Analysis: Amazon launch in Ireland may grow pet goods market – and increase competition

Amazon announced that it is preparing to launch a new website specifically for Irish consumers in 2025, which means change could be coming to many Irish pet food businesses.

A company representative confirmed that pet food is already available to Irish consumers through Amazon’s UK site but may be subject to import charges. An Ireland-based website could mean more products available without trade barriers being passed on to consumers.

The company says the new operation could also drive down prices for shoppers by increasing competition in the industry, though it could also harm domestic production.

“The store is great news for Irish customers and businesses alike, and we’re taking another big step towards launching Amazon.ie by opening our doors for businesses to join us as selling partners ahead of launch,” says Amazon country manager Alison Dunn.

Amazon opened a distribution center in Dublin in 2022 and last year announced a 5-year agreement with the country’s postal service, An Post.

Room to grow

Pet owners on the Emerald Isle have historically favored brick-and-mortar shopping, though e-commerce has made up a large portion of industry revenues.

According to Statista, online sales have remained relatively stable in the country. The data aggregator estimates that in 2024, online shopping will account for 31.4% of the Irish pet food market.

That number is expected to rise to 33.6% in 2025 and 42% by 2029. It’s uncertain whether that increase reflects Amazon’s launch.

With the launch of a new Ireland-specific website, the company anticipates growing its Irish seller base. It is estimated that over 1,000 small and medium businesses in Ireland already sell goods through the company.

Reason to worry?

Many retailers in Ireland could see Amazon cut into their profits. Companies like Maxi Zoo, which has many stores in the country, also sell online, putting them into more direct competition with Amazon.

This could drive down profits for domestic competitors both in e-commerce and brick-and-mortar sales.

Manufacturers could also be harmed – Amazon shoppers circumventing trade barriers between Ireland and Britain could make it difficult for smaller Irish businesses to compete with the multinational e-commerce titan.