Competitive Structure of India
Pet care market in India is still in its primitive stages and is growing steadily with a few major active global players. At present, imports comprise of 40% of the total pet food market in India, majorly from US suppliers. In 2006, the overall size of the pet care industry in India was Rs.1739.9 million in terms of price value which is expected to go upto Rs.3687.5 million by 2012 (Creature Companions, 2010) . It has been estimated that the industry is growing at an average annual rate of 10-15 percent at present. The revenue potential of the industry is Rs. 3.5 billion annually, out of which around Rs. 2.5 billion is the share of pet food and the remaining Rs. 1 billion comes from grooming and healthcare facilities (The Viewspaper, 2011).
Demand patterns show that the readymade branded pet food and other products are mainly confined to the urban pockets of the country. It is this urban population that needs to be targeted for marketing the new product. Pet ownership in India is high and according to a recent survey, the number of pet dogs in the six major cities of India is 3.6 million which is quite astonishing. However, people still have not changed their mindset to readymade food for pets. The experts say that pet care market in India is currently worth about Rs. 876 million (Petfoodindustry, 2011). However, the scenario is changing and the industry is showing growth and future potential. The newly evolving middle class, liberal trade reforms and increase in pet ownership assures rise of this emerging market. Present players forecast 25-35% growth rate for next few years with customers adapting to readymade pet food (Petfoodindustry, 2011). International brands dominate the Indian pet market, major leading ones being Pedigree, Royal Canin, Eukanuba & Whiskas. A lot of domestic companies were acquired by multinational players which have stirred up the competition within the industry. This shows a sign that customers prefer international brands over locals. This can help in our product launch.