From human-grade ingredients to novel formats and now functional benefits, innovation in pet care is becoming even more sophisticated. As the industry expands through new brands and categories, tracking new product development should be an important consideration for brand innovation strategy. With pet owners adopting a more “health first” approach, pet product innovation is increasingly going down the same route. As a result, the global pet care market is projected to grow at a CAGR of 3% from 2024 to 2029, to reach a market size of USD240 billion by 2029.
Benefits drive innovation and support premiumisation
Health-orientated benefits are increasingly becoming a focal point for pet product innovation. As pet ownership sensibilities evolve towards nutritionally balanced diets and functional benefits for pets, health claims and functional ingredients are increasingly being communicated by brands to highlight targeted benefits. Tracking this development through Euromonitor’s product innovation database, we observe not just new brand and sub-brand launches in this space, but also how they are expanding across retailers and geographies.
For instance, Zesty Paws’ Digestion Cat Mousse was first observed globally online in the US in May 2024 on iHerb. Simultaneously, the product was introduced in France, Germany, Spain and the UK through the retailer. Leading health claims include digestive health, immune system health and high in/source of fibre. Tracking new launches informs us about the volume and variety of innovation flowing into a category. Continued availability and retail and geographic expansion suggest stickiness and success of the product.
Innovation done through the lens of sophisticated attributes is increasingly serving as a medium to deliver premiumised offerings. Supported in part by their unwillingness to compromise on pet wellbeing and in part by the relative inelasticity of consumers in this price segment, demand for premium products with appealing attributes has remained relatively resilient over the past few years.
In the US, premium cat and dog food brand, I and love and you, expanded its cat food portfolio with the launch of Treat Meow™ Squeeze & Thank You. The premium lickable treat was first detected in e-commerce at Walmart in the US. It features different proteins and functional ingredients while targeting the benefits of digestion, immunity, and skin and coat support.
Evolving retail landscape enables access and innovation
Traditionally, access to innovative pet products was limited due to constraints such as limited shelf space and lack of access to in-store infrastructure at grocery retailers. Novel brands have had little to no presence on grocery retail shelves, as leading pet food brands commandeered the pet aisle.
The rise of e-commerce and pet specialist retailers is changing how brands and consumers get to discover one another. E-commerce has helped democratise access to consumers, giving rise to digital-first brands and enabling D2C brands to build their own distribution base. Pet shops and superstores, on the other hand, offer the appropriate infrastructure for storing and displaying innovative formats such as fresh, frozen fresh, freeze-dried and raw. They also offer convenience in terms of serving as a one-stop shop for all things pet. These factors have supported channel growth.
Globally, pet care e-commerce grew at a CAGR of 23% from 2019 to 2024, while pet shops and superstores registered a 7% CAGR over the same period
Source: Euromonitor International
These channels are also becoming the channels of choice for brand launches and retailer expansions. A look at all new product launch events as well as product retailer expansion events from January 2023 to May 2024 shows that, on a global level, Miscota, zooplus and Chewy observed the highest frequency of such occasions. These names also highlight a preference for pet specialists even in the online space.
The pet care market continues to evolve through health-focused innovations and premiumised offerings. Enabled by the rise of e-commerce and pet specialist retailers, brands are now better positioned to bring novel formats and ingredients to a wider audience. A culmination of these factors is driving growth and expansion in the sector.
For a deeper dive into this topic, read our report, Product Innovation in Pet Care, and to explore pet life stage nutrition read, Addressing Pet Life Stage Nutrition Through Need States.
We track new product launches at online retailers across 54 fmcg categories and 32 countries. Contact us here to see which new products have been gaining ground in your category.