Trends in Private

Trends In Private Label Pet Foods

‘Humanization Of Food And Premium Products Are In Demand’

The pet food industry is still growing. In Europe, it is now worth 27.7 billion euro, growing by 3.1 percent in 2021. While new challenges - energy prices, inflation and the war in the Ukraine - pressure the sector, consumers still want the best for the little creatures that give them companionship. To obtain some insight, we spoke with Paulius Ausmanas, head of the export department for the Lithuanian KIKA GROUP LT, UAB, which produces pet foods and exports it to more than 60 countries worldwide for own brands and private label.

Ausmanas admits that the current economic situation in the world impacts the company he works for in a significant way. “There is an increase in cost not only for the materials and ingredients but also for energy, transportation and work force. Price increase already began during the pandemic and have not stabilised yet. Since the war in Ukraine, many companies in Europe notice a shortage of raw materials and disruptions in the supply chain.” On the other hand he signals positive developments for the pet food industry and the company he works for. “Consumers are paying more attention to what they feed their pets with”, Ausmanas continues. “Perhaps one of the main trends is the rising need for quality. More and more companies are moving from economy feeds to premium.” Another trend he mentions is the humanization of pets. “We all know about the super foods which we add to our diet because of their health benefit. Nowadays, a growing number of requests for private label include adding more value through addition of superfoods and extra ingredients (coconut oil, chia seeds, etc.).” A third trend, as it comes to companies that provide private label pet food, is the need for differentiation from other brands. “A few years back companies usually were looking for something that looks like product X (like a brand), nowadays more and more requests are made for unique, tailor-made products which usually ends up with functionality.”

Consumers are paying more attention to what they feed their pets with ”

What Kind Of Pet Food Products Are Sold The Most?

“Before answering this – we need to remember the daily food pyramid of the pet, because it will in a way answer this question. The foundation of a pet’s diet is made up of dry feed. Then follows canned feed, treats and lastly supplements. Our current selling rates show that the owners know about their pet nutrition and stick to it. That is why our highest selling products for KIKA are Super premium quality dry feeds for cats and dogs.

Then comes the second largest part of pet nutrition - canned feed. This is substantially smaller, not only because it makes up a smaller part of pet nutrition, but also because there is a global shortage due to the current economic situation and lack of materials. Finally, the smallest part of pet nutrition – treats and snacks. The tendency shows that pet owners buy treats for training or for pampering mainly, such as dried meat or fish treats. A fast-growing segment is supplementary treats. These treats are supplemented with minerals and vitamins, so that each treat not only pampers the pet but also aids in improving his health and well-being. It is like protein bar for the humans – tasty and healthy.” Janita Januškaiskaitė-Plungė and her husband, co-owner, Tauras Plungė.

Pet Food Production

All the pet foods the KIKA GOUP LT, UAB produces are made in the factory AKVATERA LT, UAB. Ausmanas explains how the company develops new pet foods and how it knows the food is of a good quality and composition. “Our feed is not only a tool that fills the stomach– it is a problem solver”, he explains. “After three decades of working with pets, we see their issues up close. We are looking for the most effective solutions which would be state of the art and once they are proven, we are sharing them with the markets. These products help to improve the well-being of pets to the next level.

Differences Between Countries

KIKA GROUP LT, UAB exports to more than 60 countries in the world. The most easily recognisable difference between countries and regions as it comes to purchase, is usually the level of the product, determined by the purchasing power. “But that is just the tip of the iceberg”, knows Ausmanas. “Trends normally vary country by country and region by region. For example, one of the main priorities in Northern Europe and Benelux is sustainability - most customers want both sustainable packaging and products produced by sustainable companies. If we go down south - ecological concerns are much less important and pricing can make a much bigger impact on final decision. Then, there is always the difference in the most popular breeds and sizes of dogs - in more urbanised countries and regions people usually keep smaller breed of dogs or cats, in turn buying pet food suitable for such pets. In countries that are more rural or where a significant proportion of population live in large individual houses, guard dogs and other large breeds dominate. There are also very different cultural differences - some countries and regions are totally dominated by dogs, while some favour cats much more. Such trends are also reflected in the pet food industry too.”

By Hans Kraak

Hans Kraak is educated in biology and journalism and wrote two books about nutrition and health. He worked for the Dutch ministry of Agriculture, Nature and Food quality and the Netherlands Nutrition Centre. As editor in chief he publishes in Voeding Nu, a business to business platform on food and health, as a food and wine writer he publishes in Meininger’s Wine Business International and reports for PLMA Live EU and PLMA USA.