Sales of pet care products decline amidst the carnage of economic recession
As the economic downturn rumbled on in 2012, pet care declined in both value and volume terms in over the course of the year. The declines accelerated in value terms as a result of the rising demand for cheaper products at the expense of premium brands. Dog food performed better overall than cat food as a result of cat ownership declining at a faster rate. Dog ownership was only marginally affected by the economic crisis as the need for companionship intensified among the Greek population as many cash-strapped Greeks can no longer afford to go out or meet with friends on a regular basis.
Humanisation trend subsides as the economic downturn begins to take its toll
With disposable incomes being squeezed dry and many of Greece’s hard-pressed consumers forced to cut down on spending across the board, it comes as no surprise that the pet humanisation trend has begun to subside. The economic crisis hit the country at a point when the pet humanisation trend had already started to gain momentum. There is remains a niche of affluent Greek consumers who have not yet been severely affected by the economic downturn who continue to spend lavishly on their pets, although these consumers account for less that 10% of overall pet owners in Greece. In general, the proportion of pet owners who see their pet as a fully-fledged part of the family is rather low in comparison with other Western countries.
Imported products continue to account for the bulk of sales in pet care
Although a number of domestic companies produce dog and cat food, namely Th Nitsiakos ABEE, Viozois SA and Laky SA, among others, pet food in Greece remains dominated by imported products. This can be partly attributed to high brand awareness as no domestic pet food manufacturer has yet managed to establish a strong brand name or widespread distribution. Another reason for low value shares of domestic players in pet food is that most of them focus on economy products, whereas premium brands were the main beneficiaries of the rise of the pet humanisation trend over the course of the review period.
Specialists remain the leading distribution channel
Although the proportion of pet care products sold through grocery retailers channels is increasing in some pet care categories in line with the rising demand for private label in Greece, pet specialist retailers maintained the lion’s share of pet care sales in 2012. Sales of pet care through veterinary clinics declined in 2012 as a result of numerous Greek pet owners reducing the frequency of their visits to the vet. Pet shops and pet superstores are still the channels which offer the widest ranges of pet care products and these channels also have the competitive advantage of being able to offer specialist advice, something which is particularly highly valued as Greek pet owners are slowly reducing their numbers of visits to veterinarians. The influence of grocery retailers in sales of pet care, however, was also negatively affected by the liquidity problems faced by grocery retailer Carrefour during 2012, which resulted in many products being unavailable on the shelves of Carrefour outlets during 2012.
Gloomy forecasts for Greece’s economic future have not yet subsided
Although many industry experts predict that pet ownership will continue to rise in Greece over the forecast period as a result of the economic recession, growth forecasts for pet care remain rather gloomy. On the one hand, many Greeks will be forced to spend more time at home and any plans to have children and start a family are likely to be postponed, hence it is possible that many Greeks might decide to fulfil their need for companionship through pets, although given that the economic situation in Greece is only expected to deteriorate in the near future, it highly unlikely that this will have a positive impact on sales of pet food.
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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.