Consumers and industry players in Asia Pacific, Latin America, Middle East and Africa and Western Europe are being faced with high inflation rates – dramatically so in countries like Argentina and Turkey. However, nothing seems to be able to stop the premiumisation and pet humanisation trends in the pet care industry. While some of the most badly impacted consumers might consider trading down to economy brands, private label lines or even black-market products, many owners will continue trying to buy the best for their pets, with nutrition and pet health top of mind for most pet food shoppers.
Even against a backdrop of high inflation rates, nothing seems to be able to stop the premiumisation and pet humanisation trends in pet care
While consumers might currently be struggling with inflationary pressures, many still continue to prioritise product quality. This is especially the case as owners become better informed about their pets’ needs. The market response to heightened consumer awareness is reflected in product development in pet care, with pet food players marketing more “natural” and even “human-grade” pet food products. While volume sales might therefore struggle at the start of the forecast period, particularly in Middle East and Africa and Western Europe, given the global inflationary environment, value growth – even in real terms – looks set to outpace volume growth. This is most notable in Asia Pacific, where pet care sales have risen by a CAGR of 9% over 2018-2023.
Pet populations continue growing in the post-pandemic period
Pet adoption saw above-average growth in all regions during the pandemic, when cats and dogs were seen as companions during long periods of home seclusion, and pet populations are expected to continue growing, particularly cats and small dogs. Both of these pet types are ideal for the modern consumer, increasingly living in small apartments, given the ongoing urbanisation being seen in many countries, particularly Asia Pacific and Latin America.
While owners of such pets will generally need less food than for a large dog in volume terms, they are more likely to spend more on a cat or small dog, particularly in terms of wet food or treats. Treats and mixers as well as wet cat food will be among the most dynamic products in the coming years in Latin America and Middle East and Africa, for example, while cat treats and mixers will lead growth in Western Europe over the forecast period.
Of the five most dynamic pet care markets over the forecast period, four are expected to be in Asia Pacific: Indonesia, Vietnam, Thailand and India
China, the biggest pet care market in Asia Pacific, is seeing dynamic growth in its cat population. This is to the extent that the cat population is now bigger than the dog population in China, helping cat food to overtake dog food in terms of value sales in both China and Asia Pacific as a whole. While dog food only outsells cat food by a narrow margin in Western Europe, it dominates pet care sales in Latin America. Of the five most dynamic pet care markets over the forecast period, four are expected to be in Asia Pacific: Indonesia, Vietnam, Thailand and India. Asia Pacific, as it was over 2018-2023, is therefore expected to be the most dynamic region for pet care value sales growth over the forecast period.
For further insight on regional trends, country highlights and key data findings, see the full reports on Pet Care in Western Europe, Pet Care in Asia Pacific, Pet Care in Latin America and Pet Care in Middle East and Africa.
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