The pet industry in the Middle East

Countries and cultures

The Middle East is predominantly Islamic and Arabic is  the main language spoken amongst the local people, but there are many cultural differences. Part of the region is organised in a council for Arab states known as the GCC (Gulf Cooperation Council). This consists of Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain and Oman.

 

Regional breeds

More cats are kept as pets than dogs, because the Islam considers dogs to be unclean. There are some regional cat breeds, like the Egyptian Mau. Large cat shows are organised.

Dogs were traditionally used for hunting but are now a part of the family.

There is a regional dog breed called the Saluki, a pure-bred sighthound that survives easily in high temperatures. Pet owners often choose small breeds when they decide to have a dog.

 

Market characteristics

UAE and Qatar are the largest sales regions within the GCC. Though hardly any pet industry data is available, industry players believe the market is still growing.

Much of this growth in sales is due to the region’s expats, who are used to owning pets. These temporary workers have another effect on the sector, however, with companies having to constantly remarket themselves to newcomers. Contrary to other global regions, vets, pet shops, kennels and brands do not gain customers ‘for life’ here. Businesses therefore need strong customer communities and large enough marketing budgets to survive this recurring phenomenon.

Coronavirus has hit the region too, so the effect on consumers remains to be seen.

Bye bye expat, hello stray

Expats do not always take their pets with them when they leave, nor do they find homes for them. This is the story behind many stray cats and dogs. The government is trying to help, and private individuals are initiating so-called ‘Trap-Neuter-Return’ programmes in their local areas. Local pet companies play an important role too, donating food and supplies.

Pet food trends

Local pet owners are increasingly changing their habits. Dogs and cats are often seen as part of the family now, with more and more pet parents switching to premium products. Pet humanisation trends observed in this market have led to growth in pet care.

The region has a generally hot climate, so there are a lot of problems with allergies and also intolerances to certain foods. Information given about prevention is creating demand for grain-free, gluten-free, and food based on a single protein source.

There has been a slight uptake of raw diet nutrition, with a few companies entering the market and producing frozen raw diets locally. But despite a group of diehard fans, statistics show that people switch to easier and cheaper alternative options after trying raw foods for a while. So there is no real impact on the traditional pet food market.

Shopping behaviour

People in the Middle East have a very on-demand, round-the-clock attitude. Everything is set up to be as quick and convenient as possible, with groceries dropped off within the hour. This translates into the pet industry too, driving the launch of mobile apps for retail.

Pet owners know what they want, and they want it yesterday. For entrepreneurs, this means serious investments – convenience and service driven – which many cannot afford.

Pet retail

Grocery is the strongest sector across the Middle East and holds the greatest share of the pet industry, with the usual market leaders dominating: Mars and Nestlé. Some premium supermarkets have also introduced niche brands from their home countries, like Waitrose from the UK.

The market is dominated by two major retailers, each with a different approach: Pet’s Delight and The Pet Shop Dubai. Pet’s Delight is an innovative market leader with its combined online and B&M presence. The Pet Shop started as an online platform and currently holds the largest online share. To create a strong bond with consumers, it offers grooming and kennels, as well as pet relocation services, and recently launched a mega brick and mortar store.

The first Pet’s Delight opened in 2005 and it is now the biggest chain in the region. The shops are all at the heart of local communities. In 2014 the company launched an online platform, part of which is a dedicated mobile app that has helped them gain tremendous market share. Extra services like free nutrition consultations, grooming and a truly omni-channel experience for customers, completely integrated with a loyalty programme and redemptions, are changing the face of pet care.

Amazon recently entered the UAE, but it has not seriously affected independent pet shops yet.

Distributors

There are three main distributors in the UAE, some exporting to areas around the GCC:

• Arab Land Trading L.L.C were pioneers, and today one of the leading players who also own Pet’s Delight. They offer many internationally renowned brands and export throughout the Gulf and beyond.
• Saint Vincent Group sells and distributes Royal Canin in the GCC with some extra non-food brands.
• Naturally For Pets distributes other brands.

None of them export to Saudi Arabia, which tends to work independently. Besides some small raw food producers, there are no producers in GCC countries.