Boosted by more home-centric lifestyles since the pandemic, pet care real value sales globally grew by 6% in 2021. People spent more time with their pets, and the global pet population rose. Despite toughening economic conditions, pet humanisation is driving the premium segment and dynamic growth in pet healthcare and accessories. Pet owners increasingly favour the convenience offered by e-commerce models, whilst looking for more functional ingredients and sustainable propositions.
This report comes in PPT.
With hybrid lifestyles becoming the new norm, pet owners are spending more time with their pets and are gravitating towards more premium product offerings. Premiumisation is driving wet food growth in developing markets, and frozen varieties in mature regions, as well as therapeutic premium pet food. Premiumisation should translate into higher value growth over the forecast period; however, this will be mitigated by the inflation caused in part by the war in Ukraine.
Pet owners increasingly perceive their pets as part of the family, trying to give them food, products and services similar to those for humans. Brands are responding to this trend with launches of snacks, pet clothes and toys, and making pet food healthier and offering fresh options. This is resulting in growth in the pet care market as a whole, with particularly strong performances by pet treats and mixers, “other” pet products and pet healthcare.
Pet owners embraced the convenience of online shopping during the pandemic, pushing up e-commerce’s share to 23% of global pet care retail sales in 2021. Online stores and subscription services enable the increasing offer of personalisation, while home delivery lends itself to large pack sizes and multipacks of portioned packs.
Similarly to the packaged food market, functional and natural ingredients are making inroads in pet care. Clear and short ingredient lists, with claims that emphasise benefits for health and the natural origin of the products have become essential to positioning in the pet care market. Consumers are increasingly looking for ingredients tackling the specific health conditions of their pets, particularly digestive, joint, heart, dental and skin health, as well as mental wellbeing.
Pet owners are increasingly seeking products that they perceive not only to be better for themselves and their pets, but also for the planet, highlighting huge growth potential for more sustainable ingredients and packaging. Alternative proteins, with insect-based products being a focus of market development, are gaining in the pet food market, amid rising flexitarianism among pet owners. Companies that can seize and invest in this new growth frontier should perform well over the forecast period.
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