Dominant in coffee, breakfast cereals and confectionery, food and beverage giant Nestlé is now seeking to up its pet food game, as the sector shows major opportunity for growth.
Where it all began
Nestlé entered the pet food market back in 1985, with the acquisition of the Carnation Company. This brought Friskies under the Nestlé banner. From there, the business went on to acquire Alpo Pet Foods in 1995, followed by Spillers in 1998.
In 2001, Friskies merged with Ralston Purina, creating Nestlé Purina Pet Care and dramatically increasing the brand’s global reach. Geographically, Ralston Purina was focused on North America, while Friskies had a strong market position across Europe.
Pet food sector growing
Pet care is one of Nestlé’s fastest-growing businesses in Europe and worldwide. And such is the scale of growth, it’s now the second largest category in the business, accounting for just over 20% of sales.
“With just under one billion dogs and cats globally, the pet food industry is one of the fastest-growing sectors within the global food market,” says Dan Smith, head of the PetCare global strategic business unit, Nestlé Purina Pet Care.
This growth, Smith explains, is driven by increasing pet ownership, particularly in North America and Europe, rising disposable incomes, a heightened focus on pet health and wellness.
What’s more, Nestlé expects its cat food business growth to accelerate, as cat ownership shoots up.
Cat food has out-paced dog food growth recently and we expect that trend to continue
Dan Smith, Nestlé Purina Pet Care
“Although currently there are more dogs than cats, the cat population is expected to grow faster,” says Smith. “Cat food has out-paced dog food growth recently and we expect that trend to continue in the near future.”
On top of this, a recent survey by James Wellbeloved Pet Food, a Mars Incorporated brand, found that eight in 10 dog owners (79%) take as much care over choosing their pet’s food as they do their own, highlighting opportunities in the premiumisation space.
Future plans for pet food
Nestlé has big plans for its pet food sector, starting with emerging markets.
“There are many growth opportunities around the world, especially in emerging markets both to gain market share as well as grow calorific coverage,” says Nestlé’s Smith.
But it’s not just about industry growth, the Swiss multinational is also focussing its attentions on innovation within the sector, with 500 scientists and experts across multiple disciplines dedicated to pet care.
“One key area where we are driving innovation in the category is in our science/nutrition brands (Pro Plan) that have shown strong and consistent growth over the past year,” says Smith.
And pet food is even entering into the food as medicine space, with Nestlé’s growing portfolio now including a range of therapeutic diets aimed at supporting nutritionally responsive conditions. These conditions include epilepsy, heart disease and anxiety.
Plus, the research and development team are working to reduce human allergic reactions through nutritional intervention. The aim is to reduce the active levels of the most common cat allergen found on a cats hair and dander, and responsible for 95% of human sensitivities.
This is achieved by coating cat kibble with an egg derived antibody. This, says Smith, neutralises the allergen produced in the cats saliva when they chew, and studies have shown a 47% reduction in the levels of the active allergen on the coat after the third week of feeding.
Nestlé is also looking to support owners through its ‘Beyond the bowl’ scheme.
“Beyond the bowl has been integral to our strategy,” says Smith. “Supporting pet owners to manage their pet’s health through knowledge, tools, products and services, throughout their pet owning journey.”
