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Dear friend: How much does food for dogs and cats cost us?

22.7% of all households in Israel have a pet in their home, which becomes part of the family unit.

For them we went out to check what is the monthly cost of household expenses in raising a pet, how do we choose the food for them, where do we buy - and most importantly: how much does it cost us?

Tags

• Seal

• cats

• Animal food

• Survey

Dr. Hezi Gur Mizrahi

Wednesday, 10 November 2021, 18:03 Updated: Thursday, 11 November 2021, 14:25

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Almost a quarter of all households in Israel (excluding the ultra-Orthodox and Arab sectors) raise at least one pet, usually a dog or cat. Dog and cat owners are certainly rewarded with the love they receive from their pets, but when it comes to maintenance costs, they add up to a considerable amount: food, vaccines and various treatments at the vet, preparations - and in cases of illness or accident, even one-time expenses that can reach tens of thousands of shekels . In our test, this time we focused on food only.

The global animal food market rolls over $ 100 billion a year. As in most areas of consumption, we also see a clear concentration here: the giant companies that control the consumer goods market also control this market. This is another sign that the potential has been identified and that growth forecasts for the coming years are indeed well-founded.

The leading company in the field is MARS with brands such as Yukonba, Visks, Pedigree, Royal Kanin and other brands represented in Israel through the Miltin Beit Erez Group, owned by Rami Miltin, which is one of the pillars of the market in Israel.

It is followed by Nestlé with: Purina, Dougley, Frikis and Proplan.

Other global companies such as Colgate Palmolive and General Mills are also operating in the field, in the global market.

In addition, Israel also has an industry for the production of animal food: "Bioft" from Maabarot products, which represents brands and produces the old "Bonzo" brand in Israel.

The local market is rolling in more than a billion shekels in the pet food and accessories segment.

Alongside the pet breeders, a significant group of customers has been added, and they are street cat feeders.

Yes - those stray cats who about two weeks ago managed to provoke a media storm around an allocation of 12 million shekels from the government budget in favor of caring for stray cats.

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(Photo: image processing, Daniel Malakhovsky)

The customer's best friend

There is a consumer element that many marketers tend to err in: When it comes to the pet consumer product market there is a clear difference between customer and consumer, although the dog or cat owner is the one who makes the buying decision and is the actual buyer, but consumers are actually pets - and if food is not to their liking , The owner will have no choice but to change.

We further add that the bulk of the market relates to dogs and cats even though there are other species that belong to the pet segment, mainly birds, rabbits and more.

The most common pets are dogs and cats, an estimate that there are close to 900,000 of them in Israel, of which about half a million (60%) are dogs (these are registered animals, ie - not including stray cats or stray dogs).

The average household expenditure in Israel on food (excluding vegetables and fruits) is NIS 2,280 per month for the average family. The monthly expenditure on pet breeders is of course not related to the number of people in the house, and stands at NIS 208 per month for food only, not including veterinary treatments and periodic vaccinations. That is, it is a significant cost (8% of the average family expenditure on food).

The packaging weights for large dogs stand at a weight of 12 kg (compared to 20 kg in the past) and for small dogs 4 kg. The brand loyalty in the segment is high relative to other and similar consumer products, even compared to the consumption patterns among baby foods.

In a study conducted by the Institute for Retail Research in 2015 among pet breeders, the following data were obtained: 61% of respondents said they would switch to another food only if it is of better quality, and addressed odor and impact on animal needs, compared to 26% of respondents. Brand.

13% said there was no chance they would replace the food the pet is normal and satisfied with.

(Photo: image processing, Daniel Malakhovsky)

The specialty stores dominate

Trade in Israel is conducted similarly to most European countries where there are a number of sales channels for pet consumer products.

Market data indicate that for service breeders, service, variety and level of professionalism are important in relation to the price parameter.

The dominant ones in the worlds of food chains and in purchases on online commerce sites are specialty stores (there are about 500 stores in Israel).

Supermarkets and food chains that allocate to the area / midoff segment (there are about 3,000 relevant stores), online veterinary stores.

Over 68% of all market sales are made through specialty stores versus 19% produced by food chains.

Loyalty to the store is high, mainly because of the owner and staff familiarity with the customer and his pet.

The data further suggested that a veterinarian's recommendation on a particular type of food is critical regarding the decision to change brand and switch from one type of food to another.

(Photo: image processing, Daniel Malakhovsky)

Need love to live (and humans too)

As mentioned, most of the sales are made in the 500 specialty stores. Half of them are private and the other half belong to a number of larger networks, which specialize in the field. Some have even developed private labels in recent years and some have launched new products and brands in Israel in various qualities, managed to lead to a general reduction in the food market - a result of a consistent strategy with the giant companies that controlled sales and price levels.

eight 25 branches throughout the country. The chain also operates through online trading sites. 3.5% compared to the period before the Corona, the

chain imports and represents several food brands in Israel, such as: Boneh Sibo, Profek, Mito and Bright, the medical food brand.

Steindam: "The strategy for representing food brands in Israel was adopted after a long process and research and in order to give the customer a wide range at lower prices than he used to pay for the same quality - indeed it worked: we saw the market price revolution with the launch of Bright medical food brand in Israel To lower the prices of products for the benefit of the consumer.

We hold all the brands that exist in the market, in order to give the customer the choice and decision. Some of the chain stores cover huge areas that do not embarrass any supermarket but we do not claim to be an animal Buying for the whole family and even for the pets. "

Steindem adds: "In our field if you have no love for animals and humans, you have no chance of surviving and evolving because every employee in the company - whether he is a storekeeper or store manager - is the professional figure the customer seeks to share and consult with, and there are many customers who come to stores "Buy only for the experience itself and receive advice and service and knowledge that food chains are unable to provide to the customer.

This is our advantage in the market. In the new concept store we established in Hod Hasharon, we develop a beauty salon for dogs and cats.

(Photo: image processing, Daniel Malakhovsky)

The last few decades have improved with the status of pets: more and more families are realizing their added value to the family unit, to children's self-confidence, to developing a sense of responsibility - and above all, to increasing the joy of life.

The market also responded to these changes by increasing the abundance of brands for animal feed and welfare and eventually competition increased and was accompanied not only by supply improvement but also by falling prices.

At the same time, it is important to remember: when it comes to our best friends, price is only a secondary parameter to the quality and professionalism required from manufacturers, importers and marketers of pet food and equipment.

(Photo: image processing, Daniel Malakhovsky)

The author is the director of the Institute for Retail Research.

The Animal Food Survey is also published in Maariv's "Business" supplement, Friday, November 12.

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