Talking tech, risk-taking and… cats

At this year’s GlobalPETS Forum in Prague from 22-24 January, business leaders and experts came together to discuss the challenges, opportunities and advances shaping the pet industry.

Against a backdrop of inflation, changing consumer habits and increasing technological sophistication, the forum offered invaluable insights for navigating a rapidly evolving market.

Brave decisions in a time of change

Marc Hogan, comedian and psychologist, addressed the audience in his talk ‘Funny business’ with a compelling invitation to silence self-doubt and embrace bold decisions.

“Your inner editor has already decided that you fail before you even start. Tell it to go to hell and do your job,” he urged, challenging attendees to push beyond their comfort zones.

This call to bravery resonated with the event’s mood, especially after Sam Farnfield, Director at PwC Strategy&, speaking on the same day, talked about investors’ priorities during his fireside chat on mergers and acquisitions (M&A) and highlighted the qualities investors prioritize.

“Who knows what is going to happen in 2025? They want to know if this business is adaptable enough to survive whatever comes,” he said, emphasizing the need for resilience and flexibility.

He noted that the pet industry has fared better than others during economic uncertainty, thanks to strong consumer loyalty and the ‘essential’ nature of pet products.

Inflation was another pressing issue. Mike Davies, Analytics Leader at NielsenIQ, provided a data-driven overview in his session on the state of the industry: “1 in 4 products is now sold on promotion, reflecting the shift in consumer spending habits.”

Inflation has driven customers to prioritize essentials and buy smaller packs as well as take advantage of loyalty programs, bulk discounts and promotions. Pet businesses must adjust to these trends to survive.

Making technology serve a purpose

Technology is reshaping the pet industry, offering new ways to meet consumer expectations and streamline operations.

Tom Palmaerts, trendwatcher at Trendwolves – a research and marketing company with a focus on youth culture – spoke about the growing role of artificial intelligence (AI) as he discussed future consumer trends.

“AI will help us understand animals better,” he claimed, predicting further advances in diagnostics, wearable devices and AI-driven purchase automation.

Davies supported this argument with data suggesting that 38% of consumers already use wearable devices, while 44% trust AI recommendations even when concerning their pet’s health.

Ellinor Persdotter Nilsson, CCO at Nordic pet giant Musti Group, showcased how data analytics have transformed the company’s approach.

“We use advanced analytics and personalized programs based on pet age and behavior,” she explained. Musti’s loyalty program integrates in-store interactions with digital platforms, creating seamless, tailored experiences that drive customer retention.

According to Davies, products like smart litter boxes and AI-powered pet feeders reflect growing consumer demands for convenience and health monitoring.

Palmaerts also highlighted generational differences, with Gen Alpha viewing technology as normal, while Gen Z often feel overwhelmed by its rapid pace.

Analyzing behavior of different generations

Many participants agreed that generational shifts are forcing companies to rethink their marketing strategies.

Palmaerts described Millennials as decision-fatigued shoppers who prefer curated, simplified options. “Millennials need fewer choices, or they’ll run away,” he said.

Gen Z, on the other hand, he believes value experimentation and personalization – but their loyalty is harder to secure.

Unlike Palmaerts, NielsenIQ’s Davies recommended that pet businesses focus on older generations.

This group, typically aged 45-79, has greater financial freedom and is less driven by price, focusing instead on quality and personalized service. A significant number of pet households fall within this category.

This group manifests different shopping behavior. In contrast to their younger counterparts, they prefer shopping in physical stores, viewing the experience as more than just a transaction.

For them, a trip to the pet store is an outing often tied to their lifestyle of visiting malls and engaging with people.

Marketing and branding perspectives

Claire Gavin, Director at Claire Gavin Innovations, stressed the importance of emotional connections in marketing in her session on ‘The recipe to successful brands’. “Branding is the art of differentiation,” she said.

Gavin cited an example where understanding feline hunting instincts had led to highly successful cat toys that resonated with pets and their owners.

Gavin also noted that storytelling helps brands stand out and further explained how she believes marketing is about seeing the product from the customer’s point of view.

Her story of a dog food rebrand showed a transformation from a general vet-approved dog kibble into a breed and age-specific food brand that customers trust precisely because it matches their specific dog’s needs.

In another example, Gavin discussed the importance of package design and having a strategy when deciding which information goes on the front and which goes on the back of the package.

Online marketing opportunities were also discussed, as platforms such as TikTok and Instagram have become essential for engaging younger audiences and even for direct shopping.

On the second day, when tackling the subject of ‘Navigating marketplaces & DTC’, Sanyam Mahajan, Senior Solutions Business Manager at web analytics specialist SimilarWeb, emphasized the importance of these platforms: “TikTok and Instagram will be critical platforms for engaging younger consumers.”

He recommended creating content that effectively blends education and entertainment to reach niche audiences.

Retailers: adapting to new realities

Retailers face growing competition as consumers feel their budgets tightening and pet businesses must rethink strategies to stay relevant. Torsten Toeller, founder and chairman of Fressnapf, discussed the evolution of customer expectations.

“Customers expect more from us now, with omnichannel connections and smartphones in their hands,” he said. He emphasized the importance of integrating online and offline channels to create a cohesive shopping experience.

In his talk on ‘Building a pet empire in Eastern Europe’, Dušan Plaček, CEO of Plaček Group, shared his company’s efforts to blend e-commerce with physical retail. “50% of our orders are click and collect,” he explained.

Plaček’s stores also offer services such as grooming and 24/7 self-service options, catering to customers seeking both convenience and in-person interaction.

Persdotter Nilsson highlighted Musti Group’s data-driven approach. “We want our customers to feel supported throughout their pet’s life journey,” she said, describing how initiatives like puppy clubs and personalized content foster long-term loyalty.

Cats: untapped potential?

With a session devoted to the subject of ‘cat market opportunities’, several speakers identified the segment as a significant growth area. Shannon Landry, Pet Brand Manager at market research agency Packaged Facts, noted that younger consumers increasingly choose cats for their affordability and ease of care.

“Cat owners feel like second-class citizens, and that’s a place for improvement,” she said, urging businesses to address this underserved demographic.

Data highlighted the rise in cat ownership, with projected growth outpacing that of dogs. Cat owners spend primarily on food, as feeding is a crucial part of the bonding process between pet parent and cat.

Among non-food items, accessories are not a big priority, but owners spend significantly on litter, where customers’ priorities lie in odor control and their cat’s willingness to use a specific type of litter.

Sustainability is important to cat consumers, but with cats being notoriously picky, owners are often reluctant to switch brands. “The idea of a cat who stops using the litter box is terrifying to most cat owners,” Landry noted.

Expanding into new markets

In a session dedicated to the region’s opportunities, Dr. Matthias Koch, founder of Singapore-focussed pet food importer Anibene, offered insights into Southeast Asia’s emerging pet market.

“One size does not fit all,” he said, pointing to the region’s cultural and economic diversity.

Cats dominate in Muslim-majority areas, while premiumization trends are more prominent in urban centers. With such a varied landscape, localization is key.

“In Asia, 8 out of 10 dogs are still fed with what is left from the table, and these people don’t jump into feeding them with premium food,” said Dr. Koch. Thus, the economy segment is experiencing the fastest growth in some regions.

“Digital content must feature local people, and everything must be localized,” said Dr. Koch, explaining that successful expansion requires strong partnerships with local distributors who understand market nuances.

Despite logistical and legal challenges, the region offers immense opportunities for innovative products and services tailored to its needs.

Innovation is key to resilience

From AI-driven products to personalized marketing and the potential of the cat market, GlobalPETS Forum 2025 succeeded in providing a thought-provoking and useful platform for debate and the sharing of expertise.

Throughout was the recurring theme of the importance of continuing to innovate. As Plaček aptly put it: “You have to understand the needs of this age and then you’ll see one huge opportunity. And once you see it, you have to be ready for the changes.”