Swiss fragrance and flavor giant Givaudan SA is exploring opportunities to enter the rapidly expanding pet food market, potentially through strategic acquisitions.
Givaudan’s Chief Executive Officer, Gilles Andrier, highlighted the sector’s robust growth, noting that consumers are increasingly spending more on their pets than on children. “The sector’s spectacular growth has already benefited our rivals, such as Symrise AG and Nestle SA, which have significant stakes in pet food,” Andrier stated in a recent interview.
To capitalize on this trend, Givaudan is considering acquiring a company that produces pet food ingredients. Such a move would provide Givaudan with “a foot in the space, a starting point,” according to Andrier. However, he acknowledged the challenges in identifying suitable acquisition targets in a competitive market.
Givaudan, listed on the Zurich stock exchange, is renowned for its wide array of ingredients and scents used across household, personal care, and food products. The company, valued at 40 billion Swiss francs ($47 billion), has been expanding its skin care and cosmetics division, which supplies key components like antioxidants, surfactants, and oils to major cosmetic brands including L’Oreal SA. This division has grown both organically and through acquisitions.
Andrier also mentioned that Givaudan has gained substantial market share from competitors such as BASF SE, DSM-Firmenich AG, and Symrise over the past year. His remarks, particularly regarding the company’s expansion in the “active beauty space,” have fueled investor optimism, leading to a surge in Givaudan’s stock. The company’s shares have rallied 50% over the past year, significantly outpacing the Swiss Market Index.
Entering the pet food market could allow Givaudan to develop specialized ingredients, flavors, and products designed to enhance the taste of pet foods, treats, and supplements. The global pet food industry is expected to grow from $320 billion to nearly $500 billion by 2030, driven by a rising pet population and increased demand for premium pet products, according to Bloomberg Intelligence.
Currently, Nestle SA, through its Purina pet unit, is one of the largest players in the pet food market, alongside Mars Inc., General Mills Inc., and J.M. Smucker Co. Symrise recently announced plans to make a mandatory public offer for all shares in SwedenCare AB, a Swedish pet food company in which it already holds a majority stake.
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