Product Innovation in Pet Care

Delivery

This report comes in PPT.

Key Findings

Moderating rate of innovation, but industry remains lucrative

After years of rapid innovation across formats, formulations, packaging and communication, the rate of pet care innovation has been moderating over the past year. Despite resilience of consumer demand to pricing challenges, the industry is facing headwinds due to continued economic challenges and compounded price hikes. However, over the longer term, pet care is expected to remain a relatively well growing industry, supported by factors such as pet humanisation and premiumisation. Product innovation will serve as a catalyst of growth.

Benefit spaces are driving innovation and supporting premiumisation

Brands today are increasingly innovating around pet health benefit spaces. 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 health benefits. Innovation through this lens is not only driving the pet health and wellness trend, but also supporting premiumisation efforts.

Online and offline pet- focused retailers a preferred channel

Pet owners are shifting away from grocery retailers to more specialised channels such as pet shops and superstores or online platforms. Access to variety, innovative offerings and all things pet under one roof influences their choice of channel. In the online space, markets that have a well-developed pet specialist online retailer appear as the preferred launch platform for brands as well.