Happy tails: petfood types by value sales
Source: Kantar Worldpanel 52 w/e 15 July 2018
  Value (£m) % change
Cat Wet   912.5 2.0
Cat Dry 227.7 3.7
Cat Treats & Drinks   151.2 10.8
Dry Dog CDDF   290.7 -2.8
Wet Dog   433.1 -1.4
Dog BTC   477.8 4.1
     
Brands vs Own Label  
  Value (£m) % change
Branded 1930.1 0.3
Own Label 577.3 7.7

After multiple years of decline, the market has returned to growth with a 2% increase in value. However, the 2.3% decline in volume indicates prices are the main driver of growth. 

Catfood continued to grow faster than dogfood year on year, though this is off the back of faster price rises in the sector.

Some of this is driven by a general increase in petfood prices. However, format changes in petfood are leading shoppers to pay more, and many are trading up to more high-end products. In catfood, shoppers are buying into the luxury format, which has driven a 5.2% increase in average price per kg. In dogfood, consumers are trading up from cheaper dry food into wet food. 

Shoppers are also buying into more treats for both cats and dogs, which are much more expensive than everyday food. Promotions have also reduced.

Own label is becoming more prevalent and seeing strong growth ahead of branded manufacturers. Discount variety retailers continue to be significant players in the market, taking close to 9% value share. Aldi has been seeing double-digit growth in the market and also launched three significant new SKUs including dog treats and two types of catfood. Among the big four supermarkets, Morrisons has historically overtraded in the sector and that continues to be the case this year. 

Claire Palmer, Kantar Worldpanel

Pets follow humans: top ten petfood brands by value
Top Ten Pet food brands by value
  Value (£m) % change
Felix 240.8 1.0
Pedigree 179.0 -4.4
Whiskas 164.7 -5.7
Gourmet 90.2 4.6
Sheba 74.1 5.1
Bakers 72.0 -9.4
Butchers 58.2 -11.2
Good Boy 54.9 33.0
Go Cat 47.5 -5.8
Harringtons  44.7 16.7
   
 Source: Nielsen, w/e 18.08.18  

Shoppers are placing more consideration on the quality of the food they give their pets in line with human food trends. This is being reflected in how brands are performing. Nestlé Purina's Gourmet and Mars Petcare's Sheba are growing at 4.6% and 5.1% respectively as they tap into consumer desires for luxury meals to treat their cats. 

Pet humanisation has also driven the growth of natural products, as shoppers seek out products that promote a healthier lifestyle for the whole family, including their pets. Notably, Good Boy is growing ahead of the other brands in the petfood top 10, as it meets demand for more natural products with its range of real-meat dog treats. 

Despite pockets of growth, leading brands are losing share to smaller players that have been quicker to position themselves in this natural space. Only Harringtons has achieved growth in dry dogfood, while the major brands are all in decline. Freshpet, the UK's first refrigerated petfood, has continued to see double-digit growth in its second year of launch. 

As the big players look to grasp the growth in natural we expect to see increasing competition in this segment. We've already seen Mars Petcare launch natural, grain-free brand Nature's Table in the UK at the end of 2017, and Amazon try to tap into this trend in the US with the launch of its own label brand, Wag. 

Rachel Dodd, senior client manager, Nielsen