Despite a persisting pandemic and ongoing economic uncertainties, 2020 global pet care sales were upgraded in this quarter. Pet owners have not compromised on product quality standards; and have bought more treats. The isolation brought about by more at-home living has fostered more time and money spent on pets. In some markets, pet products have even benefited from new pet adoptions. Innovation will remain key to sustaining growth momentum but price point will increasingly matter to pet owners.
This report comes in PPT.
While global GDP projections remain well below pre-pandemic levels, global pet care sales over 2020 were upgraded in this fourth quarter. With COVID-19 still spreading, social distancing measures still in place and even tightening in Europe, pandemic consumption routines should persist. Higher demand for pets amid more at-home living should be met by breeders. This should lead to growth momentum in pet care sales.
Most major pet care manufacturers have had a positive year under the pandemic; with core premium brands largely contributing to global pet care value growth. More time spent at home has fostered pet bonding and strengthened the underlying humanisation trend; leading pet owners to largely keep their product quality standards. E-commerce platforms such as Zooplus and Chewy as well as subscription models have also enabled shoppers to find better prices on premium brands.
Wet dog and cat food are growing marginally faster than dry varieties as pet owners continue to move away from the traditional kibble format. But pet treats and pet products boast among the most positive stories of 2020 and beyond. Treats have seen unusually high sales as pet owners spend more time at home with their companion(s) and new pets get trained.
In markets such as China, South Korea and Australia where the spread of COVID-19 appears under control, pet care sales have seen little impact from the virus. Meanwhile, a continued spread of the virus in the Americas and persisting social distancing measures in the case of Europe remain a major challenge for pet shops and vet clinics.
Pet care sales growth should slow in 2021 following a stand-out year in 2020; with unemployment putting as strain on the premium segment. The now realistic prospect of a vaccine reinforces the probability of a return to pre-COVID-19 forecast growth rates in 2023.
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