Pet economy’s resilience to inflationary pressure
Although inflation has driven up prices for pet products, demand for pet-related products and services and related revenues continue to grow. What are some of the reasons for the pet economy’s inelasticity, and what underlying trends drive the growth – even in a highly inflationary environment?
- Pet economy experiences continuous growth trends (CAGR* of 6.1% between 2022 and 2027)1
- Globally increasing pet food revenues
Pet food revenues (Million EUR)
* Compound Annual Growth Rate.
Source: Pet Food Report 2021 Statista Consumer Market Outlook, as of December 2021.
The drivers include
1. Humanisation of pets
2. Cutbacks on spending, but not on their pets
Pet products and services represent only a small share of overall spending
According to our GRASSROOTS RESEARCH® findings for the US2 :
3. Pet parents‘ spending shifts towards premium food/individual diet
According to our GRASSROOTS RESEARCH® findings for the US4 :
Implications for investors
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