Still on course for growth

The pet supplies sector got off pretty lightly in the recession two years ago. There was no sign of any crisis. It fared better than many other sectors of the economy in achieving significant overall growth, even against a financially challenging backdrop. What about this year? The global economy looks set for another recession. Will the looming economic crisis leave the pet sector unscathed once again this time? The fact is that pet owners spend a lot on their beloved pets, even when times are tough, and so it is unlikely that sales of pet food will decline to any noticeable extent in the future. In countries that are particularly affected by the economic downturn, the price sensitivity of consumers could increase further. Online businesses and discount stores could be the chief beneficiaries of this. Since the pet sector continues to hold considerable potential for growth in many countries, however, global sales of pet products will continue to rise, although as in previous years sales growth might not be evenly distributed. In western and southern Europe, the pet supplies market might stagnate in the years to come or even decline slightly. In Asia and Latin America, where the pet supplies sector is only in its infancy, the positive trend of recent years will continue unabated. Growth could also be distributed unevenly between the different categories. From a global point of view, the demand for premium pet food should increase in the future. The market for medical and care products is also believed to have great growth potential, because pet owners are becoming increasingly aware of any problems or ailments their pets may have. On the other hand, categories like fishkeeping and cage birds could continue to struggle. The fact that fewer and fewer people show an interest in acquiring a bird or ornamental fish is due in part to the rather outmoded image of these hobbies. The accessories market tends to be linked more closely to the overall economic trend than the market for pet food, but in many countries where the sector is still in its early stages of development, it still has great potential to develop further. The bottom line is that, although the global economy poses a challenge for the pet supplies sector, it does not threaten future growth. Yours Ralf Majer-AbeleDownload: Still on course for growth (PDF file)