You are viewing South Asia

The Global Pet Market Outlook and Kemin's Response to COVID-19

Posted April 29, 2020 by By Kemin Nutrisurance

As the world anticipates an “end date” for the COVID-19 pandemic, many of us are wondering what our new normal will entail. The full economic impact on the pet care market will depend on when the pandemic subsides and the severity of its return in the fall. However, as we navigate this unprecedented time, we want to share how Kemin Nutrisurance is adapting to serve our employees, communities, customers and pets around the world. 

Global Pet Market Outlook

Euromonitor International has conducted an initial report on the state of the global pet care market amid COVID-19, summarized in the points below:

  • Short-term stockpiling and risk aversion:
    Early stockpiling by panicked consumers resulted in an unsustainable boost in sales of pet food products. Consumers are likely sticking to trusted brands and familiar products during this time of uncertainty. 
  • Mid-term normalization and immune health focus:
    Sales growth is predicted to slow as consumers maintain enough stock at home. Even as lifestyles return to normal, consumers will have renewed focus on immune support products for themselves and their pets.
  • Long-term e-commerce innovation and pet ownership shifts:
    While quarantined in their homes, more consumers than ever before have used e-commerce, third party delivery services and/or click and collect services. Euromonitor predicts this shift from in-store to digital may be the most significant consequence of the COVID-19 pandemic.
    Another important long-term consequence is shifts in pet ownership. More people in developed markets are adopting and purchasing pets as companions for their new isolated lifestyles. However, emerging markets may see an opposing trend as people abandon pets due to misinformation and/or financial strain. 

Supply Chain Risk

Euromonitor reported pet food supply chains may be at risk due to stockpiling, raw material availability and rising commodity prices. Since Kemin’s role in the global pet food supply chain is critical during this crisis, we have increased our raw material and finished goods inventory. To further manage long-term risk, we have a diverse network of suppliers to help in case of a raw material shortage. Thus far, COVID-19 has not impacted Kemin Nutrisurance’s supply chain.

Employee Safety

Ensuring the health and safety of our employees and customers is top priority, so Kemin has established new procedures for onsite workers during this time, including temperature checks, mask wearing and split shifts. Employees who can work from home are required to do so From our production to  research teams, some Kemin employees still must work on campus to supply essential product to customers. Onsite employees are also part of a newly launched Essential Business Bonus Program, for which Kemin has committed $1 million dollars. 

Serving Our Communities

We are still dedicated to serving our customers with the superior products and technical expertise expected from us, and we are also committed to serving our communities during this difficult time.

In Des Moines, home of Kemin’s global headquarters, we donated nearly 10,000 articles of personal protective equipment (PPE) – including masks, safety glasses, gloves, coverall safety suits and disposable lab coats – to the Iowa Department of Public Health to be dispensed to area hospitals in need. The Nelson Foundation, the philanthropic organization of the Nelson family, who own and operate Kemin, donated $50,000 to the Food Bank of Iowa to provide 200,000 meals to Iowans in need. In Veronella, Italy, the Kemin Nutrisurance team donated €25’000 from their salaries to support the local Legnago hospital. This amount was matched by Kemin.  

Our thoughts are with all those who have been impacted by COVID-19 and our team is available to speak with you and address any questions.