KBS - Pet Sector - Market Insight

MARKET INSIGHT Having previously touched on the UK having surpassed the 50% and 60% marks for households owning at least one pet, annual sales of pet food products in the UK stands at £5.75billion. The rest of Europe also consists of pet-loving countries - 50% of European households own at least one pet, contributing to annual sales of €29.2billion for pet food products and a volume of 9.9 million tonnes (Statista 2024). The value of the dog food market was the UK’s highest, totalling £1.84billion, with cat food amounting to £1.43billion. Imports to the UK amount to £1.1billion annually, while exports stand at £296million, shipping most of its products across the European continent. • HUMAN-GRADE PRODUCTS: More demand for products made with natural ingredients that closely resemble ‘people food’. • PRIVATE EQUITY: PE firms are heavily investing in the sector at present, with particularly strong investor appetite for established brands and scalable operations. • SUSTAINABILITY DRIVES: Increasing demand for eco-friendly production, reduced food waste and sustainable sourcing. • WHO LET THE DOGS OUT: A significant increase in the population, as well as the humanisation of dogs by their owners. • APPS AND SUBSCRIPTIONS: Younger generations are more adept at using online services and value subscription-based brands/products. These trends not only reflect changing consumer priorities but also highlight areas where M&A activity and investment are likely to grow, positioning the sector for dynamic development in the coming years. The industry is poised for growth driven by the following factors: • HEALTHY PRODUCTS: Growing appetite for plant-based, organic and health-oriented foods.

Imports to the UK amount to £1.1billion annually, while exports stand at £296million.