Pet care: The limits and opportunities of an ever-growing market

The conference began with data on consumer behavior in brick-and-mortar stores and e-shops of large mixed-goods retailers, as well as data on the interests and shopping strategies of online customers. Zuzana Sechterová from NIQ presented how pet food sales are beginning to recover in 2024, although they still have not reached the level from two years ago. The growth of this category over the past two years, marked by high inflation, was driven primarily by prices rather than volumes. Volumes decreased, especially in dog food. 'Interestingly, the average price of cat food is 30 CZK higher per kilogram than dog food, which means that we spend 1,5 times more on cats than on dogs,' she said.

Martin Slavětínský from Heureka Group focused primarily on pet accessories. He identified products in the category of hygiene and cosmetics for dogs as one of the fastest-growing categories with high potential for further growth. Veterinary products also saw significant growth. Pavlína Rochová followed up with data from the Tlappka app, which offers online veterinary consultations. Veterinarians are perceived by pet owners as an authority when recommending products, whether for prevention or solving health problems of pets. Most cases consulted in the app end with recommendations and home treatment.

Another authority in consulting not only health and nutritional issues but also the overall approach to the animal can be breeding stations with a responsible approach. Lenka and Martin Dokoupil from the Serenity Hill breeding station presented their journey, which impacts the lives of new owners of kooikerhondje puppies and contributes to the cultivation of the market.

An exclusive look at the global development of cultured meat was presented by Tomáš Kubeš from Bene Meat Technologies. This company holds a world first in registering cultured meat for pet food production. The cultured meat production process was compared to sourdough. The collected animal tissue, without the need to kill animals, is 'fed' during cultivation with plant-based products rich in proteins. The cells grow, and the result is meat free of antibiotics and other undesirable substances.

The large cultured meat farm, which is set to be the first of its kind in the world, is expected to be established in the Czech Republic by 2025. The company plans that in the future, it will not only be a producer but also a seller of technology for in-house production. The primary target group for their products is the younger generation, who are sensitive to environmental issues and animal well-being. The company also aspires to develop cultured meat for human consumption.

The trend of humanizing pets was also linked to the younger generation by Milan Rytiř from VAFO Praha. Up to 12% of pet owners perceive their animal as a child. In his presentation on the obstacles to shopping in brick-and-mortar stores, he pointed out that the real key to growth and profit lies in the ability to meet customer needs and provide them with a pleasant shopping experience. He specifically highlighted the need for a change in store sales strategy, where 'cat 'parents' don't want to walk through the dog section to find products for cats.'

How to properly set up performance marketing and what to expect from a relationship with an agency was explained by Denisa Staňková and Petr Gebauer from the agency Effectix. Petra Víšková from Confess Research followed up with work with animals in the online space, print, and video. She advised: 'The elements you use in your ad should support your message, not overshadow it.' The effectiveness of the message can be tested using neuroscientific methods before releasing it to the world.

Throughout the day, there was a recurring theme in the presentations about the need to help customers navigate an overly wide range of brands. This topic was also discussed in a panel discussion. According to Jan Brejcha from VAFO Praha, the pet food market, like all other categories, will eventually reach a ceiling, leading to market consolidation and a narrowing of offerings. David Němčík from Albert Czech Republic supported the idea that less is more in the assortment. On the contrary, Lukáš Samohýl from Samohýl Group expects more players to enter the market in the near future. Lukáš Dospíšil, founder of Lukas Green brand with CBD products for animals, sees the future in online sales, where consulting and the ability to meet each customer's specific needs will play an even greater role. Gabriela Železná from Chovatelská archa also sees consulting as the key to success, as mere retail is not enough.

The conference is part of the specialized 'Retail in Detail' series, in which Blue Events focuses on specific market topics. The Friends of Pets conference, focusing on the pet care sector, was held for the sixth time, with the support of business partners, lead by VAFO Praha.

For more information on other Blue Events conferences, visit: www.blueevents.eu/en

Contact: tereza.ordonez@blueevents.eu

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