Here’s how investors can play the pet nutrition market on the ASX
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The increasing adoption and personification of pets presents several opportunities for ASX investors, and one of these is in the pet nutrition space.
IBIS World estimates the total pet market is $13 billion and pet nutrition accounts for $2.9 billion. Furthermore it is estimated that 61% of all Australian households own pets.
Although there are only a handful of ways to place the pet nutrition space, the options for ASX investors are substantially greater than 12 months ago.
One recent entrant is The Sustainable Nutrition Group (ASX:TSN) – formerly known as Australian Primary Hemp.
It is arguably best known for being one of the few ASX cannabis stocks to get products to the market – in the form of hemp protein bars.
But the company recently launched a range of pet supplements products – Field Day – and these are being rolled out across major pet store brands and independent retailers.
And TSN boss Neale Joseph says his company plans for more pet nutrition products and to eventually launch these products overseas.
“In Australia it [the pet supplements market] is quite a small market but in most other international markets – the United States, Europe and Asia – it’s probably the fastest growing segment,” he told Stockhead.
“We believe it’s a segment that has been under-developed in this country so we’re focusing in our pets strategies supplements and treats. They’re the only areas we’ll been in.
“We have built and are fine-tuning a significant range increase which we think will accelerate our position in the market in the coming year.
“It’s a good start, it’s small but it’s growing as we planned and our plans are for it to continue to grow as we move forward.”
Another ASX stock in the pet nutrition space is Mad Paws (ASX:MPA).
This company, traditionally a pet care service, only listed in March but in June acquired Waggly – a company that provides monthly subscription boxes with dog treats and toys – tailored to a dog’s age, chewing needs and size.
Mad Paws also offers a pet food subscription service called “Dinner Bowl” which focuses on healthier food as well as a pet sitting service and pet insurance offering.
Of course if you want advice on pet nutrition, one ASX company that might be able to help is Apiam Animal Health Limited (ASX:AHX) which specialises in veterinary services.
It is the only one left on the ASX after National Veterinary Care (ASX: NVL) and Greencross Limited (ASX: GXL) were acquired.