Country report: Turkey – Future looks promising for Turkish pet food manufacturers

More discerning customers

Other industry insiders believe that pet parents are more critical and investigative than in previous years. “They want food brands that meet cat and dog needs. Products that are rich in ingredients and produced with high quality are increasingly preferred,” states Oktay Diker, Corporate Communications Manager at pet food manufacturer Lider Group.

This Izmir-based company also says that dog ownership is becoming more popular in Turkey, especially of small and mini-breed types.

In-store versus online

The country’s Ministry of Agriculture and Forestry recently reported that 2,365 stores received licenses to sell pets in 2023. The majority of these stores are located in developed metropolitan areas – such as the capital Ankara and Istanbul – where the cat and dog adoption rate is high. Algeç estimates that Istanbul alone, which is the largest city in Turkey with more than 15 million inhabitants, accounts for approximately 35% of the nation’s pet market.

Although the exact online penetration rate in the pet industry is unclear, e-commerce seems to be gaining popularity among Turkish pet parents. “People used online channels more during the pandemic and got used to its convenience,” says Algeç from petlebi.com, which claims to have 1.5 million visitors per month.

Algeç also points out that the small size of most pet shops in Turkey limits the product assortment, which is why consumers prefer online shopping for pet products. For example, it is believed that most pet shops in Istanbul are around 35 sq m. Therefore, pet stores tend to only carry the best-known brands or the brands with the highest profit margins, leading to a lack of brand diversity.

Stores are also lacking a wide range of accessories and toys. Even though pet shop owners are financially solid, they cannot purchase large amounts of goods at once. This means they often cannot offer attractive promotions and discounts to their customers.

Impact of inflation

With the inflation rate exceeding 60% in the last 2 years, Turkish citizens are experiencing a decrease in purchasing power. According to price comparison websites, cat and dog food prices increased by between 35% and 55% compared to 2023.

“Despite the high cost of living, we think that the pet sector is the industry that is least affected by the high inflation because pet owners are seeing their pets as their children,” comments Algeç.

Nevertheless, Lider Group observed that some customers are looking for cheaper alternatives in the pet food space, signaling a transition from the premium to the mainstream segment. Algeç adds that this trend occurred mostly in food for large-breed dogs due to the high monthly consumption amounts.