As inflationary pressures are continuing to impact consumers from a variety of perspectives, pet owners in particular are feeling hard hit as pet food suppliers are continuing to raise prices in response to a variety of cost-push and demand-pull drivers.
The pandemic has raised pet ownership rates, particularly cats and small dogs in Asian cities, alongside improving attitudes towards pet care. However, inflationary pressure on the cost of living will drive cautious spending among consumers, raising the need for a clear value positioning. Pet parents switching from table scraps will also seek nutritional benefits from retail pet food, hence casting a focus on functional ingredients and nutrition.
Over the last few years, emerging or developing markets have steadily become important pockets of growth for consumer packaged goods companies. To grow further in these markets, this article talks about those consumers who are willing to pay more when purchasing essential items.
We give an APAC market overview, highlighting the ultra-premium nature of the Hong Kong pet market and focus on the drivers behind the demand for premium pet products, especially pet healthcare products.
Euromonitor International forecasts that Latin America will be the region with the highest rate of inflation in 2022 at 15.1%. Consumers are generally expected to exhibit increasingly price-sensitive behaviour when shopping for home care products. They are expected to purchase in bulk and look for promotions and discounts more frequently.
The US is the world's highest value pet care market, but as with so many countries, its future growth potential faces very real challenges posed by rising inflation and tough choices when it comes to consumer spending.