SUMMARY OF REPORT CONTENTS

            UK Pet Market - Product Mix by Value 2011    

AMA Research has published a new report covering the pet accessories market.  The report, the 7th edition, provides a comprehensive analysis of the market, with a forecast of the market’s future prospects. Pet accessories are part of the overall UK pet market that was valued at £4.9 billion at RSP in 2010. The pet accessories market accounts for an estimated 16% of this overall market, valued at approximately £659 million at RSP in 2010.

The pet accessories market comprises toys (that account for 38% of the market), care products (32%), housing, bedding & feeding (21%) and collars, leads & utility products (7%) and ‘others’ accounting for the remaining 2%.

The market is generally less affected by adverse economic conditions compared to other consumer products that is, in part, due to pet owners’ unwillingness to compromise on their pets. Indeed, pet owners appear prepared to invest in the pet care market transferring their personal lifestyle, health and hygiene expectations to their pets. However, the extent of the current economic turmoil has lead to an unprecedented impact on the market, significantly slowing growth. As well as the prevailing economic environment, the pet accessories market is influenced by pet ownership levels, types of pet and demand for more convenient products.

Different sectors of the pet accessories market have recorded different performances in recent years, with growth areas being aquariums & other vivariums and flea & worm treatments.

Toys continue to dominate the pet accessories market. Whilst volume sales have fallen slightly in recent years, some pet owners have upgraded to more durable products that are expected to last longer. The sector continues to benefit from product innovation. This sector has also benefited from the increased interest in aquariums and vivariums, particularly planted aquariums.

The care products sector has benefited from a wider distribution of flea and worm treatments that boosted the sector as well as increased demand for aquarium & vivarium products; although the decline in ownership of small animals has reduced demand for small animal bedding.

The housing, beds and feeding equipment sector has seen differing performances of its sub-sectors during the recession, with aquariums (particularly nano tanks), vivariums and dog cages seeing growth, whilst hutches and feeding equipment have been negatively impacted over the period.

The collars, leads and utilities products sector has lost share in recent years as pet owners put off replacing these items or opt for cheaper products as well as a decline in the muzzle sector.

The pet accessories market is highly fragmented in terms of suppliers, product ranges and distribution structures. Manufacturers have entered the market from differing backgrounds that has prevented any company from getting a foot hold in all product sectors, which maintains the diverse range of companies operating in the market.

Pet superstores continue to account for the largest share in terms of the distribution of pet accessories, with independent pet stores being important distributors, although their share has declined in recent years. Growing channels include the grocery multiples and the Internet, benefiting from consumers’ desire for convenience shopping.