British shoppers are spending more on food for their cats and dogs than they are on bread, TNS data exclusive to The Grocer shows.
Defying the credit crunch, expensive treats and even organic petfood are driving the growth.
Sales of dog treats were up 12.2% to £246m - equating to £36.27 per dog owner, according to TNS data in the year to August 10.
Cat lovers forked out less on treats - £13.27 each - but sales overall were still up 22% to £41m. As a result, at close to £1.7bn, sales of petfood have now surpassed your daily bread, a market worth £1.5bn.
The growth was particularly impressive given the current economic climate, according to TNS market analyst Daniel Frith.
"You'd have thought consumers looking to cut back on their shopping bills would have targeted an area such as petfood, but that doesn't seem to be the case," he said. "The market's in growth and it's being driven by new customers and the trend for premiumisation."
Graham Chadwick, Asda's petfood buyer, agreed. "Premium products are in double-digit growth in Asda this year and our own premium ranges are doing very well," he said.
Single-serve pouches appear to have been key to the growth in premium .
Sales of pouches were up 11.6% year on year, indicating that pet owners were looking for convenience over value.
"The pouch format of a given brand tends to be about 50% more expensive per gram than a tin of the same brand," explained Town & Country Petfoods MD, Peter Parkinson.
The downside to the premium and treat trends is that the UK is full of fat cats and dogs. A survey done for Sainsbury's pet insurance last month found that nearly half of UK pets were overweight.
Manufacturers are responding with breed, lifestyle and age-specific products. Affinity Petcare has even created a product specifically for sterilised and neutered cats that are at greater risk of obesity.
Focus on Pet Food p47
Defying the credit crunch, expensive treats and even organic petfood are driving the growth.
Sales of dog treats were up 12.2% to £246m - equating to £36.27 per dog owner, according to TNS data in the year to August 10.
Cat lovers forked out less on treats - £13.27 each - but sales overall were still up 22% to £41m. As a result, at close to £1.7bn, sales of petfood have now surpassed your daily bread, a market worth £1.5bn.
The growth was particularly impressive given the current economic climate, according to TNS market analyst Daniel Frith.
"You'd have thought consumers looking to cut back on their shopping bills would have targeted an area such as petfood, but that doesn't seem to be the case," he said. "The market's in growth and it's being driven by new customers and the trend for premiumisation."
Graham Chadwick, Asda's petfood buyer, agreed. "Premium products are in double-digit growth in Asda this year and our own premium ranges are doing very well," he said.
Single-serve pouches appear to have been key to the growth in premium .
Sales of pouches were up 11.6% year on year, indicating that pet owners were looking for convenience over value.
"The pouch format of a given brand tends to be about 50% more expensive per gram than a tin of the same brand," explained Town & Country Petfoods MD, Peter Parkinson.
The downside to the premium and treat trends is that the UK is full of fat cats and dogs. A survey done for Sainsbury's pet insurance last month found that nearly half of UK pets were overweight.
Manufacturers are responding with breed, lifestyle and age-specific products. Affinity Petcare has even created a product specifically for sterilised and neutered cats that are at greater risk of obesity.
Focus on Pet Food p47
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