Within the first half of 2023, the pet meals market in Japanese Europe skilled an impressive surge in retail costs.
In Poland, for instance, the common value of pet meals in March 2023 jumped by almost 43% in contrast with the earlier yr, in accordance with a examine by suppose tank UCE analysis and the WSB Merito College.
An analogous pattern was noticed in different markets of the area. In Hungary, the common pet meals costs spiked by 50% in early 2023 in contrast with the earlier yr estimated the Federation of Hungarian Meals Industries in January. The federation voiced considerations that within the unravelling cost-of-living disaster, client demand is likely to be in peril.
These fears, nonetheless, didn’t materialize. The market turbulence fizzled out as inflation stress largely eased within the second half of 2023.
“Price-of-living disaster has had little influence on gross sales of pet care,” commented Aleksandras Bacevicius, analysis analyst with Euromonitor Worldwide.
“Traditionally, the pet care trade has proved to be extra recession-proof than different FMCG industries,” Bacevicius added. “It recorded development in earlier occasions of financial hardship, like through the Nice Monetary Disaster and the COVID-19 pandemic.”
Over the previous decade, pet meals costs in Japanese Europe have at all times risen above the common GDP development, apart from 2015, but pet meals gross sales have been always rising by this era.
Rising spending
Generally, the pet care market in Japanese Europe added 5% in worth in 2023 in fixed unit value phrases, with not solely the important pet meals however merchandise resembling cat and canine treats and mixers thriving, Bacevicius reported.
Total, spending per pet in Japanese Europe has continued to extend in 2023, with the common canine or cat proprietor spending round EUR$108 (US$118) yearly, which is a 3% improve from final yr, in fixed unit value phrases.
“Quantity consumed by canines and cats additionally continues to develop, confirming that extra spending just isn’t purely an impact of inflation, but additionally higher calorific protection,” Bacevicius mentioned.
The canine and cat inhabitants in Japanese Europe present a constructive dynamic in 2023, recovering from a detrimental 1% development in 2022, primarily as a consequence of a pointy drop in Ukraine’s pet indicators. Poland inflates the common for the area, rising at 1.4% in 2023.
Ukraine, Slovakia, Romania and the Czech Republic are experiencing drops in canine and cat populations. In 2024, Japanese Europe’s canine and cat populations are anticipated to proceed to point out a marginal development fee.
The shift towards premium merchandise continues to be one of many major developments out there, with premium canine and cat meals rising 6% in 2022 in fixed unit value phrases, in accordance with Euromonitor Worldwide.
“Nonetheless, the cost-of-living disaster impact on the trade just isn’t nonexistent,” mentioned Bacevicius. “Some pet homeowners turned to cheaper personal label choices, with personal label worth shares in canine and cat meals rising forward of the inflation fee, at 15% in present value phrases in 2022.
“In 2023, financial system and premium value segments are rising quicker than mid-priced pet meals, each in worth and quantity, which hints at slight value section polarization,” he added.
Bacevicius believes 2024 is predicted to be one other yr of development for pet care in Japanese Europe, with each worth and quantity rising at a extra modest 4% and three%, respectively.
Exports are an trade’s spine
Over the previous two years, Japanese Europe has strengthened its place because the exporting area, primarily due to Poland, which grew to become the world’s fifth largest pet meals exporter in 2022, analysis carried out by the Polish Financial Institute confirmed.
Pet meals is one of the vital necessary commodities in Polish exports. In 2022, export gross sales totaled EUR$1.9 billion (US$2 billion), equal to 4% of the Polish agrifood exports.
Over the previous decade, Polish pet meals exports skyrocketed by 461 in financial phrases and 180% in bodily phrases. Poland accounts for 4.6% of the worldwide pet meals exports, the Polish Financial Institute estimated.
Poland exports pet meals primarily to different EU international locations, with 34% of all deliveries landed in Germany, 5.4% in Italy and 5.3% in France and the Czech Republic.
Final yr, the analysts claimed the figures have been poised for additional development, primarily thanks to the opening of the Chinese language marketplace for the Polish pet meals trade in June 2023.
