Premiumisation in Pet Care: Inflation and Beyond

October 2023

The premiumisation trend in the global pet care industry brings forth new opportunities for industry players. Inflationary pressures create a challenging environment in the near term, but long-term prospects are expected to support premiumisation efforts. This report explores how premium value propositions are being deployed in the space of pet nutrition, newer food formats and human-pet experiences.

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Key findings

Inflationary pressures impact pet care but premium offerings remain resilient

Pet care has not been immune to the impact of inflation. Price rises in the industry have had a polarising effect. While trading down was observed, those feeding their pets premium food continued to do so supported by relative price inelasticity in this segment. Continued demand for premium products supports continued development of this segment. Value propositions are critical to premiumisation efforts as they help demonstrate the value added to a consumer.

Different aspects of nutrition provide avenues to demonstrate a clear benefit

Focus on pet nutrition is evolving with human health preferences bearing significance on pet diet decisions. Looking beyond calorific intake, factors such as health benefits, life stage- appropriate diets and targeted nutritional offerings not only help create differentiated products but also demonstrate a clear benefit to consumers in search of products that prioritise pets’ health and wellbeing.

Pet humanisation drives innovation in formats that mirror human food

Humanisation drives innovation in premium wet pet food. Formats that resemble human food and new processing methods (raw, fresh cooked, new wet) continue to gain attention among pet parents as they want to offer human-grade ingredients to their pets. Retailers are increasing their offer of these products through partnerships with innovative brands that offer customised meals according to pets’ needs.

The human-pet bond presents opportunities for curating elevated experiences

Experiences play a pivotal role in the premiumisation of pet care. Curated offerings, unique interactions and shared moments aid in strengthening the human-pet bond. Premium experiences not only cater to pet owners’ desire for the best for their pets but also reinforce the emotional bond between owners and their furry companions.

Scope
Key findings
Inflationary effect and its impact on pet care
Pet humanisation supports demand for premium despite inflationary pressures
Appeal of premium attracts new launches and new players
Continuing appeal of premium beyond inflationary headwinds
Continued humanisation of pets to support demand of premium products
Value propositions are key to drive premiumisation
Human health and wellness trend influences pet dietary choices
Communicating health benefits through product claims
Pet food brands communicate health-related value added
Life stage nutrition: Different feeds for different needs
Life stage nutrition offerings lend to a nuanced and differentiated product portfolio
Targeting specific needs through nutrition
Nutrition-driven value proposition can demonstrate a clear benefit
Global share of wet pet food increases despite higher prices compared to dry pet food
Retailers increase their offer of wet pet food
New forms of wet food processing are gaining momentum
Wet cat food is expected to grow faster than wet dog food
Humanisation drives innovation in wet food
A variety of formats can contribute to future growth
Understanding the potential of retail channels in offering a premium experience
Convenience leads in enhancing consumer experience with subscription models
Experiential benefits help consumers find value behind premium tag
Pet shops and superstores invest in elevating in-store experience
Enhancing bonding experiences through treats
From sharing occasions to interactive experiences, offerings are becoming experiential
Human-pet bond a key component of premium experiential offerings
Looking ahead
Key findings

Pet Care

This is the aggregation of pet food and pet products.

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