India: A local industry in fast-forward mode

As pet parents move away from feeding their pets human food to commercially manufactured food, ‘Made in India’ pet food is gaining ground. In fact, numerous new pet food start-ups are benefiting from a growing market with ever more pet parents. Since 2020, the Indian pet industry has registered an annual growth rate of 22%. This growth is expected to increase even further in the coming years.

Double-digit increase

According to Bonafide Research, expectations are high, with pet food sales expected to hit the $533 million mark this year already and reaching $1 billion by 2026. Here are some facts and figures that support these expectations:

• In India, the consumption of manufactured pet food reaches 8% of dogs and 15% of cats. This figure showed an increase during the pandemic, with many pet parents shifting feeding habits to packaged food.

• Just Dogs is the largest pet retailer nationwide with 44 stores and it plans to reach 150 stores by 2025.

• Heads Up for Tails (HUFT) started operations in 2008 and now operates 48 locations, where it also sells its own private label products.

• The offline pet retail channel is expected to grow its customer base by quickly moving from a brick-and-mortar only, to an omnichannel model.

• Online sales account for 25% of all pet supply purchases. Indian e-commerce platform Flipkart and Amazon have had a major impact on the way people purchase products. Their reach and marketing prowess is one of the driving forces behind shifting buying habits among Indian pet parents.

Local and foreign players

Dog food accounts for 85% of all pet food market sales in India. The market is growing, as more pet parents buy commercial pet food for an ever-increasing pet population. Not surprisingly, besides numerous new start-ups, more established Indian corporations are now also taking their first steps in the pet food segment.

Chhattisgarh-based IB Group manufactures economy and premium pet food brands and is the first Indian company to expand its operations to 22 countries. Himalaya Wellness Company (Bangalore) manufactures pet food brands besides supplements and grooming products, while Taiyo Feed Mill (Tamil Nadu) produces a number of dog and cat food brands, as well as private labels. Similarly, Good Pet Supplies (Maharashtra) launched its own pet food in 2021. They are present throughout the country, in brick-and-mortar sales points only.

A recent new player is PetStar by Mankind Pharma, one of India’s leading pharmaceutical companies. The company decided to enter the pet food industry after seeing potential in the sharp rise in the number of pet owners.

But foreign manufacturers are also discovering India’s huge potential, and expanding operations to this country.

Italian-based Farmina has a fully-owned subsidiary in Gurgaon in the state of Haryana and Thai-based Pet Companion has an office in Greater Noida, Uttar Pradesh.

Big player Royal Canin has established an office in Mumbai, Maharashtra as a subsidiary. And Mars Petcare has recently invested $60.4 million to expand its facility in Hyderabad to cater to the increasing demand for pet food in India and other Asian countries.

Other leading brands – while not having their own offices in India – are popular import products. Such brands include The Taste of Wild, Arden Grange, Fish for Dogs, Orijin and Acana to name a few.

Start-ups: a flourishing market

Proof of the budding market opportunities is also to be found in the appearance of numerous pet care- related start-ups, many of which are being funded by interested investors.

Bangalore-based pet care platform Supertails raised $10 million in a Series A funding round in November 2022. In 2021, the company raised an additional $2.6 million. It claims to have the largest product range of pet supplies, with more than 10,000 products and 200 partner brands.

Petcare DTC start-up Goofy Tails raised $500,000 and pet food manufacturer LUVIN raised $300,000 with the aim to expand its innovative portfolio of natural and healthy pet foods and treats, as well as boosting customer reach.

Indian consumer goods Emami acquired a 30% stake in pet care start-up Cannis Lupus. A company spokesperson told PETS International that the investment is in line with their expansion strategy in the fast-moving consumer goods space.