Petfood Industry - December 2017 - 35
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potential for expansion into the growing Canadian pet food
market. Dogsee Chew is one company looking to break into
the Canada market and compete with other premium brands.
"Since foreign brands are already leading the market,
Dogsee can break into the Canadian market and compete,"
said Ghimire. "If the available domestic brands are premium,
consumers may prefer domestic brands ... However,
that doesn't necessarily mean that consumers will go for
domestic brands and boycott foreign premium products
provided they are sold at reasonable prices."
pet food sales
Whimzees, a Dutch brand, and Greenies, a US brand. Both
brands favor the premiumization trend, marketing their
treats as all natural and healthy. Canadian premium dog treat
brands such as Snack 21 and Orijen are also increasing their
presence in the market.
The future of Canada's pet food market
As in the US and other markets, e-commerce is a fastgrowing pet food distribution channel in Canada. According
to Ghimire, e-commerce has increased competition by
bringing big and small companies on the same platform.
In the third quarter of 2017, Amazon's sales in Canada's
pet product sector were smaller than in France, the UK and
Germany at CAD5 million. However, Canada's Amazon sales
in pet products saw growth of 149 percent, led by health care
Overall, according to a Packaged Facts outlook report, the
continued rise of premium and superpremium pet food products will drive sales in the Canadian pet market to US$9.2
billion by 2019.
Packaged Facts anticipates a 2 percent CAGR for cat food
in value terms at constant 2017 prices over 2016-22. Dog food
sales are anticipated to see a 2 percent CAGR in volume terms
and a 3 percent CAGR in value terms at constant 2017 prices
over 2017-22. Larger international brands will be forced to
produce more premium products in order to remain competitive in the growing market. ■
Another attractive feature of the Canada market for
Dogsee Chew is the rapid growth of dog treats sales. In a
2016-20 forecast, dog treats have a higher CAGR (compound
annual growth rate; 3.9 percent) than any dog food category,
according to a pet food sales report from Agriculture and
Agri-Food Canada (see Figure 1). Cat treats follow the same
trend with a CAGR of 2.1 percent for 2016-20, while dry and
wet cat food fall below 2.1 percent.
Domestically, of course, there are some
power players, too. Alberta, CanadaFORECAST RETAIL SALES OF DOG AND CAT FOOD
based Champion Petfoods is among the
IN CANADA (CAGR %)
top 30 pet food companies in the world
(with a revenue of US$180 million in 2016,
according to WATT Global Media's Top Pet
Food Companies Database) and continues
to expand its production capabilities
Pet treats and mixers 3.9
while exporting to more than 70 countries
Dry pet food
worldwide. Ontario, Canada-based Elmira
Pet Products leads the country's privateWet pet food
label industry for dry
pet food manufacturing,
according to the company,
FIGURE 1: In dog and
while serving the pet food
cat food categories, pet
markets of nearly every
treats and mixers show
region of the world.
a higher CAGR than
According to Ghimire,
dry and wet pet food.
Source: Agriculture and Agri-Food Canada
the leading sellers of
Hanna Ferents | Dreamstime
dog treats in Canada are
Industry December 2017