Australia Pet Food Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)

The Australian Pet Food market is projected to register a CAGR of 2.7% during the forecast period (2021-2026).
Covid-19 restrictions has led to delay in the delivery of Pet food through E-commerce, also the consumer has been more dependent on finished pet food product imports, so they have faced a shortage of Pet Foods. The Australian pet food market has suffered due to uncertainity in demand and supply chain disruptions.

Pets have historically played an essential part in Australian households, and the emerging time-constrained lifestyles are playing a crucial role in developing the shift towards retail and commercial products. The importance of the Australian market can be understood in terms of emerging western trends and lifestyle choices. A typical Australian consumer is characterized as a well aware and quality conscious. 
According to government consumer behaviour surveys, the Australian consumer is well aware of the consumer protection laws and product makeup. This fact could boost the pet food market, given the product is of high quality.

Key Market Trends

Rising Trend of Pet Humanization

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Australia is one of the mature markets outside of Western Europe and North America. However, in the Asia-Pacific region, the majority of sales are currently concentrated in Japan, which is also relatively mature. The growth in the Australian market can be attributed to the increasing prices than the overall increase in the population of pets, and the rise of dual-income families with no children and high disposable incomes. 
The quality of pet life continues to play an essential role in product innovation and retail value sales growth within the pet food market. The shift in pet ‘ownership’ to ‘parenting’ has been a very crucial and defining trend in the pet food market. Traditionally, pet owners feed their pets the leftovers and scraps from family meals. However, consumers are now becoming aware of pet food that consists of essential nutritional elements, for the well-being of their pets. This is further boosting the demand for pet food in the country.

Specialized Pet Shops Dominate the Market

Pet shops and supermarkets remain essential sources of pet products. An increasing number of fortified pet food products are being introduced into the market, alongside health-specific products catering to the rising range of pet ailments. Pet shops also remain popular among pet owners purchasing food for their pets, used at least by 36.0% of dog owners and 31.0% of cat owners. Indeed, owners of other pet types tend to rely on pet shops as their primary source of food, though bird owners prefer supermarkets. Superstores are the leading outlets for pet food, but the trend is shifting to specialist stores. In Australia, there is a marked preference for imported premium and super-premium products. Premiumisation has been historically a more prominent trend in the dog food sector, but the cat food sector is also catching up over the years.

Competitive Landscape

The Australia Pet Food Market is consolidated with prominent players, like Mars Inc., Hills Pet Nutrition, Nestle Purina Petcare, The Complete Pet Company, The Great Australian Pet Food Co., V.I.P. Petfoods, Australian Pet Treat Company, and Connex United Processors. The market consists heavily of large multinational players and also houses many private label players. Apart from the presence of a loyal customer base, the major players of the market studied benefit from large marketing and innovation capacities.

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