Pet care continues to record positive value growth in Middle East and Africa, in spite of the difficult economic environment pushing volume sales into decline. Ongoing premiumisation and pet humanisation are driving value growth, despite some low-income pet owners being forced to switch from mid-priced to economy brands as rising inflation hits their spending budgets. Continued positive value growth rates are expected, with volume sales also increasing again by the end of the forecast period.
This report comes in PPT.
The pandemic tended to boost pet populations in Middle East and Africa as consumers sought companionship during home seclusion. Owners also spoiled their pets more as they spent more “quality time” with them. This trend has continued, with pet care recording positive value growth in real value terms, even as sales have slipped into negative territory in volume terms.
Modern grocery retailers in Saudi Arabia like Tamimi, Lulu Market or Farm Markets have been expanding their pet care product offerings, increasingly incorporating imported brands previously only available in specialised pet shops. This offers consumers a wider range of options and also intensifies competition, as many of these imported brands are priced more affordably than the established offerings from Mars and Nestlé.
Pet shops and superstores (39%) continue to lead pet care distribution in the region, ahead of supermarkets (24%) and hypermarkets (13%). The pandemic helped drive growth in e-commerce sales, up from 4% to 10% over 2018-2023. Veterinary clinics continues to hold an 11% pet care sales share regionally in pet care overall and 23% of pet products.
With further growth anticipated in pet populations across the region, and the premiumisation and pet humanisation trends expected to continue developing, value sales will remain on an upward trajectory over the forecast period. Despite the difficult current economic backdrop, owners are expected to keep spending on their pets, which they see as valued family members.
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