Dog's breakfast: Private-label products have become harder to stomach for some industry players

Pets have traditionally been an important part of Australian families. Rising discretionary incomes and the increasing number of time-poor consumers have created a gradual shift away from home-mixed pet food in favour of manufactured pet food. The Pet Food Production industry is expected to grow at an annualised 4.1% over the five years through 2017-18, to $1.9 billion. This includes anticipated growth of 4.1% in 2017-18.Rising discretionary incomes have helped drive premiumisation trends over the past five years. Consumers have increasingly sought out high-quality products for their pets...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
4.1%
Forecast Growth 18-23
Profit
Employment
3,103
Businesses
146

Industry Threats & Opportunities

  • Consumers have increasingly sought out high-quality products for their pets
  • Rising discretionary incomes have encouraged firms to release premium and gourmet pet foods
  • Forecast discretionary income growth over the next five years will drive premiumisation trends
  • Industry Report - Industry Key Buyers Chapter

    The industry is highly concentrated, with the three largest players accounting for more than 80% of industry revenue. Mars dominates the market, accounting for an estimated 39.8% of industry revenue in 2017-18, and benefiting from vast economies of scale and a wide range of pet food brands. Additionally, Mars and Nestle are local subsidiaries of global corporations and therefore benefit from the product innovation of their respective parent entities. Strong brand loyalty and promotional efforts have also enhanced the standing of the major players. Smaller firms that operate in the industry tend to specialise in niche segments or small target markets, where many can thrive. Mar...purchase to read more.

    Additional Insights for the Pet Food Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pet Food Production Industry are

  • Economies of scale
  • Ability to attract local support/patronage
  • Ability to adopt products based on demand
  • IBISWorld analysts also discuss how external factors such as Number of veterinarians and Real household discretionary income in the Pet Food Production industry impact industry performance..

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    What's in this report

    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of veterinarians
  • Real household discretionary income
  • Domestic price of beef
  • Domestic price of coarse grains
  • Demand from multi-unit apartment and townhouse construction

  • Current Performance
  • Product trends
  • Urbanisation
  • Regulation changes
  • Industry structure and competition
  • Global influences
  • Chart: Revenue Growth

  • Industry Outlook
  • Premium or private-label products
  • Channel change
  • Dense population
  • Profit trends
  • Table: Pet Food Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pet Food Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Flour and Grain Mill Product Manufacturing
  • Meat Processing
  • Outdoor Vegetable Growing
  • Poultry Processing

  • Products & Services
  • Dog food
  • Cat food
  • Bird feed
  • Other products
  • Chart: Pet Food Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Wholesalers
  • Export markets
  • Pet stores
  • Chart: Major Market Segmentation for the Pet Food Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Pet Food Production

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pet Food Production Industry

  • Industry Globalization
    Mars Australia Pty Ltd, VIP Topco Pty Limited, Nestle Australia Ltd,
  • Table: Mars Australia Pty Ltd - financial performance
  • Table: VIP Topco Pty Limited - financial performance
  • Table: Nestle Australia Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Pet Food Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pet Food Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Kibble
  • Dried pellets of food that can contain beef, lamb, chicken, fish, grains or vegetables. These are usually served to cats and dogs.
  • Premiumisation
  • A trend where consumers are increasingly purchasing high-quality products. Consumers are willing to pay a premium price for products they deem to be of higher value.
  • Private-Label Products
  • Products that are manufactured for sale under another company or store's brand.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pet Food Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Pet Food Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pet Food Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pet Food Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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