The pet industry in the Middle East

It has been an upbeat couple of years for the pet care industry in the Middle East and North Africa region. According to Redseer Consulting, the industry has grown at an annual rate of 13%, reaching $800 million (€718M) in 2022.

This is much higher than, for example, the retail sector in general, where the growth rate for the past 2 years was around 5-7%.

Recognizing the benefits of pet ownership

Narrowing it down to the Gulf countries, analysts predict that growth in the pet industry overall will remain in double digits for the remainder of the decade.

All the positive momentum spurred by the pandemic – which saw a huge increase in pet adoptions due to lifestyle changes, a remote working culture, and more time spent at home – is set to continue.

The recent Pet World Arabia exhibition in Dubai highlighted the fact that rising awareness in the region of the benefits of adopting pets is strongly aiding the market.

These benefits include a reduced risk of mental illness, less chance of depression and better concentration levels.

In the United Arab Emirates (UAE) alone, this shifting consumer trend has fueled the pet care industry. The market is now worth over $300 million (€269M). And local players aim to take the industry to $2 billion (€1.8B) by 2025. E

verything from pet food to services such as grooming, pet daycare, pet gyms, boarding, training and pet- friendly accommodation is seeing a rise in demand.

Premium and local ingredients

The pet food market in the Middle East is forecast to reach $4.48 billion (€4.02B) in retail sales by 2025, with an annual increase of 7.8% for the next couple of years.

According to the latest Euromonitor forecasts, the UAE pet food market, which accounted for $185.1 million (€166.2M) last year, is expected to grow to $202.2 million (€181.6M) in 2023. In Saudi Arabia, the increase is expected to be even bigger – from $102.3 million (€91.9M) in 2022 to $119.6 million (€107.4M) this year.

Pet food is seeing strong momentum, with a new focus on high-quality ingredients and creative branding. As the gap between human and pet food narrows, pet food producers are increasingly following human tastes and nutritional needs. Ultimately, this drives demand for premium ingredients in pet food and a desire for locally sourced and traceable raw materials.

Highly informed pet food buyers

Ventzi Naydenova is Head of Distribution GCC for pet food manufacturer Percuro – a UK insect-based dog food manufacturer also present in the region. She says the company is now seeing better-informed consumers who often study pet food options right down to the individual ingredient level and their place in the pet diet.

According to Ventzi Naydenova, the UAE is one of the most developed markets in the region. Data from Redseer Consulting backs this up, indicating that the spend per pet in the UAE is almost 3 times higher than the equivalent in Saudi Arabia.

Online and offline expansion

The online pet care industry is outpacing the offline market in the Middle East, driven by ‘e-tail’ platforms expanding into the pet food sector and the rapid emergence of veterinary telehealth services.

Some of the biggest players in the region are Petzone (Kuwait), Pet Arabia (Bahrain), Pets in the City (Lebanon) and The Pet Shop (UAE), which was recently bought by private equity firm Aliph Capital.

Petzone opened its first store in Bahrain not long ago, an addition to its current 50 locations across Gulf countries, most of them in its home base Kuwait. Other locations include the UAE and Saudi Arabia.

‘Pet influencers’ are also shaping the market across the region, with many pet owners now following these influencers or other pet-related social media accounts and platforms.

At the same time, online marketplaces such as Bookmypet.com, and omnichannels like Modern Vet, are examples of a growing trend of start- ups capitalizing on the flourishing online pet industry.

Challenges for the pet industry in the Middle East

There are, of course, challenges for the region’s pet care market, in particular how to build supply chain resilience. During 2020, pet food manufacturers faced the unprecedented challenges of the global pandemic.

Keeping your workforce healthy, procuring raw materials and obstacles to cross-border trade did, in some cases, impact stocks and could impact them again.

Another issue is the scarcity of ingredients and the need to manage availability of resources within planetary limits – as well as the environmental impact of sourcing and packaging.

None of this has deterred investors, however. A growing number of big names are making a move into this lucrative market almost monthly.

… and opportunities

Entrepreneur Catherine Granger, who has been at the helm of oil and gas experts Trajan Consulting for 25 years, is launching a new designer label called Chewy Vuitton right across the Middle East. The entrepreneur says that she’s focusing on a new demand for ultra- luxury collars, coats and accessories.

“We’ve done our due diligence. There is a huge, largely untapped, market for ultra-high-end pet gear in the region, and we are about to capitalize on that gap – especially in countries such as Qatar, Saudi Arabia and the UAE.” Catherine Granger defines the Gulf pet market as one with no limits, with a lot of sophisticated pet consumers.

Pet community spirit

The pet population in the UAE has increased by 3% in the last year. Euromonitor estimates that there are now 928.4 million pets in the country.

Innovation in the digital space is proving rewarding – as can be seen by the rapid rise of Where My Paws At, a lost and found pet app for the UAE. Founder Carlie Leake says that over 500 pet parents have created an account on the app since its launch a few months ago.

According to their data, 6 out of 10 pet parents using the app have 1 pet. Users with 2 pets accounted for 22%. Most registered users (26%) live in Motor City, Dubai Sports City, JVC or Jumeirah Golf Estates, while 21% of them live in The Palm.

Expat pets

Another segment of the industry that has recently experienced growth is pet relocation. Nader Moursi, Co-Founder of pet taxi firm Chauf-fur, says there is a “significant increase” in the number of dogs and cats being imported to expat hubs such as Dubai and Abu Dhabi.

“We’ve seen a high demand for airport rides, and customers have frequently asked us for recommendations for trusted relocation companies. Etihad, the leading Abu Dhabi carrier, have amended their policies to now allow dogs to travel in the cabin, subject to destination regulations,” he explains.