COVID-19: opportunities for private label pet food
Although the pandemic has led to growth in the pet industry, it has also increased the financial vulnerability of many individuals. What are the implications and challenges?
Need to economise
Pet food brands will come under pressure in some parts of the world because household incomes are squeezed in an economic downturn. In the UK, price is currently prioritised by 57% of dog/cat food buyers in their product choice and 46% is considering swapping to a cheaper brand.
This opens up opportunities for private label pet food, as it is usually at a lower price point than branded equivalents. The current recession differs markedly from the 2008-2009 financial crisis, however, as the private label offering in pet food has become much more sophisticated since then.
Added value for later
For branded pet products and exclusive retail brands, the question is: how to add extra value? Focusing on preventive health benefits, for instance, could help justify a higher price if this small investment potentially helps pet owners avoid healthcare expenses in the future.
Home-centric
Pets as cherished members of the family was already a strong trend prior to the coronavirus outbreak. The subsequent lockdown and social distancing measures further solidified the pet and owner relationship, increasing the amount of time owners spend with their pets.
Fresh and calm in stressful times
The importance of both emotional and physical health is at the forefront of many consumers’ minds. With more time on their hands, limited access to a professional groomer and still stuck at home, owners are pampering their pets, and keeping them and their home smelling fresh will be a high priority too.
Something extra
The tighter pet-owner relationship could drive increased sales of premium branded pet products in the coming months, or at least insulate the market to a degree from the impact of a recession.
A pet owner’s interest in going the extra mile for the health and happiness of their pet suggests an opportunity for premium products, or those that can provide something above and beyond the basic needs. Supplements that offer superior health benefits, such as personalised supplements or functional treats, should thrive.
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