Two factors account for the tremendous
growth of the category in recent years: first, booming emerging markets like India, Bangladesh, China and Turkey are driving high demand; second, new crop research at the University of Saskatchewan has boosted yields for Canadian producers, fuelling the supply side.
While some skepticism arose over the search fund model in its early days, continued success (and average returns north of 30 percent) has led to
significant growth of the category in recent years.
The rising demand for dairy in China, growing at 6 % to 7 % rate annually, is teetering on outpacing
volume growth of the category (increasing by 3 % to 4 % every year) as the country shows great interest in dairy products, according to Mintel.
Snack conglomerate Mondelēz International is launching a double chocolate version of its Mikado King biscuit product to help
drive growth of the category.
Kevin Malnor, vice president of sales and marketing for Vital Essentials, agrees that securing a consistent supplier is key to successfully launching a new product and ensuring the
continued growth of the category.
«We provide POS materials, from signage to printed collateral, and based on the
exploding growth of this category, we encourage our retail partners to create a section dedicated to oral / dental health and good oral care.»
Gleason also noted that humanization of pets is a major factor in shaping the development and
growth of the category as a whole, with customers looking for products that match the quality of what they use for themselves.
And
the growth of the category is the same.
While the first balanced mutual fund was created in the 1920s,
the growth of that category was predicated on the benefits of blending stocks, bonds and cash in a portfolio.
She notes that several trends are contributing to
the growth of the category.
«It's the social trends of today that are fueling
the growth of this category,» says Brad Gruber, president and chief operating officer of Health Extension Pet Care, a producer of holistic dog and cat food based in Deer Park, N.Y. «With lifestyles changing and pets being treated like family, consumers want foods that are superior to their own and they are comfortable splurging on their pet's food, being the valued member of the family that they are.»
Or have the new products that make reefkeeping easier and more convenient led to
the growth of the category?
By being uniquely positioned to engage pet owners directly and inspire coverts to raw nutrition, pet stores have been, and will continue to be, central to
the growth of the category.
Manufacturers say there is plenty of room in the market for all of these options, and
the growth of the category is creating ample sales opportunities for pet retailers.
The growth of this category is attributable to a variety of reasons.
Among the most significant driving forces behind
the growth of this category boils down to simple supply and demand.