Page 3 - PET worldwide issue 01/2023

Comment

Good reason to hope

for better times ahead

2022 was a difficult and challenging year. Com- and there are a number of signs suggesting that
pared with other sectors, however, the pet supplies this is not going to change in the next few months.
industry got off relatively lightly. Retailers and man- After adjustments for inflation, it is very probable
ufacturers benefited from the significant increase that many companies in the pet sector experienced
in the number of pet owners worldwide during the a loss in 2022. In view of huge price hikes for raw
materials and packaging, the profit margin of retail-
ers and manufacturers declined sharply. Compa-
nies shouldered a high cost burden, especially for
power and heating, and these costs are likely to re-
main at a similar level in the coming months. Some
of the stress related to supply chains was alleviat-
ed, however. Against the overall economic back-
ground, the wave of consolidation that is currently

“AGAINST THE OVERALL ECONOMIC BACKGROUND,
THE WAVE OF CONSOLIDATION THAT IS CURRENTLY
EVIDENT IN THE PET SECTOR IN SOUTH-EAST EUROPE
LOOKS LIKELY TO CONTINUE IN MANY COUNTRIES.“

evident in the pet sector in South-East Europe looks
likely to continue in many countries (cf. report on
years of the pandemic; and although pet owners page 30).
in many countries reined in their spending in the It will be interesting to see in particular how on-
spring and summer of last year due to high infla- line retailing in the pet sector develops this year.
tion rates, only buying what was strictly necessary High sales growth failed to materialise for most
to provide for their pets, sales began to rise again companies last year, even if the pet requisites cate-
in the autumn. The pet supplies industry thus has gory was once again one of the best performers in
every reason to remain optimistic based on the e-commerce. Will online retail wrest further market
overall economic situation and to look forward to share from the high street in the future? How will
the new year with confidence. Above all, players in speciality retailers fare in 2023? Questions abound:
the sector can derive satisfaction from the fact that the answers will follow in the months ahead..
the trend observed during the pandemic towards
premiumisation in pet food has persisted. Even in
these financially tough times, many pet owners are
not prepared to skimp on food for their four-legged
companions. They may look more closely at the Ralf Majer-Abele
price, and maybe a few will shift down from super-
premium to premium, but they continue to opt for
quality when it comes to the contents of the food tin. Ralf Majer-Abele
It’s a different picture with regard to accesso-
ries, which were impacted considerably more than
the pet food segment. Most consumers were much Phone +49/72 43/575-230
r.majer-abele@daehne.de
more reticent to part with money on new items here,

PET worldwide 1|2023 3

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