Country report: Germany – Larger and more discerning than ever

Almost every second household in Germany today includes a pet. Although the recent economic situation has led to restraint and fewer new pet adoptions, the willingness to invest in animal welfare remains strong. In 2024, Germans spent more than €7 billion ($8.1B) on their pets.

Multichannel is a must

When shopping, German pet owners increasingly value flexibility. Around a third of them buy exclusively in physical stores, while some 60% shop both online and offline.

Brick-and-mortar retailers are responding with specialization and omnichannel strategies: click and collect, digital bonus programs and seamless online- offline experiences are now standard.

Nevertheless, in 2024 turnover stagnated for the first time after years of growth, though remaining at a relatively high level of just under €5.4 billion ($6.3B).

Major online platforms score points with flexible subscription models. These generate stable revenues and provide valuable customer data, while ensuring pet owners a reliable, convenient supply.

According to figures from the German Pet Trade and Industry Association (ZZF) and the Industrial Association of Pet Care Producers (IVH), online sales rose by almost 15% in 2024, reaching €1.5 billion ($1.7B).

Felines bolster pet food sales

Pet food remains the strongest segment in terms of revenue. With €4.3 billion ($5B), the market is stable, driven particularly by growth in cat food, which rose by 3.5% to €2.3 billion ($2.7B).

In contrast, there were declines in ornamental bird food and small animal food at -4.1% and -7.9% respectively. Accessories and supplies also saw a decline, as pet owners postponed larger purchases. The result was a slight decrease of 0.6%.

Grocery retailers performed better in this segment than pet shops, whose market share in pet food declined by 2%. Nevertheless, specialist chains continue to invest in expansion.

The Fressnapf Group, for example, is strengthening its logistics and omnichannel structures, and many others, such as large pet retailers Das Futterhaus and Zoo&Co, are opening new stores.

Rewe subsidiary ZooRoyal has also added physical stores to its online shop and is planning a large-scale rollout of additional branches in 2026. Overall, the sales area of the 20 largest pet shop operators increased by 2.5% last year.

Cats on the increase

Since the COVID pandemic, the total pet population in the country has dropped slightly. This is certainly the case for the numbers of small animals and birds which, after growth in 2022, have seen a decline of some 300,000.

The situation is quite different for cats. In 2024, 300,000 more households chose cats than in 2023. There are now cats in around 25% of German households – with multiple cats in 38% of these.

ZZF predicts that the total number of pets will return to the kind of fluctuations seen before the pandemic. According to the ZZF and IVH study, the number of households planning to acquire a new pet remains unchanged, at 3.8 million.

Opportunities and obstacles

Rising costs for raw materials, energy and personnel are putting German pet companies under significant pressure. Added to this are regulatory hurdles such as the German and EU Supply Chain Acts and the EU Deforestation Regulation (EUDR). Many companies find the associated documentation requirements burdensome.

“As worthy as the goals of these regulations are, we must not forget that bureaucracy inevitably stifles innovation,” warns Gordon Bonnet, Managing Director of ZZF.

“This leads to higher costs and forces companies to review supply chains, find alternative raw materials and work with certified partners. Some requirements are simply impractical – urgent improvements are needed here.”

Despite all this, ZZF remains optimistic about the future of the pet industry due to the growing demand for high-quality, sustainable products opening up opportunities.

Health, sustainability and digital services are considered to be the key drivers of growth.

Responding to consumer demand

Younger pet owners, in particular, are demanding products that combine welfare with environmental awareness. This is evident in cat hygiene, for example, with 57% of owners considering sustainability to be an important factor when choosing cat litter.

Overall, 21% already use plant-based alternatives rather than mineral products. Regional products and alternative protein sources are also showing robust growth, as well as health-related segments such as supplements and functional snacks.

Digitalization and services are further growth drivers in Germany. Smart home technologies for pets such as telemedicine, nutritional advice, pet training, dog grooming and aquarium maintenance are in demand. The industry is becoming more professional and alert to the need for convenience and expertise.

The small animals and birds segment remains attractive too, although consumer demands have changed and there are significant regional differences.

With growing awareness of what is appropriate for a particular species, pet owners’ expectations regarding housing, space and stimulation have also risen. In affluent areas, consumers are investing in high-quality enclosures for rabbits, guinea pigs, hamsters and birds.

The rise of hobby farmers

An exciting trend is the discovery of how enjoyable it can be to keep animals in the garden. Around 7.3 million farm animals, such as chickens and quails, now live in 1.4% of households.

These are found not only in the countryside, but also in urban spaces. The range of products for chicken keepers extends from essential nutrients to snacks, and bedding and protection to accessories and non-essential branded items.

These ‘hobby farmers’ make up an entirely different segment of pet consumers and many German influencers and bloggers have already embraced this trend. It is yet another opportunity for the pet industry to unlock the market’s full potential.