Opportunities in the Danish pet market

The magnitude of the market

In Denmark, around 15% of all households have one or more cats and 20% have one or more dogs. That means around 700,000 cats and 600,000 dogs and both categories are growing! At the same time, the demand for birds, fishes, small animals, reptiles and horses is also on the increase. 

All in all, the total estimated market retail value is €1.3 billion ($1.4 billion). The market can be characterised as being stable, with a moderate growth which is primarily driven by premiumisation and humanisation. 

If the trend towards having smaller dog races continues, volumes are set to decrease slightly. 

Changing retail environment

More and more channels are offering pet care products.

The highest volume of sales is still generated by supermarkets. Of these, discount supermarkets are accountable for almost half of these sales. Not only are discount supermarkets to be found country-wide, chains like Lidl and Rema 1000 are gaining market share and opening new outlets. Other discounters – including Netto, Fakta and Aldi – also offer a wide range of pet products.

At the same time, DIY and garden centres are gaining a share in the pet market by competing on price, while offering a more complete product range. For example, Plantorama recently re-opened a store in Aarhus. It includes a farm shop with a wide range of organic fruits and vegetables. Similarly, Harald Nyborg introduced a range of dry dog and cat food and snacks. In this way, retailers in this sector are now moving towards offering a total range of dog and cat food, as well as imported accessories.

The veterinarian segment is also growing, characterised by several mergers and acquisitions. The two leading chains are VetFamily and AniCura, the latter acquired by Mars (2018).

The two leading pet retail chains, Maxi Zoo and the Nordic Petworld, have successfully adopted an omni-channel approach. However, many privately-owned pet shops are having a hard time in a highly competitive off- and online retail environment. 

E-commerce is obviously growing fastest, with Zooplus at the top of the online league. The remaining online market is fragmented with many small players. 

Danish pet pampering

Traditionally, and to this day, pets in Denmark are very much family members. Pet parent trends are similar to those followed in other European countries. However, Danish pet parents appear to be more focussed on high-quality products and total transparency about ingredient sourcing.