These are the investments that boosted the pet industry in 2022

Perhaps one of the biggest deals was the $1.4 billion (€1.28B) investment from JAB Holding Company into Crum & Forster Pet Insurance Group and Pethealth, a “major milestone” to becoming a global leader in the segment. In July, the German investment company also took over Hannover pet insurer Agila and Dutch-based Veterfina.

Pet food giants benefited from investments in 2022. Royal Canin acquired fresh pet food producer Nom Nom for $1 billion (€800M). Royal Canin said the acquisition of the “fast-growing” D2C fresh pet food company would bring synergies to support the brand’s success.

For Malmö-based Swedencare, 2022 was an intense year of investment. To expand its footprint in the US pet supplement market, the firm acquired premium pet supplements company NaturVet for $447.5 million (€393M). In Europe, the company took over Italian pet healthcare company Innovet for €50 million ($4.5M) and British Custom Vet Products for £10.5 million (€12M / $13M).

Nestlé, Mars and Hill’s

Nestlé Purina injected $100 million (€91.8M) into its Wisconsin facility and an additional $100 million to expand its production plant in Guanajuato, Mexico. The company also announced its plans to double cat food production in Australia by investing $90 million (€82.6M) to enlarge the capacity of its Blayney factory.

In India, the local branch of Nestlé acquired the Purina business for $15.7 million (€14.4M), which was launched in the country in 2017 as a separate entity as part of its premiumization strategy.

Mars invested $82 million (€75M) and announced plans to raise production in its Kansas plant by 75%. The company also acquired Canada’s Champion Petfoods in November, considering it a “strong strategic fit.”

Colgate-Palmolive purchased 3 ex-Mars manufacturer Red Collar Pet Foods factories for $700 million (€642.3M) to expand Hill’s pet food production.

In the US

In December, American agribusiness firm Bunge announced it was investing $550 million (€504.8M) in a new soy protein facility to meet the rising customer demand for key ingredients in pet food products.

Diamond Pet Food invested $259 million (€237.7M) in a new plant in Indiana, US, which will be fully operational by 2024. Simmons Foods announced the investment of $115 million (€105.5M) in production lines at its Kansas facility.

The global provider of food processing equipment, Marel, acquired Kansas-based supplier Wenger for $540 million (€495.6M) allowing the Icelandic-based company to establish its fourth business segment alongside poultry, meat, and fish.

Acquisitions

New Jersey-based Zoetis acquired pet care genetics company Basepaws to enhance its R&D capabilities. In August, the vet company acquired Australian vet firm Jurox.

Worldwise purchased chew manufacturer Pet Factory in a “strategic” takeover, “bolstering its platform with innovative brands, products, and production capabilities.” It also acquired FurHaven to expand its omnichannel retailing strategy.

Wag! secured Dog Food Advisor for $9 million (€8M) as part of its “commitment to long-term strategic initiatives.” Wag! was acquired by a private equity firm in February.

France’s Ceva Santé Animale expanded in North America with the acquisition of Artemis.

Investments

Pet care company Petfolk, veterinarian care platform Dutch, pet startup Dog is Human, membership-based veterinary services provider Small Door Veterinary, LA-based pet food startup Yummers, PetPair, and Odie Pet Insurance closed various funding and investment rounds in 2022.

Cannabis also led relevant capital injections in 2022. Cannabis group Tenacious Labs acquired CBD pet supplier Rover’s Wellness to expand its portfolio in the pet industry. CBD company Real Brands invested $12 million (€11M) in an R&D bioscience lab. The transaction allowed Real Brands to expand its R&D capabilities and increase its production capacity by 300% within the human, pet supplement, and CBD markets.

Europe

One of the biggest operations in 2022 was the merger of Arcaplanet and Fressnapf’s Maxi Zoo in Italy.

United Petfood also expanded its footprint in 2022. The Belgian private label producer acquired British manufacturer Gold Line Feeds’ brands and customer base. It took over the Cargill production facilities in Poland and Hungary and purchased a new factory in southwest France from Neodis Group.

European natural premium pet food provider Voff Premium Pet Food acquired Finnish Aristo Oy to expand its business to the Nordic countries. Symrise acquired Dutch egg protein producer Schaffelaarbos in January 2022 as a “major strategic step” for its expansion in the pet nutrition business in Europe. Premium pet food platform AlphaPet acquired British Arden Grange.

In the UK, Cranswick acquired Grove Pet Foods‘ brands and its private label business. British Assisi Pet Care took over Polish dog treat producer Maced.

Pet companies in the European region also saw some relevant investments. One of the biggest was the €150 million ($185M) raised by French pet health insurance company SantéVet Group. Dutch firm Protix raised €50 million ($54M) to expand its footprint in the insect protein space, and Munich-based pet care startup Filu Vet closed a capital injection of €2 million ($2.17M).

In the UK, plant-based dog food startup OMNI raised £1.1 million (€1.24M / $1.35M) to expand its product range and market scale. Butcher’s Pet Care secured a £40 million (€45M / $49M) funding package to expand its new cat food product offering. Sniffers Pet Care closed £1.75 million (€2M / $2.16M) in investment private equity firm Traditum. Edinburgh-based MiAlgae received a capital injection of £2.3 million ($2.8M / €2.6M).

Wider world

In China, Yantai China Pet Foods announced its plans to invest ¥125 million (€17M / $18M) in a fund set up by Beijing-based investment company, Jinding Capital, to assist unlisted pet companies financially.

L Catterton invested in the Shanghai-based premium pet food company Enova to continue to build the company’s domestic premium pet brand, Pure & Natural.

In Singapore, VETRESKA received $50 million (€46M) to reorganize its business and prepare for further growth, and Nutrition Technologies received a $20 million (€18.6M) equity venture.

In South Korea, search engine firm Naver invested in online pet retailer AboutPet with $7.9 million (€7.2M) to position it as the leading e-commerce retailer of pet products in the Asian country.

In India, Supertails raised $10 million (€9M) in a Series A funding round. Another Indian startup Goofy Tails, closed $500,000 (€459,000) in seed funding. Emami recently acquired a 30% stake in pet care startup Cannis Lupus. Delhi-based Fresh for Paws and Pawfect Pet Foods merged to expand their international market reach.

Aliph Capital bought Dubai-based The Pet Shop, UAE’s largest pet retailer, with the aim to the business to neighboring countries in the Arab Gulf.

In Australia, the country’s largest retail group, Woolworths Group, acquired 55% of Petspiration for A$586 million ($395M). Real Pet Food Company acquired dog supplements startup People for Pets. To expand its footprint outside the US, Kent Group subsidiary FibreCycle acquired two Australian pet care companies, Our Bird and Lovitts.

In South Africa, Montego Pet Nutrition invested nearly $2 million (€1.8M) in a new facility. In Mexico, Pet’s Table raised $2 million (€1.8M) in seed funding.

In Brazil, pet retail chain Petz acquired dog pad manufacturer Petix. Petz believes the new agreement allows a differentiated product in a fast-growing and still low-penetrated category in the market. Japanese trading firm, Mitsui, bought a 30% stake in Ourofino Saúde Animal. Darling Ingredients acquired the Brazilian rendering company FASA Group as it believes in the promising future of the Latin American nation. The company also bought Miropasz Group for €110 million ($120M) in November.