Swiss fragrance and flavor giant Givaudan SA is contemplating a move into the pet food market, potentially through acquisitions, to capitalize on the sector’s rapid expansion. Chief Executive Officer Gilles Andrier highlighted the market’s growth, noting that spending on pets often exceeds that on children.
Andrier suggested that acquiring a company specializing in pet food ingredients could provide Givaudan with a valuable entry point into this burgeoning sector. However, he acknowledged the challenge of identifying suitable acquisition targets in a competitive landscape.
Givaudan, which operates in a range of industries including food, household, and personal care products, has seen significant growth in its skin cream and make-up division. This sector has been bolstered by both organic growth and acquisitions, with Givaudan supplying ingredients such as antioxidants and surfactants to major cosmetic brands like L’Oréal SA.
In recent developments, Givaudan has gained substantial market share from competitors such as BASF SE, DSM-Firmenich AG, and Symrise, reflecting positive prospects for its end-of-year results. The company’s stock has surged 50% over the past year, significantly outperforming the Swiss Market Index.
Givaudan’s potential foray into the pet food industry could enhance its portfolio with ingredients, flavors, and products tailored to improve the taste and quality of pet foods, treats, and supplements. Bloomberg Intelligence projects the global pet food market to grow from $320 billion to nearly $500 billion by 2030, driven by an increasing pet population and demand for premium pet products.
Currently, Nestlé’s Purina, Mars Inc., General Mills Inc., and J.M. Smucker Co. are major players in the pet food sector. Symrise is also expanding its presence, recently announcing plans to acquire SwedenCare AB, a Swedish pet food company where it is already a majority shareholder.
