Global Top 10 Pet Food Companies' Performance Revealed: Nestlé Ranks First

On August 13, DoNews reported that in July, the international food giant Nestlé officially released its financial report for the first half of the 2024 fiscal year. The company's total revenue was 45 billion Swiss francs (approximately RMB 365.141 billion).

Among them, the first major business, the "Powder and Liquid Beverages" business, had a revenue of 12.041 billion Swiss francs in the first half of the year, a year-on-year increase of 2.8%; the pet business revenue was 9.452 billion Swiss francs (approximately RMB 76.7 billion), a year-on-year increase of 3.8%, achieving mid-single-digit growth, making it Nestlé's "second largest business".

The pet food track has always been a highly concentrated market. According to data from 23, the top ten global companies account for 39.2% of the global market total revenue, with the U.S. market accounting for 40.7% of the global market total revenue. The headquarters of the top five global food companies are all in the United States, clearly demonstrating the U.S.'s dominant position in this industry.

According to the financial reports of various companies and the research results of the foreign data company WATT Global Media, in 2023, Nestlé Purina topped the pet food industry with its in-depth research and continuous innovation in pet nutrition and health, while Mars Petcare fell to second place.

As the only two companies in the industry with over 10 billion U.S. dollars in revenue, the competition between Nestlé and Mars is undoubtedly driving the development of the entire industry. Looking at the financial reports for the 23 fiscal year disclosed by major pet food companies globally, the list of top pet food companies as a whole has not changed much, but there have been some subtle changes in annual revenue rankings.

According to WATT Global Media's data research for reference, last year Mars Petcare's sales in the pet care sector were around 20 billion U.S. dollars. In comparison with this data, in the over 10 billion U.S. dollar category, the positions of Nestlé and Mars have swapped; in the 10-20 billion U.S. dollar category, Hill's remains in third place; General Mills had 23 billion U.S. dollars two years ago, ranking fifth, climbing to fourth with 25 billion U.S. dollars in sales for 23; Diamond Pet Foods maintained 15 billion U.S. dollars, but rose from sixth to fifth place; J.M. Smucker's revenue in 23 was only 15 billion U.S. dollars, down 12 billion from 27 billion in 22, falling from fourth to seventh place. The main reason for this decline is likely the divestiture of pet food brands such as Nutrish and 9Lives, which are expected to have a net sales of 15 billion U.S. dollars.

Purina remains in ninth place, while Unicharm is the only company listed in the Asia-Pacific region. Alphia is embroiled in legal disputes with partners due to investment and financing issues.

As a subsidiary of Colgate-Palmolive, Hill's Pet Business Unit also performed well this year, achieving revenue of 2.216 billion U.S. dollars in the first half of 24, a year-on-year increase of 4.68%. In the second quarter, revenue was 1.114 billion U.S. dollars, a year-on-year increase of 5.49%. In terms of profitability, the profit margin of the pet business in the first half of the year was 19.54%, an increase from 17.67% in the same period last year, especially in the second quarter, where a profit of 235 million U.S. dollars was achieved The profit margin is 21.10%, a significant increase from last year's 18.09%.

The improvement in these data is not only achieved by increasing advertising investment and raising prices, but also by improving the combination of prescription, diet, and wet pet food products, enhancing scientifically based products, creating a product matrix, and increasing sales through multiple channels.

In contrast to Nestlé and Hill's, General Mills' dry and wet pet food experienced a single-digit decline in the past 12 months. From May 2023 to May 2024, the net sales of General Mills' pet department decreased by 4% year-on-year, reaching $2.37 billion (approximately RMB 17.2 billion). In comparison, the net sales of this department last year were $2.47 billion (approximately RMB 17.9 billion).

Although General Mills' dry and wet pet food data declined, the department's operating profit increased by 9% to $486 million, mainly due to cost savings from HMM and favorable net price realization and mix, partially offsetting the impact of declining sales, rising supply chain costs, and other expense increases