The pet industry in South Africa

The pet’s position is evolving in South Africa. Dogs, especially, are increasingly being rightfully regarded as family members, rising above their long-held role as ‘merely’ protectors of the home. While this could open up many opportunities for pet food brands seeking growth, the country’s legal framework within which producers must operate presents severe hurdles that hamper progress and innovation.

Highly regulated

The South African pet food market is a highly regulated industry under Act 36 of 1947 (Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act). This is supervised by the watchful Agricultural Inputs Control (AIC) directorate of the Department of Agriculture, Land Reform and Rural Development (DALRRD). However, despite a number of regulatory updates, the old law is inflexible and does not allow for the necessary adjustments that would ease the burden on a state department that is understaffed and has not been able to modernize with the times.

Currently, each individual pet food product requires product registration to obtain a ‘v number’ – or registration number – that must be printed on the product’s packaging in order for it to be sold. This process entails a review of the pet food formulation, and verification of nutritional claims, among other things. This ensures that what is communicated on the pack is indeed inside the pack, and that each formulation conforms to the nutritional requirements as laid out in the law.

Delayed market access and stifled innovation

However, what should be a 4-month process to register a new product, or even just a 2-month process to make an amendment, currently takes 14 months or longer and remains a paper-based procedure. This is delaying market access and stifling product innovation. As a result, South Africa is falling behind in terms of global trends.

Additionally, a grey area in the regulations allows for pet treats that do not make any nutritional claims to be sold without registration. This loophole, coupled with the extended processing time for applications, has created an uneven playing field in which certain companies play by the rules (and shoulder the burden of delayed product launches), while others bypass them. This is causing a proliferation of unregistered products being sold to the public who are none the wiser, by various retail sectors that are uneducated on the legal requirements for pet food.

Retailers, consumers and pets at risk

The risks associated with selling and purchasing unregistered pet food are shared by retailers, consumers and their pets. Retailers caught selling non-compliant foods may be liable for a fine or jail time. Meanwhile, pet food products that have not been approved in the technical registration process can pose a risk to the pet, who may be consuming unbalanced and nutritionally depleted foods.

As part of its commitment to the nutritional well-being of South African pets, the Pet Food Industry Association of Southern Africa (PFISA) promotes the sale of safe and nutritious pet foods and is therefore active in assisting with policing the industry. Retail outlets are surveyed and formal complaints are made to the inspectorate arm of Act 36 to highlight non-compliant foods to the regulator, in an attempt to ensure the best use of the department’s limited resources.

Growth market warrants attention

According to the latest 2023 Euromonitor data, there are 21.7 million pets in South Africa. This is an increase of approximately 250,000 compared to last year. The annual consumer spend on pet food and accessories is estimated at R8 billion ($452M / €411M), and this is expected to grow by 2.5% by 2026.

This sizable market clearly warrants the necessary attention to address the obstacles that are preventing fluid and competitive market access. As such, a great deal of focus is being given to regulatory reform through the new Feed and Pet Food Bill that is currently in draft status.

The overall intention of this bill is to shift the requirement from individual product registration to facility licensing and registration of raw materials. The bill may also enable government departments to outsource their duties when capacity issues prevent them from functioning optimally. Once this new legislation has been successfully promulgated, pet food manufacturers can hopefully look forward to less frustration and the fairness of a single set of playing rules.

However, an implementation date is uncertain due to the commentary received on the draft bill having to be addressed by those same resources that manage product registrations. As in many industries in South Africa, the private sector is becoming increasingly active in partnering with the government to resolve core issues affecting the pet industry.

Industry associations like PFISA will continue to play an important role in facilitating such assistance and driving regulatory reform.