This report is available in PPT.
Momentum and acquisitions
Pet care’s historic resilience to economic turmoil bodes well for its outlook. Big companies are growing through momentum and acquisitions, while some packaged food manufacturers are also keen to get into pet care and enjoy promising growth rates through 2027.
Interest for developing regions
The United States is the primary battleground for top pet care players as pet owners seek human-like products and are supplied with them by top brand owners. Two players, Mars and Nestlé, generate 30% of global pet product sales. However, their shares are eroding and developing regions represent a major avenue of opportunity for pet care players.
Strong flagship brands and diversified brand portfolios
Most large companies rely heavily on their top three brands. Mars, Nestlé, JM Smucker and Spectrum are present with the most diversified portfolios. This means less consolidation, which helps spread risk. In pet care, pet products are the most consolidated in the market.
Market expansion through pet food, pet healthcare, or one-stop solution
Leading companies grow in three main ways: through specialization in pet food and pet healthcare; by investing in developing regions which represent a major avenue of opportunity; and encompassing most pet care categories with the goal of becoming a one-stop solution.
Health and sustainability premiumization strategies
The premium price segment remains the most dynamic. Companies are strengthening their positions in this segment by meeting the demand for health, value-added and sustainability products.
Resilience does not mean total immunity. Immediate inflationary strategies increase the unit price, revise package sizes, ingredients and longer-term overall brand portfolios.