The cost-of-living crisis has eased across Europe, boosting pet food sales, though manufacturers and retailers in Eastern Europe report the market remains sluggish, with inflation causing a slight decline in volume in 2023 before rebounding this year, according to Aleksandras Bacevicius, an analyst at Euromonitor International.
Pet care market value has been growing along with the prices. However, 13% growth in 2024 is considerably less than 20% in the previous year, Bacevicius said.
According to Euromonitor International, economic hardship, which peaked in 2023, resulted in price platform polarization across Europe, meaning the mid-priced segment suffered the most. Pet owners turned to cheaper economy pet food more often, which also meant an increase in private-label sales.
In 2024, the mid-priced segment shows signs of recovery. Similarly, cat and dog treats are regaining previous momentum after taking a back seat during the peak of inflation as they weren’t essential pet products, Bacevicius said.
“Private label for two reasons – better price and improving quality – continues to grow,” Bacevicius added.
In some countries of the region, however, the pet food market shows signs of recovery. In Hungary, for instance, moods in the industry are close to the lowest ebb.
A crisis-ridden market
Hungary has been hit by one of the highest inflation rates in Europe, close to 25%, and that has had a significant impact on pet food sales as well, said Péter Tamási, CEO of PetPartners Hungary.
The pet food industry is believed to be crisis-proof, but economic market dynamics in Hungary show that this is fair only to a certain limit.
“In Hungary, the number of pets has dropped, shelters are full again, some of those people who adopted or bought a pet during COVID have returned them to shelters due to financial or lifestyle reasons,” Tamási said, adding that pet owners struggle to make ends meet amid rising prices.
“Raw feeding and pre-cooked meal popularity are still on the rise, but high-priced super or ultra-premium extruded dry pet food brands, especially if they are trying to enter the market now, have a hard time gaining ground,” Tamási said. “In general, the dry pet food category is definitely losing volume pretty much everywhere.”
Retailers grow more cautious
Retailers have also noticed the pet food market is under pressure.
“Many of my producers were forced to raise prices because of growth in prices of raw materials,” said Marta Sawka, owner of Pets of Poland, a local retailer. “This made me raise prices in my shop too.”
As a pet owner, Sawka noticed inflation having an impact on the pet market. Two brands she used to rely on decided to significantly raise their prices or downgrade the quality of their products. Retailers are now more cautious with which brands they include in their stores.
“Knowing this practice from experience, right now, I’m very selective when it comes to merchandise in my shop,” Sawka added.
Healthy feeding is still in the spotlight
Aside from that, Sawka noted customers are getting more educated about proper pet nutrition, and this is showing in their purchasing habits. She noted ingredient transparency in pet food is crucial, adding the same trend is visible in the snack category.
“Customers are buying dry meat or other natural snacks over ‘dog biscuits’ with a long list of ingredients,” Sawka said.
With rising inflation, consumers are becoming more price-sensitive, noted Martynas Rusteika, a spokesperson of Kika Group, a Lithuania pet food company. Many opt to buy larger quantities of pet supplies when there are significant discounts available, aiming to save money. Despite efforts to cut costs, pet owners continue to prioritize their pets’ well-being and health, showing a preference for quality products, Rusteika said.
“The local pet food retail market is seeing a growing trend towards healthy and high-quality pet food,” said Rusteika. “There is also an increasing demand for specialized food aimed at addressing specific health issues such as allergies and digestive problems.”
Sailing into calmer waters?
Despite the turbulence in particular parts of the region, the overall outlook for the pet food market in Eastern Europe remains bright.
“The Eastern European pet care market is expected to continue to grow in both volume and value terms in 2025, posting stronger growth than a year prior as inflation effect withers,” Bacevicius said.
“Premiumization is by now a deeply rooted trend in pet care and is unlikely to disappear any time soon,” Bacevicius said. “With continued pet humanization, pet owners keep looking for the best food for their pets and are prepared to spend on premium ingredients. This can result in new business opportunities.”
Euromonitor International also expects that next year, the market will see the continued development of e-commerce channels due to its convenience. Bacevicius suggested pet healthcare is a category to keep an eye on as pet owners get increasingly more educated about pet health, which helps avoid expensive visits to the vet.