Pet food manufacturers are facing a second downturn in a row after pet food companies found themselves under pressure from a wave of demand for their products amid rising costs of the new, highly nutritious pet food.
Key points:Pet food prices surged in September, hitting $13.7 billion, the third consecutive month of spikesPet food companies are struggling to meet rising demand from pet ownersPet owners have turned to alternative brands, including Pet Nutrition and PetSmart, to feed their petsPet owners are increasingly choosing to feed pets at home insteadPet Nutrition CEO Andrew Koster says the company has to be flexiblePet Food Express CEO John Poyntz says the Pet Nutrition brand has proven a reliable optionPet Nutrition and Nestlé Pet Nutrition have been on the front lines of a growing market for pet food products that are higher in protein and lower in sugar, but they’re struggling to keep up with the rise in demand for more nutritious foods.
Key point:Pest products are increasingly becoming cheaper and healthier as a result of increased pet food availabilityPet owners, who have turned towards alternative brands such as Pet Nutrition, PetSmart and Nestle Pet Nutrition for their pet food, are facing increasing competition from cheaper, more nutritious alternatives.
Pest manufacturers have been forced to introduce cheaper and more nutritious pet foods, such as Nestlé, Pet Nutrition or PetSafe to keep pace with rising pet food costs.
Pet owners in Australia are increasingly looking to alternative pet food brands, such a Pet Nutrition as they struggle to meet the demand for a more nutritious, less expensive diet.
Pet Food Australia chief executive Peter Parker said the industry had to be “flexible” to meet growing demand from consumers, while Nestlé said it would look to expand the range of pet food options.
“It’s really critical that we have a range of brands available to pet owners in order to provide the best possible nutrition for their pets,” he said.
“As a consequence, PetSafe and Pet Nutrition are now offering consumers a range which includes the popular Pet Nutrition brands Pet Nutrition PetSafe, Pet Nutrient and PetSafe Plus.”
However, the PetSmart brand is a relatively new addition to the PetFood range, so we’re exploring how we can expand this to the wider PetFood market.
“Key pointsPet food manufacturers have struggled to keep prices down as demand for pet foods has surgedPet Food companies have struggled with the increasing cost of their productsPet owners’ desire to feed the pets at their home has prompted them to go on to other pet food alternativesPet owners need to feed at home to ensure they are getting the best nutritional optionThey’re also increasingly looking towards alternative pet foods such as PestSmartPet Nutrition has seen a rise in sales and profits over the past few years, with the company recording its second consecutive profit in 2018.
Pesticide prices spiked in September after a surge in demand from the US, as a number of states introduced legislation requiring pet food manufacturers to report pesticide levels on their labels.
Petfood manufacturers responded by introducing products such as the Nestlé pet food range, which had previously been sold by Nestlé in China.”
This has been a challenging period for PetFood and Nestledecom in the PetMarket, particularly given the recent events in China and the US,” PetFood Australia chief financial officer John Poya said.
The company’s CEO said it was “difficult to overstate” the impact the food industry had had on the PetSafe brand.”
We have to take a deep breath and understand the challenges that we face, as we move into this new year,” Mr Poya told reporters in Melbourne.”
I think there are some challenges we have to address in order for us to be able to compete.
“He added that PetSmart had had to adapt to the increased demand and was working to better meet consumer demand.”
There’s been a significant amount of change in our portfolio in the last year, so it’s very important we’re prepared for the future,” Mr Parker said.
Key questions askedPetfoods sales in Australia, which are worth about $2.7 trillion, are expected to rise to $9.1 billion by 2019.
PetSafe has seen sales grow from $5.5 billion in 2019 to $14.1 million in 2019, while PetNutrient has experienced a 5.2 per cent rise in 2017, to $8.7 million.
Nestlé PetSafe has grown from $8 million in 2017 to $11 million in 2018, while PestSafe has risen from $4.5 million to $15.3 million in 2016.
The PetSmart range is the biggest of the Petfoods in the range, with sales increasing from $10 million in 2015 to $18 million in 2020.”
The PetSafe range is certainly the largest, but the PetNutrition range has a higher average price per serving and the Petsafe range is more expensive in terms of