Russian pet market (I): Snapshot of a $6 billion industry
Increased consumer demand and evolving retail dynamics fueled double-digit market growth in 2024.
Russia’s pet industry continued to navigate economic instability last year, while adapting to new mandatory labeling requirements for dry pet foods and veterinary products, intensifying import substitution efforts and seeking new strategies to cope with the growing dominance of marketplaces.
How did this sector grow despite economic turbulence, and what transformations lie ahead?
Consumer demand
In 2024, Russia’s pet market demonstrated impressive resilience despite broader economic instability. According to the B2B pet industry news platform Zooinform, the total pet product market exceeded ₽510 billion ($6.2B/€5.5B), marking a significant milestone.
Annual market growth was estimated at approximately 17.7% by Zooinform, signaling stable development, high adaptability and increased consumer demand for pet products.
Nielsen’s data confirmed a 16% increase in sales value and a 9.5% rise in volume, underscoring sustained consumer interest and growth momentum.
Irina Golovchenko, Managing Director at distributor Valta Pet Products, highlights the “favorable” conditions of the local pet market. “Purely transactional purchases are increasingly shifting toward logistical sales channels such as marketplaces and rapid delivery services,” she admits.
The bigger picture: inflation and income
Russia’s economy faced challenges in 2024 with inflation climbing to 9.52%, according to the Federal State Statistics Service (Rosstat). The Central Bank raised its key interest rate 3 times, stabilizing at 21% from October 25, significantly restricting credit and mortgage availability.
Despite economic pressures, average salaries grew by 8.6%, with faster income growth observed in regional areas compared to Moscow. Notably, the Russian labor market grappled with significant staffing shortages, adding complexity to business operations across sectors, including the pet industry.
The evolving middle class, representing approximately 12% of the population, saw notable structural changes, with emerging groups, such as skilled blue-collar workers and military personnel, becoming influential consumer segments. Yet, economic disparities remain substantial, with around 55% lacking significant savings, and a quarter barely covering basic needs.
Consumer trends
Russian consumers maintained cautious spending behaviors despite rising incomes, driven by rational optimism.
According to Nielsen, purchasers have become divided into 2 major segments: one focused on cost-saving strategies and affordable quality, and the other actively seeking premium alternatives to replace unavailable foreign brands.
Sales of pet treats notably increased, particularly in brick-and-mortar stores, driven by impulse purchases and recommendations from sales staff.
For pet food manufacturing expert and technologist Olga Levtsova, consumers are expected to prioritize “quality food at a fair price,” opting for well-balanced, high-quality diets. “The demand for budget-friendly pet food is expected to remain stable or grow moderately,” she notes.
Retail update
The share of specialized pet stores continued to decline in favor of e-commerce and grocery channels, leading to the closures of independent stores nationwide. However, major retail chains such as Four Paws and Zoozavr actively expanded their presence, consolidating the market.
Online sales continued to grow, albeit at a slower pace. The online channel accounted for approximately 22% of the pet product market sales.
While the online segment remains the fastest-growing distribution channel, growth rates have moderated compared to previous years. Consumers increasingly prioritize low prices and free shipping, demonstrating rational consumption behavior influenced by economic realities.
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