As inflationary pressures are continuing to impact consumers from a variety of perspectives, pet owners in particular are feeling hard hit as pet food suppliers are continuing to raise prices in response to a variety of cost-push and demand-pull drivers.
The pandemic has raised pet ownership rates, particularly cats and small dogs in Asian cities, alongside improving attitudes towards pet care. However, inflationary pressure on the cost of living will drive cautious spending among consumers, raising the need for a clear value positioning. Pet parents switching from table scraps will also seek nutritional benefits from retail pet food, hence casting a focus on functional ingredients and nutrition.
Another year of crisis has had a major impact on pet care industry. Increased logistics costs, higher commodity prices and, of course, consumers reacting to higher prices have put pressure on the market.
We give an APAC market overview, highlighting the ultra-premium nature of the Hong Kong pet market and focus on the drivers behind the demand for premium pet products, especially pet healthcare products.
In 2020, the pet population in Western Europe increased substantially. More time spent at home as a result of home seclusion resulted in more adoptions, as people had more time to look after pets. In 2021 and 2022 growth in the pet population continues at a slower pace, driven by new lifestyles such as remote working. This has allowed more bonding between humans and pets, therefore reinforcing the humanisation trend.
At this year's Interzoo, the biggest trade fair for the pet industry worldwide, which took place in Nuremberg in May, there were, as always, many new and innovative products and ideas for the pet market to marvel at. Here, we look at the key trends shaping the pet industry.
Remote working pet owners continue to spend more time with their animals, treating them as family members and looking for more premium products for them. During the pandemic, pet owners embraced the convenience of online shopping and developed new purchase habits which contributes to the growth of e-commerce channel.