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Dog Food in Turkey

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Dog Food in Turkey

Summary * Dog food sales increased in value by 12% to reach TRY200 million * Main premium brands for dog food: Nestlé Purina Petcare Türkiye, Anadolu Akvaryum ve Pet Urunleri San Tic AS, Tropikal Bahçe ve Evcil Hayvan Ürünleri AS and Mars Inc * Increasing awareness of dog nutrition, positively impacts the performance and is altering the choice of dog food consumers select nowadays * Dog treats records the most vibrant performance in 2014 with 23% current value growth * Average unit price of dog food registers 1% growth in 2014 * Tropikal Bahçe ve Evcil Hayvan Ürünleri AS continued to lead dog food with a total value share of 17% * Over the forecast period, dog food value sales are set to rise at a value CAGR of 6% at constant 2014 prices, to 2020

Trends in dog food
The Turkish dog food market is expected to record a 12% current value growth in 2015 compared to the figures of 2014. The main influences behind this enhanced performance are due to the increase in dog ownership, due to the rising need for companionship within urban districts. Moreover, the increase in awareness of dog health will lead to a growing demand for premium dog food. Additionally, the rising awareness about dog nutrition will increase the amount of people feeding their dogs with prepared dog food, instead of meal leftovers.

In 2015, total dog food sales registered 12.4% value growth, gaining a rise of 0.6% growth, compared to the 11.8% increase recorded in 2014. Besides the increase awareness about dog nutrition, new products were launched, which increased the availability of dog food. Therefore, positively affecting the performance and contributing to a better current value growth in 2015.
Sales of Dog Food by Category: Value 2010-2015 TRY million | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | | | | | | | | Dog Treats and Mixers | 4.2 | 4.7 | 5.3 | 5.9 | 7.2 | 8.9 | Dry Dog Food | 112.7 | 129.3 | 151.2 | 166.3 | 186.5 | 209.2 | Wet Dog Food | 7.4 | 8.4 | 9.8 | 6.6 | 6.3 | 6.1 | Total Dog Food | 124.3 | 142.4 | 166.3 | 178.9 | 200.0 | 224.8 |
Source: The Petfood Industry
In 2015, dry dog food variants were set to account for 93% of total dog food sales, whereas wet dog food was expected to set at 7%. Dry dog food was expected to register a better performance and increase by 12% in 2015. Research has shown that dry variants are preferred by pet owners, as they are found to be more practical, easier to prepare, and last longer than the wet variants. As well as, veterinarians recommended to mostly buy dry variants of dog food, as they are healthier and more nutritious. Consequently, due to buyer’s growing preference for dry dog food, wet dog food is expected to drop by 3% in value in 2016.
According to Passport’s statistics, premium dog food has made a sturdy performance by making a 10% current value growth in 2015. Brands such as; Lider Evcil Hayvan Beslenme Urunleri and Mopsan Veteriner Urunleri San ve Tic Ltd have launched new products is 2015 and 2014, and are believed to add diversity to premium dog food. Due to buyer’s being more conscious of dog nutrition and having confidence in veterinarian recommendations positively affects the age, breed, and size of dogs.
As premium and therapeutic dog food’s unit price are set higher than the economy and the mid-priced products, it mostly attracts customers with high disposable incomes. Yet, according to Euromonitor’s and WARC’s data, dogs are mostly bought by families or couples with mid-high disposable income. Dog owners with high pet health awareness usually prefer to follow vets’ recommendations and feed their pets with beneficial foods to reduce certain health issues.
Many researches have shown that human health is getting more and more important, most people start changing their lifestyle by changing the way they eat. Superfoods, organic food, gluten-free, no artificial sugars or colours added products, are all examples of products that people are consuming more and more to try and change their eating habits into healthy ones. Research carried out by The Pet food Industry and WARC has shown that it is heading this way for pets as well. Nowadays, especially when it comes to consuming the gluten-free products, dogs are often walking side by side with their owners. According to the Pet Food Industry, sales have grown by 25% from September 2014 until October 2015. Additionally, organic and natural pet food sales have shown to also be very popular, by increasing 14.6% over 2015. Although, only a very few pet food companies sell these kind of products, for example the natural and organic products only count for 4% in the overall US pet food market.
BARF (Biologically Appropriate Raw Food) contains dog food that consists of 60-80% raw meat bones which are considered as the most natural dog food. Although, buying natural and healthy foods is a growing trend among dog owners, consumers remain concerned about the parasites that are often present in raw meat bones which are also able to easily reproduce within the bones. Additionally, due to the increasing preference for convenience, especially among the young urban working population, customers generally prefer dry prepared food instead of BARF as the former is more practical and easier to store.
As a consequence of increasing pet health awareness among Turkish pet owners, the preference for health and wellness dog food continues to increase. Especially within the premium segment customers increasingly prefer low-fat high fibre products as a preventive measure for some health problems, such as digestive system illnesses. Additionally, high-end pet owners with a low price sensitivity care about low-fat and multi fibre nutrition, along with grain-free dog food for active breeds is also showing an increase in preference.
In 2014 dog treats was the most vibrant category within dog food showing a current value growth of 22%. In addition, increasing pet owner awareness for dog training is also positively affecting the category as dog treats are frequently favoured for successful dog training. As a result, dog treats are expected to continue being the most active category in 2015, predicting a 23% current value growth.
Veterinary clinics accounted for 33% of total dog food value sales in 2014. In 2014, due to veterinary clinics 33% of the dog food premium products were sold to pet owners with high pet health awareness. Owners with a lower disposable income usually prefer to buy premium therapeutic dog food from veterinary clinics as they can buy them on credit. As a result, the value share of pet shops declined by 4% in 2014, while modern grocery retailers’ value share registered an increase, due to rising availability of economy dog food within retailers. Especially the working population prefers to buy dog food during their weekly grocery shopping to save time.
In 2014, the percentage of households that own a dog increased to 6%, and in 2015 it is expected that it will increase by 10%. The main reason behind the increasing number is that households are the urbanisation trend which leads to an increasing number of single-person households. The urban single population generally owns dog for companionship.

Competitive landscape
Company Shares of Dog Food: % Value 2010-2014 % retail value rsp | 2010 | 2011 | 2012 | 2013 | 2014 | | | | | | | Tropikal Bahçe ve Evcil Hayvan Ürünleri AS | 12.9 | 11.3 | 11.5 | 18.6 | 16.6 | Nestlé Purina Petcare Türkiye | 12.2 | 13.1 | 14.8 | 15.2 | 15.6 | Anadolu Akvaryum ve Pet Urunleri San Tic AS | 8.9 | 8.9 | 9.4 | 12.6 | 11.7 | Lider Evcil Hayvan Beslenme Ürünleri San ve Tic Ltd Sti | 3.3 | 4.6 | 4.9 | 5.4 | 7.9 | Mopsan Veteriner Urunleri San ve Tic Ltd Sti | 13.7 | 13.0 | 11.7 | 8.5 | 7.7 | Mars Inc | 13.3 | 12.6 | 10.6 | 6.7 | 6.0 |
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Brand Shares of Dog Food: % Value 2011-2014 % retail value rsp | Company | 2011 | 2012 | 2013 | 2014 | | | | | | | Purina Pro Plan | Nestlé Purina Petcare Türkiye | 11.6 | 11.4 | 12.6 | 13.4 | Royal Canin | Anadolu Akvaryum ve Pet Urunleri San Tic AS | 8.4 | 9.0 | 12.3 | 11.5 | Goody | Tropikal Bahçe ve Evcil Hayvan Ürünleri AS | 6.6 | 6.8 | 10.7 | 11.0 | Pedigree | Mars Inc | 9.2 | 8.3 | 5.0 | 4.7 | Hill's Science Plan | Mopsan Veteriner Urunleri San ve Tic Ltd Sti | 7.7 | 7.0 | 5.1 | 4.6 |
Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

In 2014, Tropikal Bahce ve Evcil Hayvan Urunleri AS value share declined a little, but still kept the leading position of dog food with a 16.6% value share. The company managed to successfully increase the availability of its dog food with online retailing platforms. As a result, the company effectively attracted more rural areas within Turkey where the prepared dog food sales were lower. Moreover, the company magnificently advertises its two leading brands, Champion and Goody, within dog magazines and other marketing channels. Another success factor of Tropikal Bahce ve Evcil Hayvan Urunleri was to conduct customer satisfaction surveys to recognize the varying buyer preferences to positively affect the sales.
The runner up, Nestlé Purina Petcare Türkiye managed to stay in second place with a total value share of 15.6% in 2014. Their market share mainly increased due to its premium therapeutic products selection and extensive availability within the pet superstores and veterinary clinics. The company’s Pro Plan brand is also observed as more tasty for dogs as it contains more raw meat than its competitors. To increase the appeal for dog owners, Nestlé made two variations of the product, one for small breeds and one for large breeds.
In third place; Lider Evcil Hayvan Beslenme Ürünleri San ve Tic Ltd registered for the highest value share growth, achieving a total value share growth from 5.4% in 2013 to 7.9% in 2014. The company is known to have an extensive product portfolio and offers numerous brands within different price segments.
Sales of Premium Dog Food by Category: Value 2010-2015 TRY million | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | | | | | | | | Premium Dry Dog Food | 52.6 | 56.9 | 64.7 | 73.8 | 82.0 | 90.6 | Premium Wet Dog Food | 1.6 | 1.7 | 1.9 | 1.3 | 1.0 | 0.7 | Total Premium Dog Food | 54.1 | 58.6 | 66.6 | 75.1 | 83.0 | 91.3 |
Source: The Pet Food Industry

In 2014, leading companies within dog food invested in both the economy and premium segments in parallel, with changing customer preferences. Companies are trying to diversify their product portfolios, both by adding new variants to their existing brands and by launching new brands.
Over the review period, the key new product launches within premium dog food are Lider Evcil Hayvan Beslenme urunleri San ve Tic Ltd’s Spectrum and Mopsan Veteriner Urunleri San ve Tic Ltd’s Golosi. Launched in 2015 the Lider Evcil Hayvan brand is the first locally-produced premium dry dog food in the market. The company has invested heavily in marketing its new products by signifying its greater content which features SQX formula. On the other hand, Mopsan’s Golosi brand, also launched in 2015, features natural ingredients that have several pet health benefits. The new product contains grape seed, olives, and green mussels, which all greatly benefit the immune system, cardio health, and joints. These two unique new products are expected to add vast amount of diversity to premium dry dog food, and positively affect the value share of these companies.
In 2014, advertising in pet care specialist magazines, and in-store leaflets, continued to benefit the dog-food companies the most. All companies advertise their products within the pet care specialist magazines, such as Pet Info, Cat & Dog and Pet Gazetesi.
The premium and budget brands continued to perform better than mid-priced brands in 2014. Numerous reasons have been stated why these companies have been performing better. First of all, premium brands have increased their product availability. Secondly, companies have been investing more in this segment with new product launches. Thirdly, results have shown an increase in demand for therapeutic dog food, due to growing pet health awareness. Moreover, due to macroeconomic fluctuations, price sensitive customers moved from mid-priced brands to budget brands, which also profited these economy brands.
The private label sector recorded for 4% of total dog food value sales in 2014.

Forecasts
Table 6 Forecast Sales of Dog Food by Category: Volume 2015-2020 Tonnes | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | | | | | | | | Dog Treats and Mixers | 227.9 | 259.8 | 294.2 | 331.2 | 370.7 | 412.6 | Dry Dog Food | 25,841.5 | 28,330.3 | 30,830.2 | 33,303.3 | 35,782.1 | 38,205.1 | Wet Dog Food | 1,587.9 | 1,664.8 | 1,740.2 | 1,810.0 | 1,873.8 | 1,928.4 | Total Dog Food | 27,657.4 | 30,254.9 | 32,864.7 | 35,444.5 | 38,026.7 | 40,546.1 |
Source: The Pet Food industry

Looking at the forecast for the next five years, increasing awareness of dog health/nutrition, increasing availability of prepared dog food, increasing investments in terms of new product launches are set to lead forceful forecast performances. As well, the low proportion of prepared dog food in Turkey also implies strong potential for forecast growth. Therefore, dog food is expected to see value sales rise at a CAGR(Compounds annual growth rate) of 6% at constant 2015 prices, compared to the review period constant value CAGR of 4%.
Growing numbers of pet specialist publications and mounting access to information about health benefits of prepared dog food through the internet is positively affecting prepared dog food sales. In addition, increasing accessibility of prepared dog food will also positively affect the prospects performance, as research has shown strong potential within the rural regions of Turkey. Within these rural regions, many dog owners seemingly still use table scraps and meal leftovers. As the awareness and availability of prepared dog food is increasing, these households are expected to shift to prepared dog food.
The main possible threat to forecast growth is the macroeconomic drop in Turkey, which may lead customers to switch back to using table scraps and meal leftovers for feeding their dogs. Moreover, diminishing disposable incomes, due to macroeconomic weakening will lead to a fall in dog ownership which will further pull down the performance of dog food.
Dry dog food is likely to continue being the largest category within dog food. As, dry dog food is still found to be more practical for cleaning the food plate of dogs, and is found less smelly. Additionally, dry food is mostly found to be more nutritious than wet dog food. The leading companies are expected to continue launching promotions which feature one can of wet dog food for free with regular size dry dog food. Dry dog food’s performance will also benefit from such promotions in value terms. The most established promotion is expected to be value packs and special discounts for bulk pack sizes. As well as, gift bundles that contain one pack of wet dog food, and dog treats with dry dog food are expected to stay popular.
As the awareness of dog health and more educational promotional campaigns are increasing by the leading companies. It is expected that, the leading local companies will launch new products that will add further dimensions to nutritious premium dog food. Additionally, high fibre, low-calorie, and biological products for different breeds, sizes and ages are expected to become more popular over the forecast period.

Doing Business in Turkey
This page summarizes Doing Business 2016 data for Turkey. The first section presents the Ease of Doing Business rank and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages. By clicking on the hyperlinks you will find more detailed information about each topic.

Topics | DB 2016 Rank | DB 2015 Rank | Change in Rank | Starting a Business | 94 | 88 | -6 | Dealing with Construction Permits | 98 | 108 | 10 | Getting Electricity | 36 | 35 | -1 | Registering Property | 52 | 51 | -1 | Getting Credit | 79 | 71 | -8 | Protecting Minority Investors | 20 | 20 | No change | Paying Taxes | 61 | 56 | -5 | Trading Across Borders | 62 | 61 | -1 | Enforcing Contracts | 36 | 17 | -19 | Resolving Insolvency | 124 | 102 | -22 |
=Doing Business reform making it easier to do business. =Change making it more difficult to do business.

Indicator | Turkey | Europe & Central Asia | OECD high income | Procedures (number) | 8 | 4.7 | 4.7 | Time (days) | 7.5 | 10.0 | 8.3 | Cost (% of income per capita) | 16.6 | 4.8 | 3.2 | Paid-in min. capital (% of income per capita) | 11.0 | 3.8 | 9.6 |

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