Market Insights: Pet Food & Accessories
The pet food and accessories market is booming, with significant growth projected in several Western European countries. According to Euromonitor International, Germany, the U.K., France, and Italy are identified as top markets for pet care growth through 2029. This upward trend is being driven by several key factors:
Emergence of Premium Brands
Recent fairs in 2023 and 2024 have showcased a surge in new brands entering the market. These brands are predominantly targeting the premium segment, emphasizing natural food products that prioritize environmental sustainability. This focus on eco-friendly and sustainable products is resonating with consumers who are increasingly conscious of their environmental impact. As a result, premium brands that offer high-quality, natural ingredients and sustainable packaging are gaining substantial market share.
Economic Resilience
The pet food market in Germany exemplifies economic resilience, with the physical pet retail market seeing a revenue increase of 9.5%, and the e-commerce market growing by 11.4% from 2022 to 2023. This robust growth is partly due to higher demand and price increases driven by rising costs of energy, raw materials, packaging, and transportation. Interestingly, when using Germany as a benchmark, some Eastern European markets are performing even better, highlighting the widespread appeal and resilience of the pet food industry.
Segment Analysis
Within the pet food segment, cat food leads in revenue, with wet food being the primary growth driver. Dog food also shows similar trends, with wet food growing faster than kibbles. This shift indicates a preference for high-moisture diets among pet owners, which are perceived as healthier for their pets. The growing awareness of pet nutrition and health benefits of wet food is shaping purchasing behaviours, driving demand for these products.
Consumer Spending Habits
More than 60% of pet owners purchased supplements, accessories, hygiene, and grooming products in 2023. Despite inflation, many pet owners continue to choose premium products for their pets. However, some consumers have postponed buying accessories, particularly in the ‘dogs’ and ‘aquariums’ segments. This trend is expected to be temporary, reflecting a cautious approach in the current economic climate. Nonetheless, the overall willingness to invest in high-quality pet care products remains strong.
Future Outlook
The pet food and accessories market is set to continue its positive trajectory. The growing demand for premium, natural, and sustainable products will drive innovation and expansion within the sector. As pet ownership increases and consumers prioritize their pets’ health and well-being, the market is poised for sustained growth. Businesses that can adapt to these trends and meet the rising demand for high-quality products will thrive in the competitive landscape.
Conclusion
The pet food and accessories industry is experiencing robust growth, driven by premiumization, sustainability, and resilient consumer spending. As markets evolve, businesses that can adapt to these trends and meet the rising demand for high-quality products will thrive in the competitive landscape. Katoen Natie is here to support your journey, providing the expertise and innovative solutions needed to excel in this booming market.
For further insights and updates on the evolving landscape of Pet Food and Pet Care, let’s stay connected.
Bart Versprille