Food makers that started betting on pets to make up for falling sales of human food are now facing similar problems, reports The Wall Street Journal. Pet foods with fancier ingredients are taking over market share for mainstream brands. Snacks for dogs and cats are selling faster than meals and new products are putting pressure on prices. Spending on pet food rose 30 percent per U.S. household between 2006 and 2010, but from 2010 to 2017, it rose just 5 percent, according to Nielsen.
General Mills, Smucker, and Nestle each bought pet food brands in the past three years, and some of those investments are already showing signs of strain in a saturated market. More than 4,500 new pet food products were introduced in 2017, according to data analytics firm GfK, a 45 percent increase from 2016. Most of those were premium products, which cost more and often generate a higher profit margin for companies. The rise in fancier pet foods boosted the average price to $2.55 a pound at the end of 2017, from $1.71 a pound at the start of 2011, according to GfK. Full Story (Subscription Required)
Related: General Mills Acquires Natural Pet Food Maker; The J.M. Smucker Co. to Acquire Ainsworth Pet Nutrition.
from Trends and Statistics https://ift.tt/2DhjsDE
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