Presented by Mike Tuccinardi

Transcription

1 Presented by Mike Tuccinardi

2 OVERVIEW: A CHANGING MARKET & SLOW RECOVERY Past 15 years ( ) Industry consolidation Economic crisis Slow, but modest gains Overall outlook is good Retail and e-commerce growth Markets stabilizing

3 LANDSCAPE - RETAIL

4 RETAIL MARKET OVERVIEW Large chain stores (Petco & PetSmart) dominate the retail sector Over 40% Market Share by units sold (combined) Small-medium regional chains control much of the remaining business Independent shops represent a declining (but still important) share of the market Novelty Marine/Reef Invertebrates E-commerce is underdeveloped but likely to grow significantly

5 RETAIL MARKET: VISUALS

6 IMPORT/WHOLESALE MARKET Like retail, dominated by a few large importers, distributors or trans - shippers who often sell to smaller regional wholesalers Consolidation continues to impact this market Well-established supply chains and relationships with suppliers Strongly price conscious especially in the marine segment

7 NATIONAL WHOLESALERS 2 main hubs for import: California and Florida Florida primarily freshwater: import, distribution and farming California primarily marine These companies increasingly important due to their links to large chain stores

8 REGIONAL WHOLESALERS Once a major part of the US industry, relatively few regional wholesalers remain in business Of the remaining few, chain store suppliers are generally the highest - volume shippers Significant variation in scale some are large operations while others are relatively tiny Most regional wholesalers rely on trans-shippers for the bulk of their imports but some increasingly import directly to save $$

9 TRENDS IN AQUATICS: OVERVIEW Aquatics industry has always been subject to trends from dyed fish to GloFish to fancy plecos Some trends have permanently changed the market In freshwater, trends can be slow to catch on. Marine trends occur at a much faster pace Chain stores have helped minimize the effects of trends but they too can be influenced Smart exporters will be aware of trends and able to capitalize on them

10 DEMOGRAPHIC & CONSUMER TRENDS From 1990 s to today big changes in both freshwater & marine:

11 DEMOGRAPHIC & CONSUMER TRENDS Consumer market has shifted away from hobbyists Hobbyist profile: Male, years old, maintains 3-5 aquariums And towards lifestyle aquarium owners (especially in freshwater) lifestyle profile: Female, 23-35, children under 6, 1 aquarium (under 10 gal.) This segment has different expectations and buying patterns Not interested in aquarium hobby or breeding Aquarium as décor or living art Convenience and design key drivers Manufacturers and suppliers are still struggling to catch up to this group Less price sensitive overall

12 NANO AQUARIUMS Aquariums from 2-14 gallons have become incredibly popular Driven by lifestyle consumer convenience and design Demographic-driven: apartment dwellers, office workers, <30 years old This trend has been fully embraced by aquarium manufacturers Well-established trend with no signs of slowing down New face of aquarium ownership? Enormous impact on live fish trade likely to continue for years

13 NANO AQUARIUMS AND LIVE FISH Huge demand for species once considered too small for aquaria Market is still evolving and demand is growing as retailers and wholesalers begin to catch up with the times This trend can be a major strategic opportunity for exporters who are able to take advantage of it

14 AQUASCAPING / PLANTED TANKS Popular for years in Japan and Europe, Aquascaping is finally breaking into the US market in a big way The new reef tank? Many think so Tissue culture plants finally seeing acceptance in the market Similar to nano tank trend in terms of impact on live fish market Increased demand for plant-safe species like rainbows, livebearers, Corydoras Plants and mosses a growing category but difficult to break into Heavy restrictions on import to US phytosanitary, etc.

15 FRESHWATER SHRIMP & OTHER INVERTS Freshwater shrimp are quickly becoming a major part of the US market On the verge of breaking into mass-market with large chains evaluating how to include in their selection Aside from hardy red cherry shrimp, the market suffers from inconsistent quality and mortality issues Opportunity for growth Other invertebrates continue to grow in popularity Thai micro spider crab Rabbit snails, nerite snails

16 REEF AQUARIUMS Once a minority, most new marine aquariums will house fish, invertebrates, and live coral Improved technology, all-in-one aquarium kits have driven this change Corals and invertebrates becoming focal points instead of fish Declining market share for fish? Shift toward reef systems has driven intense price competition in the marine livestock trade Fragging, home-based coral culture disrupting market Reef Safe fish predominate Declining market for once-popular large/predatory species

17 SUSTAINABILITY/ECO-FRIENDLY OPTIONS Following a broader trend in the US consumer market, aquarium owners are increasingly interested in sustainability Small but growing influence in live fish/invertebrates Millennials in particular much more likely to make purchasing decisions based on values and perceived positive or negative impacts Large chain stores increasingly under fire to carry more captive-bred or sustainably sourced fish Renewed interest in wild-type fish (freshwater); Push toward captive breeding (marine) Public perception/animal welfare/legislation all pose potential threats to the industry

18 CONCLUSIONS US Market is stabilizing; outlook good overall Some segments are likely to remain flat while others see growth Marine has slowed after years of fast growth, anticipate new growth in freshwater Market trends toward smaller aquariums, changing consumer preferences, and importance of e-commerce all likely to impact US market over the next decade Keeping informed of trends and able to adapt key to long -term success