E-commerce sales of pet-related consumable products, which include pet food, increased by 53% in 2018, with relation to the 5% growth across online and offline pet products. 

In the US, this represented $1.5 billion increase in sales, where Americans spent a total of $33 billion on pet food and treats alone.   

The growing popularity of online selling platforms for pet food and other products is driving the market toward a future that it cannot avoid. And although the statistics still say that many pet owners prefer to still buy from brick and mortar stores, there is undeniable data that shows the impending growth and impact of e-commerce to the pet food industry.

 

 

The changing landscape 

 

Given the convenience that e-commerce platforms provide to customers, in the US, the number of households buying pet products online grew to around 13.3 million by mid-2018. According to Packaged Facts, households buying pet products online grew to 5.2 million between 2016 and summer 2018, compared to just 2.8 million households buying similar products offline. 

Not to undermine the importance of brick and mortar pet stores, but more burgeoning markets like China, preferably rely on e-commerce platforms for pet-related products and services, especially pet food. With an annual growth rate pegged at 4.6% (CAGR from 2019-2021), more than half of China’s growing middle-class pet owners are buying their food from online platforms like Tmall Global, more than traditional pet food retailers.   

And they are not alone. Globally, online shopping has provided convenient, competitively priced consumables with often free shipping, leaving offline pet stores struggling to compete in some cases.  

Yet in the long haul, brick and mortar stores find their saving grace in consumers looking for healthier formulas, which are usually sold at higher price points, that in turn help drive sales. Nonetheless, growing appreciation for e-commerce platforms is likely inevitable, as more products – including pet food – are made available for sale online.

 

 

E-Commerce and your brand 

 

Regardless of how you feel about e-commerce, the prospects are clear. It would be wise for your brand to explore the possibilities that this growing platform can offer to both your seasoned and upcoming brands. 

For manufacturers, this means that your brands need to be equipped with digital capabilities or risk getting left behind in the e-commerce race. This might also mean exploring to realign capital investments on digital tools and platforms where brands can be highlighted even further. 

Likewise, this movement could also impact your brand’s investment on people who are capable of managing e-commerce driven platforms, or on deciding to outsource e-commerce efforts altogether.   

But above all these, what’s important is to have a solid brand that can withstand market fluctuations in both mature and upcoming pet food landscapes. To achieve this, you will need a seasoned partner who can help you ride with the tide, and yet provide confident advice on how to better manage your brands when you decide to enter exciting markets like China.      

Ask us about partnerships and discover what Addiction Foods can do for you, your brand and your plans to engage with new markets. 

 

Interested in accessing the China pet food market? Here’s how. 

Follow us on LinkedIn for more updates on trends, markets and partnerships.  

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