatives to gas – including Van Eijk. “A traceable supply chain, which guarantees
hydrogen – and has various tests in the pipeline. contamination-free equipment and comprehensive
track and tracing throughout the manufacturing
KSE is similarly working with manufacturers to help process, has become essential. ◆
them proactively reduce greenhouse gas emissions.
According to Van Eijk, upgrading equipment can reduce
energy consumption. For example, movable mixers Emma Penrod
PETS International Contributor
eliminate the need for energy-intensive machinery
such as conveyors, chains and pneumatic systems.

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 31


Pet food labeling and
preservative use

‘No added preservatives!’ The varying water content in pet food affects the need
for preservatives, and therefore the labeling and claims of pet food manufacturers.

Microbial growth in food is affected by many factors, that is available for binding and thereby for microbial
including moisture and storage conditions. Commonly growth. For example, one grain may have integrated
used in human food and pet foods alike, preservatives water as moisture within the grain itself, while another
adhere to their name: they aim to preserve food grain is internally drier but has water available as dew
throughout its shelf-life. As pet food comes in many on the outside. The latter could be more susceptible
forms, including both wet and dry, levels and types to mold spoilage.
of preservatives differ. This affects many labeling and
branding claims used by pet food companies. Moisture content of the raw materials at intake
therefore plays a role in how easily microbes form,
Microbial growth formation but the storage conditions are also important. The
Life on earth did not start until one key ingredient came temperature and humidity of the manufacturing
around: water. When it comes to pet food, moisture, environment are further factors, together with
together with nutrients in the feed, provides the target moisture levels of the finished product. The
necessary ingredients for molds and bacteria to grow. manufacturing process and equipment also affect
moisture absorption into the finished product and
Dry and semi-moist pet food is not sterilized, and thereby aW.
microbial growth can be controlled within safe bounds
by using preservatives, using nitrogen gas at the end Preservatives, not antioxidants
of the production process, or keeping moisture levels Sometimes confused, preservatives and antioxidants
at a minimum. Semi-moist feeds have higher moisture share a commonality in food because both reduce
contents than dry food and are accordingly more spoilage of food, maintain nutritional content, and
prone to microbial formation if no preserving methods decrease formation of toxic compounds – but do so
are employed. in different ways.

Wet food (canned, sachets, trays, cartons) is retorted Preservatives reduce the growth of microbes, whereas
or sterilized after sealing the packaging, which can be antioxidants prevent oxidation or rancidity of fat. In
sufficient to stop microbial formation. In contrast, fresh a rough summary, preservatives aim to prevent pet
or raw formulations tend to have a shorter shelf-life owners from opening a bag of food and seeing mold.
than the other product categories, and are stored Antioxidants aim to prevent them from opening a bag
cooled or frozen as the main preservation method. and encountering a stale smell.

Water activity as KPI Preservatives in the EU are acids, such as propionic


A frequently used quality measure is water activity (aW), acid and sorbic acid, that lower the pH of products
which indicates the percentage of moisture in the feed and thereby inhibit microbial growth. These acids can

32 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


WE
WE HAVE
HAVE
NEWS
NEWS
FOR
FOR OUR
OUR
DEALERS!
DEALERS!
In EU legislation, additives
with a legal limit for the target
species must be declared.

be stabilized by binding them, as is the case with, for


example, calcium propionate and potassium sorbate.
Those are 2 examples of ionic chemical bonds,
whereas other components might offer stronger
covalent bonds. The type of bond determines the
strength and stability of the acid – and thereby how
long it remains in the pet food and functions as a
preservative.

Branding and labeling


Companies offering branded preservatives
have created mixtures of acids which may differ
in concentration, and may also include other
compounds to provide a synergistic functionality.
A commonly added additive is a surfactant which
reduces water tension and allows the acids to further
enter into the finished product.

The Online-Shop
The Online-Shop
Most preservatives used in pet food are feed additives,

for the specialized


although there are some feed materials as well. In
EU legislation, additives with a legal limit for the
for the specialized
target species must be declared. Some preservatives
trade is now
now have a legal maximum where there wasn’t trade is now
online
online
one before. However, there is a derogation in
place that allows preservatives to be declared as a
collective ‘preservatives’, as opposed to the individual
compounds being listed.
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In some cases, the pet food contains raw materials
which have been preserved themselves. The addition
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34 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS
Preserving pet food –
safety and regulations
There is a growing trend in consumer demand for natural and minimal-
ingredient pet foods, in a desire to avoid preservatives. So how safe are these
common additives?

Pet owners often view preservatives in pet food oxidation, antioxidants help preserve the quality, flavor
negatively. However, the use of antioxidants in pet and nutritional integrity of food.
food is generally well tolerated, and even positively
evaluated. While preservatives and antioxidants serve It's worth noting that some antioxidants, such as
some similar functions, there are distinct differences vitamin E (tocopherols) and vitamin C (ascorbic
between them. acid), are commonly used as both preservatives and
antioxidants in food products. They serve a dual
Preservatives versus antioxidants purpose by protecting against both microbial growth
Preservatives are substances added to food products to and oxidation.
prevent spoilage, inhibit the growth of microorganisms,
and extend the shelf life of the product. They work Are preservatives in pet food necessary?
by stopping or slowing down the growth of bacteria, Certain types of pet food do not require preservatives
molds, yeasts and other microorganisms that can lead due to their formulation or processing methods. For
to foodborne illnesses or spoilage. example, canned pet food does not typically contain
preservatives because the canning process, which
Antioxidants, on the other hand, are substances that involves sealing the cans tightly and autoclaving
help inhibit or delay the oxidation process in food. them afterward, ensures the destruction of harmful
Oxidation is a chemical reaction that can cause the microorganisms. Product claims such as ‘cold-
deterioration and degradation of food components filled’ and ‘without preservatives’ are therefore
(primarily fats and oils). By preventing or slowing down advertisements with self-evident facts see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS 35


(‘truisms’) and should be avoided. Pet foods with very Oven-baked food and dried snacks often
low moisture content, such as extruded or oven- do not require preservatives.
baked food, or dried snacks, also often do not require
preservatives. However, semi-moist products with European Food Safety Authority (EFSA) in the European
higher moisture content usually cannot do without Union. These organizations provide guidelines and
preservatives to prevent the growth of molds. regulations for the proper use of preservatives (and
other additives) in pet food.
The use or absence of preservatives does not guarantee
the absence of other food safety measures or an Upcoming developments
extended shelf life. Each pet food formulation may Regulatory bodies often conduct ongoing research
have specific recommendations, and it is advisable to and reassessments to ensure the safety and efficacy
follow the manufacturer's guidelines for proper storage of additives in pet food. They may review scientific
and usage. studies, collect data, and consult with experts in
the field to make informed decisions about the
Some preservatives used in pet food, such as sorbic use of preservatives. These developments can
acid, acetic acid, and citric acid, are also commonly lead to changes in regulations, such as updates to
found in human food. Sorbic acid is a naturally permitted preservatives, maximum usage levels, or
occurring compound found in some fruits and berries, labeling requirements.
and acetic acid is widely known as the main component
of vinegar. However, consumer awareness of additives An example of this is the reauthorization of potassium
in pet foods tends to be higher, due to the emotional sorbate in the EU under the identification number
attachment people have to their pets. Pets' limited 1k202, which now has a maximum quantity limit
ability to communicate their discomfort or adverse for all animal species and thus becomes subject to
reactions to certain foods places the responsibility on declaration. The same applies to citric acid (1a330),
pet owners to understand the ingredients and additives sorbic acid (1a200) and other re-evaluated additives,
in their pets' food. which are currently only to be named voluntarily.
Consumers are therefore mostly unaware of the use
Ensuring safety with preservative use of these preservatives, and could be unsettled as the
It's important to note that while there are preservatives substances are declared in the future. Compound feed
used in both pet and human food, the permitted and feed materials containing the relevant additives
usage levels and regulations may differ between that are manufactured and labeled before 3 April 2024,
the 2 categories. Preservatives and their permitted may continue to be placed on the market and used until
concentrations can vary depending on regional stocks are exhausted if they are intended for pets.
regulations and specific product formulations.
Pet food myths
The legal status of preservatives in pet food may also Although approved preservatives are safe additives, they
vary depending on the country or region. Regulations are not perceived positively by consumers and there
governing the use of preservatives in pet food are are a lot of ‘pet food myths’ about them. It is therefore
typically set by government agencies responsible now imperative for the pet food industry to develop a
for food safety and animal feed regulations. These communication strategy to improve public perception,
regulations can change over time as new scientific or to consider the use of alternative, non-declarable
evidence emerges, and as authorities update preservatives to maintain consumers’ trust and still offer
their guidelines. safe pet foods. ◆

For accurate and up-to-date information on the legal


Julia Klischies
status of preservatives in pet food, it is best to look into Pet Nutritionist, Petfood Expert
the information given by regulatory bodies, such as the Petfood-expert.com

Food and Drug Administration (FDA) in the US, or the

36 PETS INTERNATIONAL  |  OCTOBER 2023  |  FOOD AND INGREDIENTS


Global pet
industry
How’s the ‘hot’ category of CBD for pets
doing? What are the latest trends in beds
and cushions? How important is social
media for pet brands? Can a lower VAT
rate help combat rising prices? Find all
the answers. Plus, more details on the
GlobalPETS Forum and supermarkets
entering the pet space.

Pet parents & CBD: consumer survey results 38 Plaček Group czech republic 51
CBD pet products: the state of play 41 The power of social media for pet brands 53
Controlling anxiety and stress in pets 44 What’s trending in beds and cushions? 56
Are you coming to the pet industry’s leading Interzoo: Market developments under the magnifying glass 59
networking event? 48 A lower VAT rate to tackle price spikes? 60
GlobalPETS Forum Award 2024 50 Retail sector has pet supplies in its sights 63
Pet parents & CBD:
consumer survey results
Discover how pet parents feel about CBD, why some wouldn’t want to use it,
how often others use it for their pets and more.

In collaboration with Yummypets, we asked 944 dog As US consumers are most familiar with CBD – and
and cat owners about their thoughts on CBD the strongest proponents for it – it’s no surprise that
(cannabidiol, a cannabis ingredient with certain health they’re also more likely to have bought these products
benefits) and their purchasing habits. for their pets. On the other hand, French consumers
are least likely to have purchased CBD products.
Pet parents from the US (33%), Canada (31%), France They’re also the least acquainted with it and are most
(20%) and the UK (17%) participated in the survey. likely to strongly disapprove of CBD.

How interested are they? How often do they buy?


Most pet owners (72%) are familiar with CBD, but Of those respondents who have bought a CBD pet
nearly half of those surveyed (49%) indicate that product before, the majority indicate that they have
they’d never bought a CBD product for themselves or only tried it once (18%) or rarely give it to their pets
their pets. (33%). A small group of CBD buyers (13%) regularly give
these products to their pets.
About 16% of pet parents have bought a CBD-based
product for their pets, 41% of pet parents would be Interestingly, while more US pet parents have tried
interested in trying one and 13% aren’t really interested. CBD for their pets, they don’t use it more often. So,
even though CBD is more widespread in the US, this
Which of the following describes your CBD pet popularity doesn’t necessarily equate to more frequent
products experience/attitude? use. UK pet parents are most likely to have just tried

I have used them 16% 160+= it once.

I have heard of them


and would be interested
in using them
41% 410+= This could have something to do with the fact that a
large portion of CBD consumers (47%) tried it for the
first time in the last 6 months – so they might not have
I have heard of them and
would not be interested
in using them
13% 130+= had enough time for repeat usage.

300+=
In fact, 82% of people indicated they would buy a CBD
I have not heard of them 30%
pet product again. Only 8% think they won’t.

38 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


Product popularity (27%), general health improvement (31%) and mood
The most popular types of CBD pet products are the enhancement (30%).
most readily available: oils (63% have used it) and
chews (59%). Biscuits (22%), sticks (12%) and paste (9%) Of those who haven’t bought any CBD pet products,
are bought much less. 41% indicate that their pet doesn’t need it. Uncertainty
or limited understanding about these products also
US consumers prefer chews over oil. Canadian pet plays a role: 35% are concerned about product safety,
parents, on the other hand, prefer oil over chews. its legality (22%), whether their pet would become
addicted (21%) or high (21%), or that the benefits haven’t
Effect & satisfaction been proven (29%).
Most owners who have tried CBD pet products
(71%) indicate that they’re satisfied with the effect If non-buyers were to start buying CBD products, the
the product had on their pet. 78% indicate that main reasons would be stress relief (62%), pain relief
they noticed positive changes in their pet after (57%), relaxation (50%), joint care (46%) and general
consumption. health improvement (43%). ◆

The experience of a small group of pet parents was less


Special thanks to
positive: 14% indicate that they noticed some negative
changes in their pets after consumption.

The motivations behind (not) buying


Philippe Vanderhoydonck
The most common reasons people buy CBD-based Managing Director
pet products are for stress relief (65%) and relaxation GlobalPETS
10985_PN_Press Ad_Half_208x131_AW.pdf 1 09/03/2023 09:34
(54%). Others include pain relief (41%), joint care

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 39


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40 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


WWW.VETEXPERT.WORLD
CBD pet products:
the state of play
Pet-specific CBD products are on the rise, but some regulatory challenges are
halting developments in the sector.

It might seem that CBD hasn’t thoroughly infiltrated the Lozow, a US Lawyer and co-founder of the Veterinary
pet market, but a lot of evidence suggests the contrary. Cannabis Society (VCS).
Valued at $196 million (€180M) in 2022 by Grand View
Research, the pet-focused CBD sector is set to witness Combine this with “a national and state regulatory
31.8% year-on-year growth to reach $1.71 billion system that was initially very open”, he adds, and it
(€1.57B) in 2030. has paved the way for the rapid adoption of CBD pet
products by pet parents “seeking natural alternatives to
And while these figures are global, the US is the harmful pharmaceuticals and invasive procedures”.
epicenter of this industry. CBD products for pets are so
popular that there’s a National Pet CBD Day in the US, But there’s a flip side to the story across the Pacific.
celebrated on 21 April. While Asia is predicted to be the fastest-growing region
in this sector, it’s riddled with regulatory challenges –
Regional differences an obstacle affecting this industry internationally.
The presence of key players, and a greater
understanding of the benefits of CBD products, are Blanket ban
driving the sector forward in the US. “Pet parents across In February, the Hong Kong government introduced a
the world are, for the first time, acknowledging that blanket ban on CBD, classing it – and other cannabis-
the pet is a member of the family, and nowhere is this derived compounds like tetrahydrocannabinol (THC) –
more apparent than in North America,” explains Charles a dangerous drug. see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 41


The ruling wiped out CBD pet companies on the island, CBD products for pets are so
and Lozow explains that the ban appears to be founded popular that there’s a National
on concerns about the presence of THC in hemp- Pet CBD Day in the US.
derived CBD products.
out. “Producers have to be cautious not to make any
“Unfortunately, the unintended result of the very severe claims in their marketing that the FDA would consider
penalties is that it is fueling the grey and black markets to be ‘drug claims’, but other than that, it largely steers
for CBD, including CBD pet products,” he says. clear of the supplements market when it comes to
hemp-based CBD products.”
European approach
In the UK, the Veterinary Medicines Directorate has Charles Lozow says that Congress is finally forcing
classed CBD as a drug that can only be prescribed the FDA to act, after reintroducing legislation –
by vets, meaning that human-centric CBD products including the Hemp Access and Consumer Safety
require marketing authorization to be sold for pets. No Act – providing regulatory pathways for CBD as a
company so far has the approval to do so. food and beverage additive and allowing hemp-based
CBD (and other ingredients) to be marketed as dietary
Across the EU, CBD for pets is regulated as a ‘novel food’, supplements. “It’s likely that the FDA’s action will, at
so it must be safely evaluated before being marketed least, not allow the treatment of CBD to be like most
as a food supplement. The VCS co-founder says that other supplements in the US, and that the FDA will craft
while the European Food Safety Authority – the body another regulatory regimen to apply to this and other
responsible for such assessments – has published a prevalent molecules from hemp.”
scientific opinion deeming CBD safe for pets when used
according to the proposed conditions, the EU hasn’t Heidi Whitman adds that most regulatory issues
approved any CBD products for vet use yet. around CBD exist due to the confusion separating
hemp-based products from those with higher THC
Researching specific formulations content: “There’s a lot of misinformation and a lack
One organization hoping to get marketing approval of understanding in the legislative and regulatory
is UK-based Pet Pharmaceuticals. Heidi Whitman, an community.”
advisor to the company, says regulatory challenges
in Europe are more about proving the consistency of The way forward for CBD
formulations, a quality that whole-plant CBD lacks. Have these regulations – compared with the various
ill-effects cited by governments imposing them –
The company has also proposed research evaluating punctured the pet CBD boom?
“very specific formulations of cannabinoids and terpenes
with regards to safety and efficacy for a variety of Not according to Lozow, who says the sector will keep
conditions commonly affecting pets”. Whitman explains growing, as the scientific and veterinary community
that “Dosage is key to getting the maximum effect from continues to grasp CBD’s safety and medical potential.
cannabinoids, and our research will determine what
these should be.” Neither expert believes that there are serious health
detriments associated with CBD use. Whitman says
Boom or bust? animal-specific studies have shown only mild negative
In the US, the Food & Drug Administration (FDA) has effects of CBD when given at very high doses: “At most
denied 3 citizen petitions calling for CBD products to therapeutic doses, there are no demonstrable negative
be marketed as dietary supplements. Despite that, there effects. Clearly, there’s a much narrower margin of
are signs of progress. safety for THC. This is a good example of the kind of
confusion that’s out there.” And despite a notable rise
“CBD supplements are already being widely marketed in in use, Lozow says “the number of reported adverse
the US for both humans and animals,” Whitman points events continues to be remarkably low”.

42 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


VCS believes that “wrong-headed” CBD regulations Education is the key to increased
can be overcome through science-driven data, acceptance among consumers and vets.
education and effective advocacy. “These tools must
be directed to the regulators and lawmakers – at local, Education is crucial
state, federal and international levels – to demonstrate Whitman and Lozow both pinpoint education as
that CBD is a safe compound,” says the VCS co- the key to increased acceptance among consumers
founder. and vets – a crucial goal given that the latter are
the former’s “primary influencers”, as Lozow puts it.
Promising signs Pet Pharmaceuticals is working with organizations,
The US National Animal Supplement Council (NASC) including the VCS, to provide reliable safety
recently announced a successful study showing the information to pet owners, medical professionals and
tolerability of CBD products in healthy dogs. Results regulators for CBD use in pets.
showed that cannabinoids were well tolerated
when healthy male and female dogs were dosed for More research and positive regulations will allow for
90 consecutive days. “Based on the data available, the safe production, sale and use of CBD within the
it was the conclusion of the authors that these medical community. As vets grow more comfortable
substances do not pose significant risk to dogs in long- with using CBD for pets, Whitman predicts increased
term use,” the NASC says. interest due to the efficacy and more favorable side
effects than many other similar pharmaceuticals. ◆
And in July, delegates at the European Association
of Veterinary Pharmacology and Toxicology
congress saw Innocan Pharma present insightful Anay Mridul
PETS International Contributor
CBD research results on pharmacokinetics and
pharmacodynamics.

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 43


Controlling
anxiety and
stress in pets

We analyze what the market


has to offer for mood and
pain management.

According to the American Pet Products Association the medicinal herb ashwagandha and amino acid
(APPA), the use of calming products has recently L-theanine to help pets relax.
grown considerably. Estimates show that 11% of dog
owners and 6% of cat owners regularly give their pets Other product innovations
calming medicines. Product design innovations promoting calmness are
particularly interesting for pet mood management.
The use of shirts/suits, treats, music and toys as
calming products for dogs also increased in the US US-based Hiddin Products makes functional home
between 2020 and 2022. For cats, calming toys are the accessories like cages and crates with clear acrylic.
most popular (27%), followed by treats (15%), collars Its products aim to manage separation anxiety
(13%), sprays (12%) and music (11%). and promote pet relaxation. The transparent build
eliminates the obtrusive fencing and gates often used
Looking at product launches, and innovative product in pet crates.
designs, there is significant consumer demand for pet
beds and condos, vests, shampoos and gels. Thundershirt’s anxiety vests and BuddyRest’s weighted
blankets are still preferred items among pet parents.
Treats in the lead Puzzle, automated laser and Kong toys are also
Treats and supplements create the greatest demand for increasingly popular, with more products now on the
calming products. They are the preferred category for market offering innovative ways to promote mental
ease of use and a combination of health benefits. stimulation, targeting pet restlessness and boredom.

Some of the latest launches in treat-type supplements For pain relief, the latest innovations are light
for stress and anxiety management include US-based therapy pads, such as one manufactured by China’s
Snuggle Puppy’s Puppy Bites, formulated as night- TheyPet Medical, and far infrared technology (FIR)
time supplements, and Badlands Ranch’s Super20, vests, like the South Africa-based Steed and Style's
the brand’s entry into the pet supplements market. Protechmasta range.
Both products focus on the so-called hypothalamic-
pituitary-adrenal (HPA) axis, regulating stress levels CBD
in dogs in addition to promoting joint, muscle and It is estimated that 37% of US dog owners purchased
tendon health. a CBD product for their pet last year, with 34% keen
to continue doing so this year, according to APPA.
The US fresh pet food company PetPlate also CBD (cannabidiol) is a key category of products used
recently launched calming supplements. These use to manage anxiety, stress and joint pain in dogs, as

44 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


Less feed
needed to
achieve the
same nutritional
Product innovations in the pet value
calming category are led by the
humanization trend.

well as anxiety and arthritic pain in cats. About 16%


of cat owners and 15% of dog parents use them to
manage pain.

In the US, treats and shampoos are the most common


products containing CBD, but food toppers, oils and
supplements are much sought after too.

UK-based pet supplements brand Snoop's Store has


introduced a daily Hemp Seed Oil supplement. This
improves sleep and benefits relaxation by easing
inflammation and helping digestion. Pegasus® Vacuum Coater
With a Pegasus® Vacuum Coater from
Colorado-based Pet Releaf recently added 2 CBD
Dinnissen, you effortlessly ensure that
shampoos and conditioners to its portfolio. When
every pellet is packed with important
the company launched its first CBD products in
fall 2022, everything sold out on the first day. The nutrients, without the pellet feeling
products were quickly picked up by many distribution wet or sticky. The vacuum ensures
partners, including Southeast Pet, Newco and Supreme
that the nutrients penetrate deep into
Pet Supply.
the core of the pellet. This allows you
Launches in Asia Dinnissen
to add more celebrates it’s 75
nutrients without the
Innovations are appearing on Asian markets too. year anniverary.
pellet becoming sticky. Healthy for
Californian med-tech company Ainos recently launched
its VELDONA supplements line in Taiwan. Formulated Continuity
the pet andis beneficial
the basis for
forsuccessful
the owner.
for emotional health and stress relief for cats and dogs, it innovation. Thanks to the unique
aims to generate a whopping $20 million (€18M) in sales combination of decades of cross-
by 2024. industry experience and process
knowledge, in-house production
After a successful introduction in the United Arab and testing facilities, Dinnissen has
Emirates, Indian company Soul Strips is looking forward succeeded for 75 years in creating
to bringing its oral supplement strips for pet anxiety and
the best solutions and innovating
joint mobility onto the home market.
and optimising entire production
processes.
Malaysian premium food brand OzPro has announced
Want to know more about what we do
plans to expand into the pet supplements market with
products targeting musculoskeletal health and joint to be and stay trusted by the best?
mobility as a preventive measure for pain management. ◆ Visit www.dinnissen.com

Muskaan Gupta
Associate News Editor
GlobalPETS

[email protected] www.dinnissen.com
Join us for the networking
And meet 239 other pet industry executives

What to expect from this


networking event?
240 executives from the world’s
leading pet companies together in
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Meet and make deals with new


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through facilitated networking

Get inspired by the latest trends and


developments to stay ahead of your
competition

Hear from leading retailers and


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46 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


24-26 January 2024
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It’s a great place to meet all the


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The GlobalPETS Forum is the TOP


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47
PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY
Are you coming to the pet industry’s
leading networking event?
In January 2024, around 250 executives from leading pet companies will gather
at the GlobalPETS Forum in Venice for 3 days of networking and inspiring
presentations. Will you join them?

Since 1999, the GlobalPETS Forum has been a popular pasta at the buffet, or you could find yourself
meeting place for the industry. It’s an opportunity sitting next to the CEO of a pet food company, a
to reconnect with old friends or acquaintances and distributor from the Middle East, a branded pet toy
make new business connections. It’s also a chance to manufacturer from the US or a packaging supplier.
learn more about where the industry is going, which
consumer trends to keep an eye on, and how to prepare With a high repeat-visit rate, the GlobalPETS Forum
your company for continued success in the future. has proven to be a can’t-miss event, and this is
largely due to the quality of the interactions and the
The program diversity of the attendees. Every year, we’re proud to
The upcoming edition of the GlobalPETS Forum spans hand out ‘loyalty awards’ to people who’ve attended
3 days, from 24 to 26 January 2024, at the 5-star Hilton for 10, 15 or 20 years.
Hotel in Venice (Italy). The program is as follows:
What you’ll learn
Day 1. The event kicks off with an optional tour of pet The industry has endured a rocky ride in the last few
retail stores around Venice. Afterward, an informal years: from a booming pet population and increased
evening dinner gives you the opportunity to socialize consumer demand, to shipping issues, rising container
with other attendees. costs, higher prices and – more recently – inflationary
Day 2. From the morning until the evening, the program pressure and a decreasing pet population in some
is jam-packed with high-quality presentations and countries.
networking moments. At the end of the day, it’s time
to relax and network in a more informal setting as you What does this mean for our industry going forward?
enjoy a delicious ‘walking dinner’ during the renowned Which new trends are starting to emerge? How will
Social Evening. consumer preferences continue to evolve? And how
Day 3. On the last morning, you’ll get your final dose of does your company need to switch gears to deal with
inspiration from top speakers, followed by a networking these changes? The event will provide answers to
lunch before heading home. these and other questions.

Who you’ll meet How to register


The attendees are a diverse group of senior-level Don’t miss this opportunity to join fellow pet industry
executives (C-suite or VPs/directors) from a cross- professionals for 3 days of insights and networking!
section of the worldwide pet industry. For example,
you might bump into one of the major European pet For the full program and to register, go to the event
retailers while grabbing an extra scoop of delicious website: globalpetindustry.com/gpf

48 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


The speakers
We’ve put together an impressive lineup of top speakers, including:

Nicolò Galante, CEO of Arcaplanet, will provide Eli Hasson, Investor and Director of Pet Health
insights into the performance of Italy's largest pet Innovation Labs (the venture arm of Australian pet
retailer and its plans for the future. retailer Petstock), will discuss innovation in the
pet industry.

Industry veteran Jeffrey David, Chairman of Musti Matthieu Glayrouse, co-founder of Yummypets,
Group & Independent Pet Partners USA and will present consumer insights gathered from the
founder of Petbarn, will talk about his global pet online community of pet parents.
industry observations, lessons learned and future
industry predictions.

Liseth Galvis, Senior Research Analyst at Marta Sułkiewicz, VP Global Research Solution at
Euromonitor, will share her predictions for Similarweb, will use online search and marketplace
emerging trends and pet consumer developments data to analyze trending pet categories in different
in 2024 and beyond. countries and regions.

Sponsors

APC united states / spain M-PETS belgium Pet Food Competence Network
APC offers high-quality and sustainable M-PETS is a key player in the The Pet Food Competence Network
spray-dried plasma and hydrolyzed manufacturing and distribution of pet comprises 11 like-minded companies,
plasma for wet and dry formulas, treats products. The company provides a with decades of combined experience,
and supplements. Plasma can be used wide range of innovative and exclusive giving you simple and streamlined access
for traditional wet functional benefits, products for dogs and cats, with over 350 to the very latest the industry has to offer.
providing superior gelling, emulsification patents, and is available in 50+ countries The domain expertise of each company is
and water-holding capacity. In dry foods, worldwide. M-PETS products feature merged into a complete, tightly integrated
treats and supplements, plasma offers stylish designs, engaging functions and production solution that can be scaled
the opportunity for a different kind of certified ecofriendly materials (FSC, TÜV and fully connected to match your
functionality – supporting immune health. Rheinland, GRS). requirements.

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 49


GlobalPETS Forum Award 2024
Who will follow in Snellman Petfood’s footsteps – the winner in 2023 – and
win next year’s prestigious GlobalPETS Forum Award?

The GPF Award is presented annually to a company Laroy


in the pet industry that has demonstrated exceptional This Belgian pet supplies
performance. company, based in Ghent,
caters to all pet categories
After 2 decades, it has become one of the most with a wide range of product
important awards in the industry. Curious about lines. It’s a powerhouse in food and non-food goods
who will win in January 2024? Join us in Venice with 2 European food production plants, an in-house
to find out! design team and 22 product developers bolstering an
ever-evolving portfolio of added-value items to entice
Kormotech end-users and their pets.
Kormotech, a second-
generation family business, is Vet Planet
the largest Ukrainian producer 15 years of love for animals
ranked 55th in the world's top Animal’s health is our passion resulted in the widest, high-
pet food producers list. Their mission is to change quality professional product range of supplements,
cultural patterns toward pets in Eastern Europe. diets, pet food, snacks, tests and dermocosmetics,
3 production plants in Ukraine and Lithuania produce sold under the brands: VET EXPERT, RAW PALEO and
premium and super premium brands of pet food and Mr. BANDIT. A science-driven approach, best-in-class
private labels, exported to 40 countries. R&D experts and a 'based on evidence' commitment
led to veterinarians' trust and a global scale of
Earth Rated operations (45+ countries).
Earth Rated is a B Corp-
certified company that creates Tractive
thoughtfully designed dog Tractive is a leading GPS-
products. With a focus on tracking and health/activity-monitoring platform for
innovation and responsibility, Earth Rated is dedicated cats and dogs. Founded in Austria in 2012, Tractive
to making everyday moments for people and their has grown to 1 million paying subscribers globally.
dogs simpler and better. Their products are used by Their devices allow pet parents to locate their pets and
over 4.5 million people daily and can be found in over receive health alerts if irregularities in activity, sleep or
20,000 stores worldwide. behavior are detected. ◆

50 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


Plaček Group czech republic

The unique story of the Plaček Group


Since starting out as a wholesaler, Plaček has become the largest pet retail group in Eastern Europe.

Dušan Plaček first combined his love for In the following years, Plaček started suppliers, Czech producers gradually
animals and his entrepreneurial spirit recruiting like-minded people and the joined the group. Today, the Plaček Group
when he was just 16 years old. Back then, company expanded internationally to the predominantly focuses on its own brands,
commercial businesses were not allowed wholesale markets of Slovakia and Russia. including Elbeville, Ontario, Prospera Plus,
in the Czech Republic. Bricks-and-mortar Later in the 1990s, the first Plaček company Rasco Premium, Repti Planet, Nature Land,
stores selling pet supplies were controlled facilities were built in Poděbrady. and more.
by the state and carried an identical product
assortment nationwide. The start of retail Fast-forward to today
In 2004, Plaček’s dream of building a retail In 2023, the Plaček Group operates more
Because private trading was only possible on chain selling live animals increasingly than 350 stores, with e-commerce activities
local markets, that’s where Plaček started his started to take shape. The Super Zoo project in the Czech Republic, Slovakia, Poland and
business, buying and selling aquarium fish. was created in the Czech Republic, followed Latvia. In fact, it opened Europe’s first 24/7
by the acquisition of the Dino Zoo company pet supplies store. With more than 1,000
The vision in Latvia. independent wholesale customers and over
When Plaček subsequently traveled abroad, 2,500 employees, the group achieved total
in 1989, he saw pet shops overflowing with In 2008, Super Zoo entered Slovakia. Then sales of over €260 million ($282M) in 2022.
high-quality products and live pets inside in 2014, the group acquired Poland’s largest
the stores. Immediately, he had a vision of pet retail chain, Kakadu. An online store was For the coming years, the Plaček Group has
what he wanted to do in the years ahead. launched to get as close as possible to the ambitious plans, but it firmly believes that –
end customers. with the help of customers and employees
He started importing goods that up until – it will be able to successfully add more
then had been unavailable to Czech Adding brands to the mix chapters to its truly unique story. ◆
breeders, especially at such previously The organization’s product offering
unseen quality levels. He founded the has evolved over the years. Whereas Plaček Pet Products s.r.o.
Plaček company in 1991 and the group’s the business started out by sourcing [email protected]
placek.cz/en
wholesaling chapter began. the majority of products from foreign

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 51


52 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY
The power of social media
for pet brands
Pet businesses are relying more and more on their social media presence to
increase visibility and sales. For good reason.

Pet brands are increasingly using social media to Furthermore, recent research from leading pet and
engage directly with customers and connect with veterinary PR firm FWV Fetching concluded that 1 in 5
potential new ones. With consumers bypassing official pet parents use human or pet social media influencer
websites in favor of social channels, a brand’s social pages to discover new pet products and brands. Only
media presence now offers everything from customer 14% admitted not using any marketing channels for
support and guidance to direct sales. those purposes.

The power of social “Social media is great for pet lovers,” says Hannah Page,
A 2021 survey from management consulting firm Social Media Manager at Inspired Pet Nutrition. “We’re
McKinsey & Company found that 22% of Gen Z and not just trying to cram a product in your face – it’s
26% of millennials believe social media has influenced demonstrating that we know what we’re talking about
them to buy pet food and supplies – and that doesn’t because we are pet owners and we really care.”
include those who have been influenced on a
subconscious level. Different platforms for different customers
An aggressive sales approach (or a hard sell) is generally
not well-received by social media users. However,
Use of company social media pages to discover the type of content that does gain traction may be
pet products and brands, by age group somewhat surprising.

18–34 years 27% 540+= Emily Wardle, Associate Director at UK-based


35–44 years 20% 400+= spottydog communications, recalls a series of videos
the firm did for dog collar brand Canny. “Even though
45–54 years 16% 320+= they’re really educational, we got 100,000 views and
+55 years 9% 180+= 2,000 likes – so obviously, it’s tapping into the fact
that a lot of people are struggling with their dog on
Source: FWV Fetching (1,493 US pet owners, June 2023) a lead.” see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 53


For Hannah Page, the core 3 channels are Instagram, People trust influencers more
Facebook and TikTok. While Facebook has a slightly than they do brands.
older audience, Instagram has more millennials and
TikTok is more Gen Z. “Organically, you can do it very cheaply,” says Becks
Brockwell, Co-Founder and Director of digital
“But there’s obviously a crossover on all platforms,” marketing agency eCollective Digital, adding that
Page admits. Instagram performs the best, she adds, with user-generated content, you no longer have the
especially at reaching new pet owners. considerable costs of photo shoots.

Pros and cons “Our ability to be agile with costs is probably one of the
While Instagram offers reliable and effective pet most exciting things for brands,” she continues. “We
marketing, done right, TikTok and its eerily reliable can and do work with everyone from huge global
algorithm can put you in front of younger customers companies with 99% brand recognition, right down
eager to pamper their pets. Here, the key is to keep to someone who’s just decided to launch the most
an eye on the trends and jump on them when you spectacularly beautiful leads for dachshunds.”
see them.
Becoming viral
“There’s one video going around at the moment to To an extent, social media is an equalizer because
do with ‘your dog’s red flags’,” says Page. “Because anything can become a viral sensation. But as a rule, the
people are just hopping on the trends, ones like that more you spend, the more eyeballs you can get in front
do really well.” of your brand, especially with Facebook, where paid
promotions are essential.
But it’s not for those too precious about brand
messaging. “If you try to put product messaging out However, according to Brockwell, virality isn’t
though, it generally won’t perform as well,” says Page. something to necessarily aspire to anyway. “I think
“It’s got to be very relatable. It’s got to be reactive viral is maybe not all it’s cracked up to be,” she says,
content. It’s got to be funny and engaging.” explaining that smaller companies may be unprepared
for the sudden rush of orders that dries up as quickly
The unknown success as it appears. Consistency and steady growth are
And even then, it’s hard to predict success. “I just better aspirations.
think TikTok is a bit more hit and miss,” says Wardle.
“Sometimes you’re surprised that something goes Influencers versus brands
viral, and sometimes you think, ‘Oh, this is quite Influencer culture has exploded in recent years, and it’s
funny’, and it falls flat. The key is to keep going hard to imagine many brands sidestepping influencers
with it.” entirely. “If you do, you’ve just got to accept that your
results won’t be as impactful,” says Wardle.
“You’ve got to be on it every single day, and it’s quite a
lot of effort,” agrees Page, who acknowledges the luck “People trust influencers more than they do brands. So
involved. “Unless you’re posting regularly, TikTok just if you can build that relationship with the influencer,
doesn’t push your videos out there, so you’ve got to be and they can get your message out there, it’s like old-
on it 24/7.” fashioned PR, really,” she adds.

Costs This trust comes down to a word that crops up a lot


With all the social media platforms to manage, things when talking to social media agencies in the pet space:
can get expensive, running into thousands per month authenticity.
– but it doesn’t have to be. Wardle says her agency
works with clients for as little as £200 ($251 / €233) This isn’t just a case of finding a celebrity pet with the
a month. most followers. Micro-influencers – those in the 5,000

54 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


to 10,000 follower range – may have a smaller audience, “I think if we were to do Threads properly, we’d
but it’s often more engaged, and they won’t necessarily probably give more people access,” muses Page,
require payment beyond product samples or affiliate who sees it as a more conversational platform. “Like
income from the sales they drive. nutritionists can share stuff they’re thinking about: ‘Hey,
we’re thinking of launching this new flavor, what do
“If you send them a product and they post about it, you think?’”
5,000 followers might get 1,000 likes – a fifth of their
audience,” Wardle says. This can prove more effective Whatever the future of Threads and other channels
than a giant influencer with a less engaged following. that may spring up, historically speaking, the pet side
of social media has been defined by its friendliness
These micro-influencers – often regular pet owners and joy, which makes it especially conducive to an
who had no ambitions to become Insta-famous – offer engaged brand.
authenticity in spades and can instinctively know what
works better than risk-averse brands. “That’s what’s so refreshing about this part of the social
media world,” says Brockwell. “It isn’t toxic. It’s actually
Threads, the new platform rather beautiful. Who would have ever thought that
While conducting interviews for this piece, a new social you’d end up following a sausage dog?” ◆
media venture was born: Threads, a Twitter (now: X)
rival from the owners of Facebook and Instagram. It’s
too young for brands to pay much attention to at the Alan Martin
PETS International Contributor
moment, but that could change – after all, TikTok
wasn’t worth much attention once.

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 55


What’s trending
in beds and
cushions?

From better ergonomic support to recycled and certified materials;


these are the innovations in the pet bed category.

Barkitecture dominated designer furniture trends in 2022 “Exciting new launches in pet bedding continue to
and continued to influence product development this demonstrate the benefits of innovative materials
year. Beyond the humanization of pets, higher spending like thermoregulation and microencapsulated fabric
and an increased interest in designer and comfort technologies, which are associated with a wide range
products have led to diversification and frequent of therapeutic benefits for the pet,” she says.
launches across the pet bed and cushion categories.
Multi-use and convertible beds, which can function
Expenditure in various spaces in the home or on the go, are also
The American Pet Products Association’s (APPA) 2023 increasing in demand.
survey reveals that 85% of dog owners and 75% of cat
owners in the US have a bed for their pets. Almost 40% Luxury versus value
of owners have at least 1 bed, and about a quarter Luxury beds are an ongoing trend. According to the
have 2. APPA, 9% of American cat parents owned designer
beds for their felines in 2022. It is believed that 15% of
During 2022, dog owners spent an average of $72 (€79) millennial cat owners have a designer bed.
on pet beds, while cat owners spent $54 (€59). When it
came to crates and cages, pet parents spent an average Earlier this year, Italian luxury brand Gucci began
of $88 (€96) for dogs and $117 (€128) for birds. retailing plush mini settees for upward of £5,000
(€5,800 / $6,370). When it comes to luxe styles at a
Consumer demands much more affordable price, FÜZI PETS’ April collection
‘Certified ingredients’ and ‘eco-friendly products’ are created quite a stir with its buttery soft faux fur designs.
some of pet parents’ demands for their furry friends’
beds and crates. Luxury mattress e-commerce retailer Saatva recently
launched a luxury pet bed featuring an ergonomic
Kristin Moerman, Vice President of Creative at Central design fitted with micro-coils to aid spinal alignment
Home Brands – one of the largest pet furniture and a water-repellent fabric cover that combats
retailers – tells PETS International that pet parents seek pet dander.
transparency in ingredients, materials, and related third-
party certifications “to make them feel confident in their However, Kristin Moerman points out that value
buying decisions”. is essential when purchasing these products. “We

56 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


are seeing consumers prioritize price as a primary Higher functionality
purchase driver.” Other demands from pet parents are higher
functionality, waterproof, anti-bacterial, scratch-
Therapeutic designs resistant, and stain-repellent fabrics.
Retailer Orvis witnessed a sales increase of 20% in
their dog category between 2018 and 2022, led by its Hangzhou-based TianYuan Pet’s portfolio ticks all
dog beds, hinting at the rising demand for products in these boxes with its bedding options. The company’s
this category. Cozy Life series offers beds, cushions and even pet
houses with orthopedic support, while the anti-static
The company has recently launched the Orvis series features easy-to-clean fabric. Using ultrasonic
RecoveryZone Couch Dog Bed, which specifically embossing fabric ensures easier cleaning while
targets rest and recovery for active dogs of all ages. providing a stylish appearance. The material also
The product combines memory foam to maximize promotes warming and cooling features.
weight distribution, reducing pressure points and
stress on a dog’s joints, muscles, and ligaments In addition, the company’s products use eco-friendly
when lying down, and increases circulation for faster and sustainable materials certified by Taiwanese and
recovery. Its cover promotes airflow and breathability, American environmental protection agencies. “The key
regulating the dog’s body temperature and aiding in trends for pet beds in the Chinese market are going
better sleep. toward product innovation and recycled materials,”
highlights Cherry Weng, Sales Director of TianYuan Pet. ◆
“Consumers want what’s best for their dog’s health and
the environment, as well as the quality and longevity
Muskaan Gupta
they expect from premium brands,” says Steve Associate News Editor
Hemkens, Vice President of Global Brand Strategy GlobalPETS

at Orvis.

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 57

@OPTCL_SA
Biogance france Zoorf sweden
The French pet care specialist Welcome to ZoorfExpo2023!
Biogance is a leading French pet care manufacturer, pioneer and ZoorfExpo is the largest trade fair for the pet industry in Scandinavia.
expert in organic and natural premium products. From formulation Here the best suppliers, manufacturers and wholesalers gather to
to filling, the manufacturing processes are fully controlled in the present pet products and brands. If you sell products and services
company’s ISO22716-certified factory, located in the Pays de la Loire related to animals, this is the meeting place for you.
France. Its portfolio covers the various pet care categories – grooming,
When: 11-12 November 2023
skin care, oral care, anti-parasites, food supplements – for dogs, cats,
Where: Kistamässan, Stockholm, Sweden
horses, small animals and birds. Distributors wanted.
More information at: zoorf.org/english-zoorfexpo
Private Label service for retail chains.

Biogance SARL ZOORF, Zoobranschens Riksförbund


[email protected] [email protected]
biogance.fr zoorf.org

www.kanegrade.com
Tel: +44 (0) 1438 742242
Email: [email protected]

NATURAL FOOD INGREDIENTS


58 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY
7–10 May, Nuremberg, Germany

Interzoo: Market developments


under the magnifying glass
The world’s largest and most meaningful trade fair for the pet industry will
highlight various international trends and will connect the global pet industry in
Nuremberg, Germany, from 7 to 10 May 2024.

The segmentation of products in the global pet important place to maintain and expand contacts,
supplies industry has become increasingly fine- to follow trends, to initiate business and to be a part
grained, with trends like the humanization of pets of the pet industry,” says Dr. Rowena Arzt, Head of
and the premiumization of products leading the way. Exhibitions at Interzoo organizer WZF.
In their wake, lifestyle is also becoming increasingly
important – both in product design and in the choice The huge diversity and the international appeal
of distribution channels. of Interzoo are 2 strong reasons for new market
entrants to attend the 4-day event. “More than 10%
The importance of lifestyle of the exhibitor registrations so far are newcomers
“Pet parents are increasingly aiming to express their to Interzoo. We’re very pleased to see this market
bond with their beloved furry family member. More dynamism and welcome them to the ‘world of pets’
and more, pet products need to match the lifestyle at Interzoo,” comments Dr. Arzt. With 7 months to go
and attitude of the pet parent,” explains Gordon until Interzoo 2024 (7-10 May), companies from more
Bonnet, Managing Director of WZF – Pet Industry than 60 countries have already registered – and there
Services and the German Pet Trade & Industry will be more to come.
Association (ZZF).
High-quality supporting program
In fact, people sometimes even buy pet products as Interzoo offers an attractive supporting program with
complementary accessories when buying clothes or insights into hot topics and trends within the global
products for themselves. “With the pet being regarded pet industry. The Fresh Ideas Stage puts a special
as a true family member, we’re starting to see an focus on start-ups presenting innovative products.
effect on retail segments as well. Pet products are On top of that, exhibitors and visitors can benefit from
now appearing in furniture stores or bakeries, where numerous conference sessions on specific markets
we would not traditionally expect them,” he adds. and regions, while the Interzoo Party is a prime
networking event. Interzoo 2024 is complemented
Diverse with international appeal by Petfood Forum Europe, which will take place on
These developments will be reflected at Interzoo, May 6, one day before the exhibition starts. ◆
which is the industry’s leading gathering of
established players, innovative start-ups and exciting Register to exhibit or attend now at
products from around the globe. “Interzoo is the most interzoo.com/en

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 59


A lower VAT rate
to tackle price spikes?
The industry is calling for a temporary solution to inflationary pressure, while
experts examine whether end consumers will benefit from reduced VAT.

In response to the challenges that pet parents are An everyday essential in Germany
facing due to inflation, national pet food manufacturers’ In Germany, pet food is considered an everyday
associations are calling on governments to consider a consumer good and a VAT rate of 7% currently applies
temporary reduction of the value-added tax (VAT) on with the aim of reducing prices for the end consumer.
pet supplies. They claim that pet food should not be The industry is keen to keep this reduced tax rate in
treated as a luxury item. place for pet supplies.

Illogical in Italy The German Pet Trade & Industry Association (ZZF)
According to Italy’s Association for Pet Feeding and believes that pet food is an essential item. It warns that
Care (ASSALCO), inflation has hit pet food sales the a higher VAT rate would make pet owners more likely
hardest where distribution channels showed more to switch to feeding their pets more table scraps and
growth in value than in volume. Pet food sales in homemade food.
grocery stores – the country’s largest distribution
channel – increased by 14% in value but only 0.4% in Reluctance from policymakers
volume last year. In Belgium, a recent proposal is calling to reduce
the VAT on pet food from the current 21% to 6%.
“It is illogical to impose 22% VAT on pet food and The federal government acknowledged that the
vet care, the same rate that applies to luxury goods,” cost of keeping pets had increased, but warned that
says ASSALCO’s President Giorgio Massoni. Back a VAT reduction would benefit businesses rather
in 2020, ASSALCO and the National Association of than citizens.
Italian Veterinarians (ANMVI) sent a letter to the Italian
government asking for a long-term reduction in the “Pet parents will experience only a very small decrease
VAT rate from 22% to 10% for pet food products, pet in costs, while it will impose a heavy budgetary cost on
services and medicines. the Federal Government,” says Belgium’s Deputy Prime

60 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


Minister Vincent Van Quickenborne in response to a be little benefit to end consumers. The result could
letter from animal rights organization GAIA. therefore be that end customers would continue to
pay the same purchase price, even if the applicable
Meanwhile, in France, the Federation of Food VAT rate was reduced,” he explains in an interview with
Manufacturers for dogs, cats, birds and other pets PETS International.
(FACCO) proposed that the VAT rate on pet food should
be lowered from the current 20% to 5.5%. However, The cost to public finances
the proposal, registered as part of the 2023’s Finance Since April 2022, EU member states have been allowed
Bill, was rejected in the Senate. Cutting the VAT on pet to apply a reduced rate of VAT – as little as 5% or
food products would have meant a loss of €420 million even the zero rate – to pet food products, as they
($459M) in revenue for the nation’s finances. are considered products that cover basic needs. But
as Hoverd points out, any changes in the VAT rate
The association now hopes to work on what it must be thought about carefully: “This will include
describes as the “best approach to resubmit the consideration of the complexity in implementing the
request within the framework of the Finance Bill for legislation, as well as the potential loss of tax revenue
2024”, which will be discussed and approved by the in the case of applying a lower taxable VAT rate
end of this year. FACCO regards the issue as “more to goods.”
central than ever” and says that a reduction of the
tax applied to pet food would help households cope The European pet food market is currently worth
with inflation. around €39 billion ($42.6B). Therefore, a reduction of
the VAT rate for pet food to between 5% and 0% would
Request falls on deaf ears in the UK suggest a cost to public finances of between €6.2
In April 2022, the UK welfare charity Dog’s Trust asked ($6.75) and €8.1 billion ($8.85B).
the Chancellor of the Exchequer to remove VAT on
veterinary services – including medicines – and How long is ‘temporary’?
pet food for a temporary period of 12 months. The Moreover, it is not clear for how long these temporary
letter, which was signed by 7 organizations, urged: VAT reduction measures should remain in place.
“Removing the 20% VAT on pet food and veterinary- Nevertheless, there is a general consensus that they
services costs could be critical to many pet owners at should last for a significant period of time. According
a time when interest rates as well as costs for energy, to Hoverd, this allows for the benefits to “properly
food and fuel have all rapidly increased.” However, flow through the supply chains and be passed on to
according to Nicole Paley, Deputy Chief Executive end customers”.
of UK Pet Food, the government showed no signs of
revisiting VAT applied to pet food. “If a reduction to the rate of VAT on pet food is intended
to support consumers through the current cost-of-
What is the real impact? living crisis, then a reasonable timeframe would appear
Experts agree that the impact of a tax reduction could to be one that aligns to expectations for when inflation
be beneficial for pet parents in theory, but the reality and the economy will return to a more stable state,”
might be different. James Hoverd, VAT associate at he concludes. ◆
RSM UK, warns that businesses are also feeling the
impact of the rising cost of living and high inflation, so
David Palacios Rubio
pet food manufacturers and retailers could decide to Head of Editorial
use a reduction in VAT to increase their own revenue GlobalPETS
rather than passing the benefits onto shoppers.

Olivia Hooper
“If the manufacturers and/or suppliers of the pet food Associate Business News Editor
choose to keep the same price even though there has GlobalPETS

been a reduction in the rate of VAT, then there would

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 61


62 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY
Retail sector has pet supplies in its sights
The role of supermarkets and hypermarkets in our industry is increasing. Are they
becoming an essential part of the pet retailing ecosystem worldwide?

Pet ownership surged during the pandemic. This put increase from $320 billion (€300B) today to $500
the pet food and pet products sector in a strong long- billion (€468.7B) by 2030. Bricks-and-mortar sales
term position, as those pets continue to be part of so account for nearly three-quarters of pet spending, and
many households. So it is little wonder that the major while e-commerce won’t outpace, the category will
supermarket groups have sat up and taken notice. see a significant increase.

Lucrative market Opening pet stores


Younger owners, in particular, are keen to feed their Italy is the country with the highest number of specialty
pets with premium products. That’s why the grocery pet stores in Europe – more than 5,900 in 2021,
groups have their eye on this lucrative market. It is an according to Statista. This accounts for around 14%
opportunity to leverage the fact that shoppers are in- of the pet food sector, and nearly 30% of dog and cat
store for food for both their family and their pets. food is sold through supermarkets, says Italy’s National
Association for Pet Feeding and Care (ASSALCO).
A recent study by Bloomberg Intelligence forecasted
that pet food revenue worldwide is expected to Some of the big Italian supermarket chains have
launched their own pet store brands. This includes
Dog food purchased in supermarkets (US) Conad, with PetStore Conad, and Selex, which has the
pet store brand Animali Che Passione.
2020 26% 390+=
2022 31% 465+= In the US, Walmart has recently opened its first-
ever pet services center in Dallas (Georgia) where it
Source: 2023-2024 APPA National Pet Owners Survey offers different pet services – including see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY 63


Pet parents buying dog food in supermarkets 27.5% of US pet parents go to either
(US, 2022) Target or Walmart for their pet supplies.

Gen Z 39% 585+= The idea is to include items in the assortment that
Millennials 31% 465+= would usually only be found in specialist pet stores.

Gen X 31% 465+= Expanded product ranges


Baby boomers 28% 420+= More recently, Asda has also partnered with a number
of brands to introduce frozen raw pet food products,
Source: 2023-2024 APPA National Pet Owners Survey including Poppy’s Picnic, Wilsons Pet Food, Billy &
Margot, and Nurture Them Naturally. It has installed
veterinary care and grooming – under one roof. The frozen bays at 6 of its stores, while also offering pet
retail corporation says it is eager to expand this model supplements in a deal with pet supplement brand
to other locations in the future. YuMove. According to the company, this marks a
“significant milestone” in the evolution of Asda Pet Care.
Cross-category shopping
Meanwhile, the Bloomberg survey found that 27.5% Other supermarket chains have used pet offers as a
of US respondents go to either Target or Walmart marketing tool, with Aldi reintroducing a limited-time
stores to purchase their pet supplies. No surprise, offer of dog-friendly ice cream at its stores in the UK
therefore, that both players have expanded their pet this summer. The company claims that searches for
food sections recently, not least because shoppers are #dogicecream had reached 31.8 million hits on TikTok
coming into stores more regularly amid the upward alone ahead of the launch.
trends for frozen and refrigerated pet food.
Investment in the category
“Since these foods are also more perishable than The Woolworths Group supermarket chain in Australia
kibble, they could be another trend that drives even went a step further, when it acquired a 55% stake in
more shopping occasions. To take advantage of Petspiration Group for €375.3 million ($408M) in June.
this increased in-store foot traffic, retailers should Petspiration owns and operates the 276-store chain
prioritize optimizing the in-store experience for PETstock across Australia and New Zealand.
both efficiency and discovery — with a focus on
thoughtful merchandising that encourages cross- "Specialty pet is a large and growing retail segment in
category shopping,” says Sarah Marzano, Director which we have limited presence," Woolworths Group
of retail strategy at Chicago-based market research CEO Brad Banducci says. "The partnership will allow
firm Circana. us to meet more of our customers’ pet family needs
with a complementary range of specialty pet products
Capturing customers and services, and to unlock opportunities across
The purchasing power of the large supermarket chains both businesses.”
will also allow them to pass on savings to customers,
and to run certain lines as loss leaders, given that they What seems certain is that Woolworths will not be the
would expect to capture additional grocery sales once last major supermarket group to target the pet food
shoppers are in-store. and supplements sector or to expand by acquisition.
As they take on specialty retailers, expect the fur
Reflecting this, in 2022 UK retailer Asda introduced to fly. ◆
a dedicated ‘pet zone’ at 4 of its stores. This was a
trial featuring refrigerated fresh pet food, premium
treats, accessories, toys, leads, collars and grooming Mark Faithfull
PETS International Contributor
products in a bid to help pet parents buy pet supplies
as part of their regular weekly shopping.

64 PETS INTERNATIONAL  |  OCTOBER 2023  |  GLOBAL PET INDUSTRY


Germany,
Austria and
Switzerland
How is the pet industry doing in the DACH
region? We present some facts and figures
and a more detailed analysis of online
sales in Germany. We also sit down with
the largest European pet retailer, Fressnapf,
for an interview.

Regional report: Germany, Austria and Switzerland 66 How is Europe’s leading pet retailer doing
Pet online retail in Germany proves resilient 71 on its home turf? 76
Wahl germany 75 Spectrum Brands us & germany 78
Regional report: Germany, Austria and Switzerland

Pet industry grows as pet


spending holds up
Higher demand and increased competition are forcing existing and new
players to develop innovative products and services.

Pet populations in Germany (D), Austria (A) and Pet food turnover on the rise
Switzerland (CH) – in short, the DACH region – The German pet industry had a turnover of almost €6.5
continue to grow slightly. And despite the inflationary billion ($7B) in 2022, a significant growth from 2021’s
pressure, pet owners are sparing no expense when it €6 billion ($6.5B) mark.
comes to providing for their pets.
Pet food made up the largest part of the turnover and
Household pet ownership stable the increased growth, accounting for nearly 8 out of 10
In 2022, Germany was home to an estimated 15.2 sales according to the ZZF and IVH.
million cats, living in 24% of the country’s households.
This makes the domestic feline by far the most In Austria and Switzerland, the same trend is being seen.
popular pet. "Basically, it has to be said that pet ownership – and pet
nutrition – is an extremely stable and steady market,"
The latest data from the German Pet Trade & Industry Bernd Berghofer, CEO of Austria Pet Food GmbH and
Association (ZZF) and the Industrial Association of Managing Director of the Austrian Pet Food Association
Pet Care Producers (IVH) shows that there were (ÖHTV) told the Austrian journal Die Ernährung.
10.6 million dogs last year, followed by 4.9 million
small mammals. Pet food is one of the least likely categories that
shoppers will spend less on. Despite seeing slightly
According to Euromonitor, 45% of German households more focus on the price of products, the industry in the
owned a cat or dog in 2022. The forecast for 2023 is DACH region does not expect any dramatic changes in
that this remains stable, at 45.1%. the near future.

The numbers are very similar in Austria and Switzerland, According to Euromonitor, the pet food market
with 44% and 42% of households owning a cat or will grow by 7.6% this year in Germany. In 2022, the
dog. For this year, pet ownership levels are expected increase was 3.5%. The market is also expected to
to remain flat in Austria and increase by 0.6% grow – although at a slower pace – in Austria (3.6%)
in Switzerland. and Switzerland (2.4%).

66 PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND


Pet food is one of the least likely categories
that shoppers will spend less on.

However, its online sales are still significantly


lower than those of its German online pet retailing
competitor Zooplus.

Premiumization? Definitely!
The current trends in Europe’s biggest pet market and
its 2 neighboring countries are similar to most other
countries on the continent, with pet parents showing
great interest in buying high-quality, healthy and
ecologically sound food. Bernd Berghofer says that
in Austria there has been a "massive trend” toward
premiumization in pet food in recent years.

Examples also seen in Germany and Switzerland


include regional sourcing, the use of local products
in pet food formulation, and recipes with functional
benefits such as a shiny coat.

Dog and cat population (forecast 2023) Popularity of non-essential products


Accessories, healthcare and other non-food products
Germany
have also become increasingly popular items on the

810+= 16.2 mln shelves of pet stores, although their sales slightly
declined in Germany last year.
560+= 11.2 mln

Pet accessories are big business. The margins and gains


Austria in this sector are lucrative, as customers are prepared
to pay high prices – their buying decisions tend to be
100+= 2 mln based on emotional rather than rational choices.

40+= 784,200
Alongside clothing and home furnishings, accessories
should also reflect the lifestyle of the pet owner. This
Switzerland
is especially true for millennials, who make up 19% of

95+= 1.9 mln


all German pet owners. The same applies in Austria,
according to analytical reports.
18=+559,600
Specialized manufacturers such as Dogstyler are
Source: Euromonitor International
targeting these often affluent customers in a very
competitive environment.
Big players
Europe's largest pet retailer Fressnapf once again However, the statistics show that specialist pet trade
managed to increase its total sales in 2022 – by more outlets do still have most of the market share.
than 11% to over €3.5 billion ($3.8B). The German firm
is the dominant player in its home market, with good The role of sustainability
prospects, and also has a strong presence in Austria The attitudes of pet owners themselves have changed
and Switzerland. over time. see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND 67


Pet care market size (in €) 2022 2023 (forecast)
Facing pressure from disruptive business models,
Germany 5.56 bln 6.1 bln some players are going in new directions and trying to
accelerate innovation to address consumer needs and
Austria 796.3 mln 824.1 mln
future challenges.
Switzerland 694.4 mln 713.7 mln
Source: Euromonitor International
Optimism for the future
Looking to the future, industry representatives are
"People want to know more about the animals they cautiously optimistic. Despite high inflation, dog and
keep at home, and have become more responsible cat owners seem to be still willing to spend on their
when it comes to choosing their pets and taking care pets and this will create new business opportunities.
of them. Sustainability has grown greatly in importance On the other hand, price increases for electricity and
over the years," says Antje Schreiber from the ZZF. gas, as well as for raw materials due to the war in
According to her, this is also reflected in the increase in Ukraine and its economic consequences, are directly
personalized services offered by pet shops and tailored affecting the pet food sector in the DACH region. And
to each pet’s needs, routine and diet. there might also be operational drawbacks caused by
labor shortages. ◆
The increasing importance of sustainability has led to
mounting pressure on businesses to respond. "Many
companies have no alternative but to develop new Alexander Welscher
PETS International Contributor
products and services if they want to keep ahead in the
market," Antje Schreiber points out.

Mera Tiernahrung germany


Mera nourishes relationships
Founded in 1949 in Kevelaer in the Lower Rhine Region, the German
family-owned company Mera Tiernahrung works every day to develop
dog and cat food that is perfectly tailored to the needs of animals and
their owners.

At its production facility in Kevelaer, Mera produces more than 70,000


tons of dog and cat food annually, making it one of the most successful
manufacturers in the premium sector.

The company also sells its high-quality, locally and environmentally


friendly produced food internationally. Therefore, personal exchange
with international partners in sales, export, purchasing and marketing is
particularly important.

"Together, we can inspire dog and cat owners to create fulfilling


relationships between people, animals and the environment," says Mera
CEO Felix Vos.

MERA Tiernahrung GmbH


[email protected]
mera-petfood.com/en

68 PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND


PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND 69
Dokas germany GlobalPETS & PETS International the netherlands
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Kräuter Mix’s extensive product range offers animal feed production facilities, where the materials are gently processed.
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guaranteeing a balanced nutrition for farm and pet animals. tailored to the nutritional needs of pets.
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around the globe. Close cooperation with supplying partners Kräuter Mix GmbH
along with the sustainable development of supply structures [email protected]
for full traceability and defined product quality. kraeuter-mix.com

70 PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND


Pet online retail in Germany
proves resilient

German online pet supplies business emerged successfully from


the pandemic. And despite increased inflation and reduced
consumption since last year, there is still optimism for the future.

In the first 6 months of 2023, online sales value of consolidation phase. This started with a major setback
pet supplies in Germany was €1.06 billion ($1.15B). in 2022 – after the war broke out in Ukraine.
This is a decline of 5.8%, compared to the revenue
of €1.13 billion ($1.24B) in the same period in 2022. For the first time since data collection began, the gross
Online sales for the whole of last year accounted for turnover of goods online fell last year, declining by
€1.86 million ($2.01M), with the decline in sales revenue 8.8% to €90.4 billion ($97.6B). And that was just the
becoming apparent in the third and fourth quarter. beginning. For the first half of 2023, accumulated sales
online were approximately 13.7% below the comparison
In the long term, however, online sales of pet supplies value of 2022, indicating that rock bottom has not yet
do appear to be resilient despite the current crisis. The been reached.
market has grown by 51.5% since the outbreak of the
pandemic at the beginning of 2020. This compares That said, it is too early to mourn the loss of online
favorably to other major industries, such as fashion retail, especially when compared to bricks and
retail, which has seen all the revenue gains from the mortar. While traditional retail has yet to make up
pandemic wiped out. for its pandemic losses – according to the Federal
Office of Statistics – with revenues still lower than in
Downward trend ... or not? 2019, overall online retail turnover is up 14.7% for the
After experiencing high growth during the peak of same period.
the pandemic, German online retail is currently in a
Thinking ahead
Online pet supply sales in Germany (in €) There is good reason why the pet supply industry is
faring better online than other sectors during the current
2021 350+= 1.75 billion crisis. While most online retailers are now focused on
2022 372+= 1.86 billion cutting costs and re-evaluating business channels,
2023 H1 216+= 1.06 billion many pet specialists are massively expanding their
investments, preparing to gain further market share
Source: Bundesverband E-Commerce und Versandhandel
Deutschland (bevh) once consumer sentiment brightens again. see next page

PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND 71


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72 PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND
Quarterly change in sales compared to the same quarter of the previous year
0.7

0.6

0.5

0.4

0.3

0.2

0.1

-0.1

-0.2

-0.3
2019 2020 2021 2022 2023

Pet Supplies Entertainment Clothing Other

FMCG Leisure Furnishings Total

Source: Bundesverband E-Commerce und Versandhandel Deutschland (bevh)

Taking customers from grocery retail Retailers such as Fressnapf have started to
Pet food in Germany is still primarily sold through demonstrate how that’s done: by linking, for example,
traditional grocery retail, with revenue in the channel a customer account with a wearable device like a GPS
accounting for 62% of the market, according to the tracker for a dog or cat, the pet owner can not only
Industrial Association of Pet Care Producers (IVH). monitor their pet’s movements and activities, but also
But pet supplies are generally considered niche have round-the-clock in-app access to a veterinarian,
products in this area of retail. The only exception is who can then see the pet’s latest health data.
Germany's third largest grocery retailer Rewe, which
has experimented with specialized pet stores under An example like this shows the efforts being made
the brand ZooRoyal. to transform traditional sellers of pet food and other
pet supplies into data-driven ecosystems for pets.
Online retailers have gratefully filled this gap in the To continue growing in the market, a seller evolves
market in recent years, gaining more and more into a ‘care provider’ for all aspects related to their
customers with extensive and specialized product customer’s pet. This helps them to lure customers
offerings via their online shops. from supermarkets to their online platforms, and gives
them the opportunity to grow despite the negative
From online seller to care provider market trends. ◆
Since the peak of the pandemic, some online retailers
now realize that it is no longer sufficient to offer pet
owners merely an alternative distribution channel Frank Düssler
alongside bricks-and-mortar stores. The idea gaining Press and Public Relations Officer
Bundesverband E-Commerce und
ground is that their best competitive edge is not a wide Versandhandel Deutschland (bevh)
range of products or fast delivery – it’s data.

PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND 73


A BRAND BY

ONE COMPANY, T WO BR ANDS


YO U R P E R F E C T C L I P P E R M ATC H

PROFESSIONAL GROOMING

HOME GROOMING

74 PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND


Wahl germany

Cutting-edge
tools from
a century-old
corporation
Manufactured by a company with a rich history, WAHL and MOSER clippers and trimmers are
still pet grooming favorites.

While many people in the pet grooming Europe. Its unique test station concept which contributes to the precision
and coat care industry are familiar with the allows end users to experience, test and engineering of each product. The blade
names WAHL and MOSER, they may not compare the whole range of easy-to-use sets, in particular, are the forte of the site.
fully grasp the extent of their connection. clippers, trimmers and coat care accessories
At the heart of this relationship is the at the point of sale. Preferred brand
German company Wahl GmbH, a leading The Wahl network has contributed to
manufacturer and distributor specializing in Professional standards the significant impact it has had on the
electric hair clippers and trimmers for both The WAHL Professional line further solidifies international grooming market. With its
humans and animals in Europe. the company’s position as a provider of 6 production facilities and numerous
grooming solutions. Designed to meet subsidiaries worldwide, the corporation’s
A first in the US the standards of professional groomers products have earned trust and recognition
Wahl GmbH is a subsidiary of the US-based and veterinarians, the brand encompasses from professionals and consumers alike.
Wahl Clipper Corporation. The company clippers and trimmers tailored to various
was founded in 1919 in Sterling, Illinois, by areas of application. Building on past and present achievements,
Leo J. Wahl. He was also the inventor of the the company is committed to expanding its
electric clippers with the first US patent. At the core of Wahl GmbH's success lies market presence and reinforcing its position
its state-of-the-art manufacturing facility as the preferred brand with the ideal tools
MOSER was founded in 1946, and since located in the Black Forest region in the to address any hairy problems that pets,
1976 it has a dedicated line for animal southwest of Germany. In 2022, all the their owners, groomers and vets may
clippers. Wahl Clipper Corporation bought company’s production and administration encounter. ◆
the company in 1996, taking over the brand units moved to a brand-new building a
and production. Over the years, the MOSER few kilometers from the original location.
Animal brand has become well-known Besides the modern premises and Wahl GmbH
and favored by home users, and can now equipment, the plant benefits from a skilled [email protected]
wahl.com
be found at major pet retail chains across workforce and a culture of craftsmanship,

PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND 75


How is Europe’s
leading pet retailer doing
on its home turf?
We asked Fressnapf’s Dr. Johannes Steegmann (CEO) and Jochen Huppert
(Country Manager Germany) for an update on the European pet retailer’s
performance in the DACH countries: Germany, Austria and Switzerland.

Fressnapf is in the midst of a transformation. On stage together. We’ve also opened new logistics hubs. But
at the GlobalPETS Forum almost 2 years ago, CEO the biggest challenge for our customers has been
Johannes Steegmann unveiled Fressnapf’s plans to inflation and rising prices. While we’ve given up some
develop its ecosystem in an effort to become a true of our margin to protect consumers, eventually we
‘caring’ partner. were also forced to increase our prices.

Here, together with Country Manager Germany Now that prices of raw materials have started falling,
Jochen Huppert, he reflects on what the European pet we’re working closely with our suppliers to reduce
retail giant has been doing since then and looks ahead prices again. First of all, we’ve started decreasing prices
to the future. of many products in Poland, and this October we’ll also
announce a big price drop in Germany.
How is your ecosystem rollout going?
Steegmann: We’ve made terrific progress, and the Tell us about your ‘Friends’ program
biggest transformation in our company’s history Steegmann: A central part of our ecosystem is our app-
is going well. We’ve introduced new services like based loyalty program, called ‘Friends’. We’ve rolled it
Fressnapf GPS trackers, digital insurance solutions, out in Germany, Austria, France, Poland and Belgium,
subscription boxes and more. By October this year, and we can see that it now accounts for more than 50%
80 stores will have our new store format.
2022 Sales in DACH
Huppert: That new store format is key in telling the Total sales (in million €)

story of our new offering within the ecosystem. Germany 956+= €1,911
Our previous store format has been great at helping Austria 151+= €302
customers find the products they need. But to truly
capitalize on our role as advisers and partners, this new
Switzerland 61+= €122
format really opens doors for the ecosystem and helps Online
educate consumers on new initiatives. Germany 450+= 9%
What have been the challenges?
Austria 600+= 12%
Steegmann: Some massive developments on the data
Switzerland 350+= 7%
and technology front were needed to bring everything Source: Fressnapf

76 PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND


Number of stores 2023 2026 (projected)

Germany 941 1,020

Austria 133 137

Switzerland 67 85
Source: Fressnapf

of our revenue across our e-commerce and bricks-


and-mortar stores.

What about online sales?


Huppert: Right now, online sales account for 9% in
Germany, 7% in Switzerland and 12% in Austria. While Johannes Steegmann Jochen Huppert
our e-commerce sales have tripled since 2019, online
is still a growing segment, especially for basic products to buy wet food. Therefore, our stores and offerings
like toys or treats. in the DACH region should reflect those differences.
For example, we’ve introduced a meat corner because
However, our bricks-and-mortar presence will remain we saw that they are big fans of BARF: biologically
key in giving customers the guidance they want and appropriate raw food.
serving them wherever they prefer in the moment.
How do you view the ‘competition’ with
How are your private label products doing? supermarkets?
Steegmann: Our exclusive brands are always very Steegmann: We believe strongly in the premiumization
important. In fact, they are the biggest sellers in every trend among our customers. As pets are increasingly
country. And especially in these challenging economic seen as family members, more and different products
times, it’s no surprise that good quality at a good price will be needed – such as advice and special products
is becoming increasingly popular. for seniors, for puppies, allergies, diets and so on. That’s
where we have an edge over supermarkets, so we think
We plan on increasing the share of exclusive brands to the premiumization trend will automatically bring a lot
over 50% because we know how important they are. of new customers into specialty stores like ours.
Moreover, private label products are a good way to
attract customers to Fressnapf and to keep them in our Where do you see future growth opportunities?
ecosystem. Steegmann: Because Fressnapf is already a strong
market leader in Germany and Austria, we intend to
Are cats or dogs more popular in the DACH region? drive more expansion in Switzerland with a relatively
Steegmann: When our in-house market research team bigger number of store openings.
compares pet owners in DACH to other countries,
we see that there are more cats than dogs in these Huppert: Germany will remain our biggest market.
markets. For example, cats account for 70% of pets in Nevertheless, we still have the potential to improve and
Switzerland and 58% in Germany, plus Germany has grow here too. We are already world-class in the dog
the highest number of indoor cats (50% of all cats). In category, but we can still become even better in the cat
comparison, 76% of pets in Poland are dogs. category. And there are some interesting opportunities
for wet and dry food, as well as snacks. ◆
What else is special about pet owners in the
DACH region?
Philippe Vanderhoydonck
Steegmann: Another interesting insight is that pet Managing Director
owners in DACH love to mix wet and dry food more GlobalPETS

than owners in other countries, and they are more likely

PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND 77


Spectrum Brands us & germany

Navigating
the global pet
care landscape
In the increasingly competitive industry of pet care, where brands jostle for attention and trust,
Spectrum Brands stays committed to its mission of improving the lives of pets and those who
care for them by continuing to expand its diverse portfolio of products that cater to companion
animals’ needs.

With an array of well-known brands in its Middle East & Africa (EMEA) and Asia allowing it to forge genuine connections
portfolio, Spectrum Brands (Spectrum/ Pacific (APAC), with nearly 40% of its global with pet care professionals and customers
SPB) has carved a niche that extends across sales contribution coming from EMEA around the world.
continents. and APAC. The pet care organization has
local offices in key markets including the In Germany, as an example, Tetra
Brand groups United Kingdom (UK), the Netherlands, GmbH reigns as an emblem of aquatic
Spectrum Brands Holdings, Inc. (NYSE: France, Poland and Germany. In the latter, innovation and expertise. With over 70
SPB) boasts a broad array of brands, each the town of Melle is home to Spectrum’s years of experience, Tetra has not only
with a unique identity and set of offerings. largest European manufacturing site and evolved with the aquatics category but
Although Spectrum owns brands in international headquarters, with a workforce has played a pivotal role in shaping it.
categories in the Home & Garden and of nearly 400 employees. Germany is therefore home to Spectrum’s
Home & Personal Care business units, it is Global Center of Excellence for Aquatics.
the Global Pet Care unit that has made its Catering to regional nuances There, Tetra’s research and development
way to the forefront of the firm’s corporate Spectrum is uniquely committed to teams perform more than 13,000 expert
identity. From the aquatic expertise of Tetra understanding and catering to the specific analyses per year, all conducted within the
to the fur-fighting prowess of FURminator needs of different markets. Rather than organization’s own laboratories which are
and the nutritional focus of IAMS and imposing a one-size-fits-all approach, the the largest in the industry.
EUKANUBA, the company’s aim is to provide firm blends global expertise with a nuanced
a portfolio that spans nearly every pet understanding of regional priorities and Moreover, Tetra owns roughly 200
care segment. preferences. Navigating the pet care active patents. This further solidifies the
landscape in Europe, for example, demands organization and the brand as a beacon of
Global reach an understanding of local sensibilities knowledge and innovation, enhancing the
Spectrum’s geographic reach extends and preferences. This adaptability is a experience of fish keepers and enthusiasts
across North and Latin America, Europe, cornerstone of the company’s success, around the world.

78 PETS INTERNATIONAL  |  OCTOBER 2023  |  GERMANY, AUSTRIA AND SWITZERLAND


Sustainability and packaging
Most recently, Tetra announced the launch
of new, sustainable packaging for its fish-
food products, including Pond, TetraMin,
Repto and Goldfish. The 500 ml and 1-liter
tins are made of 100% post-industrial
recyclate (PIR). These fully recyclable tins are
not just a novelty for Tetra, but also for the
aquatic industry as a whole.
like IAMS and EUKANUBA, as well as snacks pet care consumers alike, the company
“This was a joint effort between our and treats through brands like 8in1 and remains committed to enhancing pets’ lives
own teams and our long-term partner in Good Boy. The latter is currently the No. 1 through a broad product portfolio. From
packaging, SPIES,” says Janina Garving, dog treat brand in UK grocery and has been the aquatic categories expertly led by Tetra
Senior Brand Manager at Tetra. “By reusing listed as a Top 100 brand by the UK-based to the nutritional realms enriched by IAMS
the raw material, we are able to save trade magazine The Grocer. These brands and EUKANUBA, Spectrum’s adaptability,
up to 85 tons of plastic per year while stand as pillars of nutritional excellence, innovation and dedication are key
continuing to provide high-quality products catering to the discerning tastes and health ingredients in the company’s success.
in functional packaging. It’s another great needs of pets across Europe.
milestone on our sustainability journey.”
Raising the bar
The new PIR packaging is one of the Spectrum’s journey has not been without its
first major steps for the newly founded challenges. For instance, keeping up with
Sustainability Council at Tetra, the aim of the ever-changing regulations of various
which is to drive, supervise and control European Union countries – specifically for
all activities connected to the brand’s packaging, as one example – is not for the
path toward a sustainable future. The faint of heart. The company has recognized
organization’s ongoing investment in the reality of today’s constantly evolving
research and development, in addition to marketplace, and prides itself on its speed to
its renewed focus on sustainability, has market, agility and willingness to embrace
reinforced Tetra’s position as the No. 1 fish- change – not merely to stay ahead of the
food brand in the world. game, but to consistently raise the bar of Through sustainable packaging initiatives
what quality pet care entails. and tailored approaches for international
Cats and dogs regions, the company demonstrates
Spectrum’s influence in Europe is not limited Partner of choice its capacity to navigate challenges and
to the aquatics category, however. Needless In a world where pets are cherished set new standards. With every product
to say, the company’s presence also extends members of the family, Spectrum strives to developed, every connection forged and
to dogs and cats. In this segment, it focuses be the partner of choice in the global pet every tail wagging in delight, Spectrum
on main-meal dog and cat food with brands care landscape. For retail customers and reaffirms its role as a leader, a friend and a
guardian of beloved companion animals. In
embracing change, fostering well-being and
advancing the pet care industry, Spectrum
Brands paves the way for a brighter, more
caring future. ◆

Spectrum Brands (US / Global HQ)


Spectrum Brands, Tetra GmbH
(Germany / International HQ)
[email protected]
spectrumbrands.com

79
YOUR LOCAL
ADVERTISERS INDEX GLOBALPETS AGENT

Aatas Cat............................................................................. 20 Orient Provision & Trading Co....................................... 57 Armenia, Azerbaijan, Belarus,
Georgia, Kazakhstan,
Albert Handtmann Maschinenfabrik GmbH............... 30 Premier Nutrition.............................................................. 39 Kyrgyzstan, Moldova, Russia,
Turkmenistan, Ukraine,
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Seitz Heimtiernahrung GmbH....................................... 69
Zooinform
Devenish Nutrition Ltd..................................................... 34 +7-4903-6132812
Schesir..................................................................back cover
+357-9648-5560
Dinnissen............................................................................ 45
Schulze Heimtierbedarf GmbH..................................... 33 [email protected]
Fihumin Gesellschaft....................................................... 72
The Berjé Group................................................................ 26 Austria, Belgium, Finland,
GlobalPETS Forum............................................................ 46 Germany, Netherlands,
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United Pet Food................................................................ 12
IPV Pack S.r.l. Unipersonale.................inside back cover Miguel Mendes de León,

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Veramaris®.......................................................................... 18 [email protected]
Livalta................................................................................... 55

Metalquimia........................................... inside front cover Vet Planet Sp. z.o.o...........................................................40 Greece, Bulgaria, Cyprus
Vassilis Goulielmos,
MSM Pet Food Srl.............................................................. 52 Wahl GmbH........................................................................ 74
Welldone Ltd.

Nutriliq..................................................................................15 Yantai China Pet Foods Co. Ltd...................................... 62 +30-211 4021758


[email protected]

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