Pet Food and Pet Care Products in Bulgaria

SUMMARY

Why buy this report

• Get insight into trends in market performance
• Pinpoint growth sectors and identify factors driving change
• Identify market and brand leaders and understand the competitive environment

Product coverage

Dog and cat food; Other pet food; Pet care products; Dog and cat food by price platform (incl treats and mixers); Dog and cat food by type (excl treats and mixers); Dog and cat food by price platform (excl treats and mixers)

Executive summary

1. EXECUTIVE SUMMARY

Growth fuelled by the increased popularity of international brands

Pet food and pet care products grew a further 9% in 2005, due to a number of factors, such as an increase in income, greater diversity and stronger marketing activities. Moreover there are some differences between rural and urban pet owners relating to feeding habits, pet functions, etc. According to industry sources prepared pet food -- as opposed to non-prepared pet food, such as scraps, etc - is gradually increasing in value and volume terms. There is still great potential for further growth over the forecast period. The habits of urban dwelling pet owners are changing fast as their preferences switch to the products of well known international companies. Thus, the overall performance of the pet food and pet care products has shown favour to the distributors of well recognised international brands. Weak marketing activity by domestic producers has diminished their market share and created a struggle to gain a foothold in an environment dominated by foreign brand distributors of pet food and pet care products in Bulgaria.

Dog and cat food account for the bulk of sales as these are the most popular pets - in fact, the general increase in the value sales comes almost exclusively from this sector. However, small mammal/reptile food and fish food have shown substantial growth during the review period due to city dwellers, who prefer to have pets other than dogs and cats, due to space restrictions in urban living. There has been a CAGR of 9%, between 2004 and 2005 for the dog and cat food.

Pet food and pet care products have performed well throughout the review period achieving a 48% increase in value sales. This is due mainly to an increase in disposable income, which is a knock-on effect of the generally improving macroeconomic situation. Most pet owners buying prepared food are big city dwellers with higher incomes and different consumer habits than those living in the countryside.

Dry dog and dry cat food dominate and wet food remains a distant second

Wet dog food accounts for one third of dog food sales with dry food remaining firm favourite with almost 5,000 tonnes in volume sales projected for 2005. Dry food is also favoured by cat owners with wet food volumes reaching 836 tonnes compared with 3,507 tonnes of dry cat food sold in 2005. Stronger distribution, lower prices, bigger quantities, and storage convenience have all been key for dry dog and cat food performance during the review period. Big multinational producers have been at the forefront of this trend, benefiting mostly from the overall increase in sales, as domestic manufacturers remain committed to wet food production.

Market consolidation persists

The market for dog and cat food remains heavily consolidated with Masterfoods Bulgaria EOOD holding more than half of all sales in value terms in 2004. With Nestlé Bulgaria AD holding another 28% it seems extremely difficult for a new player to affirm itself when it comes to dog and cat food. Local producers are also struggling to match the two key players in either quality or diversity. Furthermore, small manufacturers lack the marketing budget and distribution channels of the multinationals, and find it extremely hard to compete against such high equity brands. Most clients are large city dwellers, who opt for quality rather than price, thus cancelling out the only advantage local producers might have against their large competitors. There has been significant investment in marketing by the big producers over the last few years, which illustrates the increased competitiveness of the market.

Supermarkets/hypermarkets gain ground

Supermarkets/hypermarkets gained some ground in 2005, accounting for 12% of pet food and pet care products value sales. In spite of losing some 6% of their distribution share over the review period, pet shops still account for the bulk of all sales. Although resilient, veterinary clinics lost some of its share, due to the supermarket/hypermarket expansion, Supermarkets/hypermarkets has just over 13% of the lucrative dog and cat food sector. This is mostly due to the specific consumer culture of the people buying prepared pet food in general and in particular those buying dog and cat food. The distinct profile of these consumers is city dwellers with larger than average disposable incomes, of which many have incorporated pet food and pet care product purchases with their weekly grocery shopping, thus benefiting supermarkets/hypermarkets.

TABLE OF CONTENTS

• 1. EXECUTIVE SUMMARY
• 2. PET FOOD AND PET CARE PRODUCTS SALES
• 2.1 Pet Population
  • Table 1 Pet Populations 2000-2005
• 2.2 Market Performance
  • Table 2 Retail Sales of Pet Food and Pet Care Products by Sector: Volume 2000-2005
  • Table 3 Retail Sales of Pet Food and Pet Care Products by Sector: Value 2000-2005
  • Table 4 Retail Sales of Pet Food and Pet Care Products by Sector: % Volume Growth 2000-2005
  • Table 5 Retail Sales of Pet Food and Pet Care Products by Sector: % Value Growth 2000-2005
• 2.3 Competitive Environment
  • Table 6 Dog and Cat Food Company Shares 2000-2004
  • Table 7 Dog and Cat Food Brand Shares 2000-2004
• 2.4 Leading Company Profile -- Masterfoods Bulgaria EOOD
• 2.5 Leading Company Profile -- Nestlé Bulgaria AD
  • Summary 1 Nestlé Bulgaria AD: Operational Indicators 2005
• 2.6 Leading Company Profile -- The Iams Co
• 2.7 Leading Company Profile -- Alissa 33 ET
• 2.8 Retail Distribution
  • Table 8 Retail Sales of Pet Food and Pet Care Products by Sector and Distribution Format: % Analysis 2005
  • Table 9 Retail Sales of Dog and Cat Food by Distribution Format: % Analysis 2005
• 2.9 Retailer Activity and Private Label Trends
  • Table 10 Penetration of Private Label by Sector 2000-2004
• 2.10 Forecast Market Performance
  • Table 11 Forecast Retail Sales of Pet Food and Pet Care Products by Sector: Value 2005-2010
  • Table 12 Forecast Retail Sales of Pet Food and Pet Care Products by Sector: % Value Growth 2005-2010
• 3. DOG FOOD SALES
• 3.1 Dog Indicators
  • Table 13 Dog Owning Households: % Analysis 2000/2005
  • Table 14 Dog Population 2000-2005
  • Table 15 Dog Food Prepared Vs Non-prepared Gap: % Analysis 2000-2005
• 3.2 Dog Food Performance
  • Table 16 Retail Sales of Dog Food by Type: Value 2000-2005
  • Table 17 Retail Sales of Dog Food by Type: % Value Growth 2000-2005
  • Table 18 Dog Food Company Shares 2000-2004
  • Table 19 Dog Food Brand Shares 2000-2004
  • Summary 2 Dog Food: New Product Launches 2004-2005
  • Table 20 Forecast Retail Sales of Dog Food by Type: Value 2005-2010
  • Table 21 Forecast Retail Sales of Dog Food by Type: % Value Growth 2005-2010
• 3.3 Dog Treats
  • Table 22 Dog Treats Brand Shares 2000-2004
• 4. CAT FOOD SALES
• 4.1 Cat Indicators
  • Table 23 Cat Owning Households: % Analysis 2000/2005
  • Table 24 Cat Population 2000-2005
  • Table 25 Cat Food Prepared vs Non-prepared Gap: % Analysis 2000-2005
• 4.2 Cat Food Performance
  • Table 26 Retail Sales of Cat Food by Type: Value 2000-2005
  • Table 27 Retail Sales of Cat Food by Type: % Value Growth 2000-2005
  • Table 28 Cat Food Company Shares 2000-2004
  • Table 29 Cat Food Brand Shares 2000-2004
  • Summary 3 Cat Food: New Product Launches 2004-2005
  • Table 30 Forecast Retail Sales of Cat Food by Type: Value 2005-2010
  • Table 31 Forecast Retail Sales of Cat Food by Type: % Value Growth 2005-2010
• 4.3 Cat Treats
• 5. OTHER PET FOOD SALES
• 5.1 Other Pet Population
  • Table 32 Other Pet Population 2000-2005
• 5.2 Other Pet Food Performance
  • Table 33 Retail Sales of Other Pet Food by Type: Volume 2000-2005
  • Table 34 Retail Sales of Other Pet Food by Type: Value2000-2005
  • Table 35 Retail Sales of Other Pet Food by Type: % Volume Growth 2000-2005
  • Table 36 Retail Sales of Other Pet Food by Type: % Value Growth 2000-2005
  • Summary 4 Other Pet Food: New Product Launches 2004-2005
  • Table 37 Forecast Retail Sales of Other Pet Food by Type: Volume 2005-2010S
  • Table 38 Forecast Retail Sales of Other Pet Food by Type: Value 2005-2010S
  • Table 39 Forecast Retail Sales of Other Pet Food by Type: % Volume Growth 2005-2010S
  • Table 40 Forecast Retail Sales of Other Pet Food by Type: % Value Growth 2005-2010S
• 5.3 Bird Food Shares
  • Table 41 Bird Food Brand Shares 2000-2004
• 5.4 Fish Food Shares
  • Table 42 Fish Food Brand Shares 2000-2004
• 6. PET CARE PRODUCTS SALES
• 6.1 Pet Care Products Performance
  • Table 43 Retail Sales of Pet Care Products by Type: Value 2000-2005
  • Table 44 Retail Sales of Pet Care Products by Type: % Value Growth 2000-2005
  • Summary 5 Pet Care Products: New Product Launches 2004- 2005
  • Table 45 Forecast Retail Sales of Pet Care Products by Type: Value 2005-2010
  • Table 46 Forecast Retail Sales of Pet Care Products by Type: % Value Growth 2005-2010
• 6.2 Cat Litter Shares
  • Table 47 Cat Litter Brand Shares 2000-2004
• 6.3 Healthcare Shares
  • Table 48 Healthcare Brand Shares 2000-2004
• 6.4 Dietary Supplements Shares
  • Table 49 Dietary Supplements Brand Shares 2000-2004
• 7. DEFINITIONS