Table of Contents
Pet Care in Colombia - Industry Overview
EXECUTIVE SUMMARY
Premium products recover from economic slump
Local and regional players increasing presence
Multinational brand operators capitalise on perceptions of quality
Independent small grocers continue to grow
Pet humanisation will continue to boost growth
KEY TRENDS AND DEVELOPMENTS
Growth of smaller households encourages pet humanisation
Independent small grocers gaining importance
New players focus on affordable pet food
Cats continue to grow in popularity
Pet obesity a growing concern
MARKET INDICATORS
Table 1 Pet Populations 2006-2011
MARKET DATA
Table 2 Sales of Pet Care by Category: Volume 2006-2011
Table 3 Sales of Pet Care by Category: Value 2006-2011
Table 4 Sales of Pet Care by Category: % Volume Growth 2006-2011
Table 5 Sales of Pet Care by Category: % Value Growth 2006-2011
Table 6 Pet Food Company Shares 2006-2010
Table 7 Pet Food Brand Shares 2007-2010
Table 8 Dog and Cat Food Company Shares 2006-2010
Table 9 Dog and Cat Food Brand Shares 2007-2010
Table 10 Penetration of Private Label by Category 2006-2010
Table 11 Sales of Dog and Cat Food by Distribution Format: % Analysis 2006-2011
Table 12 Sales of Dog and Cat Food by Category and Distribution Format: % Analysis 2011
Table 13 Sales of Pet Care by Distribution Format: % Analysis 2006-2011
Table 14 Sales of Pet Care by Category and Distribution Format: % Analysis 2011
Table 15 Forecast Sales of Pet Care by Category: Volume 2011-2016
Table 16 Forecast Sales of Pet Care by Category: Value 2011-2016
Table 17 Forecast Sales of Pet Care by Category: % Volume Growth 2011-2016
Table 18 Forecast Sales of Pet Care by Category: % Value Growth 2011-2016
DEFINITIONS
Summary 1 Research Sources
Pet Care in Colombia - Company Profiles
Alimentos Nutrion SA in Pet Care (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Alimentos Nutrion SA: Competitive Position 2010
Centro de Abastos Agropecuarios SA in Pet Care (Colombia)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Italcol de Occidente Ltda in Pet Care (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
Summary 9 Italcol de Occidente Ltda: Production Statistics 2010
COMPETITIVE POSITIONING
Summary 10 Italcol de Occidente Ltda: Competitive Position 2010
Solla SA in Pet Care (Colombia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Solla SA: Competitive Position 2010
Cat Food in Colombia - Category Analysis
HEADLINES
TRENDS
Multinationals and local companies are adapting their strategies towards a greater focus on innovation. Mars Andean Ltda is likely to keep launching functional products in order to compete in the dry cat food category, while other multinational companies are expected to continue focusing on mid-priced cat food with natural flavours such as chicken and vegetables.
COMPETITIVE LANDSCAPE
In 2010, Cat Chow (Nestlé Purina PetCare de Colombia SA) was once again the leading brand in cat food, with a 37% value share, followed by Whiskas (Mars Andean Ltda) with a value share of 25%. In terms of company share Nestlé Purina PetCare de Colombia SA leads cat food with an overall value share of 54%. The company’s best performers are its mid-priced dry cat food brands Cat Chow, Friskies and Gatsy. The company benefits from its longstanding presence in Colombia, which has engendered instant brand recognition among consumers. Nestlé Purina PetCare de Colombia is likely to continue leading cat food sales, particularly as the relaunched Friskies brand has performed well and the new Cat Chow Vida Sana line is expected to further increase the sales of the company’s leading Cat Chow brand.
PROSPECTS
As companies start to focus more attention on cat food, a modest increase in annual product launches is expected over the forecast period.
CATEGORY INDICATORS
Table 19 Cat Owning Households: % Analysis 2006-2011
Table 20 Cat Population 2006-2011
Table 21 Cat Food Prepared vs Non-prepared Gap: % Analysis 2006-2011
CATEGORY DATA
Table 22 Sales of Cat Food by Category: Volume 2006-2011
Table 23 Sales of Cat Food by Category: Value 2006-2011
Table 24 Sales of Cat Food by Category: % Volume Growth 2006-2011
Table 25 Sales of Cat Food by Category: % Value Growth 2006-2011
Table 26 Sales of Premium Cat Food by Category: Value 2006-2011
Table 27 Cat Food Company Shares 2006-2010
Table 28 Cat Food Brand Shares 2007-2010
Table 29 Cat Treats Brand Shares 2007-2010
Table 30 Forecast Sales of Cat Food by Category: Volume 2011-2016
Table 31 Forecast Sales of Cat Food by Category: Value 2011-2016
Table 32 Forecast Sales of Cat Food by Category: % Volume Growth 2011-2016
Table 33 Forecast Sales of Cat Food by Category: % Value Growth 2011-2016
Summary 14 Cat Food by Price Band 2011
Dog Food in Colombia - Category Analysis
HEADLINES
TRENDS
As Colombia recovers from the global financial crisis of 2008 and 2009, and while pets are increasingly considered to be part of the family, volume sales of dog food are expected to perform well in 2011, growing by 7%. This growth is faster than the volume CAGR of 5% seen in the review period. While volume growth remained positive in the review period, even during 2008 and 2009 at the height of the global financial crisis, growth decelerated significantly as compared to previous years such as 2006, with 7%. This slowdown was due more to the financial crisis experienced during the review period than the maturation of the dog food category in Colombia. Thus a return to high growth rates is expected in 2011 as consumers regain confidence. Consumers, feeling less restricted in terms of their weekly budgets, are returning to pre-crisis levels of spending on their pet dogs, and sales growth in 2011 is likely to see a growth rate similar to that seen in 2006 and 2007.
COMPETITIVE LANDSCAPE
The dog food industry in Colombia is sensitive to the price and availability of raw materials. The strong winter rains of 2010 and 2011 resulted in a lack of local raw materials for pet food production, particularly corn starch, forcing manufacturers to look to more expensive imported materials. As a result, manufacturers have reduced profit margins to avoid an impact on final consumer prices and maintain competitiveness. Multinational companies such as Nestlé Purina PetCare de Colombia SA and Mars Andean Ltda are taking stronger and more obvious action to improve their margins by focusing on higher price categories in order to fulfil their profit needs.
PROSPECTS
With the entrance of Alicorp Colombia and Alimentos Polar Colombia into the Colombian dog food category in 2008 and 2010 respectively, local and regional companies are likely to steal share from larger multinational companies and challenge more established local companies Finca SA and Solla SA. However, such movement will be limited mostly to economy dry dog food, where smaller local and regional companies are better equipped to compete and leverage their local manufacturing and distribution capabilities. In the mid-priced and premium segments, it is likely that multinational companies such as Nestlé Purina PetCare de Colombia SA will continue to dominate. In premium dog food, the operators of brands such as Eukanuba and Hill’s Science Diet will work on strengthening brand share by introducing high-value-added functional and fortified variants and educating pet owners on the importance of such ingredients.
CATEGORY INDICATORS
Table 34 Dog Owning Households: % Analysis 2006-2011
Table 35 Dog Population 2006-2011
Table 36 Dog Food Prepared vs Non-prepared Gap: % Analysis 2006-2011
CATEGORY DATA
Table 37 Sales of Dog Food by Category: Volume 2006-2011
Table 38 Sales of Dog Food by Category: Value 2006-2011
Table 39 Sales of Dog Food by Category: % Volume Growth 2006-2011
Table 40 Sales of Dog Food by Category: % Value Growth 2006-2011
Table 41 Sales of Premium Dog Food by Category: Value 2006-2011
Table 42 Dog Food Company Shares 2006-2010
Table 43 Dog Food Brand Shares 2007-2010
Table 44 Dog Treats Brand Shares 2007-2010
Table 45 Forecast Sales of Dog Food by Category: Volume 2011-2016
Table 46 Forecast Sales of Dog Food by Category: Value 2011-2016
Table 47 Forecast Sales of Dog Food by Category: % Volume Growth 2011-2016
Table 48 Forecast Sales of Dog Food by Category: % Value Growth 2011-2016
Summary 15 Dog Food by Price Band 2011
Other Pet Food in Colombia - Category Analysis
HEADLINES
TRENDS
The other pet population in Colombia is growing very slowly, seeing only a marginal expected increase in 2011, a continuation of the trend seen in the review period. This in turn has resulted in slow growth in other pet food in volume terms. In 2011, other pet food volume sales are expected to increase by 1%, continuing the trend from 2010. Value sales are growing more significantly, with an expected increase of 7% in 2011; this is due to high unit price increases, thanks to an increase in value-added products, particularly as owners of exotic birds are interested in the health of their pets and are more likely than other pet owners to opt for more nutritious premium presentations.
COMPETITIVE LANDSCAPE
Pet World Ltda and Mascolandia Ltda continued to lead other pet food sales in 2010, with value shares of 16% and 14% respectively. Pet World and Mascolandia have ranked first and second in other pet food since 2005, thanks to their dominance in fish food, which tends to be higher-priced than other types of pet food. Luis Bernardo Velez Montoya was ranked third in overall other pet food sales with a value share of 7% in 2010, a position buoyed by the company’s activities in the bird food category, which it led in 2010 with a 20% value share.
PROSPECTS
The population of other pets, including birds, fish, small mammals and reptiles is expected to grow by less than 1% between 2011 and 2016. As a result, the growth potential for other pet food will be limited by the slow growth of new pet owners. However, demand for other pet food is likely to increase among existing owners of other pets, driven by the growing presence of larger multinational companies such as Mars Andean Ltda. Such companies are expected to use their strong distribution networks to reach new consumers and increase the consumption of packaged other pet food.
CATEGORY INDICATORS
Table 49 Other Pet Population 2006-2011
CATEGORY DATA
Table 50 Sales of Other Pet Food by Category: Volume 2006-2011
Table 51 Sales of Other Pet Food by Category: Value 2006-2011
Table 52 Sales of Other Pet Food by Category: % Volume Growth 2006-2011
Table 53 Sales of Other Pet Food by Category: % Value Growth 2006-2011
Table 54 Bird Food Brand Shares 2007-2010
Table 55 Fish Food Brand Shares 2007-2010
Table 56 Small Mammal/Reptile Food Food Brand Shares 2007-2010
Table 57 Forecast Sales of Other Pet Food by Category: Volume 2011-2016
Table 58 Forecast Sales of Other Pet Food by Category: Value 2011-2016
Table 59 Forecast Sales of Other Pet Food by Category: % Volume Growth 2011-2016
Table 60 Forecast Sales of Other Pet Food by Category: % Value Growth 2011-2016
Pet Products in Colombia - Category Analysis
HEADLINES
TRENDS
As Colombians continue to move into urban dwellings and smaller spaces, several trends will continue to develop. Among these are the growing popularity of cats, the increased humanisation of pets and decreasing amounts of available time to care for pets. Therefore, the need for cat litter, pet dietary supplements and pet services, such as day care and professional grooming, are growing and will continue to grow.
COMPETITIVE LANDSCAPE
Schering-Plough SA leads sales of pet products with a value share of 11% in 2010. This is due to the company’s strong performance in pet healthcare, particularly soaps and shampoos for dogs. In pet healthcare the company holds a 39% value share, far outpacing the nearest competitor, Comercializadora Bogotana Ltda with only 13%. Although Shering-Plough is a multinational company, it has been able to maintain its lead in pet healthcare thanks to its local manufacturing capabilities that allow it to compete with local companies in terms of logistical efficiency and cost reduction.
PROSPECTS
Colombians will continue to see their pets as family members, a trend that is helping to boost sales of pet products and increase the variety of products offered. This includes pet toys and accessories, classified as other pet products, as well as basic items such as cat litter as more Colombians move into smaller apartments and adopt a cat as a companion.
CATEGORY DATA
Table 61 Sales of Pet Products by Category: Value 2006-2011
Table 62 Sales of Pet Products by Category: % Value Growth 2006-2011
Table 63 Sales of Pet Healthcare by Type: % Value Breakdown 2006-2011
Table 64 Forecast Sales of Pet Products by Category: Value 2011-2016
Table 65 Forecast Sales of Pet Products by Category: % Value Growth 2011-2016