Market Trends in the European Pet Industry and Its Global Outlook

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One to two initiatives created by him, another, his steady work in a law office, and a full career in the food industry. For Gonzalo Noy, starting a ready-made, home-delivered dog food company was a sure bet. What began with a turnover under 500,000 euros has grown into a 3,000 square meter factory and a warehouse, with a terrace in Barcelona and an aim to close the year at over 25 million euros in business volume. Dogfy Diet now stands as a clear competitor in a crowded field.

A market report focusing on the pet food sector since the start of the year highlights a line of products rooted in natural ingredients and artisanal cooking. For example, Visa offers a paste free of colorants or preservatives, with its entire range based on natural ingredients, croquettes, and snacks. Gosby, created in collaboration with chef Paco Pérez, offers a five-Michelin-star culinary pedigree; startups continue to push real food recipes for animals, such as Wow and Cat anyone Natuka. And there are plans for yogurt and ice cream for dogs under brands like yogurtpet and Yogupet, alongside special food processors for pets from Kibus Pet Care.

The list extends beyond food. Genetic testing for dogs (petgenetik) is already available, and dating apps for pets have emerged in the market. The Barcelona Airport – El Prat area is expanding pet services this summer, increasing the pet assistance facilities from one to four, with new stores opening. Dog fountains are becoming common, as are pharmacies and supermarkets dedicated entirely to pets, restaurants with dog menus, private nurseries, and even pet water parks and baby clothing lines that include animal-focused products. The rise is often explained by a low birth rate.

A dog nursery in Barcelona. JORDI OTIX

The reproductive rate in the region is among the least favorable globally. While a replacement-rate of about two children per woman is ideal, the current global average sits around 1.2. The pandemic context is cited by Nuria Beltrán, President of the Col·legi d’Economistes Retail Commission, as contributing to shifts in family dynamics. Pets increasingly fill a maternal and paternal role, she notes.

National statistics show that 10 children per 1,000 people were born in 2002, dropping to 7 per 1,000 in 2021, according to the National Institute of Statistics. Meanwhile, households with pets are on the rise, now representing almost 40% of all households in several regions. With about 8 million Spaniards under 20, ANFAAC estimates a pet census approaching 31 million.

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The pet sector has seen a steady rise over the past decade, with the pandemic acting as a defining turning point, according to the AEDPAC president. The industry is growing globally in double digits, attracting investment from funds looking to capitalize on the sector’s momentum. The key shift is the deepening bond between pets and their owners, who treat pets as family members and spend accordingly, notes Pablo de la Rica, manager of Aecoc Retail Information and commercial specialist for a manufacturers and distributors association. Consumer behavior mirrors caregiving for loved ones, making spending decisions less price-driven and more value-focused.

A customer interacting with a dog at a store in Barcelona illustrates the growing integration of pets into everyday life. The trend continues across multiple sectors, with pet assistance areas expanding, and stores embracing a broader array of pet-related products and services.

This trajectory comes amid inflationary pressures. Forty-four leading companies in pet food and care in Spain are projected to increase turnover in 2022, according to Alimarket. AEDPAC attributes roughly four percent sector growth to a market turnover around four billion euros. When Alimarket last analyzed the market in depth (2020), major retail chains like Kiwoko and Tiendanimal showcased double-digit growth, though signs of a slowdown are appearing, likely linked to inflation and a solid commitment to the pet sector in retail. Supermarket chains are increasingly dedicating high-value departments to pet products, from newborn items to cosmetics and furniture. The shift is being replayed in pet-related offerings across the consumer landscape, reshaping how shoppers buy.

The expansion continues. Large supermarket players now create dedicated spaces for pet products and even offer related services, reflecting a broader strategy to meet all needs in a single shopping trip. Nuria Cardoso, spokesperson for Asedas, the Spanish Association of Distributors, Self-Services and Supermarkets, notes the strong response to the growing pet population and the corresponding rise in product availability.

A brand of dog yogurt in a Barcelona store shows the ongoing evolution in pet nutrition and care. The market’s momentum remains notable. While inflation creates challenges, pet ownership remains an emotional priority for many households. As Pablo de la Rica puts it, what pets do is respond to an existing and dramatic situation: loneliness.

In summary, the pet sector continues to attract investment and expand across retail, food production, and related services. Its growth is driven by a deepening emotional connection between pet owners and their companions, alongside a growing willingness to spend on high-quality, natural, and innovative pet care solutions.

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