At the beginning of last summer, the National Association of Companies for the Food and Care of Pet Animals (Associazione Nazionale tra le Imprese per l’Alimentazione e la Cura degli Animali da Compagnia, Assalco, in Italian) met in assembly in Milan to renew its associative bodies. During the session, Giorgio Massoni was elected president until 2026. He follows Gianmarco Ferrari, who was in office for two terms, since 2014. Veterinary doctor by training, Giorgio Massoni has always held high-profile positions in important companies in the pet food sector. A few months after his election, we met him on the eve of Zoomark 2023 to take stock of the sector and to gather some considerations on both current situation and market prospects.
The Assalco-Zoomark 2023 Report shows a good market trend despite the critical issues of this period.
Among the numerous activities of Assalco, one of the most important is certainly the publication of the annual Report on Nutrition and Care of Pet Animals. This year it has reached its 16th edition. It is a fundamental document that offers operators in the sector as well as national and foreign press a general overview of the economic trends of this market, main trends, and the most recent news on pets in Italy. During 2022, the dog and cat food market, like most of the Packaged Consumer Goods categories, was subject to a significant inflationary trend, which generated an increase in turnover by +11.4%, but accompanied by a significant slowdown – compared to the trend of the last two years – in the growth of sales by volume, equal to +0.8%.
As regards the other categories under investigation (feed for other animals, animal accessories, and litter), examined only in the large-scale distribution, feed for other animals show an increase by +5.6% in value. The accessories market (hygiene products, antiparasitics, toys, leashes, kennels, bowls, cages, aviaries, aquariums, turtle tanks, and various utensils), too, confirms its growth by +3.2% compared to last year, as that of cat litter did: in the year ending in December 2022, these products developed a turnover growth by +9.7%.
How do you evaluate these results?
My personal assessment of these results is that this positive trend is a consequence of the increasingly central role that pets have in Italian families. In our Country there are almost 65 million pets, an important number, proving the fact that having a pet at home represents an element of companionship and affection. The role they play within our families is absolutely that of active members. There are many families with children, for example, who adopt a pet, and in the relationship with the latter children become more responsible. However, as it is now known, pets also have a beneficial role for the elderly, allowing them to remain active, and for singles, who find in pets – as well as company – also an opportunity to socialize.
What expectations do you have for this year and for the one to come?
For 2023, expectations are certainly positively influenced by the extremely surprising trend recorded by Zoomark International, which saw the number of exhibitors double compared to the 2021 edition. More generally, for the next few years, because of the difficult historical moment both Italian families and productive world are experiencing, it is difficult to make predictions. Italians certainly will not forget the many benefits of having a pet in their family, as well as the importance of ensuring a quality and balanced diet for their pet. The hope is that the issues relating to increases, in particular of raw materials, will be resolved. In such a scenario, our sector will continue to record positive trends.
How can further growth of the sector be promoted?
Further market developments could come from the revision of the VAT rate, which would represent a great help for Italian families. Precisely because pets are an integral part of families and of our society, we believe that their food and veterinary services should be considered as indispensable goods and not be burdened by a VAT rate of 22%, the one of luxury goods. In other Countries, for example in Germany, VAT is 7%, a third of that paid by Italians.
What is Assalco’s importance on the market today?
The association currently represents over 85% of the national market for pet food. In other words, it brings together the main companies in the pet food and pet care sectors in Italy, which produce or market pet food and products for their well-being, care, and hygiene. Giving voice to almost all of the national market in the sector, Assalco proposes itself as a privileged interlocutor of the public administration, institutions as well as bodies, associations and both natural and legal persons, who direct their purposes and interests to pets. In June 2022 I was elected President of Assalco, but already in the past I had the opportunity to actively appreciate the associative life, both in the role of Director and as an associate. I consider it an active and concrete presence alongside member companies in their daily activities, which is able to provide advice and, through information circulars, access to the website, and direct advice, guarantee a constant and updated flow of information to support production and marketing.
What benefits can a single company have by joining Assalco?
I believe that Assalco is an essential support for companies that operate in the production and marketing of pet food and accessories for their care. In fact, joining Assalco allows companies to improve their operations and, at the same time, to participate in the protection of the industry of the sector through interaction with other associated companies, institutions, and stakeholders. Assalco has, among its objectives, the one of being a continuous source of information for its members on the key topics of the category. Through specific discussion forums, we want to build a common knowledge base.
What about possible alliances?
The punctual support through activities and services offered to member companies is also possible thanks to the interaction both with the other Italian associations for issues of common interest, and with Fediaf (‘Federazione Europea dell’Industria degli Alimenti per Animali da Compagnia’, European Federation of the Pet Food Industry) and with the other associations involved in the industrial production of pet food present in the other member States. Constant dialogue allows us to anticipate issues that could impact the membership base. Associates appreciate individual technical advice in response to specific company issues, complementing the information sent to the entire membership base through circulars and notes of interest. Company resources can find support in the Association to pursue the correct application of all the regulations governing the sector.
And what about internationalization?
We cannot forget that Assalco is the only Association that represents the Italian pet food industry in the EU institutions through Fediaf – European Pet Food (European Federation of Pet Food Industry). This allows, on the one hand, to give voice to the needs of the Industry operating on the national territory, on the other hand, to benefit from information, promptly communicated to the members, on the work in progress at the European institutions. At the same time, it makes it possible to contribute to the issuing of regulations suitable for the sector and to the harmonization of the rules that govern it.
Assalco offers support in activating official procedures for exports and in resolving specific issues relating to foreign markets, thanks to the collaboration with the competent ministries and embassies. A weekly press review is sent to the membership base. It allows constant monitoring of relevant issues for the sector. The continuous training of operators is also supported by the organization of in-depth events, such as those concerning pet food labelling in coordination with the Ministry of Health. Another important aspect is the comparison between companies, which takes place within the Technical Committee and the Community of Communicators – made up of representatives of the member companies – as well as in the working groups specifically set up for specific issues of impact for the sector.
At an institutional level, what do you think have been, and are, the most relevant steps forward to raise the role of pets in the family and in Italian society?
In recent years, the institutions have recognized the importance of animals in our society, for example through the inclusion of their protection in the Italian Constitution in 2022. At the same time, numerous requests are being brought forward by the Parliamentary Intergroup for Animal Rights and by animal rights associations to promote full recognition of the role of pets in Italian families and society. I am referring especially to the request to amend the Penal Code in order to include abandonment into the discipline of the crime of ill-treatment and to punish more severely those who mistreat or kill an animal. I also recall a proposal by Ms Brambilla aimed at including pets in the family status, to formally recognize what the owners already know, i.e. that pets are family members in all respects.
Among other things
Assalco associates are supported in their dialogue with the national Authorities (both central and local ones) and with research organizations, such as the National Institute of Health and the network of Experimental Zooprophylactic Institutes.
Through Fediaf, Assalco adheres to Gapfa, the Global Alliance of Pet Food Associations, which promotes the harmonization of health standards on a global scale and therefore the commercial exchanges of safe products worldwide.
VAT
Pet foods are essential goods, and veterinary services are essential to protect the health of pets and the families who host them: hence the urgency to lighten the tax burden and the request that we address to the Government to relocate these products and services in the 10% preferential VAT.
Assalco has always worked to enhance the benefits offered by industrial foods, promoting their use to best meet the nutritional needs of pets. It also works to promote and protect the image of industrial foods and pet care products.
