EXECUTIVE SUMMARY

Mid-priced and Economy Brands Witness Growth

In 2010, pet care in Bulgaria registered significant retail sales growth, and it is expected to continue growing in the short-to-medium term. The main factor at the end of the review period was the development of mid-priced and economy brands, with the greatest share of retail sales held by economy pet food. Local brands also registered growth. Private label products became increasingly popular due to their comparatively good quality and competitive pricing. As a result, all large supermarkets and hypermarkets have developed private label products.

New Player in Bulgarian Pet Food

The US company Diamond Pet Foods Inc has penetrated Bulgaria. The new player offers American products in nthe premium and super premium segments, which are cheaper than their European counterparts in each of the price bands. The company also offers mid-priced products. Its products are positioned by age, weight, breed and other particular criteria, which is important for pet owners.

Local Producers Become Distributors of Foreign Mid-priced Products

The accession of Bulgaria to the EU in January 2007 made local companies to feel uncertain about the domestic market. However, they have succeeded in coping with changes to legislation and regulations, and most small companies have survived and recovered their positions. Most local producers distribute mid-priced products, mostly imported from Italy and former Eastern bloc countries, as well as their own production.

Competition Between Distribution Channels Stimulates Growth

The major distribution channels for the popularisation and advertising of this industry are pet shops, and even more importantly veterinary clinics, all of which sell pet food and pet products. They predominantly offer premium products. On the other hand, supermarkets and hypermarkets tend to offer mid-priced and economy pet food products by international companies. Local companies sell their products predominantly via small independent grocers, pet shops and agrochemical shops. Internet retailing is become popular, not only for buying goods, but also as a forum for sharing views and opinions among pet owners.

Growth Is Predicted To Continue Across the Industry

Although consumers in developed markets are mainly interested in products positioned in the premium segment, which has a stable and growing retail sales share in the Bulgarian industry, the expectations for the forecast period are for more major developments in the mid-priced and economy segments. Pet owners in the country are becoming more exacting in their requirements, and an increasing number of them are discovering the convenience of prepared food, which offers great growth potential.

Euromonitor International