Private label is thriving online

When purchasing pet supplies, pet parents are looking for the perfect mix of good quality at a lower price. While private label is widely extended offline, online players are increasing their offering lately, not only in pet food but also in supplements.

State of play

According to Euromonitor, pet-related private labels achieved an average annual growth rate of 6.2% from 2016 to 2021, peaking with an increase of nearly 10% in 2021. Euromonitor analyst Zsófia Megyeri comments that the private label segment is seeing stronger performance in Europe – with some especially positive developments in the east of the region – and in the US. Researchers note that the segment is performing better in those markets with higher pet population growth.

Growing the market share

Online pet retailer Zooplus, which sells more than 30 private-label pet food brands for cats and dogs, has enjoyed a fair share of that business growth in recent times. “By meeting the needs and adapting to trends – including local ones – we are able to run a highly successful multi-million own-brands business in Europe,” states Chief Merchandising Officer Alejandro Bethlen. The e-commerce company notes that more and more of its customers are “re-evaluating their purchases through a value lens”. This is driving the shift toward private label products that still offer high-quality nutrition and support animal well-being, but at a lower price.

Big e-commerce players

E-commerce giant Amazon introduced its own-label pet food brand called Wag in 2018. Today, the company has other brands, including Solimo, Lifelong, Kitzy, Wonder Bound and Simply Perfection. With its private label portfolio for pet supplies, the online retailer wants to offer a wide selection of ‘everyday essentials’: high-quality items at low prices. Another online retailer, pet products specialist Chewy, announced last December that it was launching its first private label supplements brand. Chewy’s CEO Sumit Singh recently told investors that there is “an opportunity to ramp that up” in private labels.

Meanwhile, Petco revealed a partnership with JustFoodForDogs last year to co-develop and produce a new human-grade fresh and frozen pet food line under its WholeHearted line. “With many pet parents already focused on supporting their pets’ whole health by feeding them high-quality nutrition, plus the great success of our private-label pet food brand called WholeHearted, we saw a clear opportunity to invest in helping families bridge the gap between fresh, human- grade pet food and an uncompromised, affordable price,” says Amy College, Chief Merchandising Officer at Petco.

Golden opportunity for manufacturers?

Private-label pet food makers around the world are witnessing an increase in the requests they receive from e-commerce players. American manufacturer Alphia confirms this. Similarly, Michal Vinický, Private Label Manager at Czech producer VAFO, has noticed a strong interest in the premium and super-premium segments. He adds that online retailers establish their private label portfolio with the same high level of expertise as their omnichannel or brick-and-mortar competitors. “The bad-mouthing that online players are not able to build a brand is long gone.”

Further growth

NielsenIQ sales data shows that pet food private labels accounted for $3.6 billion (€3.4B) in sales offline (+15.3%) and $741.9 million (€697M) online (+15%) in 2022. British pet food manufacturer Inspired Pet Nutrition (IPN) announced in May 2022 that it was tripling its production of wet dog food and creating its own private label. According to the company, the wet private label products look set for even further growth. Likewise, PetDine, a Colorado-based private label manufacturer of supplements and treats, tripled its production capacity earlier this year with the aim to create “significant opportunities” in the private label category.