Country report: Italy – A holistic approach to pet care

A constantly growing market. This, in a nutshell, is the conclusion of the 2022 report published by Zoomark and the Italian Association for Pet Feeding and Care on the pet market’s performance in Italy.

Dog and cat food are the key players in Italy’s pet food segment, with turnover doubling in the period 2007- 2021: from €1.16 billion ($1.24B) to €2.53 billion ($2.71B). According to market research firm IRI, average annual growth in grocery and at specialized retailers (excluding online) during that time was 5.7%. Compared to 2020, 2021 turnover was up by 7.1% and volume by 5%.

Paying for well-being

Most pet food growth is due to increases in premium and super premium purchases, driven by innovation and an increasing focus on welfare. This new attitude to pets is also confirmed by recent figures from RGS, the State General Accounting Department. Italian pet parents spent €693.16 million ($743.22M) in veterinary clinics last year, while pharmaceutical expenditure went from €190 ($204) to €240 ($257) million in the last 2 years (+26%).

The vet as influencer

Italian pet parents see vets as ‘key influencers’, a main source of information on their pet’s diet. They also consult them about topics not strictly related to health, such as grooming, accessories and toys.

This trend is pushing the extremely dynamic market for hygiene products, toys and accessories, which is performing excellently in large-scale retail (+5.8% compared to the previous period). The strongest segment is cat litter, which grew by 5% in the year ending December 2021.

Surge in pet ownership

According to Euromonitor, there are an estimated 64 million pets in Italy. Dogs and cats total over 19 million – both on the rise. Statista shows that the dog population increased by 5% between 2020 and 2021 to 8.7 million.

The Italian pet market has proven to be a COVID-19 ‘winner’. Market growth in the last 2 years can partly be attributed to the rise in the number of people taking on dogs and cats that coincided with the end of the first lockdown in 2020.

More pet owners has led to a substantial rise in the number of households – most of them young people of medium-high socio-economic status – buying dog and cat food. According to a 2021 GFK consumer panel, this is 12.2 million, 46.9% of all Italian households and up 3.4% on the previous year.

Going phygital

The pet food market has seen profound changes in the weighting of the specialized channel and grocery, with annual growth rate increases of 8.3% and 4% respectively. Emerging channels include supermarkets, pet shops and also the online channel, which now accounts for 2.4% of the market.

Online grew during the pandemic, attracting and retaining new shoppers, while breaking down the many cultural and cognitive barriers that appeared to have held the channel back in previous years.

When it comes to purchasing habits, Italian pet parents seem to be going ‘phygital’: some checking product prices online and then buying in a store, while others look at products in a store and then buy online.

Challenges and opportunities

How the rising prices of energy and raw materials, plus the rate of inflation, will impact on the Italian consumer is not yet clear. Some analysts forecast new market trends, like an increasing ‘sensitivity’ of Italian consumers to pricing and promotion, and decreasing brand loyalty. But Italian players are still optimistic, as the market is solid and in good health.

The growing importance of the relationship between pets and pet parents, a pet’s role in the Italian family, and the focus on their well-being are key trends that will continue to shape the market.

New opportunities will also come from the digital world. Distribution channels can now further evolve to meet the needs of a new and increasingly aware consumer who will buy more – and more often – online. The key to the future will be omnichannel: a new way to reach new consumers.