Development of European Pet Products 2024

The relationship between pets and humans has evolved from one of mutual utility to a deep familial bond. During the COVID-19 pandemic, this connection strengthened as pets became integral members of the family, giving rise to the trend of "humanizing" pets. Pet owners, often referred to as "pet parents," began aligning their pets' lifestyles with their own, prioritizing health, nutrition, and overall well-being. While the pandemic has subsided, this sentiment endures.

"Pets are like children," says pet industry expert Paul van der Raad. "We want to give them healthier, longer, and happier lives." This humanization trend has spurred pet owners to scrutinize their pets’ diets as closely as their own, avoiding excess salt, sugar, and fats. According to Nicole Paley, deputy chief executive of UK Pet Food, this focus on health and wellness has driven demand for premium and specialized pet food, featuring ingredients like probiotics, prebiotics, and functional supplements to improve digestion, boost immunity, and enhance overall well-being.

The pet food market has grown significantly, with Europe alone hosting 340 million pets as of 2022, according to FEDIAF. Annual pet food sales in the region total €29.1 billion, growing at 5.1% in value and 3.5% in volume, with Italy standing out for its rapid market growth. However, while the post-pandemic surge in pet ownership has plateaued, the market is expected to continue growing in value, albeit at a steadier pace, says Circana’s senior business insights director, Paolo Garro.

Another burgeoning sector is fresh and frozen pet food. Owners are increasingly seeking premium options, including customized meal plans, such as HelloFresh’s "The Pets Table," which offers human-grade, tailored pet recipes. The direct-to-consumer pet meal market is projected to grow at over 20% CAGR, reaching $18 billion by 2033, fueled by subscription services and a growing appetite for gourmet pet meals and treats.

Despite the cost-of-living crisis, pet owners have shown resilience in prioritizing their pets. While some adjusted their spending by buying in bulk or exploring discounts, many refused to compromise on quality. Private-label pet food has seen exceptional growth, capturing a significant share of the European market. In 2022, it accounted for 18% of the €10.8 billion category in the six largest European markets.
As pet owners continue to humanize their pets, the demand for healthier, premium, and innovative pet care products is set to shape the future of the pet economy.