A market on the move

“Consolidation has taken place in retail and in e-commerce in all countries. Major chains such as Maxi Zoo, Musti, Zoo.se, Dogman and Pet-XL, to name but a few, have grown steadily in strength,” confirms Per Lausen, CEO of the wholesale company Eldorado. The impression is gained that independent pet shops in particular are finding it hard to keep up with the development of the market at present. In addition, many are facing the challenge of a generational change or have no succession plan. A positive aspect to be noted, however, is that the number of stores offering pets for sale is on the rise once more after store chains in particular took the initial decision not to sell pets.

“The current financial situation with rising inflation and interest rates means that customers are chiefly buying only the items they absolutely need, such as pet food and cat litter,” says Lausen, drawing on his observations of the pet supplies business. In the case of dog and cat food, locally manufactured brands including cheaper private labels are especially popular, particularly when it comes to alternative sources of protein.

On the other hand, pet owners display a growing interest in purchasing high-quality products with the focus on health as well as environmentally friendly and sustainable products. “This goes for both the packaging and the place where the items are produced,” says Lausen. Bo Demant, Maxi Zoo country manager for Denmark, agrees: “We are seeing that the pet supplies business is considerably more robust than other FMCG businesses. The same trend was observed during the financial crisis of 2008/2009.” He also notes that pet owners want to give their pets the best possible diet regardless of the price. “BARF and frozen meals are becoming increasingly popular,” continues Demant. He is also seeing growing demand for pet care and pet pharmaceutical products and services.

As in other parts of the world, online shops in Scandinavia experienced significant growth during the coronavirus pandemic. This trend has now levelled off, however, and customers are shopping in high street stores again. Online suppliers are also confronted by logistical challenges in sparsely populated regions in Norway, Sweden and Finland, for example.

With well over 300 stores, the Finnish Musti Group is one of the market leaders in pet retail. The company…