Despite the global economic slowdown, the Italian market for pet products remains strong.  Although official estimates are not available, key players in the market indicate that in 2009 this sector continued to grow, increasing at an average rate of 4-5 percent in value. The leading factors for this growth are mainly three: decrease in tendency for home-cooked food for pets, although it still represents 44 percent of pet food consumption in Italy; the increasing importance of the role of pets in Italian families; and the pro-active role of distribution, both through the grocery store channel (supermarkets and hypermarkets) and in specialized pet shops, including garden centers, which are devoting more space to pet products.

In Italy, there are now 60 million pets in a country of 58 million people.  In particular, Italy occupies a top position among European countries regarding dog and cat populations.  Cats are the most common pets in Italy. According to the most recent estimates, there are 7.5 million cats and 7 million dogs in Italy. Six out of ten Italian families own a pet, while 33 percent of them own either a dog or a cat.

The role of pets in Italy has changed over the years. Pets have come to be considered as real friends, and even as psychological aids. This new position for pets can be traced to Italy’s declining birthrate, changes in family structure, a higher number of Italian singles, an increase in regard for animals, and a longer average human life span.  This increase in the number of pets within Italian households translates into greater care and into higher expenses, both from the nutritional and health point of view and the accessories and services provided.

The market for industrial or commercial pet food has also increased greatly in recent years. This growth is mainly related to a greater demand for specific types of pet food.  The industry has been developing new lines of pet foods that meet very specific needs related to the age (for young, adult and older animals), lifestyle (high-energy or light diets), and health condition (for diets that prevent allergies or address certain diseases) of pets.  In short, dog and cat food is becoming more and more “customized”.

In 2008, cat food in Italy represented 57 percent of the pet food market and was valued at slightly over $1 billion, a 5.5 percent increase over the previous year. Dog food represents 39 percent of the market and was valued at $705 million, an increase of 5.8 percent.  Dry food (as opposed to “canned” or wet food) is the market leader for both dogs and cats, with a growth rate of 8.4 percent and 7.1 percent, respectively. The market for pet snack and treat products is incurring substantial growth posting an increase of 12.4 percent in 2008. Private labels are also contributing to the success of the sector.  In fact, by offering quality products at competitive prices, the private label sector showed a 21 percent increase and sold $286.7 million worth of products, of which $255.8 million was pet food, in 2008.

At the end of 2008, the overall market for “other pet foods” (not cat/dog) performed very well with a turnover of $29.7 million and a growth rate of 5.7 percent. The bird food segment is the largest segment in this market, accounting for a 37 percent share and a growth rate of 4.2 percent.  Food products for rodents are the second largest, accounting for 29% of the other pet food market share. The market for fish food was stable, and other animals’ food grew by 5.2 percent.

Italy is a big net importer of pet food. In fact, imported pet food has a 48 percent market share in Italy. Dry dog food products represent the largest import, with about 34 percent of total imports. Cat wet food products comprise 25 percent of total imports. Finally, imports of snack and treats products greatly outnumber local production.

The Foreign Agriculture Service (US Department of Agricultural) data for the year 2008 indicate that Italy is the third largest European importer of pet food from the U.S. after the U.K. and the Netherlands. Imports of pet food in Italy amounted to $46.9 million versus $31.6 in the previous year, with a steady growth rate of approximately 48 percent as indicated in the general import figures.

In recent years the greatest market growth has occurred in the pet products/pet care markets. This segment includes all types of accessories for pets as well as hygiene and beauty products. Although accessories accounted for just 13 percent of the pet products market in 2008 and were valued at $75.8 million, that figure represented a strong growth rate of 8.7 percent. On the other hand, thanks in part to good marketing and the high quality and variety of products offered, the specialty channel encompasses some 35 percent of the total pet products sector turnover. 

The hygiene and beauty sub-sector is experiencing tremendous growth of 18.1 percent.  This sub-sector includes shampoos, conditioners, brushes, deodorants, repellants, etc.  Alternatively, the toys sub-sector is growing at a much slower rate of only 1.8 percent.  This sector includes leashes, kennels, bowls, cages, aviaries, fish and turtle aquariums. Finally, cat litter products make up the largest sub-sector with a turnover of approximately $86.3 million and increased sales by 4.5 percent in value and 1.4 percent in volume.

Best Products/Services

The food sector, besides the premium and super-premium type of foods, sells different products according to breed, size and age. We also see other food segmentations, according to food allergies and intolerances. A current trend involves natural and holistic pet food products which guarantee their product contains either natural or biological ingredients, without artificial food coloring or preservatives. Among the most sought after ingredients are vegetables, healing herbs, fruit and cereals, in addition to wild caught meat and fish. Many consumers are showing a preference for snacks and treats that are preservative-free, and contain healthy ingredients such as fruit and cereals.  Products such as these are now purchased for their functional role for pets, for example dental hygiene.

In the market for pet accessories the best prospects for penetrating the market in Italy include: cat beds and pillows, beauty and grooming products, health and anti-parasitic agents and leashes. Hypoallergenic and biodegradable dog shampoos and conditioners, cologne and beauty products show signs of strong performance in the market, especially those formulated with organic extracts. In the hygiene sub-sector, the largest demand is again for all-natural, recycled and ecological types of litter that can be disposed of as fertilizers or ecological fuels.  

Opportunities

Cat and dog snack food, and cat dry food
Healthcare products
Hygiene and beauty like shampoos, conditioners, brushes, cat litters
Beds and pillows
Veterinary services

Resources

The U.S. Commercial Service promotes a U.S. Pavilion at "Zoomark International", Italy’s leading bi-annual pet products show - www.zoomark.it. The next edition will take place in Bologna on May 12-15, 2011. For more information contact:

Simonetta Busnelli - Commercial Specialist
U.S. Commercial Service
American Consulate General
Via Principe Amedeo 2
20121 Milan, Italy
Phone:  39-02-62688505 (direct phone number)
Fax:    39-02-6596561
E-Mail:  simonetta.busnelli@N0SPAM.trade.gov
Web: www.buyusa.gov/italy/en/zoomark2009.html (information on the U.S. Pavilion at Zoomark 2011 will be posted soon)

Zoomark International 2011 official show organizer is Piesse, piesse@N0SPAM.zoomark.it .

The major U.S. Trade Associations in the pet sector are:
American Pet Products Association (APPA): www.americanpetproducts.org/
World Pet Association (WPA): www.worldpetassociation.org
Pet Food Institute: www.petfoodinstitute.org

In Italy, the pet association is Scivac: www.scivac.it and the Association of Pet Feeding and Care is Assalco: www.assalco.it/

Prospective U.S. exporters of pet products can also contact:
U.S. Department of Commerce, Global Trade Programs, Edward K. Kimmel: Edward.Kimmel@N0SPAM.mail.doc.gov
U.S. Department of Agriculture FAS (Foreign Agricultural Service) office: www.fas.usda.gov/
U.S. Department of Agriculture FAS (Foreign Agricultural Service) office at the U.S. Mission to the EU: www.fas.usda.gov/posthome/useu/