These investments boosted the international pet industry in 2024

While global long-term trends remain encouraging, a post-pandemic sales dip has pushed corporate players to adjust. However, that hasn’t stopped billions of dollars, euros and yen from changing hands in the industry throughout 2024.

The year saw many small companies secure fresh funding while large corporations invested heavily in production.

Mergers and acquisitions

One of the largest shifts this year was Fressnapf’s acquisition of Arcaplanet. The German company completed its takeover of the Italian brand, massively expanding its retail footprint after the European Commission gave the merger the green light. The company now has around 2,600 stores in 14 countries.

Fressnapf is not the only company trying to grow across Europe as brands familiar to shoppers in smaller markets consolidate. Swedish pet care retailer Pet Pawr Group recently announced a merger with Norwegian retailer PetXL Group, solidifying its position in the Nordic markets. Meanwhile, Finnish retailer Musti Group has expanded its reach to the Baltic States by purchasing Estonian competitor Pet City.

In 2024, Petz and Cobasi entered a merger agreement in Brazil to create a company with nearly 500 stores. If Brazil’s regulatory authorities ultimately approve the deal, it will become a major player in Latin America.

In the US, pet retail M&A activity has been relatively slow.

Expanding production, global reach

Several giants have directed investment money toward increasing production capacity and international reach.

Mars, for example, has invested in new facilities in France and Australia. Its Australian facility made headlines by becoming the company’s first 100% renewable production plant.

Mars also invested in Crown Vet, expanding its footprint in India.

Meanwhile, Nestlé Purina spent $219.7 million (€210.9M) to boost production capacity in Mexico with the aim to maintain the largest pet food factory in Latin America.

The pet food manufacturer also announced plans to invest €472 million ($492M) in a new facility in Italy.

Other companies around the world also expanded their manufacturing capacity in 2024. Ukrainian player Kormotech invested in a facility in Lithuania. Baltic food manufacturer KIKA Group announced plans to invest €20.5 million ($21.4M) in new facilities – also in Lithuania – as it prepares to meet new demand in Asia.

Asia’s market is expected to continue growing rapidly over the coming years, but Western companies are facing increasingly stiff competition from domestic producers in countries like China.

In Canada, raw pet food manufacturer Big Country Raw planned to boost production with a CAD 8.9 million ($6.2M/€5.9M) investment funded partly by a government loan.

Veterinary sector

A few weeks ago, an $8.6 billion (€8.3B) deal between Silver Lake Management and private equity firm Shore Capital Partners merged two major veterinary companies in the United States. Southern Veterinary Partners absorbed Mission Veterinary Partners to form one company of vet hospitals.

The federal government’s willingness to shut down corporate mergers over threats to competitive business practices stymied M&A growth in the US this year, at least according to some industry insiders.

However, many expect activity to pick up after the new Trump administration takes over on 20 January 2025.

Other US investments

Many small and medium American companies came into new money in 2024 as the economy continued to recover from its post-pandemic inflationary period.

In the US pet insurance market, Companion Protect received millions in Series A funds, and Rainwalk Technology and Healthy Paws also attracted investors.

Tech firms also got a boost in 2024. NovoNutrients and Digestiva raised millions of Series A dollars to expand their alternative protein production. Romanian-based Lam’On got a boost as it began hinting at how its bioplastic could be used in pet food packaging.

Some investors are still looking for young pet industry companies to write checks to. Denver-based investment firm Vetted Capital says it aims to raise between $150 million (€138.1M) and $300 million (€276.3M) to invest in growing pet businesses.