The global pet care market is predicted to reach USD207 billion in 2025. While rising cost pressures and shifting pet preferences are restricting volume growth, humanisation of pets and premiumisation are supporting value growth. Pet health is becoming of paramount importance, fuelling a desire for products that deliver specific benefits. Purchase channels are seeing a shift, as pet owners take to digital channels and specialist offline stores. Through this article, you’ll gain insight into how certain key trends are shaping dynamism in the global pet care market.
Moderating volumes versus premium push: Opposing forces tighten the leash on pet care growth
Pet care faces volume headwinds, driven by elevated prices and changing pet demographics. Despite pet owners’ resilience towards pricing pressures, the continuing cost-of-living crisis is straining their ability to spend. A declining dog population is weighing further on volumes, as overall energy requirements reduce. With volumes at risk, manufacturers need to rethink category strategy, pricing architecture and portfolio mix.
Those pet owners who are less sensitive to price fluctuations are, however, willing to spend on superior offerings. Driving this is the pet humanisation trend.
68% of Gen Z and 69% of Millennial respondents indicated they consider pets as members of the family
Source: Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded in January-February 2025
This perception enables premiumisation, with pet owners prioritising functionality and perceived benefits over price.
Premiumisation, nevertheless, has its limitations. In emerging markets, low packaged food penetration, rising pet ownership and evolving pet rearing behaviours offer strong growth potential; however, premium pricing limits access, curtailing volume growth, thus risking stagnation in high-end segments. The threat is further compounded by growing competition from brands serving the premium-aspiring consumer with “affordable premium” offerings. In today’s geopolitical environment, brands must be cognisant of economic fragility and its impact on consumption.
Homing in on health: The era of preventative pet health management
The desire for pets to live a long and healthy life is prompting pet owners to adopt a proactive approach to pet health management. Beyond ensuring optimal nutrition and exercise, pet owners are opting for solutions that deliver functional and health benefits. This demand is fuelling innovation in the non-therapeutic pet food space, where attributes like health claims and ingredients are being deployed to communicate the benefits on offer.
A view on this is available through Euromonitor’s Innovation tool. Based on online SKUs, it was observed that in 2024, the leading global pet food claims included high protein, good source of vitamins and immunity.
On the flip side, as health-orientated innovations flood the non-therapeutic pet food space, differentiation is becoming increasingly difficult. The task for brands is to identify touchpoints through which meaningful differentiation can be delivered. One approach is exploring pet health through the lens of need states. Understanding needs across the physical and emotional spectrum, and how these evolve by life stage, can help create targeted solutions with a distinct value proposition.
Channel dynamics: Pet specialists and digital platforms take the lead
Pet owners around the world are navigating retail aisles physically and digitally. This is shaping global pet care’s retail landscape, along with local preferences and infrastructure. For instance, in the US and China, factors like a strong e-commerce infrastructure, social media influence and habit persistence drive digital sales. In 2025, while the US is predicted to see retail e-commerce account for 43% of pet care retail value sales, it is predicted to account for nearly 60% in China.
Meanwhile, in Latin America, the Middle East and Africa, and Western Europe pet shops and superstores are favoured. These establishments have evolved into multifunctional spaces that go beyond product retail, incorporating services such as grooming, basic veterinary care and even leisure areas for pets. Grocery retail has been able to retain favour in Australasia and Eastern Europe. While private label is a key contributor to this in Eastern Europe, in Australasia the grocery channel benefits from its extensive network and expanding pet product portfolio. Despite this, grocery retail is ceding ground to online channels.
Seeing how retail preferences vary by region, a brand’s channel strategy must be tailored to local preferences. Building a strong digital presence will be key in creating a digital distribution base. However, brands must avoid a multi-channel strategy that is built for the sake of it. Success depends on having a clear role and goal for each channel.
Learn more about the global pet care market and pet care trends in our reports, World Market for Pet Care and Top Five Trends in Pet Care.