Pet care market to grow 7% by 2026, e-commerce projected to contribute a third of global sales – Euromonitor

UK – The global pet care market is expected to continue benefits from a sales boom that spiked during the pandemic as more home owners globally adopted pets for the companionship they offered during the difficult and uncertain times.

The influx of pet owners resulted in an explosion of demand for pet products. According to Euromonitor, Pet care sales soared by 8.7% in 2020.

Pet food, accessories, beauty and grooming categories benefited the most from the pandemic with growth of 8.1%, 10.3% and 11.3%, respectively.

Euromonitor now notes that the pet care industry will continue to benefit from the sales boom experienced during the pandemic.

According to global market research company Euromonitor International, the industry is projected to record a 7% growth by 2026

Digitalization to dominate pet care sales

As the pet care industry continues to expand, digitalisation is projected to continue dominating the pet care market in the next five years, according to the new webinar ‘Pet Care Outlook: Which Trends Will Outlast the Pandemic?’

Euromonitor projects that almost one third of global pet care sales will come from e-commerce channels.

“The pandemic accelerated ongoing channel shifts to e-commerce as owners avoided unnecessary trips to pet specialty channels,” analyses Jared Koerten, Senior Head of Pet Care Research at Euromonitor International.

Industry leans toward Premiumisation

ADVERT

The premiumisation trend accelerated in 2020, seeing owners spending more per pet, due to significant spending cuts on travel and dining out.

A larger pet population combined with higher income households willing to spend more further paved the way to premiumisation, shaping a new base of pet owners.

“Pet ownership surged in North America, Western Europe and Australasia that had long seen sluggish pet population growth, but suddenly outperformed historic averages,” claims Koerten.

Australasia spent the most on food per dog and cat in 2020 (around USD 275), followed by North America (USD 211) and Western Europe (USD 182).

With remote work policies spreading beyond 2021, it’s expected that more people will adopt pets as time spent at home will enhance humanisation.

According to a recent Lifestyles Survey by Euromonitor, nearly 71% of global respondents from said they view their pets as ‘beloved members of the family’ in 2021.

Investments surge

The increased demand for pet care products has also led to a surge in investments into the sector.

In December 2020, Nestlé Purina PetCare will invest USD 550 million to expand its pet food manufacturing facility in Hartwell, Georgia, creating up to 130 jobs.

The expansion was announced just one year after the factory’s grand opening in November 2019.

Investment in pet care has also been a critical driver to Nestlé’s sales with the product being the By, the largest contributor to growth by product category in the company’s 2020 full year results.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE

Other Posts Worth Reading

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.