Sector Trend Analysis – Pet food trends in France

Introduction

In France, retail volume sales of pet food are predicted to remain steady, largely due to the stable pet population. That said, occurring trends like pet humanization and premiumization will drive value sales growth within the pet food industry. The race to premiumize within the pet food industry in France is nothing new, but it is becoming faster, more widespread, more noticeable and shows no sign of slowing down. Innovation has driven forward the industry with enticing products, designed more to please humans.

As premiumization in France is accelerating and becomes prevalent in most pet food categories, many pet owners are choosing to own smaller pets that eat less and tend to be easier to take care of. The main trends underlying this choice are that French pet owners have increasingly restless lifestyles. Most of them live in cities and they work longer and longer hours. In developed countries with ageing populations like France, many consumers are turning to dogs and cats for companionship. On the other end of the age spectrum, younger consumers are staying single or childless longer and view pets as a good alternative.

In France, the feline population continues to rise while the dog population stabilizes after several years of decline.

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	2004	2006	2008	2010	2012	2014	2016	2018	2020	2022
Cat population	9,870.0	10,040.0	10,700.0	10,960.0	11,415.7	12,681.8	14,208.7	14,487.2	14,690.7	14,845.3
Dog population	8,583.4	8.089.8	7.792.3	7,591.2	7,425.4	7,260.8	6,989.5	6,940.7	6,894.5	6,849.6

Source: Euromonitor International, 2018

Retail trends

Humanization and premiumisation

Humanization is a prevalent trend in dog and cat food that is strongly linked to premiuminization in France. Pets are increasingly viewed as a distinct member of the family rather than as guardians or companions. This has been an enormous and growing cultural shift in the way people view their canine and feline companions. French pet owners will increasingly seek out products containing the best possible nutrition for their pets, purchasing products that reflect their own values and lifestyle choices. Additionally, the two biggest pet food companies in France (Mars Petcare & Food and Nestlé Purina PetCare) have both launched products in 2017 branded as super-premium. This raises the bar for other competitors in the French pet food industry, as it is no longer sufficient for some consumers that a product is simply labelled as a premium product.

Health-based marketing

French consumers are already looking for more foods that provide health benefits that address weight management, digestive health, heart health, and joint or bone health. Growing concerns over animal health have led consumers to trade up more on high-quality food. Consequently, brand manufacturers will continue to focus on improvements in the price, quality and segmentation of such premium products. (Euromonitor Internationale, 2018) Also, manufacturers focus on launching smaller portions of dog and cat treats and on products that are low-fat to address pet owners' health consciousness.

Natural and organic

Global trends which characterize the human food market have also trickled down to the pet food industry in several markets, including the natural and organic notions. The organic and natural pet food market size pet is strongly on the rise in both value and volume terms. Even if the term "natural" does not appear in the existing French regulations concerning the pet food industry in France, manufacturers and suppliers are instead, increasingly deciding to choose their own definition of "naturalness" by proposing products that do not contain chemical additives, dyes, agents, artificial flavours, etc.

In a crowded market where so many products are marketed as or considered premium, launching natural or organic pet food rather than focusing on more premium ingredients is seen as an alternative method of entry for Canadian manufacturers into this segment of the market.

Market segmentation

Manufacturers have been progressively developing new products based and segmented by breed, age and lifecycle to reach greater specificity among French consumers. Segmentation is playing a key role in driving growth and attracting interest to the category as well as differentiating from competitors. Recent developments in the industry have also combined breeds with their different life stages and lifestyles as consumers look to better adapt their pets' functional needs to meet their nutrition needs.

Pet food designed for senior dogs and cats provide fertile ground for innovation as the market share will expand. The seniorization trend tackles the fact that similar to humans, pets are also living longer, and they have specific needs in terms of nutrition. In France, 60% of cats are fed exclusively on dry food, with the remainder fed a mixture of dry and wet cat food.

For health and price reasons, cat owners increasingly view wet cat food as a treat and feed their cats' wet cat food very occasionally. Also, dry food is usually cheaper and offers higher convenience while wet food tends to be marketed as a delicious treat.

Retail sales

In 2017, the French retail market for dog and cat food has also registered positive overall performance and makes up for 92% of the pet food industry in France. All categories except fish food are projected to grow.

• Dog and cat treats have shown the strongest growth in the pet food industry in 2017 and this growth will continue beyond the forecast period (2018-2022). Cat treats recorded the strongest current value growth in the whole pet food industry in 2017 at 10.9% from 2013 to 2017. Similarly, within the dog food category, dog treats recorded the strongest current value growth at 6.4% from 2013 to 2017.

• However, as the numbers of pet owners are becoming more health-conscious and aware about obesity-related risks, the industry is expected to undergo major changes, with the appearance of less calorific and more diet-friendly treats. The trend towards premium cat and dog food products is well established and goes beyond the projection period.

Distribution channels

Most pet owners in France buy prepared pet food in grocery stores, especially in supermarkets and hypermarkets. The small independently-run pet food shops and superstores will increasingly come under pressure from the very rapid growth of internet retailing. Internet retailing will continue to negatively impact pet shops, but also to some extent, supermarkets and hypermarkets in the years ahead.

• The most promising opportunity in the pet food sector is e-commerce, as pet food sales have more than doubled through non-store retailing channels between 2013 and 2017. French consumers increasingly purchasing the same pet food online as they usually do in stores. Small independent pet shops are increasingly struggling to compete with the lowest prices available online, but also with the proximity services that online retailers offer (delivered to home).
• More and more companies have products available exclusively online and at lower cost, such as the "Ultra-Premium" line launched by Mars Petcare & Food France. A presence on the various social networks has become essential for the industry and it's used as an educational platform, where brands can share more information and videos about their product benefits.

Company and brand shares

The pet food industry in France is being dominated by Purina PetCare France SAS and Mars Petcare & Food France. In France, Mars and Nestlé possess nearly half of the total value shares in dog and cat food (63.1%). Royal Canin, a brand much better known for its dog food, is increasingly inviting itself into highly lucrative and sophisticated cat food.

There are also small but rapidly growing company and similarly numerous brands that are benefiting from premiumization such as Hill's. It is possible, due to the combined success of the numerous small brands, that Mars and Nestlé may see a decreasing value share throughout the forecast period, although they are expected to remain, by far, the two largest pet care companies. (Euromonitor International, 2018)

Private label represent a relatively small part of the market, especially for cat food, and the private label share is decreasing. In 2017, private labels accounted for 17.3% of dog and cat food sales in value terms in large and medium-sized food stores. Their market share, which has risen to a quarter of the department's sales, has already been falling for several years, to the benefit of national brands. Dog food remains the best-selling private label food, with a market share of 19.8% in 2017, compared to 7% for private label cat food. (Pet Market Magazine, May 2018)

Trade overview

In 2017, Canada exported Can$685.9 million worth of dog and cat food globally and was the eleven-largest exporter of dog and cat food to France. The United States is still the number one destination, with a share of almost half of total Canadian dog and cat food exports in 2017, but its share is declining. Russia follows, receiving 7.7% of Canadian dog and cat food exports in 2017. France received less than 5% of Canadian dog and cat food exports in 2017, but the export market is growing at a very strong rate (44,5% over 2013-2017).

Regulation

Canadian pet food products produced from inputs that are wholly obtained (that is, grown and harvested) in Canada or the European Union (EU) are considered originating and will benefit from preferential treatment.

Canadian pet food products must be manufactured in an approved plant and must pass a sanitary inspection upon importation in the EU. Pet food products that are produced from non-originating (that is, imported) inputs must satisfy the applicable product-specific rule of origin (CETA, Annex 5 of the Rules of Origin Procedures Protocol) in order to be considered originating.

Canadian exporters can seek an EU Binding Origin Information (BOI) advance ruling on whether a product qualifies as originating under CETA. These rulings are binding on customs authorities in all EU Member States.

Product launch analysis

From March 2015 to March 2018, a total of 4,989 products were launched in the five largest European, out of which 726 products were launched in France. The most popular category was cat food wet with 1,588 products launched, followed by dog snacks & treats (1,203) and dog food wet (817).

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Countries and categories	Germany	United Kingdom	France	Spain	Italy
Cat food wet	435	494	255	193	211
Dog snacks and treats	379	371	175	130	148
Dog food wet	304	235	88	98	92
Cat snacks and treats	230	179	84	72	52
Dog food dry	133	99	81	66	47
Other	125	79	43	58	33
Total	1,606	1,457	726	617	583
Market share	32%	29%	15%	12%	12%

Source: Mintel, 2018

Product claims

French consumers are increasingly concerned about their pets' diet. Consequently, they are increasingly buying healthy pet foods with a combination of health benefits and ingredient claims. Most pet owners don't exactly know their pets' specific nutritional requirements, so they trust brands to formulate foods that have just the right mix of vital nutrients.

European manufacturers are reformulating and providing consumers with new and enticing solutions that translated into growth. The industry employs high-tech language such as "scientifically formulated, advanced or proven to", to provide consumers with sufficient reason to believe that the products will meet all their pets' dietary needs.

Overall, with better pet nutrition as well as the level of care and scientific advances, like humans, pets are also living longer. This creates new needs for increasingly aware pet owners that want products that will prevent/dwindle the harms of aging. Digestion/urinary tract and skin and coat are areas where there are plenty of developments.

Nutritional component

Pet owners seek proteins for themselves; they also seek them out for their pets. Innovation around protein is considerable as pet food producers launch new products to meet consumer interest in protein, including varieties of single-proteins, proteins as the first ingredient, multiple proteins, and exotic proteins.

Good labels are now offering diets with a high percentage of meat. This trend is strongly linked to the rising popularity of ancestral formulations that have been marketed to target pet owners desiring to associate their animal with a certain natural "ancestral/wilderness imagery". French pet owners are also looking for minimally processed products for their animal.

More and more consumers are drawn to pet food brands that are upfront about processing, meaning pet food brands are looking to their manufacturers to provide unprecedented transparency as well.

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Nutritional component	2015	2016	2017
Protein	11.6%	28.09%	44.58%
Fat	10.53%	24.58%	40.00%
Moisture	8.70%	19.69%	30.08%
Ash	7.18%	20.46%	26.72%
Vitamin D3	9.31%	19.39%	24.89%
Vitamin E	7.94%	16.49%	21.07%
Vitamin A	6.87%	15.27%	20.61%
Cellulose	7.02%	8.70%	15.27%
Zinc	4.73%	11.30%	7.48%

Source: Mintel, 2018

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Ingredient preparation	2015	2016	2017
Extract	6.31%	11.08%	17.08%
Anhydrous	2.77%	7.69%	12.77%
Dehydrated	3.85%	7.69%	10.92%
Pulp	2.31%	4.00%	5.38%
Hydrolysed	1.54%	3.23%	5.69%
Fish oil derived	1.54%	2.46%	2.92%
Dry	0.46%	1.69%	3.38%
Whole	0.92%	0.77%	2.62%
Powdered	0.31%	1.85%	2.00%
Root	0.31%	1.85%	1.23%

Flavors

Consumers are increasingly applying "human" trends to pet food. However, this trend is still far from being applied to pet foods' taste choices. French pet owners aren't buying yet flavor innovations when it comes to pet food. French pet owners were conservative with their flavor choices, with only beef and chicken appearing in top product concepts for dog foods.

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Flavor	2015	2016	2017
Chicken	36	67	129
Beef	23	56	79
Salmon	23	37	42
Unflavoured/Plain	7	26	53
Vegetable	12	21	37
Poultry	11	17	33
Duck	14	16	26
Turkey	9	18	23
Carrot	11	16	22
Lamb	8	10	22

Source: Mintel, 2018

New product examples

Mini Chicken Strips

Company	SSP
Brand	Hello Cat
Category	Pet food
Sub-category	Cat snacks and treats
Country	France
Store name	Super U
Store type	Supermarket
Date published	March 2018
Launch type	New product
Price in local currency	€1.65
Price in US dollars	2.03

Hello Cat Aliment Complémentaire pour Chats (Mini Chicken Strips) are now available. The complementary pet food for cats retails in a 50 gram (g) pack featuring a QR code.

Dry Beef Ear

Company	Saint Bernard
Brand	Saint Bernard Tooky
Category	Pet food
Sub-category	Dog snacks and treats
Country	France
Country of manufacture	France
Import status	Not imported
Store name	Franprix
Store type	Supermarket
Date published	March 2018
Launch type	New product
Price in local currency	€4.60
Price in US dollars	5.66

Saint Bernard Tooky Oreille de Boeuf Séchée (Dry Beef Ear) is 100% natural. The product retails in a pack containing two pieces and featuring a QR code and the Facebook logo.

Snacks for Intestinal Hygiene

Company	Bob Martin
Distributor	Bob Martin
Brand	Bob Martin Clear
Category	Pet food
Sub-category	Dog snacks and treats
Country	France
Store name	Géant Casino
Store type	Mass merchandise/Hypermarket
Date published	February 2018
Product source	Shopper
Launch type	New product
Price in local currency	€7.11
Price in US dollars	8.86

Bob Martin Clear Snacks pour l'Hygiène Intestinale (snacks for intestinal hygiene) are enriched with vegetable extracts and feature a Verm-X formula. This prebiotic supplement contains omega 3 and 6, and is free from gluten, wheat, colourings and added preservatives. The product is easy to eat and retails in a 150g pack and is suitable for a 45 day treatment for small breeds.

Dietetic Complete Food for Adult Cat

Company	MultiFit Tiernahrung
Brand	PetBalance Medica
Category	Pet food
Sub-category	Cat food dry
Country	France
Store name	Maxi Zoo
Store type	Specialist retailer
Date published	February 2018
Product source	Shopper
Launch type	New product
Price in local currency	€22.79
Price in US dollars	27.85

PetBalance Medica Aliment Complet Diététique pour Chat Adulte (dietetic complete food for adult cat) has been developed under the direction of veterinarians and feed experts especially for cats with weight problems. According to the manufacturer, this low-energy feed has a regulating effect on the blood sugar level due to a special carbohydrate mixture, making it a great feed choice for cats with diabetes. The low-sodium content and broad potassium-sodium ratio are claimed to support heart function in cases of chronic cardiac insufficiency. The product is also said to promote healthy joints and retails in a 2.5 kilogram (kg) resealable pack.

Obesity Complete Cat Food

Company	Affinity Petcare
Distributor	Affinity Petcare
Brand	Advance Veterinary Diets
Category	Pet food
Sub-category	Cat food dry
Country	France
Store name	Maxi Zoo
Store type	Specialist retailer
Date published	January 2018
Product source	Shopper
Launch type	New formulation
Price in local currency	€14.49
Price in US dollars	17.43

Advance Veterinary Diets Aliment Complet pour Chat Obésité (obesity complete cat food) has been reformulated. The product comprises a complete pet food for cats, formulated for the reduction of excessive body weight and for the regulation of lipid metabolism in case of hyperlipidemia, featuring low energy levels, low fat content and elevated essential fatty acids content. The product is claimed to provide weight reduction, satiety effect and diabetes protection, and includes ingredients of the highest quality and flavour. It retails in a 1.5 kg pack.

Organic Dog Food with Rosehips

Company	Yarrah Organic Petfood
Brand	Yarrah
Category	Pet food
Sub-category	Dog food wet
Country	France
Country of manufacture	Netherlands
Import status	Imported product
Store name	Bio & Co
Store type	Supermarket
Date published	January 2018
Product source	Shopper
Launch type	New variety/Range extension
Price in local currency	€1.30
Price in US dollars	1.54

Yarrah Aliment Complet pour Chiens Bio (organic dog food with rosehips) is suitable for vegan and vegetarian diets. The product is made to a grain free recipe, and is said to be a complete and nutritionally balanced organic food with taurine and L-carnitine. The product retails in a 150g pack featuring the AB and EKO logos.

For more information

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• Find a Trade Commissioner

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For additional Information on SIAL Paris 2018, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and Agri-Food Canada
ben.berry@canada.ca

Sector Trend Analysis – Pet food trends in France
Global Analysis Report

Prepared by: François Thériault, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2018).

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