Despite ongoing inflationary pressures and higher household costs across Europe, the pet care sector continues to stand out as one of the region’s most resilient consumer markets. According to FEDIAF, Europe is home to 306 million pets living in 140 million households, representing almost half of all homes across the continent. In 2024, the European pet food industry generated €29.4 billion in sales, demonstrating the sector’s remarkable ability to maintain growth even as consumers face increasing financial constraints.
The most notable trend is that market growth is being driven more by value than by volume. Pet food volumes increased by only 1% in 2024, while sales value rose by 4%. This indicates that consumers are paying more for pet food rather than purchasing significantly larger quantities. While inflation has contributed to higher prices, another important factor is the continued shift towards premium, specialised and veterinary diets. Many pet owners appear willing to maintain spending on their pets’ nutrition, even when reducing expenditure in other areas of their personal budgets.
The article also highlights the growing importance of veterinary services within the broader pet care economy. Major corporations and private equity firms have invested heavily in veterinary clinic networks across Europe. Companies such as Mars have expanded beyond pet food through ownership of veterinary groups, while organisations including IVC Evidensia have built large clinic networks through acquisitions. This consolidation trend has attracted significant investor interest due to the stable demand associated with pet healthcare.
However, the UK provides an example of some of the challenges that can emerge when market consolidation becomes widespread. A Competition and Markets Authority investigation found that veterinary prices increased significantly between 2016 and 2023 and identified concerns around transparency and market concentration. As a result, new measures have been introduced to improve pricing transparency and strengthen consumer protection. The UK experience may offer important lessons for other European markets where corporate ownership of veterinary practices is still less developed.
Looking ahead, the industry faces additional challenges related to sustainability, environmental reporting requirements and workforce shortages within the veterinary profession. Nevertheless, the pet economy continues to demonstrate exceptional resilience. Strong emotional bonds between owners and their pets continue to support spending on nutrition and healthcare, making pet care one of Europe’s most dependable consumer sectors. The article concludes that while the sector may be relatively recession-resistant, it is not immune to increasing regulatory scrutiny as market concentration continues to grow.
Source: Weekend Read: Europe’s €29bn Pet Food Market Defies the Cost of Living – European Business Magazine
