FMCG firms are attentive to the pet care industry

  • July 31, 2022
FMCG firms are attentive to the pet care industry

Increased pet adoption after the epidemic is propelling the Indian pet care business to reach Rs 10 billion by 2025, encouraging FMCG giants such as Nestle India and Emami to join the market. The pet food business is presently worth around 4,000 crore rupees and is anticipated to expand substantially over the next five years. Mars Petcare and Himalaya Wellness Company, among others, are the segment’s two largest firms.

Nestle India joined the category this week by purchasing the pet foods business from sister subsidiary Purina Petcare India for Rs 123.5 crore, giving the FMCG giant direct access to this rapidly expanding industry in India.

Another FMCG business, Emami, stated earlier this month that it will invest in the pet-care startup Cannis Lupus Services India, which offers Ayurvedic medicines for dogs under the brand name “Fur Ball Story.”

“One of the fastest-growing pet care markets in the world,” according to Salil Murthy, managing director of Mars Petcare India. Rising earnings, nuclear families, and changing views toward dogs and pet owners are driving the expansion.

Adopting a pet was a popular way for people to pass their time during the lockdown. During the epidemic, there was an increase in demand not just from major metropolitan areas, but also from tier II and tier III cities “Murthy said to PTI.

Now, pet owners are aware of the nutritional differences between pets and humans, that human food does not meet the nutritional demands of pets, and therefore the necessity for nutritionally balanced produced pet food, he added.

According to a survey by Euromonitor, the Indian dog food industry is expected to increase at a 15% CAGR over the next five years.

Since the beginning of this year, pet food sales in India have been steadily increasing. The retail sales value of the Indian pet care market is predicted at USD 434 million in 2021 and is projected to reach USD 1,356 million (Rs 10,770 crore) by 2025. In the previous decade, the sector has grown by more than 15% annually “added Murthy.

New retail channels, such as e-commerce, Omni-channel efforts, and hyperlocals such as Swiggy and Dunzo, have greatly enlarged an organization’s reach.