Mars Petcare Australia says its $112.6 million investment in its Wodonga plant, will create 60 new jobs and bring pet food manufacturing onshore.
A 7800 square metre manufacturing facility will house two advanced Single Serve Pouch lines to produce for Whiskas, Advance, Optimum, Dine, and new product ranges. It will have an annual 25kT capacity, or 290 million pouches.
Construction of the new facility next to the existing Wodonga factory has begun and is set to be fully operational by mid 2025.
Mars Petcare Australia general manager Craig Sargeant said the investment reflected the company’s commitment to source and manufacture most of its portfolio onshore.
Craig Sargeant.
“This significant investment will allow us to respond to pet trends including the continued rise in cat ownership – growing at nearly four per cent per year – more than twice as fast as our dog population.
“We’re also seeing increased demand for convenience, with pouch products representing half of the Australian wet cat food market and growing at nearly 10 per cent per year,” Sargeant said.
According to IBISWorld, more than two-thirds of Australian households own at least one pet. The trend towards pet humanisation accelerated during Covid, with the amount households spend on their pets buying human-grade pet food, designer outfits and toys still on the rise.
The research company forecast pet wellbeing and premiumisation trends to create opportunity for growth over the next five years as the pet population is increasingly pampered.
Health and wellbeing are top trends for pets as well as for people. IBISWorld said dietary supplements and preventative healthcare medications are contributing to the rise in pet expenditure.
A survey by petfoodindustry.com found in 2022, Australians spent $33.2 billion on their pets and 51 per cent of that ($17 billion) was spent on food.
Mars Petcare said that pouch products have the largest share (53 per cent) of the Australian wet cat food market and show significant growth - 19 per cent year-on-year.
The company said its aim is to develop packaging that is 100 per cent reusable, recyclable, or compostable while decreasing virgin plastic use by 25 per cent.
The Wodonga site has been working to reduce the environmental impact across its supply chain. “Shifting our operations from Thailand will provide a considerable reduction in freight emissions,” the company said.
Its water usage has dropped by 31 per cent since 2015, and it has reduced waste by 20 per cent since 2016. The company also has a long-term power purchase agreement with the Kiamal Solar Farm in Victoria.
Because of the project’s scale and positive impact on the local economy, Mars Petcare also received a funding grant from Regional Development Victoria.
Minister for Regional Development Victoria, Harriet Shing, said: “As pet ownership continues to increase there are enormous opportunities for businesses like Mars to expand. We’re continuing to work with rural and regional producers to support investment in growth industries, to cement Mars Petcare’s long-term operations and workforce in Wodonga and its place in a strong market.”
