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1、THE GO-TO PUBLICATION FOR PET INDUSTRY PROFESSIONALS SINCE 1988FEB 2024US&CANADACountry report&a retailer interviewTREND REPORTSSupplements,cataccessories&horsesSUSTAINABILITYCarbon footprint of soy,reporting&certificatesWHATSCHANGINGIN 2024?DRY&COOK&BAKE SOLUTIONS New All-in-One technology:Dehydrat

2、ing,cooking and baking by forced convection Acceleration of Innovation:Allows to develop new foods and treats for pets Great Versatility:Possibility to dry&cook&bake any type of product and format Process Optimization:Continuous system,with superior performance and lower energy consumption Full Conn

3、ectivity 4.0:Full control of the BAKEHEALTHIER TREATS HAPPIER PETSINSIDE THIS ISSUEPETS INTERNATIONAL|FEBRUARY 2024Food giants turn attention to four-legged friendsCorporate players traditionally known for their products for human consumption are increasingly seeing the attractions of entering the b

4、uoyant pet food market.Adding quality of life to dietary requirementsSupplements for pets are increasingly orientating towards preventing future health issues and improving general well-being.South Korea in the vanguard of pet tech From DNA testing and personality tests to trainer-matching services,

5、the East Asian nation is using its tech savvy in the cause of making pets healthier and happier.North America:analyzing the dataCanada and the US share many similarities across pricing,sales and preferences in pet essentials and non-essentials,but where do the key differences lie?6846165443And more:

6、Whats new in the world of accessories for cats?13Assessing the carbon footprint of soy in pet food 29A guide to incoming sustainability reporting rules in the EU 33Retailer interview:Christopher Rowland,CEO of Pet Supplies Plus 61The current state of the equine industry across Europe 64Driving up st

7、andards in the UKs animal training sector 66Vegan and flexitarian trends in pet foodWe take a look at some of the exploding number of brands hoping to convert cats and dogs to plant-based diets and ask how much growth the market can support.PART OFPETS INTERNATIONAL|FEBRUARY 2024Editorial team Manag

8、ing Director:Philippe Vanderhoydonck Head of Editorial:David Palacios Rubio Head of Operations:Lisa van Roon Senior Editor:Janetta Willis Editors:Jessica Martindale,Lynn Radford,Mandy Wolters-Savage,Elizabeth Youens Design:Hester de GierIntermedium Publishers BV Newtonstraat 3 1098GX Amsterdam(NL)+3

9、1-33-4225833 contentpets.nl Copyright 2024,Intermedium Publishers BV.All rights reserved.While we,as the publisher,aim for accuracy and completeness in the information and statistics presented,we cannot guarantee that.We cannot be held liable for any use of this information.The publisher is not resp

10、onsible for the content of advertisements or sponsored Turning challengesinto opportunitiesIts not about ideas.Its about making ideas happen.SCOTT BELSKY,CO-FOUNDER OF THE CREATIVE ONLINE NETWORK BEHANCEWhereas this time last year we were discussing the impact of the price hikes in raw materials,now

11、 the hot topic is how pet parents are dealing with the inflationary environment.Which products will continue to be an essential part of their baskets in 2024?And which categories and items will be most impacted?Realistically,we can expect the trend of trading down to continue for some time.Because o

12、f this,some industry players have already taken steps to minimize the short-and medium-term impact of inflation,but also and equally importantly to ensure they dont lose any customers along the way.However,we shouldnt forget that there are other issues on the agenda.Sustainability is a good example.

13、In 2022,just before the start of the war in Ukraine,we surveyed pet owners in several countries about their willingness to pay extra for a carbon-neutral pet product.Over 45%of respondents said they would“probably”or“definitely”pay more,while 35.4%were unsure.Despite the current situation,sustainabi

14、lity will continue to demand attention.A recent flash survey in our newsletter revealed that 43%of pet companies are currently investing in reducing their carbon footprint,and a further 27.5%are planning to do so.Less than 30%of respondents admitted that they are still not reducing carbon emissions.

15、It helps to view challenges like these as opportunities.If nothing else,they are a good test of the resilience of our industry and if past performance is anything to go by,pet companies have the necessary strength and innovative capabilities to pull through.Ahead of another busy year,we have also ta

16、ken the opportunity to introduce some changes to the magazine and improve the reading experience.Thank you for choosing us.David Palacios RubioHead of Editorial“”4 PETS INTERNATIONAL|FEBRUARY 2024 PET INDUSTRY HIGHLIGHTSDont miss out on key updates in the dynamic pet industry!Subscribe to our newsle

17、tter at ,or just scan this QR code for an easy sign-up process.Australian watchdog approves Woolworths acquisition of PetstockFollowing its investigations,the Australian Competition and Consumer Commission(ACCC)has concluded that Woolworths acquisition of a 55%stake in Petspiration,owner of the reta

18、il chain Petstock,is“unlikely”to lessen market competition.The ACCC has therefore approved the retailer to divest 41 specialty pet retail stores,25 co-located veterinary hospitals,4 brands and 2 online retail stores to Woolworths portfolio.The watchdog determined that it is unlikely that Woolworths

19、will leverage its retail position in the pet specialty space in an anti-competitive way,because“specialty pet retail and grocery are distinct channels in the pet industry”.Due to the differences in product and service offerings to supermarkets and discount department stores,the ACCC sees no reason f

20、or concern among suppliers of both Woolworths and Petstock.Northern Europes biggest BSFL plant to start production this monthDanish start-up Enorm Biofactory,which recently set up the largest insect factory in northern Europe,is expected to deliver its first products this April.Its target is to prod

21、uce 10,000 tons of black soldier fly larvae(BSFL)insect meal annually,equivalent to 100 tons daily.The aim is for the 22,000 sqm facility in East Jutland to be fully operational by the second half of this year.Another insect protein firm,Divaks,is partnering with the Swiss-based Bhler Group to estab

22、lish a commercial-scale yellow mealworm plant in Lithuania by 2025.The intention is for this facility to produce 15,000 tons of mealworm for the premium pet food market annually.Divaks Series A funding round was targeted to close at 67 million($73.3M).PETS INTERNATIONAL|FEBRUARY 2024 5PET INDUSTRY H

23、IGHLIGHTSChewy sets up its first veterinary practiceThe American pet retailer has launched Chewy Vet Care,its first pet health practice,in Florida.This further extends its portfolio that includes the pet pharmacy and tele-triage service Connect with a Vet and the CarePlus insurance offering.Chewy ta

24、rgets opening between 4 and 8 new practices by the end of this year.The veterinary practice is expected to be supplemented with Chewys custom-built open platform,which can be applied both to Chewy Vet Care and third-party partner practices.Petco and Ahlstrom recognized for sustainability effortsPetc

25、o has become the only pet retailer to be listed in the top 10 of Americas Most Responsible Companies,as recognized by market research firm Statista and the magazine Newsweek.The specialty retailer finished with a 74.56 score for its corporate social responsibility(CSR)and 80.77 for its environmental

26、 concerns.Meanwhile Ahlstrom,a Helsinki-based fiber product manufacturer,has received the Innovation in Sustainability Award from The American Forest&Paper Association(AF&PA)for its plastic-free and fiber-based PawPrint pet food packaging.The award recognizes Ahlstroms innovative and environmentally

27、 friendly approach to providing recyclable and compostable packaging.Veolia wins approval to export insect meal to EUVeolia Bioconversion,a Malaysian insect company,has gained the European Commissions TRACES certification to allow the import of its insect-based products into the European Union.This

28、follows on from Malaysias Ministry of Agriculture approving the companys Entomeal(insect meal)and Entolipid(insect oil)products for applications in pet food and aquaculture.According to Veolia,the company strives to deliver a consistent and high-quality supply to meet the increasing global market de

29、mand for sustainable alternative sources of protein.Pushing insect-based products globally“is part of the Malaysian governments efforts to find ways to alleviate import dependency and increase food security in the country”,says Fabrice Latchoumanin,General Manager at Veolia Bioconversion Malaysia.PE

30、TS INTERNATIONAL|FEBRUARY 2024 7PET INDUSTRY HIGHLIGHTSNo pet food tariffs under EU-NZ free trade agreement As per the new free trade agreement(FTA)between the European Union and New Zealand,all key products,including pet food,will be no longer subject to tariffs.This is expected to save the industr

31、y 140 million($157.4M)in duties per year.The FTA also includes rules for animal-origin products that are unfit for human consumption but may be used in pet food.Such products are beef of which the EU will allow a tariff rate quota of 10,000 tons to be imported with a reduced duty of 7.5%and sheep me

32、at of which 38,000 tons can be imported duty-free.The volume of both categories is expected to be gradually phased in over the next 7 years.Pet MD scoops up Rileys Organics for$7.5 millionPet MD,a subsidiary of Swedencare,has entered the fast-growing organic treat market by acquiring treat and pet c

33、are company Rileys Organics for$7.5 million(6.86M).According to Pet MD,Rileys Organics may benefit from a post-acquisition international expansion boost through other Swedencare subsidiaries.The company reported sales worth$2 million(1.8M)via Pet MDs Amazon channel in 2023 when the deal was being te

34、sted.Rileys Organics itself wrapped up 2023 with an estimated$3.2 million(2.9M)in net revenue.South Korea to boost pet insuranceThe South Korean governments top financial regulator,the Financial Services Commission(FSC),has stated that it hopes to ensure the stable operation of pet insurance service

35、s by implementing a“reasonable”veterinary fee rates system.The authorities are also expected to work on boosting cooperation between the veterinary and insurance industries.The need for measures came to light when it emerged that 83%of pet owners see high vet bills as an issue,and only 0.8%of South

36、Koreas 7.2 million pet owners have pet insurance.Officials have also identified the need to create a one-stop service enabling pet owners to sign up for pet insurance,file for insurance claims,manage the health conditions of their pets and register their pets.8 PETS INTERNATIONAL|FEBRUARY 2024 PET I

37、NDUSTRY HIGHLIGHTSIndian pet healthcare sector attracts investor attentionPowered by the ambition to become a unicorn business,local pet food player Drools is pumping$30 million(27.5M)into redefining Indian pet healthcare.The first initiative,Drools Vet Thrive,is a vet clinic upgrade scheme to furni

38、sh veterinary clinics with state-of-the-art equipment like advanced diagnostic instruments and surgical gear for superior pet care.Drools Veterinary Health is a diversification into the small-animal pharmaceutical arena intended to strategically strengthen the companys foothold in the pet healthcare

39、 ecosystem.Meanwhile,Royal Canin India has collaborated with European vet tech company GekkoVet to launch an online diagnostic and treatment tool.This initiative is part of a broader aim to provide veterinarians in emerging markets across the globe with digital solutions that speed up their decision

40、-making.Minas Gerais stops pet food tax hike Thanks to the efforts of the Brazilian Association of the Pet Products Industry(ABINPET),Minas Gerais has become the first Brazilian state to recognize pet food as a non-superfluous product.This means that Bill 1295/23,which would increase the state tax o

41、n goods and services(ICMS)by 2%,will not be applicable to pet food.Besides the ICMS,three other taxes on industrialized products(IPI),the social integration program(PIS)and the contribution to the financing of social security(COFINS)are already levied on pet food,increasing the final product price b

42、y 50%.The 2%hike in the ICMS would have increased the tax burden by 25%,according to the CEO of ABINPET.Only 1 vet per 5,000 pets in IndiaWith the ratio of vets to pets in India standing at 1:5,000,online vet consultations could offer a solution to improve pet care.However,research by pet care start

43、-up Supertails reveals that although 50%of pet parents in big Indian cities are open to the idea of online vet consultations,less than 16%actually use them.Additionally,30%complain about challenges to accessing veterinary services,with 48%in tier 1 cities(and 36%in tier 2 and 3 cities)regarding the

44、cost of living as the biggest challenge to accessing pet care.Other findings include that 49%overlook the need for regular deworming and 41%occasionally forget timely vaccinations.Only a third of cat and dog parents adhere to regular 3-monthly check-ups.PETS INTERNATIONAL|FEBRUARY 2024 9PET INDUSTRY

45、 HIGHLIGHTS$891 is how much Taiwanesepet parents spent on their pets in 2023.According to a recent survey by the Taiwan Institute of Economic Research(TIER),pet food accounted for the largest chunk of expenses(41%),reaching a total of NT$8 billion($254M).Medical treatment and checkups(16%),and pet g

46、rooming(10%)followed.ABP Food Groups pet food division recently announced a capital injection of 48 million($52.8M)led by government agency Enterprise Ireland.1MOST READ NEWSON THE WEBSITE Debunkingthe rumors:is Petco reallyat risk of bankruptcy?The company has been in the spotlight after financial

47、risk platform Credit Risk Monitor included the American pet retailer as one of 11 companies at an elevated bankruptcy risk.TOP 3INVESTMENTSSwedencares North American subsidiary Pet MD Brands has taken over treat and pet care company Rileys Organics for$7.5 million(6.86M).2Belgian private-label pet f

48、ood manufacturer United Petfood is to acquire Vital Petfood Groups(VPG)facility in lgod,300 km west of Denmarks capital Copenhagen.3DATA INSIGHTOUTSTANDINGCOMPANYGloriaPetsThe Spanish pet product distributor has been named by the national organization of small and medium enterprises CEPYME as one of

49、 the 500 companies leading business growth in the country.NEW APPOINTMENTSZooplusThe German online pet retailer welcomed Jonas Schultheiss as its new Chief Marketing Officer.FEDIAFThe European Pet Food Industry Federation appointed Belgian Sonia Franck as its new Secretary General.Bella&DukeJames St

50、urrock is the new CEO of the British raw dog food subscription company.10 PETS INTERNATIONAL|FEBRUARY 2024 After an eventful 2023 worldwide,pet businesses and experts in the field are now looking to the future but with caution.2024:looking back but moving forwardDavid PalaciosHead of EditorialGlobal

51、PETS PETS INTERNATIONAL|FEBRUARY 2024 11The changes in prices and consumer behavior patterns seen last year are expected to have an effect on at least the first half of 2024.Grain costs and regulatory developments in Europe are also very likely to have an impact over the next 11 months.Rises and fal

52、ls in pet sector inflationThe International Monetary Fund forecasted that 2023 would end with global annual inflation of 6.9%,down from 8.9%in 2022.For this year,its forecast is for inflation to reach 5.8%.Price hikes have hit the pet category even more aggressively,especially in Europe.Eurostats Ha

53、rmonised Index of Consumer Prices has reported 2023 inflation in the region as 5.4%,but the impact on pet supplies was considerably higher.Germany is one of the European countries where inflation has hit the hardest in the category.From January to December 2023,prices were hiked by 14.8%up from 10.1

54、%in 2021.Finland and the Netherlands were close behind.In the UK,prices for pet care increased by an average of 12.1%in 2023,up from 9%the previous year.On the other side of the pond,inflation in pet food in the US reached 10.8%in 2023(up from 10.2%in 2022).Price hikes in pet supplies decreased from

55、 9.2%in 2022 to 7.6%last year,according to the Bureau of Labor Statistics(BLS).Cutting down on non-essentialsA recent survey from OnePoll,commissioned by consultancy firm KPMG,found that almost 6 out of 10 UK consumers plan to reduce non-essential spending in 2024.About 9%of them said they would spe

56、nd less on pet products.Inflation rates may stabilize in 2024,but pet owners will still look for the best quality at the best price.Of the poll respondents,6%admitted that they were likely to switch to cheaper brands in the pet category.In its Top Global Consumer Trends 2024,Euromonitor highlights t

57、hat pet parents will resort to cost-cutting behavior this year,attempting to outsmart the system by adopting more creative approaches to make their money go further.One of these buying strategies will be looking for alternatives,like using reward points for payment and switching to private labels an

58、d discounters.Impact on retailersThe shift in consumer spending and the drop in purchases in non-essential categories are impacting the performance of companies around the world.US pet retailer Petco has adjusted its full-year guidance and its earnings before interest,taxes,depreciation and amortiza

59、tion to$400 million(364.9M)for 2023,down from the previous guidance of$460 million-$480 million(419.6M-437.9M).Chief Financial Officer Brian LaRose says that the pressures on its non-essentials business pushed it to make this decision.see next page12 PETS INTERNATIONAL|FEBRUARY 2024 Source:PETS Inte

60、rnational|national statistics servicesInflation in pet supplies (average 2023)11%12.1%13.4%14.6%14.8%7.6%Online US retailer Chewy has also revised its yearly revenue expectations for 2023 downward,citing “the ongoing macro pressures observed industry wide”.The company also admitted to losing active

61、customers.In the 6 months to October 2023,Pets at Home hit revenue of 241.6 million(281.8M/$306.8M)in accessories.This is 7.2 million(8.4M/$9.2M)less than the same period in 2022.The UK pet retailer forecasts a sales increase for this year in line with its medium-term ambition of 7%.It says it will

62、use its data capabilities to get more consumers to choose its products over those of its competitors thus increasing the companys share of wallet and to enable cross-sell and upsell options.Still movement in the grain marketsGlobal uncertainty will continue to impact the commodities this year.Analys

63、ts consulted by PETS International agree that they are only “cautiously optimistic”about 2024.According to INGs Commodities Outlook 2024,corn prices are expected to remain under pressure,despite anticipated global corn output growth of almost 64 million tons for 2023/24.Experts also agree that,after

64、 a year of increases,soybean prices are likely to go down in the coming months.New EU animal welfare standardsEurope wants to harmonize standards across the region for breeding,housing and handling dogs and cats in pet stores,breeding establishments and shelters.There is a European Commission propos

65、al to implement strict rules and automated checks for online animal sales,which currently account for approximately 60%of all transactions.Identification and registration of dogs and cats in national databases will also be obligatory,in a bid to fight illegal trade and to better control animal welfa

66、re conditions.According to official figures,trade in dogs and cats in Europe has significantly increased in recent years,reaching an annual value of 1.3 billion($1.4B).The legislative text will now be submitted to the European Parliament and the Council of the European Union,the EUs legislative body

67、 formed by all member states,for consideration.European packaging rules on their wayThis year,the EU will also start the legislative process for the Packaging and Packaging Waste Regulation proposed by the Commission at the end of 2022.The Council recently agreed with the Commission that all packagi

68、ng placed on the market must be recyclable,but added that packaging will be considered recyclable“when the waste packaging can be separately collected,sorted and recycled at scale”.There is also agreement that the region will need to reduce packaging waste by 15%by 2040,but member states want the Co

69、mmission to review this target by 2034 and decide whether it is feasible.In a 2022 survey,PETS International and Yummypets found that more than 45%of pet parents in the US,Canada,the UK,France and Belgium would probably or certainly be willing to pay more if pet food packaging were more environmenta

70、lly friendly.A quarter of the respondents said they would be in favor of an independent scoring label on the environmental impact of packaging.Nearly 4 out of 10 said that they would probably be in favor of such accreditation.Some players have adjusted their yearly guidance after a drop in the purch

71、ase of non-essential pet products.PETS INTERNATIONAL|FEBRUARY 2024 13Karen CornishContributorPETS International According to Business Research Insights,the global pet accessories market was valued at$20.51 billion(18.76B)in 2022 and is expected to reach$32.29 billion(29.54B)in 2028.One of the most n

72、otable trends propelling demand is high-tech devices for cats,such as wearables,automatic feeders,self-cleaning litter boxes,smart toys and robot companions.The current landscapeHumans are becoming increasingly comfortable with the integration of connectivity into their lives,so its no surprise that

73、 the benefits in the pet market are being embraced too.Smart pet accessories enable owners to care for their cats more easily and effectively,as well as help them to better understand their pets health and happiness.Cat owners who cant be with their pets all day are turning to smart accessories to f

74、ill in for them in their absence.According to Fact.MR,the global smart pet feeder market alone experienced year-on-year growth of 5.2%in 2021 to reach a market valuation of$187.3 million(171.33M).This growth is expected to continue and reach an estimated$419.2 million(383.47M)by the end of 2032.The

75、rise of smart accessories for cats Driven by innovative technologies designed for cats well-being,connectivity and mental stimulation,this market has a bright future.see next page PETS INTERNATIONAL|FEBRUARY 2024 15A solution to loneliness?In addition to feeders that can be operated by apps to dispe

76、nse portion-controlled meals or treats,there is a new breed of robotic companion emerging that has the potential to combat loneliness in cats by providing mental and physical stimulation throughout the day.The O Sitter from HHOLOVE combines a pet activity tracker,customizable feeder and remote-contr

77、olled camera in what the company says is“the worlds first smart companion robot for cats”.An integrated laser play function in the O Sitter also allows an owner to interact with their cat remotely,while two-way HD video calls enable a cat to be reassured by the sound of their owners voice.Mental sti

78、mulation through smart playFor a cat to have a healthy and happy life,mental stimulation is essential.Without sufficient stimulation,they can become bored or depressed,which can lead to undesirable behaviors such as being destructive or overly vocal.Smart toys are a great way to keep a cat entertain

79、ed and tend to have a longer-lasting appeal than traditional toys.The Instachew Purechase Smart Mouse toy is an app-enabled play device for cats.Controlled by an owners smartphone,the mouse-shaped toy offers long-lasting fun through the unpredictability of its movements.The toy can rotate 360 degree

80、s and its speed can also be adjusted via the app,putting the owner in control and making the experience more of a collaborative play session.Instachews cutting-edge pet technology has caught the eye of retail giant PetSmart,which has recognized consumer interest in smart pet accessories.In November,

81、the 2 companies announced they were joining forces in a bid to“redefine the pet care landscape”.Time-saving solutions Smart cat accessories are also taking over the more time-consuming and less enjoyable elements of cat ownership,and this is most evident in the success of Litter-Robot,the self-clean

82、ing litter box that promises owners will“never scoop again”.“Weve continued to see meaningful and steady growth since 2014,”says Jacob Zuppke,CEO of Whisker,the company behind Litter-Robot and,more recently,Feeder-Robot.Zuppke adds that there are more than a million robots in the field,which has see

83、n his company expanding into large retailers like Costco and PetSmart,emphasizing that pet parents are keen to automate and find time-saving solutions to certain tasks associated with cat ownership.“Data will be a massive consideration in pet tech accessories moving forward,not only to improve ease

84、of use for consumers but to monitor and maintain pet health,”concludes Zuppke.Future opportunitiesLooking ahead,there is plenty of scope for more innovation in smart pet accessories and no shortage of start-ups eager to find a place in this exciting market.Korean start-up Petnow is an example of jus

85、t 1 company that is using AI to enhance pet ownership.Petnow uses AI as a non-invasive alternative to microchips to identify cats through cutting-edge scanning technology.The software companys world-leading cat ID service allows owners to register their cats face using its AI biometric recognition t

86、echnology,which they can do from their smartphones.Once registered,cats can be identified by comparing a scanned face to the ones on the Petnow database.In tests,Petnow attained an impressive recognition rate of up to 99%.The applications of AI in the smart pet accessories market are far-reaching,fr

87、om enabling smart devices to distinguish between cats in a multi-cat household and preventing unfamiliar cats from entering your home to even translating feline meows.MeowTalk is an AI-powered translator app that interprets a cats sound by comparing it to a database of noises collected and labeled b

88、y vets.Since November 2020,MeowTalk has seen over 20 million downloads worldwide,indicating a definite appetite for AI in the pet market.16 PETS INTERNATIONAL|FEBRUARY 2024 Raphael RashidContributor PETS InternationalSouth Korea has long woven a narrative of prowess in the tech domain,from smartphon

89、es and semiconductors to the seamless integration of technology into everyday life.The country is now directing its focus towards the pet care space,with global ambitions.Government endorsementIn 2022,the estimated number of pet-owning households in South Korea reached 6 million,representing around

90、1 in 4 households.Underscoring the importance of this burgeoning sector,the South Korean government recently unveiled an ambitious plan to double the size of the pet care industry to 15 trillion won($11.5B/10.4B)by 2027.The focus will be on pet food,pet healthcare,pet services and pet tech.“Activati

91、ng the domestic market and expanding into the global market are necessary to respond to rapidly changing market factors such as pet humanization,technological innovation and demographic shifts,”Kim Hyun-woo,who leads the Companion Animal Industry&Animal Healthcare Team at the countrys Ministry of Ag

92、riculture,Food and Rural Affairs(MAFRA),tells PETS International.At the heart of this plan is a societal shift in the perception of pets.No longer mere companions,pets are now seen as integral family members in this country,which is grappling with the worlds lowest birth rate and a rising number of

93、one-person households.South Koreas drive to revolutionize pet tech When it comes to innovation,South Korea often feels years ahead of other countries.And if the East Asian nations technological ambitions come to fruition,the pet industry will soon be no exception.No longer mere companions,pets are n

94、ow seen as integral family members in South Korea.see next page$500 million in the next decadeIn 2022,a Seoul National University analysis commissioned by MAFRA estimated the domestic pet tech sector at a modest$80.2 million(72.6M).However,with a high annual growth rate(16.33%),this sector shows gre

95、at promise,and the nation hopes that it will be worth$500 million(453M)in 10 years time.Notable pet tech playersThe take-up of pet insurance in South Korea is extremely low(less than 1%),and 8 out of 10 pet owners describe veterinary medical expenses as burdensome.It is therefore perhaps unsurprisin

96、g that many players in the pet tech segment are dedicated to enhancing the overall health and well-being of pets.Some of the standout companies include Petnow,Pireco and iSciLab,each providing diverse solutions in biometric recognition a technology poised to revolutionize a potential mandatory pet r

97、egistration law that is currently under discussion in the National Assembly.Another notable player is Petner,which offers an app to access professional pet-sitting services provided exclusively by ID-verified veterinary students and veterinarians,thus ensuring a high standard of care.Meanwhile,Pitte

98、rPetter focuses on DNA tests for dogs and cats,offering insights into the genetic incidence of developing diseases.Utilization of AIOne key start-up in the field is AI FOR PET.Its flagship product,TTcare,is a healthcare app that analyzes user-submitted photos of dogs or cats based on artificial inte

99、lligence(AI)to detect signs of diseases and other health issues.According to the company,the dynamic nature of the pet tech space can be attributed to the swift acceptance and utilization of new technologies that are consistently introduced and rapidly embraced in wider society.Simultaneously,challe

100、nges faced by pet parents in finding time and space for pet activities are steering a shift towards proactive pet healthcare.“We believe that we are creating a culture of preventive medical care that has been lacking in the pet healthcare system,”says a company spokesperson.They add that the firms a

101、pp has positively impacted users by enabling them to quickly detect health issues in the early stages.The start-up is also contributing to the evolution of pet healthcare regulations,having recently secured a 2-year special exemption from the government within the regulatory sandbox to provide veter

102、inary consultations online,despite this space currently being restricted by South Korean law.Another example of how AI is being used in the context of pet health is Dogibo.This camera-based service launched by Petpeotalk allows pet owners to monitor their pets remotely.AI-supported analysis of the p

103、ets body language,movements,sounds and other behavior provides real-time insights into their anxiety,loneliness and overall well-being.“Our users are grateful for knowing about their pets while they are out,”points out Ryan Kwon,CEO of Petpeotalk.“Our service highlights the problem of pets left alon

104、e at home and we are now looking to add functions to solve this issue,such as care services,”he continues,hinting at the possibility of becoming a comprehensive pet care service provider.More business opportunities?Various opportunities appear to be opening up,especially because later this year rest

105、rictions are set to be lifted on pet insurance and potentially on pet biometrics and tele-veterinary services,too.Even so,Kwon concedes that the pet care sector is still fragmented:“Pet tech,pet food,pet e-commerce,pet wearables theyre all still a little disconnected from one another.I predict that

106、many of these services will be acquired by large corporations and bundled into comprehensive solutions.”The take-up of pet insurance in South Korea is extremely low at less than 1%.INTERZOO.COMSEE WHATS NEW AT INTERZOO!Find out about the latest trends and developments in your industry.Discover a wid

107、e range of innovative products and services for pets.Experience on-site what makes the worlds leading event Interzoo so unique.The world market is present here for your success!Follow us!Organization on behalf of the organizerHonorary sponsorOrganizerAdmission granted to authorized trade visitors on

108、ly.38th International Trade Fair for Pet Supplies7 10 May 2024|Nuremberg,GermanyGET YOUR TICKET NOW!PETS INTERNATIONAL|FEBRUARY 2024 19Pet market in South KoreaSource:Korea Rural Economic Institute(KREI)2023$3.2B(3.5B)2027(forecast)$4.4B(4.9B)Telecom giants want a slice of the pieIn a bid to secure

109、customer loyalty,South Koreas telecom giants are extending their roles beyond mobile phones,TV and the internet to become digital tech providers.Their services encompass everything from super-apps to music services and connected home appliances,and pet tech now falls within their comprehensive portf

110、olio.For example,LG Uplus,the third-largest mobile network operator in South Korea,has made a significant foray into this new market in a bid to innovate customer experience.“We are actively expanding our presence in the pet market by acquiring start-ups or making equity investments that can create

111、synergies,”says Lee Jang-ho,General Manager of the Pet Platform Squad at LG Uplus.The firm recently acquired Along,a domestic dog space rental start-up or pet Airbnb.It also invested 3 billion won($2.3M/2.5M)in Vetching,a provider of cloud-based electronic medical records(EMRs)for animal hospitals,a

112、nd acquired PuppyU,a start-up operating South Koreas largest online dog community.PuppyU was then integrated into LG Upluss Fordong pet care platform that provides DBTIs(MyersBriggs Type Indicator-style personality tests for dogs)and free online consultations with training experts,as well as a train

113、er-matching service for behavioral adjustment.Fordong has garnered more than 300,000 subscribers in just 14 months since its launch.Meanwhile,the countrys largest mobile network operator,SK Telecom,introduced X Caliber in 2022.This AI-based veterinary x-ray image diagnosis assistance service can del

114、iver analysis within 30 seconds and detect diseases with accuracy levels of over 84%.The service recently entered Japan and the company plans to expand to the US soon.“Our vision is to apply our cutting-edge AI technologies across industries and geographies to create a better world,”comments Ha Min-

115、yong,Chief Development Officer at SK Telecom.Ha notes concerns about a global shortage of veterinarians and radiologists.“In response to this,we envision AI playing a key role,helping veterinarians by diagnosing ailments in animals who literally cannot verbalize their symptoms,”he continues.Accordin

116、g to him,in the future the company plans to include coverage of CT and MRI scans,and to expand the service scope to include pathological analysis such as blood tests.“Its not just about the importance of pet tech;we believe this area aligns perfectly with our AI abilities and we plan to focus our cu

117、tting-edge AI skills in this sector to improve the welfare of animals,”Ha explains.Going globalBut while the domestic pet care market in South Korea is thriving,according to the latest data it represents only 1.6%of the global market.That figure falls short of the expectations of the countrys govern

118、ment,which wants to nurture it into a“national strategic industry”.Therefore,on top of financial support for selected start-ups,over the coming years the government is allocating more than$25 million(22.6M)to fund research and development in initiatives where there is growing demand,such as in digit

119、al healthcare,medical devices,and pet tech items like robotic toys and wearables.Another government solution is a comprehensive infrastructure called One-Welfare Valley for the development of the overall pet care industry.This initiative will serve as an innovation hub for demonstrations,research an

120、d entrepreneurship.“We will secure a level of quality competitiveness that will allow our companies to compete on the global stage,”concludes MAFRAs Kim.David F.CarrSenior Insights Manager Similarweb US pet supply sales on Amazon up by a quarter With sales of pet-related items through Amazon increas

121、ing by 25%in 2023,how do the online figures look in different segments and for larger and smaller retailers and brands in the US?PETS INTERNATIONAL|FEBRUARY 2024 21Source:Similarweb Shopper IntelligenceMonthly performance of pet supplies(Amazon US,2023)Jan,2023Feb,2023Mar,2023Apr,2023May,2023Jun,202

122、3Jul,2023Aug,2023Sep,2023Oct,2023Nov,2023Dec,202350.0M60.0M70.0M78.0M$1.0B$1.5B$2.0BUnits sold772.7M(+22,0%)Revenue$18.2B(+24.6%)Part of the story of Amazons growing dominance is that other retailers struggle to achieve a fraction of its growth,let alone its volume.Yet growth is still possible for p

123、et product companies that target the right niche often while seeking to sell through Amazon as well as competing with it.Record-breaking activityAmazon continued to grow its stake in the pet segment,with the category accounting for$18.2 billion(16.7B)in US revenue during the whole of 2023,up 24.6%fr

124、om 2022.Its own brand of pet supplies,Amazon Basics,increased its performance by 43.3%last year,with 8.5 million units sold and a total revenue of$204.7 million(188M).According to Similarweb Shopper Intelligence estimates of US consumer activity on ,natural pet food producer Blue Buffalo was the mos

125、t sold pet brand in 2023,with 16.1 million units and$391 million(359M)in revenue.Purinas Fancy Feast and ONE hit a combined revenue of$463.7 million(426M).Friskies,another Purina label,achieved the biggest increase on Amazon,with 9.4 million units sold up 289.5%and$188.1 million(172.8M)in revenue up

126、 315%.This jump was mainly driven by the brands Party Mix cat treats and Gravy wet cat food.Blue Buffalo is top dog The Similarweb US data shows that Amazons sales of products for dogs reached$11.3 billion(10.4B)in 2023,an increase of 26.7%on the previous year.This represented 469.2 million units so

127、ld,up 23.4%.Blue Buffalo was the top brand in the dog segment,with 11.7 million units sold(up 51.2%)and revenue hitting$287.7 million(265M),27.5%more than in 2022.Pedigree was the second most sold brand in the category,but experienced a slight decline of 0.8%in units sold.Amazon Basics ended as the

128、fifth most popular brand.The giants private label also achieved the second biggest performance increase last year,with sales going up by 39%to 6.8 million units.Revenue rose by 31.3%to$161.8 million(148.7M).Growth is still possible for pet companies that target the right niche often while seeking to

129、 sell through Amazon as well as competing with it.see next pageQ-PSimple to serve Defrosts quicklyNo nastiesSimple to serve Defrosts quicklyNo nastiesQ-PQ-PQ-PQ-PQ-PFrozen fresh meat for dogs and catsFrozen fresh meat for dogs and cats PETS INTERNATIONAL|FEBRUARY 2024 23Source:Similarweb Shopper Int

130、elligenceTop 10 pet brands by sales(Amazon US,2023)Blue Bufalo16Purina Fancy Feast10.4Units sold(in million)Purina ONE9.3Friskies9.3Arm&Hammer8.5Amazon Basics8.5Greenies8Temptations7.9Purina Pro Plan7.9Kaytee7.7Product views pet supplies(Amazon US,2023)Source:Similarweb Shopper IntelligenceTotalprod

131、uct views4.22BYoYchange10%The cat department Although a smaller category on Amazon than dog products,items for cats showed similar trends in both sales value and units sold.Sales of cat supplies between January and December 2023 were$4.8 billion(4.4B),up 25%from the same period the previous year.Uni

132、ts sold increased by 21.6%to 209.1 million.Purina Fancy Feast was the top brand in the category,with a 94%rise in sales value to$202.2 million(185.8M).Friskies was the fastest growing of the top brands,however,with sales up 316.5%to reach$177.1 million(162.7M).Temptations ended in third place,with 8

133、 million units sold and$121.9 million(112.2M)revenue.Fast growing pet care websitesProducer of dog supplements and chews Greenies was one of the fastest growing online businesses in the pet category in the US last year.Its website received a total of 9.6 million visitors over the 12 months of 2023,w

134、ith 663,900 unique visitors per month.In addition to growing this direct-to-consumer webshop,Greenies increased its sales on Amazon,with Similarweb Shopper Intelligence estimates indicating revenue up 21.6%and units sold up 13%.According to the Digital 100,Similarwebs ranking of the fastest growing

135、online businesses in the US,traffic on the Greenies website increased by 492%between 2022 and 2023.The websites (+236.2%),(+160.8%)and (+138.6%)followed in this growth ranking.Other ups and downsSeveral companies in the pet sector showed some online growth in 2023.These include webshop ,which grew i

136、ts traffic by 3.7%,and dog walking service ,up 10.3%.A number of better-known online pet retailers had a less successful year online.Traffic to Chewys website,for example,was down by 5.2%,year-on-year,while traffic to dropped by 2.3%.Sam FarnfieldDirectorPwC Strategy&Fresh intel on the UKpet market

137、UK pet owners remain largely brand-loyal,are increasingly buying fresh and raw pet food,and are becoming more open to subscription models.PETS INTERNATIONAL|FEBRUARY 2024 25Source:Strategy&pet survey,August 2023Top 5 rationales for cancelling/not using subscriptionpet food services(UK)Its tooexpensi

138、ve12345I preferto buyin-storeI preferto buy aspart ofmy usualgroceryshopI dontthink itsgood valuefor moneyI preferto shop whereI can buymultiple petfood brands42%38%32%28%22%Consumer research conducted by PwC Strategy&among 1,000 pet parents in the UK in 2023 reveals some interesting insights into t

139、he market.The key findings are highlighted below.The rise(and rise?)of fresh and rawFresh and raw pet food continues to gain traction in the UK,with 16%of dog owners and 12%of cat owners in the survey having bought fresh food(i.e.food stored in the fridge/freezer)for their pets.Purchases of raw food

140、 are slightly lower(13%and 8%,respectively),although Google Trends data,which shows search volumes for specific keywords,suggests sustained interest in the category.This is also reflected in some retailers investment in the space.Whats driving this growth?According to the surveys respondents,the mai

141、n drivers of purchase are,unsurprisingly,all about their pet.21%of responses highlighted the pets preference for the taste and 17%said:“Its better for my pets health”.Accounting for 16%of the responses,high-quality ingredients were also a key driver of purchases.Conversely,price is the primary barri

142、er to buying into the category according to 22%of respondents,while the secondary obstacle relates to storage space at home(12%).So,whats next for the category?Raw/fresh penetration in the UK lags behind some other European markets,so there still seems to be significant potential in this area.The ul

143、timate ceiling will be determined by capacity on both the supply side(most notably the mainstream grocery retailers)and the demand side(storage space in consumers fridges/freezers).The age of subscriptions is dawningSubscription models are gaining popularity in some segments of the pet market,as evi

144、denced by the ongoing increase in online traffic to leading players websites since COVID.The research indicates that dog owners are more likely to use subscription services than cat owners(17%vs 13%).This is partly due to the bulkier nature of dry dog food,which broadly drives higher online penetrat

145、ion.Subscription pet food shoppers tend to be relatively younger(28%of 18 to 34-year-olds have used a subscription pet food service against 7%of those aged 55 to 74)and more affluent(most earn an annual salary of over 50,000 58,000/$64,000).The key drivers of subscription usage are convenience(11%),

146、quality(11%)and taste(10%).Price is a key barrier according to 22%of non-users.According to the data,15%of dog owners and 12%of cat owners tried subscription services but then cancelled.The price,a preference to buy in store and the lack of value for money were the top rationales for not continuing

147、with subscription services.Brand loyalty and bulk buyingAnalysis of the data reveals that UK pet owners are buying from an average of 6 pet food brands in any given year and cat owners specifically buy from closer to 10 different brands.Even during the cost-of-living crisis,pet food shoppers have ge

148、nerally remained loyal to brands,with the most common behavior change being stocking up or buying bigger pack sizes to take advantage of price deals.Similarly,some consumers have switched to private label alternatives,resulting in around a 3 ppt value share gain against branded food in the grocery c

149、hannel since 2021.Cat owners are less likely than dog owners to change their buying habits.Owners attribute this to their cats more picky(or should that be refined?!)palates.26 PETS INTERNATIONAL|FEBRUARY 2024 David PalaciosHead of Editorial GlobalPETS Olivia HooperContributor PETS International In

150、line with an increasing trend in recent years,pet players around the world continued to attract investor interest in 2023.We take a look at the major developments and the growth areas to watch out for.US manufacturers One of the years biggest financial transactions in the field occurred in June,when

151、 manufacturer The J.M.Smucker Company divested some pet food brands to packaged goods company Post Holdings for$1.2 billion(1B).Later in the year,Post Holdings developed its pet business even more with the purchase of private label manufacturer Perfection Pet Foods for$235 million(215M).In August,pr

152、ivate equity(PE)firm PAI Partners acquired pet food manufacturer Alphia in a transaction worth around$1 billion(918.5M).General Mills stepped into the world of pet supplements last year with the acquisition of Californian dog and cat supplement company Fera Pet.The multinational hopes the supplement

153、 firm will bring a“health-focused”dimension to its pet portfolio.Central Garden&Pet,the largest distributor of garden and pet supplies in the US,took over TDBBS,a premium natural dog treat provider from the state of Virginia.The acquisitions driving the pet industry forward As 2024 starts to take sh

154、ape,what will be the impact of some of the sizeable investments in different parts of the sector and the globe last year?PETS INTERNATIONAL|FEBRUARY 2024 27European acquisitionsIn the UK,dog food subscription company Butternut Box raised 280 million($354.2M/325M)in the fall to advance the companys“l

155、ong-term vision”of developing the fresh pet food category across Europe.Earlier in the year,the firm had acquired the Polish fresh dog food company PsiBufet,with the objective of expanding further into Central and Eastern Europe.UK manufacturer Assisi Pet Care was acquired by Chicago PE firm Wind Po

156、int Partners in October.Shortly afterwards,Assisi announced the acquisition of UK-based pet food company Burns Pet Nutrition for an undisclosed amount.Premium pet food provider Voff expanded its footprint in the Netherlands and Belgium last year,with the acquisition of raw pet food producers Energiq

157、ue and Carnibest,while Czech manufacturer VAFO Group acquired UK pet food firm Pooch&Mutt.In December,Belgian private label manufacturer United Petfood announced the takeover of the Dutch company De Haan Petfood to consolidate its success in the wet food category.Developments in India and AustraliaP

158、E firm L Catterton entered the Indian market in 2023 with an investment of$60 million(55M)in Bengaluru-based Drools.The brand will leverage L Cattertons expertise to strengthen its position as the largest domestic player in Indias booming pet food market.Australian fresh pet food firm Lyka secured a

159、 capital injection of AU$55 million($36.7M/33.7M),which will be used to triple its production to help meet demand.Pet retailers US online pet care marketplace Rover Group announced in November that it had entered into a definitive agreement to be acquired by private investment firm Blackstone for$2.

160、3 billion(2.1B).The transaction is expected to be completed in the first quarter of 2024.In Europe,a consortium led by Portuguese multinational Sonae put in a bid of 868 million($947M)to take over Finnish pet retailer Musti part of a strategy to internationalize its retail portfolio by reinforcing i

161、ts presence in the“rapidly growing”pet care retail sector.In November,German pet retailer Fressnapf announced the takeover of Dutch pet retailer Jumper.Owner and founder Torsten Toeller explained that this takeover is a“strategically important”step for the firms positioning in the Netherlands.South

162、Africas largest retail group Woolworths acquired 93.45%of pet retailer Absolute Pets,while Sydney-based online pet retailer Pet Circle received a capital injection of AU$75 million($50M/45.8M).see next pageInvestments in the treats and supplements space represented a big part of the financial develo

163、pments.Insect suppliersBack in April,French insect farming firm nsect secured a Series D funding round worth 160 million($175.5M)to accelerate marketing authorizations for its ingredients across various markets,including Asia.In October,US manufacturer Tyson Foods invested$55 million(50.4M)in Dutch

164、insect supplier Protix to boost its global expansion strategy as well as its research and development capabilities.The companies also entered into a joint venture to construct and operate a low-footprint insect ingredient facility.Veterinary and insurance sectorSwedish PE firm EQT made 2 acquisition

165、s in 2023:London-based veterinary pharmaceutical company Dechra for 4.46 billion($5.7B/5.1B)and Australian vet care provider VetPartners for AU$1.4 billion($940M/858.2M).In another European development,UK financial group Admiral acquired the Royal&Sun Alliance(RSA)pet insurance business for 115 mill

166、ion($145.5M/133M).And Swedish pet insurance firm Lassie raised 23 million($24.9M)in a Series B funding round to expand the companys footprint in Europe and improve its e-commerce capabilities.Mars Petcare acquired veterinary product provider Heska in April.The Colorado firm is set to join Mars in it

167、s whole pet portfolio across veterinary health and diagnostics,nutrition,innovation and technology.Veterinary and grooming software platform Petvisor and New York-based service provider Bond Vet raised$100 million(91.7M)and$50 million(45.8M)respectively.Later in the year,Petfolk pet care centers in

168、North Carolina raised$40 million(36.6M),and pet pharmacy firm Mixlab,also in the US,announced a$10 million(9.1M)investment both aiming to expand their veterinary services.Premium pet food provider Voff expanded its footprint in the Netherlands and Belgium last year.PETS INTERNATIONAL|FEBRUARY 2024 2

169、9Jrgen ReinhardCo-founder AdAstra Sustainability Soy can significantly shape the carbon footprint of food products,including pet food made from animal by-products,as soy is a cornerstone of feed eaten by chickens,swine and other livestock.How much it influences this impact hinges on where the animal

170、 that eats the soy was raised,where the crop was cultivated and whether the land it was grown on has recently been converted to agriculture.Unique challengesThe complexity of the pet food value chain poses unique challenges to accurately assessing a products carbon footprint.A manufacturer must iden

171、tify the origins of the animal by-products used in the pet food,where the animals were farmed,what they were fed and where the ingredients in their feed came from.While information about the origin of by-products is often within reach of manufacturers via their suppliers(albeit generally not without

172、 obstacles),the origins of feed ingredients are likely to be more obscure.This is as true for grains such as corn and wheat as it is for soy.Then,even if the ingredient can be traced back to its country of origin,the data on carbon emissions from land conversion has historically been too coarse to s

173、upport strategic decision-making on environmental risks.A puzzle worth solvingThe expansion of soy production to feed livestock is a known driver of deforestation and other types of land conversion,with 40%of the worlds arable land used to grow feed,according to the Food and Agriculture Organization

174、 of the United Nations.For poultry,40 to 70%of its climate impacts come from land conversion alone,largely due to the soy theyre fed.It is widely accepted that to minimize global warming,we need to stop converting land and start restoring it within the next 6 years.Time for action:the carbon footpri

175、nt of the hidden soy in pet food A deep dive into granular data can accelerate understanding of the impacts of soy in animal feed,which can have an outsized effect on the carbon footprint of pet food.Knowledge is power when it comes to understanding risks and engaging with suppliers.see next page30

176、PETS INTERNATIONAL|FEBRUARY 2024 Source:AdAstra SustainabilityThe mix of soy imported to Europecomes with its own unique carbon footprintMetric tons of soy importedGHG emissions from land conversionGermanyFranceSpain0500600700United StatesOtherBrazilParaguayArgentinaIf thats not enough to

177、 inspire action,pet food manufacturers have extra incentives to better understand their ties to land conversion:A prerequisite to tracking progress on sustainability commitments is having sufficient insight into the supply chain to measure the effect of various interventions Fast-evolving policies s

178、uch as the EU Deforestation Regulation and Corporate Sustainability Reporting Directive require traceability,transparency and compliance Industry collaboration is needed to foster conditions for success in addressing shared challenges such as land conversionUnravelling the value chainSwiss sustainab

179、ility consultancy AdAstra,while supporting a leading food manufacturer with a stake in European poultry,has pioneered a multifaceted solution to calculate the carbon footprint of the soy embedded in its clients chicken products.The case study used trade statistics and subnational,high-resolution dat

180、a on land conversion to unravel the impact of soy,highlighting the implications for poultry and by extension for the pet food industry.Using a custom international trading model,it worked backwards,tracing the origins of the soy from slaughterhouse locations in Europe to the exporting countries,such

181、 as Brazil,Paraguay and Argentina.AdAstra then used subnational trade data from transparency initiative Trase to determine the jurisdictions within each country that likely supplied the soy.Using its technology called Orbae,AdAstra calculated the greenhouse gas emissions from land conversion for soy

182、 in each subnational jurisdiction.Working at a resolution of 30 meters,Orbae combines data on agricultural crops and land conversion derived from satellite imagery,then calculates the carbon footprint for any level of traceability,whether a farm,municipality,state or country.The findingsReplacing th

183、e coarse data with the refined impact factors from Orbae resulted in a 35%decrease in the overall carbon footprint of the clients chicken.While this project resulted in a lower product footprint,the opposite can be equally true.Greater granularity may reveal previously unknown hotspots.We need to st

184、op converting land and start restoring it within the next 6 years.However,this should not deter companies from taking responsibility for their contribution to land conversion.Knowledge is power when it comes to understanding risks and engaging with suppliers.Subnational originWith the improved granu

185、larity,AdAstra found that land conversion emissions for soy vary widely within exporting countries.In Brazil,it observed footprints ranging from 100 kg CO2-equivalent per metric ton of soy to a staggering 18,000 kg CO2-equivalent depending on the municipality.Importing location Where the animal is r

186、aised influences the footprint of the final product,as different European countries import unique mixes of soy from exporting countries.For instance,the sourcing patterns of soy imported to Germany look different from those of Spain,and so come with a different carbon footprint.That footprint gets p

187、assed along to the next links in the value chain:the feed,and in the case of AdAstras client,the chicken.Land conversion While forests tend to take the spotlight,soy expansion can also be a driver of land conversion of other important natural ecosystems,such as savannas and wetlands.In Brazil,AdAstr

188、a found that such land conversion makes up a third of the climate impacts of the soy value chain.Despite being vital carbon sinks,natural ecosystems beyond forest have been largely overlooked,but require consideration.Putting insights to workThe insights from this case study transcend soy,offering a

189、 blueprint for applying the same methodology to other high-risk commodities used in animal feed,such as corn,rice and palm.Pet food manufacturers can leverage this granular data to enhance visibility into their impacts,make informed decisions about how to reduce them,manage their risks and actively

190、contribute towards the imperative goal of ending land conversion and restoring nature.100%PURENATURElight weightNO DUST!compostable32 PETS INTERNATIONAL|FEBRUARY 2024 YANTAI CHINA PET FOODS CO.,LTD ChinaMeat broth for catsA protein-rich broth with shreds of real chicken and tuna that supports cats h

191、ydration.YANTAI CHINA PET FOODS CO.,LTDAFarm Company italyNew pocket wipes made in ItalyFarm Company grows its range of cleansing wipes with a new pocket size specifically developed for the hygiene of eyes and ears,but also suitable for snouts,coats and paws.100%Made in Italy,these wipes have a deli

192、cate formula with Tea Tree and Green Tea scent.Refreshing and gently perfumed,they are perfect for many occasions,either at home or when traveling or strolling with our pets.Farm Company Srlinfofarmcompany.itfarmcompany.itVAFO Group CzeCh RepubliCChristopherus VegetarianA new line of vegetarian dry

193、food,wet food and snacks specifically developed for a growing population of consumers eager to share the benefits of a vegetarian diet with their dogs.The guiding principle of this challenging task was the Christopherus motto:Develop a diet that puts the real needs of animals first with no ifs,ands,

194、or buts.Christopherus is the first brand to offer vegetarian recipes that make no compromises on canine health.The products are based on fermented proteins,which provide outstanding digestibility and a full profile of essential amino acids.Christopherus is the absolute winner of the Vegetarian Palat

195、ability Panel with outstanding palatability that far exceeds that of meat-based pet foods.VAFO Groupallco.de PETS INTERNATIONAL|FEBRUARY 2024 33 see next pageMinahil ChoudryESG Reporting Specialist Point B In 2024,there will be a significant transformation in corporate sustainability reporting in th

196、e EU and subsequently worldwide.As of the new fiscal year,companies falling within the scope of the directive will be required to disclose their Environmental,Social and Governance(ESG)impacts under the Corporate Sustainability Reporting Directive(CSRD).Decoding the terminology CSRDThe CSRD represen

197、ts a comprehensive revision of the 2014 Non-Financial Reporting Directive(NFRD),the existing EU sustainability framework.Its objective is to enhance data quality for investors,while aligning with the policy objectives of the Green Deal.ESRSIf you are already familiar with the new directive,you might

198、 also be aware of the European Sustainability Reporting Standards(ESRS).These standards lay out the reporting requirements of the CSRD.The ESRS consists of 2 cross-cutting standards composed of general requirements,plus 10 additional standards that are specific to any of E(environment),S(social)or G

199、(governance)topics.The European Commission recently proposed some changes to the ESRS,allowing companies with less than 700 employees to omit Scope 3*and own workforce disclosures during the first year.The Disclosure Requirements in ESRS 2 which address cross-cutting general disclosures are to be re

200、ported irrespective of the outcome of the assessment,and all other ESRSs are subject to materiality assessments.Key CSRD features and requirements Double materiality Double materiality requires companies to report on both the financial risks sustainability issues may pose to their business(=financia

201、l materiality)and the companys impacts on people and the environment(=impact materiality).The CSRD is the first major legislation that requires a double materiality approach to all ESRS standards.New EU sustainability reporting the facts This year is the first time that some companies will need to c

202、omply with new EU rules as part of the European Green Deal.We explain some of the ins and PETS INTERNATIONAL|FEBRUARY 2024 35Cross-cutting disclosures Two cross-cutting standards cover overarching reporting requirements on governance,strategy,impacts,risks and opportunities,as well as metrics and ta

203、rgets.These are tightly aligned with recommendations from the Task Force on Climate-Related Financial Disclosures.Disclosure requirements include:Material ESG risks,opportunities and impacts(operational and across the value chain)Impact of risks and opportunities on the business model Sustainability

204、 due diligence processes Risk management processes,board oversight,integration of sustainability KPIs into incentivization schemes Policies to manage material ESG impacts Sustainability targets,goals and metrics Action plans for addressing material ESG topicsReporting across a broad range of topics

205、On top of the mandatory cross-cutting disclosures listed above,the CSRD also requires disclosures on material impacts,risks and opportunities across various ESG topics.Although these are technically subject to double materiality,it is highly unlikely that more than a few(if any)can be omitted.For ex

206、ample,subjects like climate change,biodiversity,own workforce,workers in the value chain,and affected communities apply to almost all businesses.CSRD expands scope Besides the need for more comprehensive reporting on environmental and human rights impacts and sustainability-related risks,the CSRD si

207、gnificantly expands the number of companies within its scope,from approximately 12,000 to over 50,000.Businesses that come under the scope of the CSRD will also have to disclose their companys percentage of turnover,revenue and capital expenditures aligned with the 6 EU taxonomy objectives.Whos impa

208、cted by the CSRD?The new sustainability directive impacts 3 groups of companies:Large companies based in the EU with at least 2 of the following:over 250 employees,over 40 million($43.7M)turnover in net revenue or over 20 million($21.9M)total balance sheet assets EU small and medium enterprises(SMEs

209、)with less than 250 employees,less than 40 million($43.7M)turnover and less than 20 million($21.9M)total assets Certain non-EU parent companies doing business in the EU with 150 million($164M)net turnover in the region and 1 branch or subsidiary in the EU generating more than 40 million($43.7M)net t

210、urnover6 steps to prepareThe CSRD reporting requirements for different types of companies will be phased in between 2025 and 2029.For some businesses,the disclosure timeframe may seem far away,but many of the steps to comply with the standards require years of planning and implementation.1.Set up a

211、cross-departmental working group:to collect the information needed for CSRD compliance and to integrate ESG aspects into standard business functions.This includes,but is not limited to,risk,legal,procurement and finance.ESRS categoriesCross-cutting standards ESRS 1:general requirements ESRS 2:genera

212、l disclosures*Environmental standards ESRS E1:climate change ESRS E2:pollution ESRS E3:water and marine resources ESRS E4:biodiversity and ecosystems ESRS E5:resource use and circular economySocial standards ESRS S1:own workforce ESRS S2:workers in the value chain ESRS S3:affected communities ESRS S

213、4:consumers and end usersGovernance standards ESRS G1:business conduct*Required regardless of double materiality results see next pageThe latest pet industry news in your inbox? 22,365 other pet industry professionals:Sign up now:Every week,we help pet industry professionals make sense of where the

214、industry is going:Thelatestupdatesonacquisitions,investmentsandmergersGlobalandregionalmarketanalysesandreportsInsightsintotrends,consumerbehaviorandexpertopinionpieces PETS INTERNATIONAL|FEBRUARY 2024 37Achieving integration is not feasible with a siloed ESG department,particularly when it concerns

215、 nuanced ESRS topics such as biodiversity,the circular economy and value chain workers.Companies that do not meet the requirements of the CSRD may be those that fail to integrate ESG efforts across all their departments.Its worth noting that the expectations of the CSRD surpass what ESG teams or eve

216、n diversity,equity,inclusion and justice teams can achieve independently.2.Conduct a double materiality assessment:using the 12 ESRS as a guide,conduct an assessment to determine which ESG topics financially impact your business and how your business impacts those issues.3.Create a climate transitio

217、n plan:part of the climate change disclosure is a 1.5C-aligned transition plan.How to reduce significant Scope 1*and 2*emission sources,including fuel and energy use,is what needs to be considered.Assess whether your business model or a part of it needs to change to support a net-zero economy.Develo

218、ping a plan means engaging business leaders from the cross-departmental working group and determining possible strategies an all-hands-on-deck effort is required.4.Build a strategy for Scope 3 emissions:the CSRD requires Scope 3*disclosure for all in-scope companies.To develop a Scope 3 strategy,sta

219、rt by communicating expectations and data reporting requirements to your suppliers.It is advisable to use a supplier management platform like CDP Supply Chain or EcoVadis to track progress.Establishing effective reporting processes with your suppliers can take years,before you can even start impleme

220、nting a Scope 3 reduction plan,so this is not an area to procrastinate in.And by the time CSRD reporting applies to all companies,the 2030 greenhouse gas emissions goals will be just a year away.5.Educate your board on sustainability:for effective management of risks and opportunities,the board shou

221、ld oversee sustainability issues.Educate the board on sustainability and adopt a governance structure that meaningfully incorporates board and executive oversight.This includes screening board members for ESG topic competence.6.Engage an assurance provider:independent third-party assurance is mandat

222、ory from 2025.So,if an assurance provider has not already been engaged,initiate the process now to obtain their advice upfront.Make sure all expectations are clear and develop programs and disclosures accordingly.At a minimum,a clear audit trail and documentation of all processes and controls are ne

223、cessary to support disclosures.Rising investor expectations As with several recent ESG policies in the EU,the CSRD carries extensive implications.Even if your business is not officially within the CSRD scope,it is wise to stay ahead of developments.Frameworks and regulations emerging from the EU tra

224、ditionally indicate the direction of global trends in ESG and corporate accountability.Also,investor expectations are anticipated to rise continuously.The capacity to produce auditable ESG reports with investor-ready information is critical,irrespective of legal requirements.*Scope 1 emissions are d

225、irect emissions from owned or controlled sources.*Scope 2 emissions are indirect emissions from the generation of purchased energy.*Scope 3 emissions are all indirect emissions(not included in Scope 2)that occur in the value chain of the reporting company,including both upstream and downstream emiss

226、ions.CSRD reporting phase-inCompany typeFiscal yearReporting inLarge EU companies already subject to the NFRD,with over 500 employees20242025Large EU companies not currently subject to the NFRD20252026EU SMEs20262027Non-EU companies20282029CMYCMMYCYCMYK PETS INTERNATIONAL|FEBRUARY 2024 39Muskaan Gup

227、ta Associate News EditorGlobalPETS The consumer buzz around sustainability and quality has made global accreditation schemes increasingly popular among pet players.They can help build a better reputation worldwide as well as maximize efficiency in many parts of your business.Sustainable recognitionI

228、n the huge pool of internationally recognized certifications,there are only a few common and sought-after schemes.The International Organization for Standardization(ISO)and Food Safety System Certification(FSSC)provide international standards,schemes and audits for food safety and operational manage

229、ment,with sustainability and emission control among other benefits.B Corp certification is also increasingly popular.ISO 14001 is often chosen by larger organizations and corporations involved in manufacturing,transportation and services,and it is one of the most common systems for environmental imp

230、act and risk evaluation.“ISO 14001 has always sat there as an element of control,demonstrating that an organization is taking environmental responsibility seriously,”according to Tamma Carel,Environmental Consultant and co-founder of the iCOR compliance platform.She explains that the historic driver

231、 for seeking ISO 14001 has always been consumer-led.“What I think COVID has done is to make consumers more discerning about the environmental credentials of the businesses they engage with,and the products and services that they buy.”Musti is convincedOverall,the benefits of certifications center ar

232、ound risk assessment and heavy cost savings across legal,environmental or operating recalls,Certification is much more than a quality labelAs accreditation schemes become more popular in many industries,experts in the field decode the value of these credentials for the pet sector.see next pageOrient

233、 Provision&Trading Co.Po.Box 11035,Jeddah 21453,Kindom of Saudi Arabia.Head Ofce Jeddah,Tel:+(966)12 699 0999,Fax:+(966)12 660 9201,Email:VAFO Group CzeCh RepubliCPlanet Pet SocietySustainable nutrition for dogs and cats made from second-chance ingredientsAs much as 30%of all food produced goes to w

234、aste,and that has a huge impact on the environment.So,to make the worlds most sustainable dog food,we learn from dogs themselves and never waste a single scrap.VAFO hunts down the good,tasty and nutritious bits that humans dont want and uses them in its recipes.These unused portions of meat,vegetabl

235、es and fruit become its so-called second-chance ingredients,and theyre an excellent fit for VAFOs forward thinking on how pet foods should be made in smarter and more sustainable ways.We dream of a world without waste,and this is the ultimate definition of success.Sniffing out the sustainable!VAFO G

236、roupplanetpetsociety.co.uk PETS INTERNATIONAL|FEBRUARY 2024 41which otherwise would cost millions.They also aid in improving environmental performance by providing waste,water and electricity management schemes,boost market expansion opportunities and enhance brand reputation for a competitive edge.

237、One of the companies that recently obtained the ISO 14001 certificate was Nordic pet retailer Musti.Its pet food factory Premium Pet Food Suomi Oy also received another certification:FSSC 22000(food safety management).According to the retailers Chief Operating Officer Pamela Nelimarkka,the certifica

238、tion process itself brought numerous benefits to their internal processes.“Although consumer awareness of quality or environmental certificates may not be very high at present,consumers are increasingly demanding sustainable and locally produced products that are safe to use,”she tells PETS Internat

239、ional.Certifications also serve as an assurance for buyers that a business maintains a high level of food safety.This has proven essential for Musti when targeting markets beyond the Nordics.“External verification of our food safety level provides a competitive advantage,”concludes Nelimarkka.B Corp

240、 appealAttaining a hard-earned B Corp certification is growing in appeal among pet firms.If a business is a certified B Corporation,it meets high standards of verified performance,accountability and transparency.B Lab certifies a company for 3 years,after which a recertification assessment determine

241、s whether the company still maintains the required standards.Several companies operating in the pet space obtained this certification last year.This included UK-based THE PACK,which was Europes first plant-based pet food firm to receive the accreditation.Australian fresh dog food brand Lyka also sec

242、ured this prestigious status in November 2023.Positive impact on operationsFor Lyka,adhering to the B Corp standards served as a strategic guide to achieving the 99th percentile across Environmental,Social and Governance practices,demonstrating a tangible impact on daily operations and avoiding mere

243、 greenwashing PR campaigns.The company is planning to address water management across its whole value chain,and to implement water conservation practices in its manufacturing processes.THE PACK plans to leverage its B Corp status to lead on environmental and social issues.“We are constantly analyzin

244、g our supply chain to see where we can make positive changes to minimize our impact on the planet,”says co-founder Damien Clarkson.Customer relationship benefitsThe San Francisco-based manufacturer of pet beds and toys P.L.A.Y.has held B Corp certification since 2016.This has helped the company in b

245、oth acquiring new customers and retaining existing ones.According to co-founder Deborah Feng,the certification“solidifies”its standing in the pet industry as socially responsible.“Customers approach us at trade shows,recognizing the significance of this recognition,and it becomes an engaging convers

246、ation starter,”she explains to PETS International.Compliance with B Corp standards also prompted the company to complete a domestic warehouse move,enhancing the efficiency and reliability of its order fulfillment process.At the same time,it has pushed the manufacturer to expand and refine its distri

247、bution channels for B2B customers.Dutch pet food manufacturer Yarrah Organic Pet Food became B Corp certified in 2019.The status makes it a more trustworthy brand,giving reassurance to consumers and business contacts alike.“This certification is proof that we are on the right track,and also helps us

248、 to continue our journey to do better every day,”says a company spokesperson.According to Yarrah,sustainability has been in its DNA since it started.“We are on a never-ending journey to improve.”Consumers attach importance to the environmental credentials of the businesses they engage 1 10 00 0%p pl

249、 la an nt t-b ba as se ed dA PERFECTDENTAL HYGIENELaboratoire Francodex RELAX dental chew strips maintain good canine oral hygiene,also with relaxant properties.They help control dental plaque and scale,freshen the breath and help soothe anxious pets.Z-SHAPED-for easier grip and chewing.ABRASIVE TEX

250、TURE-to facilitate mechanical tooth cleaning.DIGESTIBLE INGRDIENTS-GMO-free ingredients,no colouring agents or animal protein.CONTROL PLAQUEBREATH-FRESHENER EFFECTRELAXING EFFECT&PETS INTERNATIONAL|FEBRUARY 2024 43 see next pageMuskaan GuptaAssociate News Editor GlobalPETS While pet parents used to

251、primarily seek out pet supplements to address conditions such as joint pain,anxiety or coat and skin health issues such as dryness and itching,there is an increasing market trend of placing pet supplements skewed towards preventive care in the wider context of greater wellbeing and functionality.Pro

252、biotics and postbiotics A study from pet nutrition company ADM has been trying to uncover the benefits of gut microbiome supplements for pets and their potential applications across immune function and digestive,metabolic,oral,skin and behavioral health.Nutramax and ADMs probiotic supplement brand,A

253、DM Protexin,was pushed internationally to European and a number of Asia-Pacific(APAC)markets in 2023 after recognition of a global demand for science-based probiotic formulas.One of the reasons behind the popularization of these products in the market are the benefits of these supplements in humans.

254、Korean human probiotic company Duolac recently launched a lactic acid bacteria supplement for pets.Health supplement manufacturer Ildong Foodis has expanded its supplement portfolio to include a combined pre-and probiotic for pets and British start-up Tuggs launched a mealworm treat with added probi

255、otics.Weight management Aimia Pet Health,a research partner with pet health and wellness company Better Choice,has signed a memorandum of understanding(MoU)with Canadian clinical research company KGK Science to develop a supplement for pets using GLP1,an ingredient targeted at preventing obesity and

256、 therefore ailments associated with overweight pets.The output of the research is expected to be integrated into Halo,Better Choices supplement brand.Anti-agingInsiders agree that there is also an uptick in interest for pet products in the areas of immunity and anti-aging.The pet supplement market:t

257、rends and expectations Mirroring similar developments in human health,supplements for pets are moving towards achieving wellness and longevity rather than combating specific ailments.44 PETS INTERNATIONAL|FEBRUARY 2024 A good example is California-based dietary supplement and food ingredient company

258、 ChromaDexs pet supplements containing niagen,under the brand name Tru Niagen.Through a partnership with Zesty Paws to move into the pet supplement category,the company launched supplements for“healthy aging”last year.Commonly used in human anti-aging products,niagen is an alternative form of vitami

259、n B3,which fosters production of the NAD+coenzyme that aids cellular processes like mitochondrial function,cellular energy production and DNA repair.Anti-inflammatory and anti-allergenSkin and coat issues are common in pets and supplements are rising in popularity alongside more traditional dermatol

260、ogical shampoos.Neil Pullar,Managing Director of UK pet supplement company PetExx,notes that those containing ingredients such as apple cider vinegar,bromelain and quercetin are becoming more popular among pet parents.Substances such as bromelain and quercetin target inflammation and promote organ h

261、ealth,aiming to prevent itching,dry skin and inflammation-related issues,as well as allergies.Additionally,all-round wellness ingredients like green lipped mussels,pumpkin powder and turmeric are increasingly popular.Quality concernsAn increase in demand for these supplements has driven a closer loo

262、k at production.Experts are drawing attention towards a factor that will influence the supplement industry in the near future:the use of unregulated ingredient supply from China.“Far too many brands use cheap ingredients from countries like China where heavy metal contamination is prevalent,”admits

263、Seth Kaufman,co-founder and Partner at BSM Partners,a veterinary and nutritional advisory firm.Yet,some manufacturers continue to opt for them as a low-cost solution.Many of these pipelines are untraceable to the Chinese supplier as products are often exported under labels such as electronics or oth

264、er supplies.Kaufman points towards a rise in product recalls and food safety issues that are a feature of the present market.The rapid category growth,especially in markets such as the US,is likely to prompt stricter regulation.“No one likes more regulation,but we believe that pet supplements need m

265、ore to ensure that products meet the promises that pet parents rightly expect,”he concludes.Whats next?Kaufman forecasts that the next generation of pet supplements may follow similar trends as human products with a focus on anti-aging,brain health and immunity.In terms of long-drawn trends in the m

266、aking,Pullar from PetExx concludes that constant innovations in the“format of delivery”of supplements,for instance in the shape of chews or treats rather than capsules and tablets,will further develop in the near future as palatability drives consumer purchases.Pullar also points out that the future

267、 of the category lies in its affordability through shifts in the retail channel.By removing a veterinarian focus from dispensing supplements,consumers stand to make cost savings.Skin and coat issues are common in pets and supplements are rising in popularity alongside more traditional dermatological

268、 shampoos.The segment in a nutshellAccording to Euromonitor International,the global pet dietary supplements industry experienced a yearly growth of 7%in the past 5 years and was estimated to represent$2.1 billion(1.92B)in 2023.While North America held its position for being the highest retail value

269、 market($834M/762M),Asia Pacific($637M/582M)overtook Western Europe($510M/466M)to become one of the fastest growing regions last year.A survey from MarketPlace concluded that 33%of pet parents in the US reported spending over an hour researching vitamins or minerals in the past year.The same researc

270、h concluded that soft chews are the preferred product in the category,with more than 5 out of 10 pet owners purchasing them.46 PETS INTERNATIONAL|FEBRUARY 2024 Anay MridulContributor PETS InternationalThe transition to more sustainable food systems is intensifying the focus on alternative proteins a

271、nd,as pets become more humanized,their diets are increasingly being aligned with those of their owners.Besides providing an overview of the latest brands and innovations in vegan pet food,we asked several industry experts for their views on the current and future state of this market segment.New pla

272、yers and opportunitiesAround the world,the plant-based food sector for pets is diversifying thanks to a flurry of brand collaborations and product launches.In the UK alone,Omni launched a vegan wet dog food product,THE PACK introduced Europes first vegan oven-baked kibble and Hownd unveiled wellness

273、 treats for dogs.Meanwhile,British vegan brand Deliciously Ella collaborated with Belgian giant Edgard&Cooper on an extruded dried plant-based pet food.In the US,Petaluma introduced a dedicated vegan product for senior dogs and Wild Earth debuted a new core kibble collection at a trade event.In Cana

274、da,CULT Food Science(owner of the Noochies brand)released freeze-dried vegan cat treats made from a proprietary nutritional yeast ingredient.Whats in store for vegan pet food in 2024?The vegan pet food sector is witnessing a host of new brands and innovations.So whats driving this trend?Is there a c

275、ase for flexitarian pets?And how can manufacturers win against conventional meat brands?“The bigger companies see thisspace as one that offers opportunities beyond the niche.”This trend looks set to continue.Damien Clarkson,co-founder of THE PACK,says some of the sectors largest private label manufa

276、cturers“have been sending out emails promoting their capability to produce a range of vegan products”.Referring to the Edgard&Cooper launch,he adds:“This is a sign that the bigger companies see this space as one that offers opportunities beyond the niche and are spending big in order to open up this

277、 market.”Plant-based SKUsNoochies founder Joshua Errett concurs.In fact,he predicts that every large and medium-sized pet food brand in the US will have a plant-based SKU within five years.“If the larger players cant gain market share with their own plant-based offerings,we will start to see some ac

278、quisitions in that space,”he adds.For example,Lilys Kitchen,which was acquired by Nestls Purina PetCare in 2020,has been expanding its vegan dog food range lately.Errett names brands like Wild Earth,Bramble,Bright Planet,Petaluma and Vivus as standouts in this category.When asked which brands he fin

279、ds exciting,Clarkson mentions Wild Earth,Hownd,VegDog and Project Blu.Trends and barriersBut is there such a thing as too many vegan pet food products?“I get asked a lot about oversaturation,”reveals Errett.“Its a valid point.Its one thing to do the noble work of taking animal products out of pet fo

280、od,but unfortunately thats not always enough.The other part of the equation is you have to make it different from any other brand.You can do that through marketing,but I think a better way to differentiate is in the value you can offer customers.”One trend Errett has noticed in recent times is the o

281、bsession with ultra-processed foods(UPFs).“Its currently the talking point of the meat industry and Im anticipating it will come to pet foods:the idea that a meat-free food is equivalent to an ultra-processed food,”he says.see next page“Currently,none of the big supermarkets in the UK stock a full r

282、ange of vegan pet products.”Our team of experts is ready to answer your questions about custom plant-based petfood.What are you waiting for?+31(0)493 69 37 84You will fi nd us at booth number 2-335 at Interzoo 2024BrandenburchAt Brandenburch,we understand the business needs of the professional petfo

283、od industry.For more than 40 years,we have been producing top-quality petfood.We do this by extruding vegetable ingredients into highly digestible,vegetarian petfood.With the health and growth of the animal put fi rst.Always.For the best product and a better environment.The fi nished vegetable produ

284、ct in the shape of a grain,chunk or fl ake,goes to the client and never to the consumer.That is the role of our buyers.They take care of the packaging and delivery-following their own concept or brand-to the market.Together we fi nd the best grainWe like to be fl exible and conduct fi eld research.W

285、hat does work,and what doesnt.Our knowledge of vegetable raw substances and the extrusion process is extensive.However,without our customers expertise about the animal and its specifi c nutritional needs,we cannot make the best kibble.In this way we strengthen each other,together we make the best pr

286、oduct.That starts at the table at Brandenburch.Therefore,a vital part of petfood.BRANDENBURCHQUALITYSCANBRANDENBURCHQUALITYSCANA51854186 3546 9001ColorsManufacturabilityNutritional valueStructureFlexibilityIngredientsShapea vital partof petfoodAdv Pets International Eng.indd 1 PETS INTERNATIONAL|FEB

287、RUARY 2024 49It will be key for plant-based pet food makers to overcome this perception barrier.Clarkson describes it as a cultural hurdle that falls into the category of“culture wars material”.The co-founder of THE PACK regards major retailers as another significant obstacle.“Putting plant-based pr

288、oducts on the shelves is definitely an opportunity to work towards hitting net-zero goals and offer pet parents something interesting,”he comments.“But currently,none of the big supermarkets in the UK stock a full range of vegan pet products.Hopefully,this will change in 2024.”Legislative support is

289、 essential,he adds.In the UK,the British Veterinary Associations position on vegan pet food is under review.Clarkson feels a revised position is imminent,which will“add more credibility to this fast-growing part of the industry”.The rise of the flexi-dogianTHE PACK proposed the idea of flexi-dogians

290、 back in 2021.“We expect to see a big rise of flexi-dogians in the next few years,and believe 50%of all dogs in the UK will be flexi-dogian by 2030,”says Judy Nadel,the companys other co-founder.Flexitarians are the most important demographic for alternative-protein brands and are seen as holding th

291、e key to the transition towards sustainable diets.“Our belief is that more variety is good in a dogs diet,”explains Clarkson.“It suits us in the pet food industry if dogs just eat one brand of food all the time.However,the reality is that our dogs should have several different foods on regular rotat

292、ion.The key,really,is consistency.”So,in view of the increasing humanization of pets,has the rise of flexitarianism among pet parents influenced their furry friends diets?Clarkson believes so.“We have moved past the idea of dogs just eating whatever is left over from the human food chain.There is a

293、chronic health crisis in the dog population and all good dog owners want to do better by their dogs.”While theres certainly an argument for flexitarianism as a way to reduce meat consumption among humans,does this also hold true for pets?Its a tough question,according to Errett:“On the one hand,I un

294、equivocally support eating fewer animals.On the other,I dont believe flexitarian diets meet the urgency of our current environmental crisis.And I have yet to see a flexitarian product be successful in the marketplace.”It looks like its down to brands like Australias Planet A which launched a hybrid

295、canine food with alt-meat,vegetable and insect protein in November to prove otherwise.What will 2024 bring?Clarkson foresees that more big retailers will become bolder on plant-based products,just as large manufacturers are aiming to get a slice of the pie.Additionally,increasing awareness and scien

296、tific research about the health benefits will reach mainstream media.Errett believes we will see more collaboration within the segment in 2024,as“its the only way to win against conventional meat brands”.He adds that while the pet industry has“always been acquisition-heavy”,alt-protein companies hav

297、e not played such a large part in M&A activity,but that this might soon start to change.Lastly,in the broader protein diversification spectrum,Errett predicts that 2024 will be the year cultivated meat reaches the market.That sector has already seen lots of movement over the past year,with Czech sta

298、rt-up Bene Meat registering in the EU as a feed business operator and CULT Food Science having unveiled Marina Cat,a cell-cultured meat joint-venture earmarked for launch later this year.“There is a chronic health crisis in the dog population and all good owners want to do better by their dogs.”50 P

299、ETS INTERNATIONAL|FEBRUARY 2024 Alexandra Wesker Nutritionist and FormulatorPet Food Plant-derived starches,proteins and fibers are used in the majority of commercially produced pet food.The addition of fruit and vegetables impacts on the nutritional value of a product and has implications for label

300、ing declarations and claims.Nutritional benefits and drawbacksStarch from wheat,maize or potatoes allows for sufficient expansion in extrusion in dry pet food.In wet food,plant-based gelling agents or label-friendly rice starch create the structure and consistency of chunks,jelly and gravy.These ele

301、ments may be formulated and added to products in multiple ways,from powdered additions to fiber bundles.Plant material varies in nutritional value,but plants can easily increase protein content without adding as much fat or calcium as meat sources do.By using plant protein,formulators can include ot

302、her ingredients (e.g.omega 3 fatty acids)at levels that either allow a content claim or a functional claim,while remaining within formulation constraints.Plants naturally contain fiber at far higher levels than meat,but not all fibers are alike.Some are fermentable by gut microbes and the metabolite

303、s are associated with good health.Other fibers do not have much nutritional impact and mainly add bulk to the stool.A third category binds nutrients in the feed and therefore reduces the nutrients animals can derive from their feed.These types of fiber are in the category of anti-nutritional factors

304、(ANFs)and are used at lower levels.Plant materials frequently used in low quantities include yucca,inulin and antioxidants.The yucca plant contains saponins,which reduce stool odor by binding particular components in the digesta.Inulin,derived from chicory,is a prebiotic fiber that gut microbes can

305、convert into beneficial compounds such as butyric acid.This results in an environment in which these beneficial microbes can thrive.Antioxidants,such as from blueberries and citrus fruits,have a physiological effect,protecting cells and DNA from oxidative damage.Fruit and veg in pet food:formulation

306、s,claims and safe use Plant ingredients are routinely added to pet foods,but formulations and amounts can vary greatly as can potential benefits.Functional claimsClaims can be made about compounds with proven functionality on growth,development or normal functions of the body in the target pet speci

307、es.Before these claims are made,a dossier based on scientific research is required to substantiate these assertions.The material used in the pet food must provide the functional substances described and is a key consideration in choosing raw materials and suppliers.For content claims,it is worth con

308、sidering the rehydration factor as stipulated by the European Pet Food Industry Federation(FEDIAF).Its example cites dehydrated carrot powder in a pet food recipe at a low inclusion.Calculating the equivalent amount of fresh carrot by using the moisture content may allow for a content claim such as

309、with carrot.The method is described in the code of good labeling practice and could be a reason to formulate with fewer vegetable powders at slightly higher quantities.Authorized and safe useWhen considering vegetables and fruit in food formulation,the first step is to check safety for the pet.We ca

310、nnot assume that an ingredient is safe for dogs or cats if it is safe for humans or other animals.For example,compounds in grapes,cocoa and garlic are toxic to both dogs and cats,but generally safe for humans.The next step is to check authorized use of the ingredient.Regulation 68/2013 lists the fee

311、d materials authorized for use in feed for pets and food-producing animals within the EU.Since leaving the EU,the UK has developed the GB Register of Feed Materials based on the EU legislation.Separately,the EU Feed Materials Register is a list of feed materials not authorized for use in animal feed

312、,but which businesses wish to get added.Irrespective of being authorized for general use in animal feed,safety for the pet must be ascertained.Some plant materials have been purified or extracted for a specific purpose and are classed as feed additives,such as extracts of citrus and boswellia.The fe

313、ed additive listing stipulates the target animal it is approved for,inclusion levels and other provisions.52 PETS INTERNATIONAL|FEBRUARY 2024 Jelena uran PhDVeterinary SciencesThe views of dog owners about plant-based pet diets are often highly polarized,with some strongly in favor often reflecting

314、their own dietary preferences while others retain a marked preference for meat-based diets.Using current evidence to understand the possible advantages of plant-based ingredients should provide vital information for all sides of this discussion.The plus sides of plantsPlant dietary ingredients,known

315、 as phytonutrients,encompass dietary fibers,polyphenols,and carotenoids.Although not essential for dogs,they can provide additional health benefits.Spinach,for instance,is a rich source of vitamins A,E and B1,as well as essential minerals like calcium and iron.Similarly,peas and carrots contribute v

316、aluable nutrients such as vitamin A and dietary fiber.A growing body of research has highlighted the health benefits of phytonutrients for dogs.Recent canine studies have mirrored trends in human medicine by focusing on the gut microbiome and mental health.Regulating the immune system and glucose le

317、velsGreen tea polyphenols were shown to have multiple benefits due to anti-inflammatory activity.A 2020 study by researchers at the College of Animal Science and Technology,China,looked at 16 healthy beagle dogs fed a high-fat diet.Dogs with tea polyphenols incorporated into their diet had decreased

318、 mRNA expression of inflammatory markers,as well as liver fat content and degeneration.Another 2020 study investigated rosemary and/or basil as food fortification in dogs.It was concluded that a rosemary and basil leaf powder combination demonstrated potential in regulating blood glucose levels,sugg

319、esting a potential role in managing diabetes.Plant ingredients and the microbiomeThe effects of grape proanthocyanidins on gut microbiota and serotonin and cortisol levels were studied in healthy adult dogs at the University of Udine.Dogs given these proanthocyanidins had a higher abundance of vario

320、us gut bacteria and increased serotonin levels,while cortisol didnt differ.Another study,run by the Hills Pet Nutrition team,examined a polyphenol-rich prebiotic bundle in healthy dogs and those with chronic gastroenteritis.This improved stool quality and modulated gastrointestinal inflammation and

321、motility,highlighting benefits for canine gut health.Several previous studies have already Plant ingredients in dog food what does recent research say?The role and potential benefits of plant-derived constituents to canine diets are hotly debated topics.Here,we look at what the latest science can te

322、ll us.As the research evolves,the role plant-based ingredients can play in dog diets becomes more apparent.shown that dietary interventions with this prebiotic fiber bundle have improved stool scores,shifted fecal microbial metabolism desirably,and increased fecal anti-inflammatory and antioxidant m

323、etabolites compared with control foods in dogs and cats.Further research by Hills Pet Nutrition in 2022 on a fiber bundle investigated the effect on canine fecal metabolites and microbiota.48 healthy dogs were used in the study and fed a control diet for 28 days,followed by the treatment food phase

324、of 31 days.The addition of the fiber bundle appeared to increase bioactive metabolites of improved antioxidant and anti-inflammatory potency for health benefits and again shifted gut bacterial metabolism toward desirable sugar breakdown.Another significant study from Hills Pet Nutrition,published in

325、 Animals in 2022,evaluated the impact of a diet supplemented with polyphenols,prebiotics and omega-3 fatty acids on dogs intestinal microbiota and anxiety-related biomarkers.This research,involving 40 dogs,found that diets rich in fish oil and a polyphenol blend,with or without tomato pomace,decreas

326、ed plasma levels of anxiety-associated metabolites and favorably altered gut bacteria.These findings suggest that plant-based supplements could beneficially impact mental health markers in dogs.Evolving researchEvidence of the benefits of adding plant ingredients to canine diets is increasing as stu

327、dies become larger and better designed.As the research evolves,the role plant-based ingredients can play in dog diets becomes more apparent.This aligns with an increasing understanding of the complex relationship between diet,health and behavior in dogs.The potential of plant-based diets,tailored to

328、 individual dogs needs,lies in their ability to enhance health and well-being through scientifically informed dietary choices.This approach aims to improve not only the physical health of dogs but also their overall quality of life.Recent canine studies have mirrored trends in human medicine by focu

329、sing on the gut microbiome and mental health.TM54 PETS INTERNATIONAL|FEBRUARY 2024 Chris StorvesUS Pet Retail DirectorNielsenIQThe North American pet industry landscape has seen substantial changes in the past year,reflecting consumer behavior across essential and non-essential pet items.In many way

330、s,developments in pricing,sales and preferences are similar in the whole region,but there are some interesting differences too.Higher prices in the pet departmentAs of October 2023,US consumers were paying 32%more for packaged goods than they were in 2019,with people in Canada paying 22%more.Inflati

331、on is affecting all corners of the store,but the pet department in particular is seeing significantly higher prices.For example,there was a 6%increase in average unit price in the US in October 2023 compared with October 2022,and a 5%increase in Canada.Regional differences In the US,retail pet sales

332、 were over$31.4 billion(28.7B)in value,+10%from a year earlier,and 5 billion in units,-3%.With spend increasing and consumption decreasing,average unit prices have also seen significant change,with the average in pet retail rising from$5.46 to$6.20,a 13.7%increase.US and Canada:a comparative data an

333、alysis The pronounced impact of inflation has been felt across the US and Canada,with consumers grappling with higher prices for essential pet items.PETS INTERNATIONAL|FEBRUARY 2024 55Looking at grocery,drug and mass retailers,the Western states had the highest average unit price in pet retail,at$6.67.This region also had the highest average unit price increase at 15%followed by the Midwest($6.50)