Rising costs, changing pet preferences and premiumisation are shaping pet care demand. Pet health is paramount, as pet owners adopt a preventative approach to pet health management. In parallel, health-related attributes are infiltrating the non-therapeutic pet food space, highlighting the focus on pet health. Digital distribution is winning to varying degrees across markets. Gen-AI powered solutions are making their way into pet owners’ hands, enabling personalised pet health management.
This report comes in PPT.
Volume consumption in pet care faces headwinds, driven by elevated pricing and shifting pet demographics. High prices continue to be a key drag on growth, while a shift in preferences towards cats and smaller dogs is reducing overall calorie demand. Pricing architecture and portfolio mix require a strategic rethink, as consumers turn to multipurpose products.
Pet humanisation continues to drive premiumisation, but it has a limited upside. Brands with a premium-only focus face the risk of stagnating growth, as access remains limited to a small segment of consumers. Potential share of wallet is also being lost to the “affordable premium” tier, which is helping to bridge the gap for aspiring premium consumers.
Pet health management is of paramount importance to pet owners. A desire for longevity and quality of life is driving demand for solutions that enable proactive health management, while also mitigating the risk of future ailments. As consumer awareness grows, so is the desire for more targeted, need-based solutions.
Pet shops and superstores, and retail e-commerce channels take the lead in the global pet care retail landscape. The rising influence of social media, digitally-native pet owners and brand investment in digital engagement are fuelling the growth of retail e-commerce in pet care. Investments are also being made by grocery retailers to boost category representation.
Generative AI is becoming increasingly integrated into consumers’ lives. In the pet care industry, AI is driving innovation through personalised nutrition, smart health products and interactive tools, with brands using these technologies to stay relevant among digitally-native pet owners.
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