Regional report: Middle East – shifting demographics

Rapid urban development and the increasing acceptance of pets in Saudi Arabia are fueling demand in the country for pet products.

Meanwhile, Oman’s market is shifting toward premium pet care and sustainability, backed by government incentives and changing consumer behaviors.

Saudi Arabia: rapidly evolving

The kingdom’s pet industry has transformed significantly in recent years, reflecting broader cultural and economic changes.

Traditionally, pet ownership was limited due to religious and societal norms. But a younger, more globally connected population is driving demand for pet products and services.

“Saudi Arabia has changed culturally,” says Nawaf Tabbaa, Chief Marketing Officer at Muntajat, founded as Pet Products Trading Company in 2005. “Gen Z and the younger Saudis have been exposed to international mindsets through social media. Before, the older generation were always afraid of pets, especially dogs, because of their religious beliefs.”

The median age in Saudi Arabia is now just 29.6. “10 years ago, they were teenagers without any decision-making power, but now they own their own homes and are more open to having pets,” Tabbaa explains.

From expats to Saudi customers

Rachel Start, Commercial Director of Expat Logistics and Bayt Al Aleefa, companies that specialize in pet relocation and retail, agrees that the kingdom has changed drastically in the 19 years that she has been living there.

She set up Expat Logistics with her husband in 2009, followed by Bayt Al Aleefa in 2018, which a Saudi partner owns.

“Now it’s quite trendy for the young Saudi guys to have a big dog… There are even dog cafés now. It has opened up,” she says.

When Bayt Al Aleefa launched, few online pet retailers were active in the country. Today, there is a growing consumer preference for convenience with delivery and online shopping.

While physical stores remain important, the ability to offer fast home delivery is necessary amid increasingly urban lifestyles in Saudi Arabia.

Bayt Al Aleefa has expanded its physical store and warehouse to meet increasing demand, but 85% of its sales still come from online channels. “If people want to pop in or browse, look at a bed or something they actually want to feel before they buy, they can do that,” says Start.

Customer demographics have also shifted. Start explains: “When we started, 100% of our customer base were expats. Now, probably around 30% are local Saudi customers.”

These factors allowed the business to go from strength to strength in the first 5 years, growing 60-70% year on year (YoY). It still enjoys 20% annual growth.

Consistent growth

Muntajat, the country’s largest pet-related products supplier and distributor, had a similar trajectory, with 50% growth in sales in 2020 and 2021, followed by stable annual growth of 15% YoY.

In November 2023, the company announced it had secured an investment of up to SAR80 million (€20.5M/$21.3M) from Aliph Capital, an Abu Dhabi-based private equity fund. Tabbaa said this deal did not go ahead due to a “lack of chemistry and understanding”.

The company now serves 1,200 B2B accounts, supplying over 2,700 retail and e-commerce stores, which Tabbaa says includes 95% of the Saudi market.

Last year, it also launched a drop shipping product that enables e-commerce businesses to enter the pet market without holding inventory. “In 2024 alone, 25 new e-commerce companies started using our service,” he adds.

Challenges ahead for the kingdom

According to Start, there are numerous challenges to running a business in this market. These include tight margins, increasing regulatory costs – particularly for foreign-owned companies – and supply chain issues.

Tabbaa agrees about the margins and says that while Saudi Arabia now has almost 175 e-commerce pet stores, only 20 generate more than SAR100,000 (€27,000/$26,000) in annual revenue.

Tabbaa does believe there is plenty of room for growth, however. “In 2024, e-commerce sales [in the pet industry] reached $50 million (€48M), when it had only been $22 million (€21M) in 2023,” he says, adding that $25 million (€24M) of this was generated by amazon.sa and Ninja, a local grocery delivery company.

That is why Muntajat’s priorities moving forward are to enhance efficiency within the market, provide better services and ultimately increase the number of pet owners in Saudi Arabia – rather than solely focusing on expanding sales.

The company targets 100% growth within its service-based offerings in the next 3 years, particularly in industry support and e-commerce facilitation.

“It’s about creating services in the market for pet ownership,” says Tabbaa.

The strategy ties in with governmental campaigns to promote animal welfare. It also aligns with the Saudi Made initiative, which provides incentives for domestic production as part of the country’s Vision 2030, a national road map that incorporates economic diversification, sustainability and food safety goals.

Local vs imported brands

According to Muntajat, since 2023, 3 new pet food factories have opened in Saudi Arabia, producing their own brands. And Jeddah-based Delicious Food Factory has announced the construction of “the largest pet food factory in the Middle East”.

With a total area of 55,000 sq m, this Riyadh plant will have an annual production capacity of 60,000 tonnes of dry food and 40,000 of wet food. It is expected to be completed by late 2026.

Although Start says that Bayt Al Aleefa’s customers still prefer premium imported brands such as Royal Canin, Hill’s, Schesir and Taste of the Wild, locally made brands like Horayra and Wolfres are gaining traction, competing on affordability and cultural appeal.

While the kingdom’s market is expected to grow exponentially, industry players still stress the need for improved pet welfare regulations and infrastructure. Tabbaa also believes there’s a lack of structured, large-scale pet businesses integrating strong marketing, logistics and operational efficiency, as the US’s Chewy does.

“Chewy is a huge company… You don’t find this business model in Saudi Arabia. The majority open a store and have someone sell in the shop. That’s it.”

Oman’s premium market

In Oman, pet ownership is more established than in Saudi Arabia and the market is characterized by a strong preference for premium products and a more transparent regulatory framework.

Maryam’s Pet, the country’s first subscription-based online pet store, claims that in modern-day Oman pets are considered to be family members.

This change in attitudes has been fueled by higher disposable incomes, growing awareness of pet wellness and social media influence.

As a result, the demand for premium pet care products has increased. That has led to growth right across the industry.

Maryam’s Pet has seen 15-20% month-on-month growth in subscription-based sales since its inception in 2022. It also has a 40% customer return rate.

This growth is further buoyed by the Omani government’s commitment to supporting small businesses through tax incentives and entrepreneurship programs, aiding market expansion.

“Sales have risen by 25%, with a 40% surge in premium product inquiries,” the company reports. “Most of our customers prioritize high-quality products and will willingly invest in the best for their pets, even with budget-friendly options available.”

While 80% of these products are currently imported, Maryam’s Pet anticipates a shift over the next 3-5 years toward more locally produced pet products, to align with growing sustainability demands. “Our website already features local brands like [cat litter brand] Kitty Klay, with more to come as we expand our selection.”

Urban cats and rural dogs

Tabbaa says that Muntajat, which offers services across the region, has noted steady growth in the Omani market, although it’s slower than in Saudi Arabia.

“They have good awareness of premium pet food [in Oman],” he explains. This is in stark contrast to Saudi Arabia, where the preference tends to be for affordable brands such as Applaws, he adds.

Dog ownership dominates in Oman with 60% of pet owners having dogs and 35% cats, whereas in Saudi Arabia cats are more popular. Dogs are prevalent among outdoor enthusiasts and families with villas, whereas cats are favored in urban areas due to fewer maintenance needs.

Trends indicate a steady rise in cat ownership, driven by urban living and apartment-friendly pet preferences.

“Small pets like rabbits and birds are also common. Additionally, there is a growing openness to adopting rescue pets, a trend that we strongly support,” says Maryam’s Pet.

Bricks and mortar most trusted

Where Oman lags behind its Gulf neighbors is in e-commerce. Building trust in Oman’s e-commerce market remains a challenge, as many still prefer physical stores, according to Maryam’s Pet.

The company does expect online shopping to become increasingly popular in the near future, alongside premium pet care services, subscriptions and eco-friendly products.

“Personalized communication, customer engagement and testimonials play a key role in building credibility. We also cater to remote areas with high-quality products and offer free shipping across Oman on orders above OMR30 ($78/€75),” the company states.

Ready for more business

Their different dynamics notwithstanding, both Saudi Arabia and Oman offer opportunities for pet businesses.

Saudi Arabia’s market is defined by rapid growth, increasing pet ownership and a booming e-commerce sector, although challenges such as regulatory constraints and inconsistent government support for retailers persist.

Oman, in contrast, offers a stable, premium-focused market and a growing inclination toward sustainability.

With continued investment, regulatory improvements and continuously evolving consumer behaviors, the pet industry across the region is poised for sustained growth.