South African pet food trends

Relatively strong growth

South Africa is by far the largest pet food market in the Middle East and Africa, accounting for well over half of value sales in this region. The South African market grew by 14% in real terms (CAGR of 3%) between 2010 and 2015.

This was a relatively strong performance against a background of weakening economic growth and relatively high inflation – the annual rate of inflation averaged 5% between 2010 and 2015, with the annual rate of real GDP growth halving, to 2%, over the same period. However, these economic headwinds have begun to weigh more heavily on sales over the past couple of years, with real annual growth in pet food value sales slowing to 2% in 2014 and 2015. 

A significant driver of growth is the increasing number of dog owners switching from non-prepared (table scraps/leftovers) to prepared pet food. In 2010, prepared products accounted for 25% of the food consumed by dogs, but by 2015, this figure had risen to 30%. However, cats are still much more likely to consume prepared products – these accounted for 66% of the food consumed by cats in 2015, a figure that has been stable over recent years.

Large dogs are most popular

Dogs are by far the most popular type of pet with large dogs (more than 23kg) being particularly popular, as many keep them for security reasons. They accounted for just over half of the country’s canine population in 2015. During the same year, 20% of households had a dog, while 10% had a cat.

Mid-priced products dominate

Dog food accounted for 77% of pet food value sales in South Africa during 2015, with dry products being most popular. Within this category, mid-priced offerings are key, with real value sales rising by 15%, between 2010 and 2015. With such brands as Bobtail and Dogmor, local player Foodcorp (Pty) Ltd is the clear leader in the mid-priced segment, accounting for 35% of value sales in 2014, followed by Mars Inc and Nestlé SA. Products segmented by age and those containing healthy ingredients are increasingly popular in this category.

Premium products are mainly purchased by a relatively small number of affluent consumers, with real value sales in this segment rising by 10%, to US$49 million (€45 million), between 2010 and 2015. Mars Inc (with its Royal Canin, Eukanuba and Vet’s Choice brands) and Colgate-Palmolive Co (Hill’s Science Diet) dominate this segment, with 2014 value shares of 42% and 38%, respectively.

Real value sales of economy products rose by 7%, to US$67 million (€61.5 million), between 2010 and 2015. Ingredient fraud, by what trade group The Pet Food Industry Association of Southern Africa has labelled “rogue pet food manufacturers”, has helped to bolster the share of more established brands in this segment, with The Bob Martin Co leading the way. It accounted for 40% of value sales of economy dog food in 2014. In stark contrast to the mid-priced segment, private label is a significant presence in the economy space, accounting for a quarter of value sales. Dog treats is an expanding category, as a growing number of owners seek to indulge their pets. Real value sales of treats rose by 13%, to US$20 million (€18.4 million), between 2010 and 2015. 

Key distribution channel

Supermarkets dominate pet food distribution in South Africa, accounting for 72% of value sales in 2015, with hypermarkets for 9%, and veterinary clinics with 4%. Internet retailing remains underdeveloped, accounting for less than 1% of value sales during the same year.

Sluggish growth set to continue

Euromonitor International forecasts that value sales of pet food in South Africa will expand by 12% (CAGR of 2%) at constant 2015 prices, between 2015 and 2020. South Africa’s economy remains heavily dependent on commodity exports, and depressed pricing for everything from coal to gold will continue to act as a drag on economic growth. On the other hand, more dog and cat owners are likely to make the switch from non-prepared products, with mid-priced products set to remain the dominant market segment.