Unleashing the Power of Digital Markets: A Roadmap for Pet Supplement Brands
The realm of pet care has undergone a profound metamorphosis, transcending the boundaries of mere sustenance and embracing a holistic approach that priorities longevity and quality of life. At the forefront of this paradigm shift lies the burgeoning market for pet dietary supplements, empowering pet owners to not only address health concerns but to elevate their furry companions' overall well-being to unprecedented heights.
The Global Landscape: A Thriving Market
The global pet dietary supplements market is poised to reach a staggering $2.1 billion by 2023, having experienced a robust compound annual growth rate (CAGR) of 7% over the preceding five-year period from 2018 to 2023. This remarkable growth trajectory can be attributed to the unwavering commitment of pet owners to their companions' well-being and the ever-increasing trend of pet humanisation.
Regionally, North America commands the lion's share of the market in absolute retail value terms, while the Asia-Pacific region emerges as one of the fastest-growing markets, outpacing even Western Europe in overall size. In China, the category is becoming increasingly specialised and humanised, catering to the discerning needs of pet owners. Concurrently, in South Korea, leading pharmaceutical players are making their foray into this burgeoning market, introducing innovative product launches.
The Driving Forces: Humanisation and Targeted Need States
The consumer focus on their pets' health and well-being finds its roots in the growing awareness of personal wellness and the proactive steps taken to achieve it. A staggering 62.4% of pet owners either agreed or strongly agreed that they consider vitamins and supplements essential for their overall health and nutrition – a figure remarkably higher than the 53.3% of non-pet owners who shared the same sentiment.
As consumers become increasingly cognisant of their health and adopt a preventative approach, they are extending this behaviour to their pets – a phenomenon aptly termed "pet humanisation." Industry players are capitalising on this trend by introducing innovative products tailored to address specific need states.
In South Korea, Daewoong Pharmaceutical has launched a pet dietary supplement, Impactamin Pet, which bears a striking resemblance to its human counterpart, Impactamin, a steady seller in the supplement market. In China, Lactoferrin Co. a common additive in infant formula, has gained traction as a popular supplement for pets. PetPlate in the US offers calming supplements made with ashwagandha and L-theanine, known for their relaxation-promoting properties.
A key element of pet supplement shopper behaviour lies in understanding the specific benefits a consumer seeks. With a focus on holistic pet well-being, consumers aim to address diverse need states ranging from physical needs like mobility and dental health to functional needs like weight management, and even extending to emotional needs such as calming and stress management. Brands have astutely positioned their products based on the need states they cater to, enabling consumers to easily identify and select products that align with their desired outcomes.
Devising the Optimal Channel Strategy
As players both within and outside the pet healthcare industry seek to incorporate pet dietary supplements into their portfolios, a critical consideration is the channel(s) through which these products can be purchased. While brick-and-mortar stores account for two-thirds of global pet care's retail value sales in 2023, the channel has been gradually losing ground to e-commerce. Today, beyond convenience, eCommerce serves as a platform for product discovery and price comparison for consumers, while potentially serving as a launchpad for brands, with a direct-to-consumer (D2C) strategy enabling a more profound connection with the digital consumer.
Zesty Paws (part of H&H Group) , a digitally native brand, has successfully expanded into an omnichannel player, establishing a presence across pet specialist stores, pharmacies, and independent stores in the US. Tracking the brand's online growth and performance in the US through Euromonitor's new e-commerce system reveals its continued dominance in the pet dietary supplements category on e-commerce platforms, with its quarterly sales exhibiting year-on-year growth.
In January 2023, Wellness Pet Company in the US launched its new line of dog supplements online via Amazon , Chewy and Petco , with plans to expand in-store distribution during the year. The inaugural line offers targeted solutions for need states such as mobility, relaxation, immunity, digestion, and coat support.
Utilising online channels as the point of entry into a retail market and subsequently expanding into offline channels exemplifies how pet dietary supplement brands are adopting an omnichannel approach to enter, grow, and expand their presence in a market. The right channel strategy plays a pivotal role in driving category awareness by ensuring the product is available where the consumer is present, thus aligning with the brand's desired frequency and depth of customer engagement.
The European Market: A Promising Frontier
The European pet food supplements market is poised to reach a valuation of $441.6 million by 2033, driven by the increasing pet ownership, growing awareness of pet health and nutrition, and the humanisation of pets. Millions of households across Europe have embraced pet ownership, indicative of the high demand for pet food products, which is strongly correlated with the rate of pet-owning households.
Additionally, there is a rising trend toward natural and organic pet food products, with pet owners seeking high-quality ingredients and products free from artificial additives, preservatives, and fillers. Ensuring the safety and nutritional adequacy of pet food products has been a key concern in the European pet food industry, subject to stringent regulations and quality control procedures, thereby fostering consumer confidence and driving industry standards.
The growth of e-commerce has also influenced the pet food industry in Europe, providing customers with convenience and a diverse array of product choices. Pet owners can access a range of pet food brands, compare prices, read reviews, and make purchases swiftly via online platforms.
Veterinarians wield significant influence over pet owners' decisions regarding pet feeding, shaping consumer preferences and purchasing choices through their recommendations or endorsements of specific brands or formulations.
Furthermore, an increasing number of pet owners are willing to invest in premium pet food items, including better-quality ingredients, specialised formulations, and personalized options tailored to specific dietary needs or health conditions.
The Role of Supplements
Pet food supplements are products designed to add extra health benefits to pets' regular diets. They encompass vitamins, minerals, probiotics, joint support items, skin and coat supplements, and digestive health aids, available in various forms such as tablets, chews, powders, and liquids.
In Europe, numerous companies, including well-known pet food brands and specialised supplement makers, offer a diverse range of supplements for pets, which are sold through various channels, including pet specialty stores, veterinary clinics, and online retailers.
The pet food supplements market in Europe is witnessing growth fuelled by innovation and the introduction of natural and organic options. As pet owners become more discerning about what they feed their pets, the demand for premium and specialised supplements is on the rise.
Key players in the market include Mars Petcare , Nestlé Purina PetCare Europe, Hill's Pet Nutrition, Nutramax Laboratories , and Vetoquinol Global. These companies are continually introducing new pet food supplement formulations, functional ingredients, natural and organic options, and personalized products.
The European Landscape: Key Insights
The European pet food supplements market is set to be worth $441.6 million by 2033.
Demand for pet food supplements in Europe is likely to soar at a CAGR of 5.9% over the forecast period.
Based on nature, the organic pet food supplements segment is anticipated to reach a valuation of $97.4 million by 2033.
By form, the tablets & capsules segment is likely to exhibit a CAGR of 4.1% during the projection period.
The United Kingdom is projected to hold a dominant valuation of $113.5 million in the European market by 2033.
Germany's pet food supplements market is likely to top $72.0 million by 2033.
France is estimated to witness a value CAGR of 5.9% during the projection period in the European pet food supplement market.
Top Players in the European Pet Supplements Market
Nutramax Laboratories, Pet Naturals of Vermont, NaturVet, Tomlyn, VetriScience, Zesty Paws, VetIQ, MPP, Pro-Sense, Makondo Pets,Gimborn Italia S.r.l. ,Paws & Pals, GNC, Purina Pro Plan Veterinary Supplements, Pet-Tabs, Wholistic Pet Organics, AdVita Lifescience GmbH , RestoraPet, Marshall Thundering Herd, Infinite Pet, Organic Pet, and Alaska Naturals Alaska Naturals Pet Products are key pet food supplements manufacturers listed in the report.
These key manufacturers are developing innovative and high-quality pet food supplements to meet the specific nutritional needs of different pets. They are investing in research and development to introduce new ingredients, formulations, and flavors, noted the report.
Manufacturers often form partnerships with distributors and retailers to expand their reach and ensure efficient distribution. They are differentiating their products through various factors, including organic and natural ingredients, specific health benefits, product packaging, and targeted solutions for specific pet age groups and breeds.
The Amazon Effect: Driving Growth in the Online Pet Supplements Market
Examining pet product sales on Amazon in the US, Canada, UK, Germany, and France, analysts at One Click Retail revealed intriguing insights in their "Consumables on Amazon: Q3 2017 Update." The US remained the largest market in total sales, amassing an impressive $430 million in pet product sales.
The United Kingdom secured the second-highest pet product sales on Amazon among the five countries in the report, while Germany claimed the third spot, followed by France and Canada.
1. The United States: A Powerhouse of Growth
US sales soared by 28% over the previous year, experiencing a remarkable 58% growth rate. Pet food and feeding supplies constituted the largest portion of total pet product sales in the US, a trend mirrored across all countries.
Amazon's pet food sales growth in the US surged by an astonishing 65%, making it the fastest-growing category within pet products.
2. The United Kingdom: A Burgeoning Market
UK pet product sales on Amazon reached an impressive GBP40 million (US$52.6 million), marking a 30% year-over-year increase. Notably, Lintbells | Home of YuMOVE a dog joint supplement for older dogs, emerged as the top-selling item.
3. Germany: Explosive Growth Potential
In Germany, Amazon's pet product sales witnessed a staggering 200% growth, reaching EUR35 million (US$40.8 million).
4. France: Rapid Expansion in Pet Food
Pet food was the fastest-growing pet products sub-category in France, with a remarkable 78% growth rate. Amazon's total pet sector sales of EUR10 million (US$11.6 million) in France represented a 31% change, growing at an impressive 51%.
5. Canada: A Promising Frontier
While Amazon's sales in Canada's pet product sector were the smallest at CAD5 million (US$3.94 million), the market exhibited substantial growth of 149%, driven primarily by health care items.
Amazon's Pet Product Sector: A Billion-Dollar Juggernaut
Between October 2016 and September 2017, Amazon's pet product sales surpassed a staggering US$2.2 billion, according to a One Click Retail pet food industry analyst in the report "Pet Products on Amazon: 2017 Update." Amazon's pet product sales increased by an impressive 33% year-over-year.
Pet food and feeding supplies accounted for the lion's share of these pet product sales, amounting to US$970 million and constituting 44% of all pet products sales. Remarkably, pet food also exhibited the highest year-over-year growth at 47%. To put this into perspective, dry dog food alone was larger than any other category within pet products on Amazon.
The Road Ahead: Strategies for International Expansion on Amazon
As pet brands seek to expand their reach beyond domestic borders, Amazon presents a compelling opportunity for international growth. By leveraging the platform's global presence and established infrastructure, brands can tap into new markets and broaden their customer base. However, navigating the complexities of cross-border e-commerce requires a well-crafted strategy.
One effective approach is to establish a strong foothold in a brand's home market before venturing into international waters. By optimising product listings, leveraging sponsored ads, and building a robust customer base domestically, brands can refine their strategies and gather valuable insights to inform their global expansion plans.
Additionally, brands should conduct thorough market research to identify high-potential target markets. Factors such as cultural preferences, regulatory environments, and competition levels should be carefully evaluated to ensure a well-informed entry strategy.
Partnering with experienced Amazon agencies or consultants can prove invaluable, as they possess deep knowledge of local markets, consumer behaviour, and operational nuances. These experts can provide guidance on localisation efforts, including language translation, cultural adaptation, and compliance with regional regulations.
Brands should also consider leveraging Amazon's global logistics and fulfilment capabilities, such as Fulfilment by Amazon (FBA), to streamline cross-border shipping and enhance customer experience. By storing inventory in Amazon's strategically located fulfilment centers, brands can reduce delivery times and offer competitive shipping rates to international customers.
Effective digital marketing strategies, including targeted advertising campaigns, influencer collaborations, and social media engagement, can help brands build brand awareness and drive customer acquisition in new markets.
As brands navigate the journey of international expansion on Amazon, continuous monitoring of performance metrics, customer feedback, and market trends will be crucial for refining strategies and capitalising on emerging opportunities.
The Future of Pet Wellness: Trends and Innovations
As the pet wellness industry continues to evolve, several trends and innovations are shaping the future of pet dietary supplements:
Personalised Nutrition: With the rise of personalised medicine and nutrition for humans, the pet industry is following suit. Brands are exploring ways to offer tailored supplement formulations based on a pet's age, breed, health conditions, and unique dietary requirements.
Plant-Based and Vegan Options: As plant-based diets gain traction among humans, pet owners are seeking vegan or plant-based alternatives for their furry companions. Brands are responding by developing supplements derived from plant-based sources, ensuring they meet the nutritional needs of pets.
Mental Well-being: Beyond physical health, pet owners are increasingly focused on their pets' mental well-being. Supplements targeting stress relief, anxiety management, and cognitive function are gaining popularity, reflecting the growing trend of pet humanisation.
Microbiome Support: With the increasing understanding of the importance of gut health, supplements aimed at supporting a healthy microbiome in pets are emerging. Probiotics, prebiotics, and synbiotics are being incorporated into formulations to promote digestive health and immune function.
Sustainable and Ethical Sourcing: As consumer awareness of sustainability and ethical practices grows, pet owners are seeking supplements that are sourced responsibly and produced with minimal environmental impact. Brands are responding by adopting sustainable sourcing practices and transparent labelling.
Technology Integration: The integration of technology into pet care is enabling more precise monitoring and personalisation of supplement regimens. Wearable devices, mobile apps, and AI-powered platforms are being developed to track a pet's health data and provide tailored supplement recommendations.
Education and Awareness: As the pet supplement market continues to expand, there is a growing need for consumer education and awareness. Brands are investing in educational resources, such as online platforms, vet partnerships, and expert-led content, to empower pet owners with knowledge about the benefits and proper use of supplements.
By staying attuned to these trends and embracing innovation, pet supplement brands can position themselves at the forefront of the industry, meeting the evolving needs of pet owners and contributing to the overall well-being of their furry companions.
Conclusion
The pet dietary supplements market is experiencing a remarkable surge, driven by the unwavering commitment of pet owners to their companions' well-being and the ever-growing trend of pet humanisation. As consumers become increasingly conscious of their own health and adopt a preventative approach, they are extending this mindset to their pets, fuelling the demand for products that cater to specific need states and holistic well-being.
With the rise of e-commerce and the adoption of omnichannel strategies, pet supplement brands are leveraging digital platforms to enhance product discovery, drive customer acquisition, and forge deeper connections with consumers. The European market, in particular, presents a promising frontier, with a projected valuation of $441.6 million by 2033 and a CAGR of 5.9% over the forecast period.
As the industry continues to evolve, trends such as personalised nutrition, plant-based options, mental well-being support, and sustainable sourcing are shaping the future of pet dietary supplements. Brands that embrace innovation, invest in research and development, and prioritise consumer education will be well-positioned to capitalize on the growing demand for pet wellness products.
By navigating the complexities of international expansion on platforms like Amazon and forging strategic partnerships with local experts and industry players, pet supplement brands can unlock new markets and broaden their global reach. The journey ahead promises exciting opportunities for those who can effectively harness the power of digital marketplaces and stay attuned to the ever-evolving needs of pet owners worldwide.
As the pet dietary supplements market continues its upward trajectory, fuelled by the relentless pursuit of holistic pet wellness, brands that embrace innovation, foster consumer education, and navigate the complexities of international expansion will emerge as the frontrunners in this burgeoning industry. The future holds immense potential for those who can effectively harness the power of digital marketplaces, forge strategic partnerships, and stay attuned to the ever-evolving needs of pet owners worldwide.
Ultimately, the success of pet supplement brands will be measured not only by their financial performance but also by their ability to contribute to the overall well-being of our furry companions. By providing pet owners with high-quality, innovative, and tailored solutions, these brands will play a crucial role in elevating the standard of pet care and ensuring that our beloved companions thrive in every aspect of their lives.
