Humanization of pet food- Implications for the raw material supply chain
David Primrose – Synergy Food Ingredients Ltd
Introducing the speaker• Owner of SFI and joint-founder of Nordic Pet
Food Events• Regular speaker at pet food industry events and
contributor to pet food trade press• MSc Food Safety Management• >37 years global petfood industry experience • Expertise includes
• Raw material development and risk management
• Pet Food Safety and Quality
What we will discuss today …
• Evolution and types of petfood• Market growth & drivers• Humanization – Implications for raw material supply• Petfood trends in 2016 • Thinking inside & outside the box – Opportunities for MPN• Opportunities for collaboration• Summary
We will NOT discuss specific opportunities today
Evolution of commercial pet food
Pioneering / Traditional / Conventional Evolution of premium /super premium / humanization
Spratts“Dog Cakes”
1860’s
Expanded dry kibble
1950’sChappie
Dog Food1930’s
Moist Cat Food Pouch1990’s
Freeze Dried Pet food and snacks
21st Century
Petfood - Different things to different peopleObesity rate could be as high as 60%
Examples of Humanization in petfood
Adult Super-Premium
(Branded)€4.91 / kg; $5.34 / kg
(400g can)
Adult Super-Premium
(Branded)€18.29 / kg; $19.92/ kg
(6 x 79g tray)
Adult “Free Run”/ Grain Free €11.76 / kg; $12.81 / kg (3 kg bag)
Adult Condition specific
(Sterilised / Neutered)€11.2 / kg; $12.2 / kg
(1.5kg bag)
Humanization – Snacks & Treats
Growth in the global pet food market
28
7683
92
0
20
40
60
80
100
120
1999 2007 2009 2012 2013 2014 2015 2016 2017 2022
US$
bill
ion
Year
Global Petfood Market Trend1999 – 2022 (predicted)
Global growth of
4.15% CAGR to 2022
Source:- Promar International; Euromonitor International; PRNewswire; Petfood Industry 2016; Acute Market Reports 2016
Global Mega-trends – Driving change Trends in pet similar to human
Humanization – Its not only about the product
• Humanization - “to make something more human
or less unpleasant”
• Key factors include: -
• Innovation
• “Best Practice” in pet food safety
• New approach to building trust and communication
(Pet) Food Protection- An integrated systems approach for 21st Century
Effectiveness requires “field-to-bowl” approach
Source: A Vision for Food Integrity and Social License (Food Safety Magazine Nov 2016)
Pet Food Safety “Best Practice”– What does it look like?
Effectiveness requires “field-to-bowl” approach
Safe Petfood
Product Design
cGMP
HACCPFood Safety
Culture
Consumer Awareness
Consumer trust in petfood and raw materialsNone genuine
unless so stamped?
The future of pet food
Determined by 3 key factors: -• Customer excellence• CSR friendly petfood and RM• Refocus on meaning of humanizationThese present opportunities and threats for the petfood raw material supply chain.
The key for success is satisfying all 3 requirements
Restating what is already known
Source: - Global PETS Community BV
Sustainability
• Greater focus on eco-friendly / sustainable RM supply driven by human demographics
• Rendering (PAPs) traditional source of sustainable RM but negative image amongst (some) pet owners
• New opportunities might exist for human food sector to supply “added value” products e.g. protein hydrolysates
• Petfood supply chain “field-to-bowl” has role in (re)educating pet owners
Nutritional Sustainability of Pet Food
• Resource utilisation key to ensuring sustainability• Influenced by ingredient selection and characteristics: -
• Maximising nutrient density• Digestibility• Bioavailability of fewer resources• Minimisation of faecal waste
The end of humanization or a new dawn?- Restrictions on use of human food materials
• Humanization key driver of global growth BUT potential restriction on use of human food materials
• On-going humanization will depend on sustainable raw material supply and quality
• Industry and pet owners might need to refocus their beliefs• What does “humanization” mean? • Paradigm shift in acceptance of “novel” protein sources
• New opportunities for human food sector?
A few words about “Human grade”
No agreed, legal definition of “human grade”New proposed AAFCO definition could have far reaching implications:-
“Human Grade (handling specification):Every ingredient and the resulting product are stored, handled,
processed and transported in a manner that is consistent and compliant with regulations for current good manufacturing practices (cGMPs)
for human edible foods as specified in 21 CFR 117.”Pet food industry would have to ensure ALL ingredients were food grade and human food safety standards applied throughout supply chain
– This is not currently the case!
Current “Hot” trends in petfood
Source:- Pet food Industry trade journals 2016
Humanization in petfood- Its not just about ingredients
Product Specific Trends(64% of megatrends)
Trend Example
HealthyNutrition (18%)
Superfoods (Kale; Quinoa); Unique protein (Alligator); Omega-3 oils (Krill); Vegetable (Pumpkin); Sports nutrition (Protein bars)
Free From (14%) PAP; Grain; Gluten
Lifestyle Choice (14%)
“All natural”; Vegan; Indulgence (beer; ice cream)
Product Format (11%)
Freeze dried
Pet HealthSpecific (7%)
Hypoallergenic
Business Beliefs (36% of megatrends)
Trend Example
Trust (18%) Transparency
Ethics (11%) CSR
Safety (7%) Regulatory; “One Health”
Source:- Pet food Industry trade journals 2016
Obesity rate could be as high as 60%
Opportunities for MPN members?
Thinking outside the box – A word about “One Health”
• “One Health” vision statement: -“One Health (formerly called One Medicine) is dedicated to improving the lives of all species—human and animal—through the integration of human medicine, veterinary medicine and environmental science.” • Opportunities for MPN - Linkage of human health & pet health?
Challenges to implementation of new pet food ingredients- How SFI can help
Challenges
• Raw Material risk management
• Commercial risk management
• Processability
• Product performance
How SFI can help• Confidential consultancy• Independent• Collaboration with Passion 4 Feed
www.passion4feed.com• Track record of developing novel
ingredients for pet food• “In-house” workshop to exchange ideas
under a confidentiality agreement
Nordic Pet Food Events Health & Wellbeing 2017
• NPFE have run 2 successful technical pet food industry seminars: -• 1NPFS (Stavanger, Nov 2015); 80 attendees, 50 companies, 12 countries• 1MPFS (Pula, Oct 2016); 100 attendees, 60 companies, 24 countries
• NPFE Health & Wellbeing 2017, Denmark Q4 2017• 3 sub-themes: -
• Health & Wellbeing - “What are the needs?”• How to meet these needs• How to ensure benefits are delivered to our pets
Humanization of petfood– Implications for raw material supply
- Summary
• Petfood is diverse• Strong global market growth• On-going challenges (customer excellence, regulatory framework, CSR
/ Sustainability) will shape the market• Humanization is key driver of global growth but faces new challenges• Implementation of new petfood ingredients is challenging• SFI / P4F can help MPN develop their market
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