- Owners treat dogs and cats as part of the family preferring to cut back on other expenses rather than pet care
- Retail value sales and e-commerce are expected to grow over the next four years as animal lovers look after their pets
- US outperforms other global markets for premium dog food and luxury pet care items
- Brazil and Thailand highlighted as countries with high growth potential for sales growth
LONDON, UK – Pet humanisation and premium products drove global pet care sales up by 5.9% to reach USD197.6 billion last year, according to data analytics firm Euromonitor International.
Volume growth slowed down to 1% as purchasing power was negatively impacted by the increasing costs of living in 2023 and growth in the pet population also slowed down. Pet humanisation and premium products continued to support pet care sales. Pet owners continued to treat dogs and cats as members of the family preferring to save on other expenses rather than on their pets.
Elif Polat, Consultant Researcher at Euromonitor International, said: “Over the next four years retail value sales are expected to continue to grow but at a slower pace. The pet care market remains resilient to the global economic downturn because of consumer loyalty to brands. This is, in part, driven by lower inflation expectations and a stabilisation trend from the peak observed during the challenges of the pandemic in 2020.”
US leads the pet care world while Brazil and Thailand offer the highest growth opportunities
Polat said: “The US is by far the leading country for pet care with wide product variety and high availability in both e-commerce and brick-and-mortar channels. Dry dog food, dog treats and mixers are expected to remain the largest categories by value sales while cat treats and mixers are expected to be the highest growth category with a 4% CAGR in the US, over the next four years.”
Brazil is expected to surpass China with a CAGR value of 7%, due to the boom in pet adoption on the back of the pandemic and growing awareness of preventative health through food leading consumers to buy more premium products.
Thailand is expected to record the highest CAGR value of 9% among the top 10 markets, increasing from a low base and benefiting from pet humanisation, the development of e-commerce and the increase in pet population during lockdowns.
Growing preference for cats over dogs rules in key markets
In key markets such as the US and China, cat food is growing faster than dog food. In 2021, the number of cats surpassed the number of dogs kept as pets.
Polat said: “Cats are easier to look after as they are more independent and suffer less from separation anxiety compared to dogs. This has benefited pet parents who have now returned to the office after the pandemic as they do not need to worry about walkers for their pets or leaving their pets alone.
“In 2024, the global value of cat food is expected to grow faster than dog food, reflecting the new dynamic in the pet population. In markets such as New Zealand and Germany, cats are more popular than dogs and the trend is expected to continue.
“Worldwide, dog food will still account for a higher value share of total pet food sales, with dogs outpacing cats in places such as Latin America. Cat treats are also expected to grow faster than dog treats globally in 2024, as the category is expected to innovate with new launches that address issues such as gut health. This trend is expected to continue supported by higher disposable incomes as inflation is expected to stabilise in major economies.”
Dry food dominates pet food, especially dog food, stemming mainly from being the most widely available option that is usually affordable and convenient. Dry formats have increasingly novel ingredients to cater to evolving consumer sophistication of benefits for their pets as well as to enhance premium appeal while the wet formats are innovating around packaging and presentation through the lens of humanisation.
The premium segment benefits from high brand loyalty while the mid-priced and economy segments increasingly work around higher quality products at a more affordable price. Pet food benefits from pet owners’ holistic approach of when it comes to their pets’ health. Consumers increasingly value products fortified with positive nutrients such as protein, probiotics and vitamins.
Private label expansion has focused on more premium segments. Walmart launched Pure Balance PRO+ which includes high-quality ingredients at a lower price compared to branded products. Players such as Mars and Nestlé have discontinued their economy brands, to invest in their premium ranges.
Online platforms support e-commerce growth and pet shops’ increased offering boosts sales
Consumers’ presence online is growing and as a result pet care companies are partnering with online platforms to increase visibility and accessibility. Pet owners are also embracing digitalisation using smart wearables for their pets as they provide insights about pets’ wellbeing.
Liseth Galvis-Corfe, Consultant Researcher at Euromonitor International, said: “Retail e-commerce continues to grow in 2024 as pet owners value the convenience and variety offered through online shopping. E-commerce increased its share from 17% in 2019 to 30% in 2024. Online sales grew substantially during the pandemic and, since then, there has been an expansion of online platforms and subscription services tailored to pets’ needs.
“In 2023 and 2024, with the increased cost of living, e-commerce offers the advantage of price comparisons, helping pet owners to find promotions and discounts. E-commerce shows the highest growth but the offline channel accounts for higher retail value sales. Pet shops and superstores have the highest share, accounting for 39% of value sales in 2024. The channel is attractive for pet parents, as it also offers services such as grooming and vaccinations that focus on pets' holistic wellbeing.”
Brands incorporate sustainable ingredients to reduce carbon footprint
Sustainable claims continue to grow in the pet care industry as pet owners want to reduce the impact of their purchasing decisions on the planet.
Galvis-Corfe said: “For brands, it is key to communicate steps taken to achieve long-term sustainability goals and to gain consumers’ trust and avoid greenwashing.”
For more insights see the World Market for Pet Care 2024 report.
For further information, please contact:
Euromonitor Press Office
Press@euromonitor.com
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