People love their pets. This is neither a surprising nor profound observation, but consumers’ love of their pets is responsible for the largest growth in the pet care market ever seen.
The pet care industry has been on an upward trajectory for several years, growing in line with other CPG categories. But as Mintel notes, when the pandemic began, changes in routines impacted consumers’ relationships with their pets. For many pet owners, lockdown meant spending significantly more time with their pets, who became the main source of companionship and comfort. The strengthened bond between pet and owner has led owners will look for ways to further pamper their pet as a token of appreciation.
Global spending has increased in the pet care category from €123 billion in 2020 to more than €133 billion in 2021. In the United States, spending has doubled in the last 10 years. The United Kingdom is the top spender in Europe with €5.5 billion, closely followed by Germany.
Last year, there were no signs of a slowdown in the momentum of this category either. More than one in four pet owners have acquired a new pet in the past twelve to 18 months (Forsa survey, 11/2021). As the number of pet owners continues to grow, we can assume that the industry will grow with it.
Given the strengthening bonds between pets and their owners and their owners’ willingness to express their love with their wallets, there are several long-term trends that will continue impacting the pet care industry. Let’s look at a few.
Pets Are People Too
In the past, pets often played a functional role within a family, such as guard dogs or barn cats. But in recent years, pets have started playing a much more important role: fur babies.
Millennials, who are forgoing or delaying traditional milestones such as marriage and child-rearing, are turning to their pets to play a familial role. For example, more than three-quarters of female Millennials (76%) refer to their pet as their "fur baby", according to Statista.
As pet ownership has grown worldwide to nearly 57% of consumers (GfK), fur babies have become as highly regarded as their two-legged counterparts. According to a survey conducted by Fortune as far back in 2016, 76% of pet owners consider their pets to be family members.
And as the importance of pets as family has grown so too has their humanisation. Pet owners not only want to meet the basic needs of their animals, but they also want the best for them: To give them a happy, healthy, fulfilled life.
In fact, the humanisation of our pets is an overarching trend that is spurring a host of other trends across the category, from the premiumization of pet foods & treats to sustainable packaging to the proliferation of wellness-oriented products and services.
From PetBnBs to intelligent cat litter, petcare has new product categories.
The humanisation of pets is leading to an explosion of products and services that offer their fur babies experiences previously reserved for their owners. In some cases, new product categories have emerged: wet wipes, toothpaste, innovative calming products, PetBnB, smart cat litter or special mattresses for the animals.
Over the past two years in particular, the focus has been on pet-related activities, healthy nutrition, and new acquisitions for the homes of humans and animals. Healthy treats and the "supplies and accessories" segments are driving the market.
Pet owners look for sustainability and transparency, which influences the purchase of food and care products for their animals. They spend more on organic, natural foods, want to offer their pets a higher quality of life and more personalised care, and choose brands and retailers that contribute to animal welfare.
For example, 71% of Gen-X are pet owners, and they tend to spend most on their pet’s diet and welfare now that they have significant disposable income.
In addition, increasing pet ownership is supported by a growing body of scientific evidence on the physiological and psychological benefits of pet ownership. For pet product manufacturers and retailers—from food to grooming to accessories and services—this changing market presents numerous opportunities: coordinated meals for humans and dogs, partnerships between delivery services and "poop-up" shops, or subscription models for boxes with age-appropriate training.
A high affinity for technology can be observed among pet owners. This is shown by the interest in telemedicine, smart collars, or the app for the aquarium. Here, a disproportionate amount of research is done on the internet before the purchase. And some of the animal pets have their own Twitter/Instagram accounts.
Young companies in particular often focus on technical, digital products and services, such as DNA tests, GPS tracking, 24/7 vet support or insurance. However, in addition to many start-ups, increasingly established players are also directing consumers towards their new services and products in pet medicine, customised pet food, pet insurance, and related areas. If the forecasts for the growth of the pet market remain stable, significant growth can be seen here in the coming years.
eCommerce vs. In-Store: It’s About the Experience
Online and mobile shopping in the pet industry is booming. Pet supplies are already among the top 10 product categories for smartphone shopping in Germany with 12.3% (source: Wirtschaftswoche). Especially pet food, with fixed regular shopping rhythms, is perfectly suited for convenient (re)ordering with the mobile phone.
The increasing importance of the internet for the purchase of pet products has once again become noticeable, especially in 2020, the first year of the pandemic. In Germany, for example, sales volume was approximately 822 million euros, 117 million euros more than in 2019, an increase of over 16 percent.
eCommerce is expected to drive future growth in this category, although the annual growth rate will slow as the pandemic subsides. According to Statista, global ecommerce will account for nearly one-third of total sales in this category by 2025.
The stationary offer