Has the whole Hungarian market benefitted from growth during the pandemic?

Online specialists gain ground

The specialist channel has outgrown all other channels in Hungary by far, particularly their e-commerce business. Fressnapf still dominates the market. With their marketing power and high brand awareness, their online store quickly became the third largest in Hungary.

Small local specialist chains, and some independent stores, have also managed to generate significant sales growth. But a large part of the independent channel has had difficulty keeping up with both online and larger retailers with better locations and more appealing assortments.

Bigger stores lose out

The supermarket channel had an advantage over most other store categories, as it was less affected by pandemic measures regarding opening times. Yet it still failed to equal the growth in pet specialist retail.

Discounters have a strong position in dog and cat food. Failing to keep up with developments in the market has however led to their share dropping significantly, especially in dog food. Hypermarkets have managed to slow down the decline in their market position, but have not seen any growth since early 2020.

New pet parents

During the first and second waves of the pandemic, there were significant increases in the numbers of new puppies and kittens in Hungary compared to many years pre-COVID.

The new pet parents did all they can to provide their pets with high-quality food and accessories. So they immediately went for the super-premium categories, creating both volume and value growth in the market. They made their first pet supply purchases at specialist online and brick-and-mortar stores, mainly Fressnapf.

Explosive growth in pandemic-led categories

Besides the spike in the number of pets, the need and demand for pet accessories have also greatly increased due to people spending much more time in their homes. Products like beds, travelling gear, cat trees and other activity items have seen enormous growth. This phenomenon has also contributed to the increased sales in specialist stores, where pet parents could find more variety than what is on sale in supermarkets.

COVID-19 has certainly shaken up the Hungarian pet products market. Even though strong growth has been seen in the sector for many years, the past eighteen months have definitely brought change. And as premiumisation continues to be the main driver of growth, the biggest winner is the specialist channel.