Growing at a slower pace

Volume growth slowed down to 1 per cent as purchasing power was negatively impacted by the increasing costs of living in 2023 and growth in the pet population also slowed down. Pet humanisation and premium products continued to support pet care sales. Pet owners continued to treat dogs and cats as members of the family preferring to save on other expenses rather than on their pets.

Elif Polat, Consultant Researcher at Euromonitor International, said: “Over the next four years retail value sales are expected to continue to grow but at a slower pace.” In his opinion, the pet care market remains resilient to the global economic downturn because of consumer loyalty to brands. This is in part driven by lower inflation expectations and a stabilisation trend from the peak observed during the challenges of the pandemic in 2020. Polat points out that the US is by far the leading country for pet care, with a wide variety of products and high availability in both e-commerce and bricks-and-mortar channels. “Dry dog food, dog treats and mixers are expected to remain the largest categories by value sales while cat treats and mixers are expected to be the highest growth category with a 4 per cent CAGR in the US, over the next four years.”

Brazil is expected to surpass China with a CAGR value of 7 per cent, due to the boom in pet adoption on the back of the pandemic and growing awareness of preventative health through food leading consumers to buy more premium products. Thailand is expected to record the highest CAGR value of 9 per cent among the top 10 markets, increasing from a low base and benefiting from pet humanisation, the development of e-commerce and the increase in pet population during lockdowns.

In key markets such as the US and China, cat food is growing faster than dog food. In 2021, the number of cats surpassed the number of dogs kept as pets. Polat said: “Cats are easier to look after as they are more independent and suffer less from separation anxiety compared to dogs. This has benefited pet parents who have now returned to the office after the pandemic as they do not need to worry about walkers for their pets or leaving their pets alone.” Polat highlights that by 2024, the global value of cat food is expected to grow faster than dog food, reflecting the new dynamics in the pet population. In markets such as New Zealand and Germany, cats are more popular than dogs and the trend is expected to continue…