The consumer epidemic is still going strong. How to get behind it | So Good News5 months ago So Good News
If you bought a bike to stay fit during the pandemic, you probably don’t need another one. The same goes for the new sofa, fireplace and all the scented candles. But whether you brought home a puppy or adopted a kitten, that bundle of fur still needs to be fed and entertained, and that’s helping support what AllianceBernstein analysts on Friday called “one of the most exciting consumer groups” out there: pet care. The bottom line: Don’t expect this epidemic to explode. As CNBC Pro previously reported, pet ownership in the US. are growing, and will help drive sales growth in the coming years. A Morgan Stanley study found that there are nearly 5 million more pets in the US than there were in 2019. However, a 4% increase in pet ownership has led to an 11% increase in pet use, it said. AllianceBernstein also expects US “parents” with more interest to support sales growth in the coming years. But it also cited two other factors that support companies that may not be sufficiently appreciated by investors, and singled out Symrise, a German retailer of spices and fragrances, as a more modest way to look at the trend. The key to AllianceBernstein’s argument is that consumers — especially millennials and Gen Z — like to pet their pooches and pet their cats. All this love and affection is transformed into precious food that is compatible with what people feed themselves. Also, pet ownership and usage is driving global growth, and rising pet ownership and spending from Latin America and Asia Pacific will drive sales growth in the coming years. “Even now [circa] 30 months before the outbreak, pet care continues to grow,” AllianceBernstein researchers wrote. Pet food waste was +14.2% in the US.” This pace is faster than the 8% global growth from 2021 to 2022 that was predicted by Euromonitor and Bernstein analysis, the report said. The researchers said: They own Diana Pet Foods, a leading pet food company. It also understands the human food market and has a division that oversees animal health care. in Hodges, South Carolina, as it looks to acquire more businesses in the region. In March, it also announced the purchase of Wing Pet Food from Shanghai. The company does not disclose the size of its pet business, but experts said. company r recently said that this sector is growing among young people. “… As the only global pet food player, it has first-mover advantage and presence in high-growth markets,” analysts wrote. He added that many pet food companies are start-ups and may know what a veteran player like Symrise can share. Some of those items are foods that need to be refrigerated or frozen. Some products are also delicious – think Pawsecco, “wine” for dogs – so pet parents don’t have to eat or drink it themselves. Others point to health benefits. This includes many supplements including KittyRade, a chicken-flavored drink for cats that promotes hydration that AllianceBernstein mentioned, and a high concentration of CBD products. Major international food companies are also in the animal feed industry. The researchers noted that Nestle’s pet care business has been outpacing the company’s global growth. The company operates several businesses under the Purina umbrella. Other companies in the pet food business include JM Smucker, owner of brands such as 9Lives and Meow Mix for cats and Kibbles ‘n Bits and Milo’s Kitchen for dogs. General Mills owns Blue Buffalo. Shares of General Mills are up 15% year to date, while Smucker’s shares have gained 3.8% year to date.