Pet care keeps growing albeit more slowly due to economic downturn and the return to offices that means less time spent with pets. It benefits from the growing cat population, while humanisation drives demand for healthy, human-grade, premium pet food/products. Companies focus on omnichannel to reach a wider audience with a seamless mix of online and offline formats. Climate change and supply shortage threats lead to sustainable ingredients and packaging becoming important features of pet care.
This report comes in PPT.
Inflation and shrinking disposable income, currently the most significant challenges for pet care producers, are leading to polarisation in the market. The premium segment continues to benefit from low price elasticity and the pet humanisation trend, while more price-sensitive consumers are trading down, looking for promotions, private label and discounts. Nevertheless, pet care is more resilient to economic challenges in comparison to other fmcg industries as consumers are not willing to economise on their pets.
Increasing pet humanisation, reinforced due to the time spent together during the lockdowns, supports prioritising pet wellbeing. Despite inflationary pressures, pet owners continue to invest in their pets’ premium diets. They are increasingly searching for healthy, human-grade ingredients, pet snacks, and human-like menus and services.
Treating their pets as family members, consumers are increasingly looking for healthy pet food that contains natural and functional ingredients. The demand is increasing for products specific to age, breed, lifestyle and health condition such as immune system, oral care, hygiene, gut, and mental health. Within this trend, a rising number of pet owners use dietary supplements as a way to make pets’ meals more nutritious.
After the pandemic, which led to the boom of e-commerce, consumers are coming back to offline stores. E-commerce keeps recording slower but still high growth rates and is developing in the direction of marketplaces and subscription models. The former provides wider options and the convenience of one point of purchase, while the latter enable personalisation of the offer. Combining the benefits of online and offline purchasing, omnichannels are gaining ground.
The increasing concern about climate change among pet owners is driving the demand for alternative proteins, sustainable packaging and green processing technologies. Being a niche and mainly presented in mature markets, the trend is slowly spreading to emerging markets as brands are switching to sustainable ways of production.
This is the aggregation of pet food and pet products.See All of Our Definitions
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