Pet Care in South Africa – ReportsnReports

Article by Mary859

Report Summary

Better economic conditions did not have a major impact on pet care sales

Although consumer spending increased during 2010, thanks to better economic conditions, there was little impact on the South Africa Pet Care Market in terms of volume sales. Overall, better consumer spending was offset by the negative effects of multiple factors, including the rise in prices of pet care products, consumers moving to smaller dwellings, and new laws governing the number of pets per household.

City councils set limits on number of pets per households

South Africa’s largest cities have instituted new pet by-laws. This puts a limit on the number of pets each household can have, and those who disregard it face heavy fines. The law came into effect in January 2010. The by-laws are expected to have a negative effect on pet ownership and, ultimately, pet care sales.

Import dependency leading to price spiral

The pet food market in South Africa is dominated by imported brands, which are trusted for having superior quality ingredients and are well marketed, especially in veterinary clinics. This is especially true for dog food and cat food. With the current economic conditions, local small brands seem to be struggling, with some small manufacturers closing down. Private label products are also struggling as a result of the perception that big brands are of better quality. South Africa is said to have one of the lowest average unit prices compared to western counterparts, meaning pet food prices are undervalued in South Africa. The upward trend in prices in the pet food market may be due to the dominance of imported pet food. This, together with rising fuel prices, has forced domestic prices to trend upwards.

Table of Contents

Pet Care in South Africa – Industry Overview

EXECUTIVE SUMMARYBetter economic conditions did not have a major impact on pet care salesCity councils set limits on number of pets per householdsImport dependency leading to price spiralSmall, yet significant shift towards veterinary clinicsHealthy growth expected for pet care over the forecast period

KEY TRENDS AND DEVELOPMENTSSlow recovery has no impact on pet careCity councils set limits on number of pets per householdImport dependency leading to price spiralShift of pet ownership towards smaller petsVeterinary clinics gain share

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