RANGE REVIEW: PET & BIRDCARE
GROWTH IN PET PRODUCTS ON THE RISE
As consumers are still unwilling to compromise when it comes to their animals and with the popularity of reptiles as pets on the rise, there is still plenty of growth potential in the pet accessories sector, says AMA Research.
T
he market for pet accessories has seen continued growth in recent years and is forecast to be worth over £850
million at retail prices in 2017. The market remains highly competitive and fragmented, with a wide range of very different products and base materials being offered. Additionally, the market is relatively resilient to economic downturns when compared to other consumer goods, due to the unwillingness of owners to compromise on their pets, and this is expected to support the market over the coming years. Imported products are a key
feature of this market. While low- cost imports are driving volume sales but having a negative effect on average prices, there has been a growing interest in premium products such as interactive and multi-functional toys (e.g. complex cat scratching posts/furniture), which is helping to maintain market size by value.
The market has also seen new
trends in the types of pets that people are keeping. Small dogs are becoming increasingly popular in recent years and this is having a knock-on effect in the market. This has led to growth in the market for products for small dogs, with a rising demand for coats and grooming products. Additionally, small dogs tend to be more humanised than larger ones, with products including more fashionable accessories and bags in which to carry the small dog.
Scaling up
Reptiles have become increasingly popular pets in recent years, with the number kept as pets having more than doubled to approximately 700,000 compared with 300,000 estimated in 2015. This has caused increasing growth in the vivarium sector, in particular, in recent years as well as reptile maintenance, feeding and bedding products, etc. In terms of product sectors, care products are mainly seen as essential
and help to underpin the market. These include flea and worm treatments that have benefited from a combination of wide distribution, increased awareness of the importance of preventative care and rising demand in recent years due to weather conditions that have boosted flea numbers. The market for cat litter, which is a key sub sector, is currently experiencing changes. This market is driven by new product development and become polarised between high value high quality products and high volume, value- for-money products. Additionally, eco–friendly products continue to gain share and include products, such as paper, wood, straw and corn, with the former two being the key materials in the cat litter sector. Another area that has seen
increasing polarisation is the toys market which accounts for over 30% of the entire pet accessories market. Over the past few years this sector has become increasingly split between low-cost imports driving volume sales and premium products with interactive and multi-functional features, helping to maintain market size.
In terms of distribution, the pet superstore channel has continued to grow, with the number of outlets, choice and product range in these stores helping to stimulate demand and growth.
In addition,
the discount retail sector is taking share, particularly for toys and some own-brand bedding and cat litter products.
Online growth continues The internet is becoming increasingly important and the share of pet accessory products distributed through online channels has seen continuous growth over recent years, with the mail order/
12 DIY WEEK 13 OCTOBER 2017
internet channel now estimated to account for around 14% of the total pet accessories market. One reason for this growth is that traditional mail order and catalogue companies such as Argos are switching their focus onto online sales, while pet superstores are increasing their online presence with transactional websites and mobile interfaces. Furthermore, internet retailers such as Amazon and eBay are increasingly popular with pet owners and smaller suppliers of pet accessories. However, the growth of online sales in the pet accessories market has been slower than that for other consumer products, suggesting that the market still has a lot of potential for further growth. Going forward, positive factors include the fact that pets are seen increasingly as part of the family and their needs are seen as largely essential purchases.
Additional factors that are likely to help underpin this market into the medium-term include product innovation, convenience, eco- friendliness and aesthetics. As a mature market, pet accessories are unlikely to show significant growth into the medium- term due to the highly price competitive nature of the market and AMA Research forecasts steady but modest annual growth rates of around 2-3% per year until 2021.
The information in this article was taken from the ‘Pet Accessories Market Report – UK 2017-2021 Analysis’ which has been recently published by AMA Research. For further information, please visit
www.amaresearch.co.uk or send an email to
sales@amaresearch.co.uk
www.diyweek.net
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