∙ Perfume your world ∙ Trend Watch PET CARE

0 DECEMBER 2019 AT A GLANCE…

Pet owners are increasingly treating their , cats, and even small mammals like members of their family. The opportunity to commercialize this trend into a vast range of goods and services – from pet dating apps to commuter friendly services – is outstanding. Industries like air care and fragrance are experiencing an uptick as consumer lifestyle and life-stage choices change.

Pets are coming into focus as a supplementary symbol of adulthood and also of status.

1 TABLE OF CONTENTS

MARKET FRAGRANCE TRENDS OVERVIEW COLLECTION 1 2 3

2 MARKET OVERVIEW

 what to know

 category overview

 facts & figures 1  product showcase

3 MARKET OVERVIEW - what to know

Facts to consider…

According to the American In 2018, pet care was a Pet Products Association, $225 billion almost 85 million business in North households have a pet and The global pet care industry America, according to market research firm over the last 30 years pet is expected to grow to Edge by Ascential. ownership has gone from $164 billion 56% to 68% of all households. by 2023 – a 31% increase from 2018, according to Euromonitor.

In the US, pet odor motivates 36% Millennials have of aircare users to use products – surpassed Baby Boomers increasing as the generation with the most pets. Millennials 46% among adults 25-44, who are make up the largest segment, most likely to have pets 35% in the home. of pet owners. Source: Mintel, April 2018 Source: Pet Age

4 MARKET OVERVIEW - category overview

Total US Pet Industry Expenditures (United States, 2010-2019)

$80.00 $75.38 $72.56 $69.51 $70.00 $66.75

$60.28 $58.04 $60.00 $55.72 $53.33 $50.96 $50.00 $48.35

$40.00

$30.00 Value (bn USD) (bn Value

$20.00

$10.00

$0.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Estimated

• Pet market sales have steadily increased in the U.S. over past years and will continue to grow as sales can be attributed to the growing number of pet-owning households in the US.

Source: American Pet Products Association 5 MARKET OVERVIEW - category overview

Number of Pet-Owning Households (United States, 2011-2018)

Base: 24,054-22,848 adults aged 18+

• Pet ownership in the US continues to grow, with nearly 74 million households (58% of US households) reporting ownership of at least one pet, an increase of 11% from 2011-18.

• Despite the challenges and added responsibility of owning a pet, the unconditional love and loyalty associated with pets underpins the growing pet population.

• Millennials, a key demographic of pet lovers are delaying traditional milestones, like getting married, buying a house or having children thus boosting this lucrative market. Source: Mintel, Pet Supplies: 2019 6 MARKET OVERVIEW - category overview

Attitudes Towards Pet’s Health & Happiness

SPEND ON PET AND SELECT REASONS FOR SPENDING MORE, APRIL 2019

"Compared to a year ago, are you spending more, less, or • Pet owners are invested in their pets’ health and overall the same on your pet?” -More wellbeing, with 32% of pet owners agreeing that they are spending more on their pet compared to a year "Why are you spending more on your pet this year? Please ago. select all that apply.“

Base: 1,582 internet users aged 18+ who are or cat owners and have • Pet owners’ desire to keep their pets healthy and happy purchased pet supplies influences them to spend more, contributing to market gains. Source: Mintel/Lightspeed • In fact, more than half of pet owners that are spending more compared to a year ago are doing so to keep their pet healthy and/or improve their pet’s quality of life, while 45% are spending more to make their pets happy.

Source: Mintel/Lightspeed

7 MARKET OVERVIEW - facts & figures

Market Segmentation for Pet Care (North America, 2018)

Live Animal Purchases, $2.01bn, 3% Other Services , $6.31bn, 8%

Food Vet Care Supplies/OTC Medicine , Food , $31.68bn, 42% $16.44bn, 22% Supplies/OTC Medicine Live Animal Purchases Other Services

Vet Care , $18.98bn, 25%

• Pet Food was the highest selling pet market product category in the United States in 2018 and is projected to maintain the top spot into 2019.

• The Vet Care segment brought in the second highest revenue, with sales amounting to around $18.98 billion dollars in 2018.

• Other Services include grooming, boarding, training, pet sitting, pet exercise, pet walking, and miscellaneous.

Source: American Pet Products Association 8 MARKET OVERVIEW - facts & figures

Types of Pets in US Households

Horse (North America, 2018) 2% Saltwater Fish 2% The Labrador retriever Reptile has topped the AKC's 3% list of most popular Small Animal breeds in the US 4% since 1991.

Bird Dog 5% Cat Freshwater Fish Dog Freshwater Fish 42% Bird 9% Small Animal Reptile Horse Saltwater Fish Cat 33%

• The ever-increasing pet parent spending and pet ownership trends indicate that not only are more people making pets are part of their family, but that pet ownership attitudes are evolving as well.

• Pets are fast becoming considered family members who deserve plenty of pampering, spoiling and care. Reason being why dogs and cats are the most popular pets.

Source: American Pet Products Association 9 MARKET OVERVIEW - facts & figures

Pet Ownership in the US (2017-2018)

Pet ownership is highest in more rural states. Pet ownership is generally lower in urban states. The 10 states that had the highest percentage of The 10 states with the lowest percentage of pet- pet-owning households were: owning households were:

1. Wyoming (72%) 1. Rhode Island (45%) 2. West Virginia (71%) 2. South Dakota (46%) 3. Nebraska (70%) 3. New York (50%) 4. Vermont (70%) 4. New Jersey (47%) 5. Idaho (70%) 5. Maryland (49%) 6. Indiana (69%) 6. Illinois (49%) 7. Arkansas (69%) 7. Massachusetts (49%) 8. Mississippi (65%) 8. Connecticut (50%) 9. Oklahoma (65%) 9. Georgia (51%) 10. Colorado (65%) 10. New Hampshire (52%)

• Pet ownership is generally higher in rural states like Wyoming, West Virginia, and Nebraska.

• In contrast, highly dense areas like New York, New Jersey, and Connecticut have lower pet ownership rates.

Source: American Veterinary Medical Association 10 MARKET OVERVIEW - product showcase

1. HEALTHY HEMP Healthy Hemp’s CannaKit is a starter hemp kit that contains sample sizes of three hemp products. This is a great way to introduce hemp to a pet, while also finding the best application for your pet’s individual needs. 2. ORGANIC STAIN REMOVER GO by Greenshield Organic Pet Stain & Odor Remover Orange Blossom is the safe and effective way to treat accidents, eliminating the stain and the odor that often lingers behind. Along with being USDA Certified Organic, Greenshield Organic discloses every ingredient. 3. PROBIOTIC TECHNOLOGY Skout's Honor NEW Probiotic Skin Care for Pets is designed to HEALTHY HEMP SKOUT’S HONOR Cannakit Honeysuckle Probiotic Skincare support your pet's natural defenses against shedding, itching, 1 GREENSHIELD ORGANIC 3 dryness, hot spots and odor - for a naturally-balanced and 2 Go Pet Stain/Odor Remover healthier-looking skin and .

4. INTERACTIVE COMPANION BALL Pebby is a new monitoring tool allowing on-the-go pet parents to check up on and even play with their four-legged friends. Using the app, owners can maneuver the Pebby ball to interact with their cat or dog from wherever they are. 5. DOG PERFUME Maschio is a luxurious dog fragrance for the “man of the house” that embodies the ultimate expression of masculinity in an ambience of bergamot, lavender, marine accord, and musk. PEBBY SURE PETCARE 4 Smart Ball 6 Microchip Pet 6. AN INTELLIGENT PET FEEDER Feeder Connect The SureFeed Microchip Pet Feeder Connect monitors the eating behavior of pets. The smart feeder monitors how much and when a pet eats, sending real-time updates directly to the MASCHIO pet owner’s phone. It features integrated scales, which enable 5 Male Dog Perfume owners to provide accurate food portions to their pet. 11 TRENDS

 For Pets

 For Owners 2

12 FOR PETS

13 TRENDS - food

GUT HEALTH

An upswing in claims to support digestive health Putting digestive health at the center of a product’s proposition is rarer still, but the current buzz around this is likely to make such products appealing to pet owners keen to boost the health of their pets. This spotlight on digestive heath is helping to put this facet of healthy eating on more consumers’ radars and boost the desirability of diets which actively support this.

It is no wonder that functional claims relating to digestive FISH4DOGS POOCH&MUTT NATURE’S VARIETY health are on the rise in pet food. Mackeral Morsels Health & Digestion Freeze Dried Digestive Aid Grain-Free Complete Food Raw Boost Mixers

PUPPY SCOOPS

Dogs can now celebrate National Ice Cream Day Doggie cookies, cakes and now ice cream. Companies, responding to dog owners looking for the latest way to pamper their pooch, are pumping out jowl-licking treats modeled after human sweets.

Aldi’s is the latest food chain to release ice cream specifically for dogs. Their new Heart to Tail Dog Ice Cream will have your PUPPY SCOOPS POOCH CREAMERY ALDI dog’s tail wagging with excitement! Ice Cream Mix Peanut Butter Flavored Heart To Tail For Dogs Ice Cream Frozen Dog Treats

14 TRENDS - customization

MODERN PET WELLNESS

Customized solutions for your pet Mixlab provides personalized medications and wellness products for pets. When a prescription is received from a vet, Mixlab customizes the dosage for the pet’s size and type. Mixlab can often give the pet parent the opportunity to have the medication mixed into a flavored treat or other form that’s easier to administer. Mixlab presents its services to vets who recommend it to their pet owners. So far, a majority of the vets who have met a Mixlab representative have recommended it to their pet owners.

PERSONALIZED FUN

Pet subscription box Pupjoy uses technology and data to offer mass customization of pet products. Its first offering is a subscription box that is highly customizable based on users’ preferences and dogs sensitivities and include treats, chews, toys, supplements, accessories as well as products for preventative care. Pupjoy guarantees a retail value in its subscription box that is least double the price paid by the consumer.

15 TRENDS - social

28% PETFLUENCERS of US pet owners agree that they have created or are interested in The growing market of Pet Influencers creating a social media account for their pet The influencer race is taking over the pet kingdom. Accounts Source: Mintel for animals now often outperform verified humans on Instagram. The rise of furry superstars on social media began more than a decade ago.

Today, pet influencers merge the perfect formula of clickbait @mr.pokee and memes and tie that with branding knowhow. Pet celebrities, like Juniper Foxx, Mr. Pokee the Hedgehog, Hamlet The Piggy or Pumpkin The Raccoon, spend their days starring

in endorsement deals worth $2000+ per post. @hamlet_the_piggy

LOVE DOGS? NEED A DATE?

A dating app for single dog lovers Dig is a one-of-a-kind dating app designed to cater to the interests of dog lovers in the dating market. The platform supports single dog owners by offering dog-friendly date suggestions, social events where people and dogs can unleash their fun side, and exclusive deals on pet products.

After a whirlwind year, Dig still has room to grow and help thousands of dog lovers find their packs.

16 TRENDS - pet practices

THE PET EFFECT

The Woofice Research has shown that having pets in the workplace improves productivity, collaboration, and alleviates stress. HABRI or the Human Animal Bond Research Institute released a fun take on how a pet-friendly policy benefitted their company’s culture!

Pet-inclusive workplaces are more likely to attract, engage, and retain employees, HABRI says, and typically result in improved employee satisfaction and interoffice communication and collaboration.

FOUR-LEGGED COLLEAGUES

Mars Petcare opens pet friendly headquarters Mars Petcare has opened its new headquarters in Franklin, Tennessee, dubbing it as the “Pet Friendly Workplace of the Future.” The new building is geared to foster a collaborative working environment for associates and their pets.

Features of the new headquarters include a Wi-Fi enabled dog park with seating areas and room to run, two indoor dog play areas, staffed so associates who may have a busy day can still bring their pets, and coffee bars on every floor that also have automated “slurp stations” for pets. 17 TRENDS - events

UNITING THE PET INDUSTRY Over 9,800 attendees SuperZoo in 2018! SuperZoo is the most-attended pet industry trade show in North America, established by World Pet Association in 1950 as an annual gathering place for the entire industry to connect, learn and do business.

Ever since, the show has continued to grow and it now boasts more buyers and education hours than any other industry event on the continent. SuperZoo has earned its reputation as North America’s premier pet retail event— and the industry’s most productive and vibrant trade show.

PREMIER PET EXHIBIT

Global Pet Expo Global Pet Expo is the pet industry's largest annual trade show featuring the newest, most innovative pet products on the market today. More than 1,000 companies from around the world showcase the latest and greatest products available for all types of pets including dogs, cats, birds, fish, reptiles, small animals and horses. The Show features 16 football fields’ worth of pet products, more than 3,000 product- launches and nearly 300 first-time exhibiting companies.

18 FOR OWNERS FOR OWNER

19 TRENDS - claims

REASSURING SKEPTICAL CONSUMERS Animal welfare is increasingly becoming a strong indicator of how ethical a brand is. Vegan labels Cruelty-free labels

According to the Vegan Society, veganism is "A philosophy and In the animal rights movement, cruelty-free can be applied to way of living which seeks to exclude – as far as is possible and products, brands or activities that do not harm or kill animals practicable – all forms of exploitation of, and cruelty to, animals anywhere in the world. Products not tested on animals are for food, or any other purpose; and by extension, considered cruelty-free. promotes the development and use of animal-free alternatives for the benefit of humans, animals and the environment. In Sozio Clean Fragrance dietary terms it denotes the practice of dispensing with all Sozio has created a collection of Clean fragrances products derived wholly or partly from animals." that are Cruelty-Free and Vegan.

Source: The Vegan Society Ask us about our latest collection!

COMMON CRUELTY-FREE AND VEGAN LABELS Animal-friendly products can carry certifications such as the Leaping Bunny. "Free from animal-derived ingredients" and "suitable for vegans" mentions are also popular.

Cruelty Free International Cruelty-free & Vegan Vegan Society The Leaping Bunny certification PETA’s Beauty Without The Vegan Society label means is the global standard for Bunnies program shows the the product and ingredients do cosmetics, personal care company and their ingredient not contain any animal product, products and household suppliers do not conduct, by-product or derivative and products. However, this does commission or pay for any tests must not involve testing of any not mean the product is vegan. on animals for ingredients, sort on animals by the formulations or finished manufacturers, on its behalf, products, and do not contain or by any third parties. animal ingredients. 20 TRENDS - ethical practices

DITCHING THE FUR

Burberry, Gucci, Tom Ford… the list goes on Fur has long had a complicated relationship with the industry. For some, it’s synonymous with old school glamour and luxury, while for others it represents brutal killing for the sake of vanity. However, there can be no doubt that the industry’s transition to a more ethical, fur-free future has upped its pace in recent years, with anti-fur stalwarts like Stella McCartney, Hugo Boss, Armani, The Kooples, Net-a- Porter and Michael Kors have committed to going fur-free.

This new wave of major brands championing sustainable fashion marks a great leap forward for consumers.

ENDING ANIMAL TESTING

Estee Lauder partners with The Humane Society The Estée Lauder Companies will team with the Humane Society International in efforts to end cosmetic animal testing across the globe.

The corporation signed on to join the animal protection organization’s #BeCrueltyFree campaign, which seeks to give the beauty industry a “cruelty-free makeover with a wave of animal testing bans supported by hundreds of companies and millions of caring consumers worldwide”.

21 TRENDS - air care

In the US, PET ODOR NEEDS pet odor motivates 36% of Catering to odor removal needs aircare users to use products More than one third of US consumers are using air care products to remove pet odor. While pet owners adore their pets, they are not too keen on the odors they may bring into the home, such as personal scents or tracking odor particles from a litterbox or outdoors.

Air care and air treatment brands have an opportunity to widen reach and appeal to pet owners’ needs for products ONE FUR ALL PETS INDIGO WILD FRESH WAVE that remove odors, for a clean and fresh-smelling home. Pet House Candle Y.U.M. Mist Doggie Spritzer Odor Removing Spray Lavender Green Tea Source: Mintel, Insight: Aircare’s Untapped Market: Pet Owners April 2018 Ask about Sozio’s Absorbzio odor-neutralizing technology! AIR QUALITY CHALLENGES

Creating a cleaner, safer pet environment As pet owners prioritize their pet’s health and wellbeing, air care products could lose favor to safer options, like automated indoor air purifiers, which pose less health risks for pets.

Automated indoor air purifiers are increasingly marketed on their ability to filter pollen, particles and air pollutants to provide cleaner air. Meanwhile, a handful of brands are

WINIX ALEN BREATHSMART HAMILTON BEACH expanding portfolios and claims to focus on households Ultimate Pet HR900 FLEX Fur Family Smart TrueAir Compact with pets, for a clean and fresh-smelling home for Air Purifier Bundle Pet Air Purifier pet and owner. 22 TRENDS - household

PETS, THE NEW CHILDREN SAFE FOR PROTECTS SENSITIVE AIDS IN CONTROLLING CHILDREN & PETS PARTS OF PETS BEHAVIOR OF DOGS Untapped market for specialty products As people become more inclined to treat their pets as children or as part of their extended family it means we will see a similar demand for pet safe household cleaners as we have seen emerging for child-safe products in other related categories over the past decade, especially fabric care.

Pets can inspire surface care innovation as owners have emerged as a demographic that are willing to pay EVOLVE THE RESPET CO. SENTRY for sophisticated products and services. Multi-Clean Free & Respet Republic Clean Up Clear Natural of Pets Magic Ultra+Pheromones Ask about Multi-Surface Cleaner Stain+Odor Remover Sozio’s Vegan and Cruelty-Free fragrances for air care and cleaning products! WORRY-FREE INGREDIENTS

Botanical Ingredients emphasize natural positioning Modern lifestyles call for products that care for physical and mental health, which implies the need for safer products. In the US, 67% of adults view cleaning products with natural ingredients as safer.

Meanwhile, we are seeing a growing number of household products made with recognizable and science-backed SEVENTH GENERATION EARTH FRIENDLY EARTH CHOICE ingredients, such as plant-based ingredients or enzymes, Pine & Sage Scented Ecos All-Purpose Cleaner Multi Purpose Spray Toilet Cleaner in response to increasing concerns about harsh chemicals.

23 FRAGRANCE COLLECTION FOR PETS  Pam- purring Remedies

 Paws- itvely Fresh

 Fur- real Ingredients 3  Pet Perfume

24 FRAGRANCE COLLECTION - Sozio analysis FRUITY CITRUS MARINE FLORAL AROMATIC GOURMAND

25 PAM-PURRING REMEDIES

Invigorating and stimulating scents that elevate the spirit and encourage a sense of tranquility.

WILDWASH Conditioning Shampoo Ylang Ylang

SKOUT’S HONOR WELL & GOOD Probiotic Pet Shampoo Fragrance Dog Spray 26 Honeysuckle Lavender FRAGRANCE COLLECTION - pam-purring remedies

Floral/Fruity

TOP Creamy Coconut, HAPPY Sweet Peach, Ripe Raspberry FEEL GOOD MIDDLE TAILS Rose Petals, Violet Leaf, PUR-FECTION Geranium, Palmarosa Lime & Sandalwood Eucalyptus & Sage BASE Sandalwood, Amber, Vanilla Sugar, Cashmere Musks

SZUSM000385 SZUSM000387

Citrus/Fruity Aromatic/Fresh

TOP TOP Zesty Lime, Lemon, Mandarin, Lemon, Fruity, Sea Salt CUTE Bergamot, Sage Leaves MIDDLE MIDDLE Coconut, Peach, CUDDLES Eucalyptus, Petitgrain, Waterlily Spearmint, Rose Petals Geranium & Chamomile BASE BASE Sandalwood, Oakmoss, Vanilla, Musks Woody, Musks

SZUSM000386

27 PAWS-ITVELY FRESH (low/no allergen)

From ears to tail, these refreshing scents are perfect to brighten up the moment.

OUT! Body Mist Clean Cotton

TROPICLEAN WELL & GOOD Waterless Fragrance Dog Spray 28 Cat Shampoo Lavender FRAGRANCE COLLECTION - paws-itvely fresh (low/no allergen)

Floral/Green

TOP Green Apple, Rhubarb, Watery Greens

FURRY MIDDLE SOFT Waterlily, Muguet, FRESH Rosewater, Peony WHISKERS BASE Sheer Musks

SZUSM000388 SZUSM000390

Aldehydic/Floral Fruity/Floral

TOP TOP Fresh Cotton, Cucumber, Mandarin, Aldehydes Melon, Dewy Greens

MIDDLE PURE MIDDLE Rose, Violet, Aloe Nectar, Jasmine, Neroli PET Cyclamen, Violet Leaves BASE BASE Vanilla Woods, Fresh Musk, Powdery Musks Sheer Vanilla

SZUSM000389

29 FUR-REAL INGREDIENTS Gentle ingredients that are not only purposeful, but wholesome to your furry one.

WAHL Waterless Shampoo Oatmeal Formula

WILDWASH WELL & GOOD Conditioning Shampoo Fragrance Dog Spray 30 Manuka + Lavender + Aloe Vera Jasmine & Aloe FRAGRANCE COLLECTION - fur-real ingredients

Fruity/Gourmand

TOP Papaya, Mango, Peach

PAWSOME MIDDLE PEACH Coconut Milk, VANILLA Banana Leaf, White Floral PLEASE BASE Honey Nectar, Vanilla, Heliotrope, Musks

SZUSM000391 SZUSM000393

Gourmand/Oriental Fruity/Floral

TOP TOP Honey Nectar, Peach Nectar, Almond Milk Green Apple

MIDDLE FUR-EVER MIDDLE Shea Butter, Rose, Jasmine, Magnolia Petals PAPAYA Cyclamen, Leafy Greens BASE BASE Sweet Vanilla, Coconut, Sheer Musk Almond

SZUSM000392

31 PET PERFUME

Appealing and charming perfumes formulated for your pet to leave them smelling great all day long.

DOG FASHION SPA Male Dog Perfume Maschio

DOG FASHION SPA Female Dog Perfume 32 Femmina FRAGRANCE COLLECTION - pet perfume (female)

POOCH SASSY SMOOCH KITTY

SZUSM000394 SZUSM000395

Fruity/Oriental Floral/Fruity

TOP TOP Bergamot, Sea Salt, Dewy Greens, White Tea Leaves Peach, Apple, Citrus

MIDDLE MIDDLE Camellia, Honeysuckle, Magnolia, Jasmine Petals, Soft Rose Peony, Rose, Lily

BASE BASE Golden Amber, Woody, White Musk, Tonka Bean Musks

33 FRAGRANCE COLLECTION - pet perfume (male)

FRISKY DOGGIE FELINE DAZE

SZUSM000396 SZUSM000397

Marine/Aromatic Aromatic/Woody

TOP TOP Zesty Orange, Lemon Zest, Fresh Citrus, Marine Petitgrain, Aromatic

MIDDLE MIDDLE Aromatic, Thyme, Rosemary, Aquatic Floral, Leafy Greens Eucalyptus, Fir Needles

BASE BASE Woody, Rosewood, Vetiver, Musks Amber, Oakmoss, Musks

34 ∙ Perfume your world ∙

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