Another year of decline for the Greek pet care market
The Greek pet care market is set to register a negative performance for the fourth consecutive year in 2014 as the recession hinders spending on all non-essential items. With disposable incomes having declined considerably and consumer confidence at very low levels, it comes as no surprise that Greeks have been reluctant to spend on their pets. Pet ownership fell in 2013 and continues to decline in 2014, which is being reflected in a general decline in pet food volume sales. Even steeper is the decline in value terms as ever more pet owners seem to be willing to compromise on quality and trade down to cheaper products in order to save money.
The recession shapes consumer attitudes towards pets
The key story in 2013 was the ongoing recession, which has resulted in significant changes in consumer behaviour. Pet owners are reducing their spending on their pets, with only 10% of those owning a pet still willing to spend lavishly on it. Premium pet food is seeing a steep decline in this context, along with sales of items of secondary importance, such as accessories of various kinds. The economic downturn has led to changes in pet ownership, with Greeks increasingly opting for pets with lower maintenance costs, such as small dogs or other pets such as rabbits.
More players enter the market despite the economic downturn
In spite of the minimal profit potential of marketing pet care products in Greece and the fact that all players have been witnessing a decline in sales, ever more brands are appearing in stores. Paradoxically, over the past few years the number of importers of pet care goods has been on the rise, perhaps in response to increasing unemployment in the country which has resulted in Greeks looking for alternative sources of income and work. This has resulted in the market becoming more fragmented and competition intensifying as most of the new products entering the market have an economy positioning.
Internet sales are gaining momentum
Alongside Pet City, the leading pet superstore chain which launched an e-platform in 2012, a number of distributors and importers are starting to sell their products online as this allows them wider distribution and the possibility to offer their products at more competitive prices. Numerous pet shops are also launching e-platforms to expand their clientele beyond the areas where they are based, while many of those operators which have been forced to shut down their premises because they could not cope with the pressures of the recession are also opting for e-sales. In this context, non-store retailing is performing very well, taking share from both the grocery and specialist channels.
Forecast remains gloomy
Given that the economic situation in the country is not expected to show signs of recovery and with unemployment remaining very high in Greece, the pet care market is also not set to see an upturn in the short term. Growth is set to remain negative in the coming years as Greeks are expected to remain reluctant to spend on goods they see as non-essential, while having a pet will be one of those things that will continue to be seen as a luxury during a period of financial uncertainty. Premium products are unlikely to see positive growth as Greeks will continue to opt for goods which are sold at low prices. Pet ownership will also continue to drop, albeit at a slower pace in comparison to the review period. Economy brands will remain the best performers in terms of growth, while ever more players will be forced to drop prices in order to sustain sales.
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The Pet Care in Greece market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Pet Care in Greece?
- What are the major brands in Greece?
- How did the downturn affect pet care spending?
- Which is the best-performing category within pet care?
- Which is the fastest-growing pet food manufacturer?
- How have pet specialists fared in recent years?
- What are growth prospects for pet care in the next 5 years?
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- Gain competitive intelligence about market leaders
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This industry report originates from Passport, our Pet Care market research database.