Europe Pet Food Market 2014 - 2019

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EUROPE PET FOOD MARKET 2014 - 2019 Market Shares, Forecasts & Trends

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1 INTRODUCTION 1.1 METHODOLOGY The research methodology can be put into the following sequence: 1) Secondary Research: Information was collected from a number of public and paid data sources. Public sources involved FAO, publications of the Feed Associations of different countries, company annual reports, white papers and research publications by recognized industry experts. Paid data sources include authentic industry databases. 2) Primary Research: After collecting data from secondary sources, primary interviews were conducted with stakeholders at different points of the feed value chain like manufacturers, distributors, ingredient suppliers, companies producing enzymes and key opinion leaders of the industry. Primary research was used both to validate the data points obtained from secondary research and to fill the data gaps after secondary research. 3) Market Engineering: The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates. 4) Expert Validation: The market engineered data is verified and validated by a number of experts, both inhouse and external. 5) Report Writing: After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.

Sample | Europe Pet Foods Market


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1.2 DEFINITION OF THE MARKET Pet food is a mixture of raw materials and supplements, sourced from either plants or animals, fed to the fed orally. While animal derivatives, fruits, vegetables, grains and are the most commonly used raw materials, vitamins, minerals, amino acids, antibiotics and colorants are the most common additives blended to form pet food.

The manufacturers also add additives to enhance the quality and productivity of animal. This research report provides in-depth market intelligence on the European pet food market, which is currently witnessing steady growth due to increasing adoption of pets especially dogs. The end consumers of pet food are dog, cats, birds etc. Scientific evidence may help the pet food sector gain considerable market share in the future. This would be possible by increasing the investments in R&D and cost management, coupled with information flow for nutrient requirements of animal.

Adoption rate of owners, pricing, and availability of raw materials have brought about changes in the pet food market in terms of formulations, usage, and production priorities. This report takes into account this wide range of factors and their influence on the market dynamics. This research report categorizes the European pet food market on the basis of ingredients, animal type and geography; forecasting the revenues and analyzing the trends in each of the submarkets.

Sample | Europe Pet Foods Market


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2. EXECUTIVE SUMMARY Europe is the matured market in the world for pet food in terms of consumption. Pet food is used as productivity enhancers in livestock; hence market is modern and highly regulated especially in Western parts of the region. The future of the pet food market in Europe is very bright due to the increasing focus of various governments on feed cost reduction and boosting animal productivity.

The European pet food industry has been growing at a steady rate for the last five years. This growth is largely fuelled by increasing adoption of companion animals and rising concerns over its quality and safety among the owners. Growth is particularly high in emerging countries such as Russia because of increasing income levels and urbanization.

Urbanization is the important driver for the growth of the pet food market. Increasing adoption of pet for companionship and security is another driving factor of the industry. European pet food market is highly price sensitive due to the large number of suppliers. Standardization and regulatory initiatives from the EU are also affecting growth in the eastern and central parts of Europe. The regulations imposed by Governments have restricted the use of certain additives in pet food which has exerted pressure on the manufacturers to search for cheaper, safer and effective raw materials.

EUROPEAN PET FOOD MARKET REVENUE, BY ANIMAL TYPE, 2012-2020 ($MILLION) Region

2012

2013

2014

2020

CAGR% (2014-2020)

Spain

XX

1,179.4

XX

XX

XX

U.K.

XX

XX

XX

645.5

XX

France

872.5

XX

XX

XX

XX

Germany

XX

XX

1,295.9

XX

XX

Russia

XX

XX

XX

XX

2.6

Italy

XX

784.9

XX

XX

XX

Others

XX

XX

XX

XX

2.0

Total

XX

XX

XX

XX

XX

Source: Research Articles, Annual reports, FEDIAF, Industry Associations Sample | Europe Pet Foods Market


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The European Pet food market revenue is estimated to grow at a CAGR of XX % from 2014 to 2020. Germany and Spain are driving the growth and is expected to hold 25% of the European market revenue by 2020. Russia is expected to have a high CAGR of XX % due to pet humanization and improvement in distribution channels of key players. U.K. and France are matured markets for pet food, with a XX % share in 2013, resulting from gradually increasing pet population.

EUROPEAN PET FOOD MARKET REVENUE, BY ANIMAL TYPE, 2012-2020 ($MILLION) Animal Type

2012

2013

2014

2020

CAGR% (2014-2020)

Dog

XX

XX

5,962.8

XX

XX

Cat

2,326.7

XX

XX

XX

XX

Bird

XX

XX

XX

1,313.7

XX

Others

XX

392.5

XX

XX

XX

Total

XX

XX

XX

XX

XX

Source: Research Articles, Annual reports, FEDIAF, Industry Associations

The report has been further segmented on the basis of pet food consumption by different animal type. It includes dog, cat, bird and others. It is identified that Dog food is the major market accounting for 60% of the European pet food market. The market is expected to grow at the fastest growth rate due to increase in rate of adoption of dogs for security reasons. The bird feed market is in nascent stage and is expected to grow at a CAGR of XX%.

The market is segmented based on the use of ingredients in pet food. Animal and plant derivatives accounted for the largest market share at 35% in 2013 and additives are estimated to be the fastest growing segment. Major companies are analyzed in terms of strategy adopted, financial revenues, and their recent developments in the global pet food market. Some of the major players covered include Mars, Del Monte Foods, Pet Center, Inc., among others.

Sample | Europe Pet Foods Market


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COMPANY PROFILES ARCHER DANIELS MIDLAND (U.S.) 4666, Faries Parkway Decatur IL 62526 U.S. Tel: 1-217-4245-200 Fax: 1-217-4245-447 Website: www.adm.com

OVERVIEW Incorporated in 1923, and headquartered at IL, U.S.; Archer Daniels Midland Company (ADM) is primarily engaged in production of food ingredients, feed ingredients, animal feed and biofuels. The company operates through four business segments including Oilseeds Processing, Corn Processing, Agricultural Services, and Others (includes processing operations and financial activities). The company offers animal feed additive products through its Oilseeds Processing and Corn Processing business segment.

ADM operates globally through its subsidiaries such as ADM Worldwide Holdings LP (Cayman Islands), ADM Europe BV (The Netherlands), ADM Canadian Holdings BV (The Netherlands), ADM Agri−Industries Company (Canada), and ADM do Brazil Ltda. (Brazil). The company primarily operates in U.S., Europe, the Middle East, Africa and Asia-Pacific. ADM employed around 30,000 people as of June 2012.

Sample | Europe Pet Foods Market


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FINANCIALS ADM: ANNUAL REVENUE, BY BUSINESS SEGMENT, 2011-2012 ($MILLION)

Segment

2011

2012

%Change

Oilseeds Processing

XX

XX

16.1

Corn Processing

9,908.0

XX

XX

Agriculture Services

XX

42,082.0

XX

Other

XX

XX

15.5

Total Revenue

XX

XX

XX

Source: Company Website and Company Publications

The company reported total revenue of $89,038 million in the year 2011, an increase of 10.4% as compared to year 2010. ADM: TOTAL REVENUE, BY GEOGRAPHY, 2011-2012 ($MILLION)

Region

2011

2012

Change%

U.S.

XX

46,593.0

XX

Switzerland

8,413.0

XX

XX

Germany

XX

XX

55.3

Other

XX

23,091.0

XX

Total Revenue

XX

XX

XX

Source: Company Website and Company Publications

Sample | Europe Pet Foods Market


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In the year 2011, the revenue of the company from U.S. increased by 9.9% ($46,593.0 million) over year 2010, followed by Switzerland by 15.3% ($9,698.0 million), Germany by 55.3% ($9,656.0 million), and the revenue from other regions declined by 2.4% ($23,091.0 million) for the same financial year.

PRODUCTS AND SERVICES ADM: PRODUCTS & THEIR DESCRIPTION

Product

Description ADM offers feed ingredients to fight diseases and reduce pollution within the aquaculture environment, and offers amino acids, and fishmeal alternatives. The

Aquaculture

aquaculture product line includes corn gluten feed and meal, corn distillers dried grains with solubles, corn oil, soybean meal and oil, cottonseed meal, wheat red dog as well as corn and wheat. The company offers specialty products under brand Soycomil and Ardex. ADM Alliance Nutrition, Inc. , a wholly owned subsidiary of ADM offers feed and feed ingredients, premixes and custom ingredient blends for cattle, swine, poultry, goat,

Animal Nutrition

equine, companion animal and specialty species. The product range includes Biomin, Biuret, Chloratet, CitriStim, Dipteracide, Easyzyme, Natural-Source Vitamin E, and so on.

Corn CoProducts Milling products

The product is for livestocks that is product during dry and wet milling. These are products for livestock and animal feed obtained through the milling process of wheat, corn and sorghum.

Oil & energy

The product range includes vegetable oil refinery lipid, vegetable oils from soybean,

products

corn and flax, and high-fat product The product range includes wide range of oilseeds such as Soybean, cotton,

Oilseed products

sunflower, canola and flax for feed of ruminant, swine, poultry, aquaculture, and companion animal diets. Sample | Europe Pet Foods Market


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Product Premixes Specialty feed ingredients

Description The product includes a wide range of vitamin and trace mineral premixes, specialty ingredients, blends, and food additives for companion animals. These include amino acid such as L-Lysine HCl, Liquid L-Lysine 50% and L-Threonine.

Source: Company Website and Company Publication

STRATEGY ADM continues to strengthen its U.S. presence by acquiring new companies and by entering into new animal feed product markets. Recently it acquired U.S. based Liquid Feed Commodities and Cattleman’s Choice Loomix which opened new doors for the company, to enter in emerging liquid feed business. The company’s corn business has enhanced its operations in U.S. by initiating an ethanol dry mill, increasing its capacity at a wet corn mill.

ADM continues to invest in its production sites and R&D facilities in U.S. and China to create new products, to innovate, and expand its capacities in order to improve animal feed additives offering to the market. Moreover, ADM is well established in its business in U.S. and is now targeting other region for expansion of feed additive business. The company has been focusing on maintaining its leadership position in oilseed operations in North America and Western Europe, and is trying to strengthen its position in South America, Central and Eastern Europe. It acquired oilseed crushing capacities in the Czech Republic, thereby reinforcing its position in Europe. In South America it is expanding its market; recently it started the construction of a new oilseed processing facility in Paraguay.

Sample | Europe Pet Foods Market


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DEVELOPMENTS

Year

Approach

Description ADM invested $25 million on Rennovia, Inc. (U.S.), a privately

February 2014

Investment

held company, which develops catalysts and processes for the cost-advantaged production of chemical products from renewable feedstocks.

December 2013 November 2013

ADM invested more than $6.5 million to build a plant within its Investment

Decatur processing complex to refine crude vegetable oil that will improve the nutritional value of animal feeds.

Expansion

ADM invested to built a third feed-premix plant in China that will manufacture nutritional feed premixes. ADM Alliance Nutrition, Inc., a wholly owned subsidiary of ADM

January 2013

Acquisition

Alliance Nutrition, Inc. (ANI), acquired two Puerto Rican feed manufacturers, NutriMix Feed Company and Granossa Corporation. ADM Alliance Nutrition Inc., a subsidiary of ADM Company, acquired certain assets of Fremont, Nebraska (U.S.) based Liquid

June 2012

Acquisition

Feed Commodities, a liquid animal feed supplements manufacturer. This acquisition helps the company to enter into the liquid feed business and expands its animal feed business globally. ADM Alliance Nutrition, Inc., a wholly owned subsidiary of ADM, announced it will build a feed premix plant in Effingham, Illinois

March 2012

Expansion

that will include enhanced controls and processes to meet the highest standards in safety and quality for pet food premixes and specialty blends.

Source: Company Websites and Company Publications Sample | Europe Pet Foods Market


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