Swiss flavours, fragrances, and active cosmetic ingredients manufacturer Givaudan is reportedly planning to enter the pet food market through potential acquisitions.
Givaudan is engaged in manufacturing different types of ingredients and scents that are used in a wide range of household and personal care products, and food.
The company’s skin cream and make-up division provides components such as antioxidants, surfactants and oils used by large cosmetic companies, including L’Oreal, reported Bloomberg.
Givaudan CEO Gilles Andrier, in an interview, said: “People spend more money on pets than kids nowadays. The sector’s “spectacular growth” has benefited rivals Symrise and Nestle, which both have significant pet food exposure.
“An acquisition of a maker of pet food ingredients could help give Givaudan “a foot in the space, a starting point. However, he noted that it can be hard to find the right targets in a highly competitive market.
“Givaudan has in the past year gained substantial market share from its competitors, including BASF SE, DSM-Firmenich AG and Symrise, and is optimistic about the end-of-year results.”
According to Bloomberg Intelligence, the global pet food market is projected to increase from $320bn to almost $500bn by 2030.
The market growth is driven by the increase in the pet population and animal owners increasingly pursuing premium food and services.
Currently, Swiss food company Nestle, through its pet food unit Purina, is one of the largest manufacturers of pet supplies alongside Mars, General Mills and JM Smucker.
Symrise recently announced its plans to submit a public offer for all shares in Swedish pet food company SwedenCare, in which the German chemicals company is a majority shareholder.
Andrier added: “The company’s stock has enjoyed a 50% rally in the past year by far outpacing gains in the Swiss Market Index in the period, thanks to increasing optimism over sales growth.
“Snapping up a company supplying the pet food sector will potentially provide Givaudan with ingredients, flavours and products that are specially designed to make pet foods, treats and supplements taste better.”
