What influence have the war in Ukraine and its economic consequences had on the international pet sector? This topic was addressed in the presentation of Tommaso Cappato, research analyst at the market research company Euromonitor International, at the International Pet Conference in Bologna.
“Pet care is a recession-resilient segment, but not a recession-resistant one,” he stated. In other words, although the pet sector will be affected by the fall-out of the war in Ukraine, the impact will not be sufficient to trigger a downward economic trend. Cappato expects that the premiumisation trend observed during the Covid-19 pandemic may not retain momentum in a prolonged recessionary environment. On the contrary, the research analyst anticipates that the mid-price segment will be reinvigorated and customers will focus more on price promotion campaigns. “Diversified unit price increases may benefit pet specialist retailers,” says Cappato. Grocery retailers are expected to see some decline in sales relative to specialised retailers such as pet shops and pet superstores.
In the long term, Cappato expects the growth of the pet segment to continue. What gives him confidence above all are the new generations of pet owners who will look for convenience and additional services. He sees great growth potential especially in the trend towards more individual products.
Tommaso Cappato’s entire presentation can be accessed using the link: https://bit.ly/3g11zOZ