Making a meal of pet food sales

A Hot Tip about Animal Food in India

Posted on: 30 Sep 2012

The Indian pet foods sector is growing rapidly and is set to evolve into a US$74 million market by the end of this year.

The rise in nuclear families and double-income households has encouraged the growth of pet ownership in urban areas and people are more prepared to indulge their animals.

Somewhat different from other markets, India has a vibrant pure vegetarian pet food segment, centred on the Tamil Nadu and Gujarat markets.

The vegetarian market is itself taking off. A city such as Chennai, with a pet dog population of over one million, has a market potential of US$12 million. At least 30% of pet owners in the city prefer vegetarian food for their animals.

Meanwhile, research firm Euromonitor International projects India as the fastest-growing global pet market, with a rise in pet dog ownership jumping to 2.3 million over the past five years.

The size of the Indian pet foods market is estimated by industry sources at approximately 6,000 tonnes in volume annually and is growing at between 10% to 15%.

In fact, most branded pet foods are imported. The government's reduction of import duties on pet foods in 2007 provided a boost to both manufacturers and importers.

Until that time, veterinary clinics and pet shops remained the leading distribution channels; now, retail outlets and supermarkets have started to emerge as viable distribution channels, including chains such as IndiaMART.

The number of advertising campaigns directly targeting pet owners is rising and most advertisements strive to extol the benefits of prepared pet foods and its nutritional value compared to homemade alternatives.

Most pet owners give their pets home-prepared food, while offering commercially-presented foods as a snack. So, the diet of pets in India is a combination of pre-prepared and domestically-cooked meals.

To read the full version, please click here

Posted: 30 September 2012