As much as 80% of respondents will shop for Christmas gifts for their pets. Top considerations for the decision were the consideration of pets as being ‘part of the family’ (77%), not wanting their pets to feel left out (40%), and enjoying their pets having ‘something to unwrap alongside the rest of the family’ (33%).

According to the survey, 37% of pet parents in London buy their pets as many presents as their children.

Nearly a third (32%) of respondents reveal they plan to spend more on their pets this year than in the last 5 years. Gen Z pet parents between 18 and 24 years old were found to be almost 3 times more likely to spend money on gifts for their pets than owners above 65.  

Who are the biggest and lowest spenders? 

According to the survey, British pet parents will spend an average of £27.70 ($35.8/€32.1) on their pets this holiday season.

Londoners are expected to splurge the highest with £47.30 ($59.9/€54.8), followed by those who live in Birmingham at £36.60 ($46.3/€42.4). Nottingham and Southampton residents would be the lowest spenders, averaging £20.10 ($25.4/€23.3) and £18.80 ($23.8/€21.8), respectively.

Cardiff will have the most pet parents shopping for gifts (92%), followed by London (86%), Leeds (85%), Norwich (84%), Nottingham (83%) and Scotland (80%). 

Newcastle and Bristol (77% each) will have the least spenders.

Most popular categories

The survey predicts food and treats (63%) to be the most popular category this Christmas, followed by chew toys (47%) and cuddly toys (44%). 

Inputs broken down by city suggest Cambridge is anticipated to draw the highest percentage of buyers for food and edible items (77%). In comparison, cuddly toys will most likely be bought by Liverpudlian pet parents (61%).

Organic net sales also went down 4%. Sales of wet pet food declined the most, while treats noted a double-digit rise compared to the same period in 2022.

The American manufacturing giant attributed the dip to “lower pound volume, partially offset by favorable net price realization and mix.”

“We have more work to do to navigate through the current challenging category dynamic and return the business to consistent topline growth,” says CEO and Chairman Jeff Harmening.

On the other hand, the segment’s operating profit rose by 18% to $102.5 million (€93.3M). The company’s global operating profit during the quarter increased by 2%.

In the 6 months leading to the end of November, net sales in the pet portfolio fell 2% to $1.14 billion (€1.03B) while operating profit increased by 2% to $213.7 million (€194.5M).

General Mills acquired dog and cat supplement company Fera Pets in November with the aim of bringing a “health-focused” dimension to the firm’s pet portfolio.

“The Council maintained the scope of the Commission’s proposal, covering all packaging, regardless of the material used, and all packaging waste, regardless of its origin (including industry, manufacturing, retail, households),” a European Council
press release says.

The legislative body, formed by all Member States, agreed with the EU Commission that all packaging placed on the market must be recyclable but added that packaging will be considered recyclable “when the waste packaging can be separately collected, sorted and recycled at scale.”

Member States endorsed the PPWR’s provision, targeting a 15% reduction in packaging waste in the region by 2040. “By 2034, the Commission will have to review the implementation of the 2030 targets and assess the feasibility of the 2040 targets,” reads the proposal.

Other amendments

The Council also agreed to include more clarifications in the legislation regarding packaging labeling. Member States want to ensure “that consumers are well informed about the material composition of packaging and its proper disposal when it becomes waste.”

It also extended the date of application of the new set of rules to 18 months after it is entered into force.

What’s next?

The Council’s position will serve as the mandate for negotiations with the European Parliament to draft the final legislation.

Both legislative powers will start negotiations on the final shape of the legislation under the Belgian Presidency of the Council of the European Union, starting on 1 January 2024.

Food and consumables represented over 70% of sales and remained strong sales pillars for the company. Most sales (76%) were performed in-store. Online sales accounted for 23% of Musti’s business, a slight increase of 1%.

Operating profit also showed a positive incline of nearly €7 million (€7.6M) to €37.8 million ($41.2M).

The retailer’s Annual Report 2023 points out that the average spend per loyal customer increased to €182.7 (€200) despite the effects of the unfavorable currency exchange rates. A year ago, the average expenditure was slightly lower, €181.5 (€198.9).

The number of loyal customers from October 2022 to September 2023 increased by 6.1% to 1,543 thousand across Finland, Sweden and Norway.

New pet food factory

The complete acquisition of Premium Pet Food Suomi Oy’s pet food plant in Lieto, Finland, earlier in the year is one of the drivers behind these numbers.

According to CEO David Rönnberg, the integration of the new factory is going “very well.”

“The benefits, both financial and operational, are already visible. The investment in the factory has strengthened our commitment to sustainably produced products and will be a key success driver going forward,” he says.

Musti believes that the investment in the factory has strengthened their commitment to sustainably produced products and “will be a key success driver going forward.”

Potential acquisition

After Portuguese multinational Sonae entered a bid of €868 million ($947M) to take over the Finnish company, a consortium has been formed for the voluntary recommended public cash tender offer of all outstanding shares in Musti Group.

The offer price is €26 ($28.3) cash settled for each share validly accepted during the offer. Musti’s Board of Directors has unanimously decided to recommend that the company’s shareholders accept the tender.

The offer period began on 18 December 2023 and will expire on 5 February 2024 unless there is an extension.

The company wants to refresh and modernize its appearance with a new logo. “The new logo with the hummingbird refers to our historical brand universe: animals. It also refers to our very first market since Zolux started by selling birdseed mixes in 1933,” says a company spokesperson.

Aside from rebranding, the firm wants to consolidate in 2024 the recent investments that it has made in different European countries.

European business

GlobalPETS learned that the company wants to focus on accelerating its European expansion after acquiring the CAT-GATO production facility earlier this year.

The company explains that after opening earlier in the year a branch in Spain and Portugal, which was settled after cooperation from an ornamental fish distributor, the business in the Iberian Peninsula is gaining at an “expected pace.”

Zolux expects to integrate new machines and skills into the hygiene department of its production plant in Péronne (145 km north of Paris). “We just obtained the IFS Food certification for the food department of this factory, which allows us to meet the highest quality standards in the manufacturing of food products,” concludes a company spokesperson.

The association’s Post-Pandemic State of the Industry Survey 2023 concludes that its members hit a revenue of $94,563 (€86,095) in 2022, an increase of 37.6% from $68,699 (€62,547) in 2021, a year when COVID restrictions were in fuller force.

The number of visits performed increased from 2,849 in 2021 to 3,667 in 2022.

“The resurgence of travel, return of pet parents to work and increased number of pets adopted during the pandemic have all contributed to the increase in average pet-sitter revenue and households served,” says PSI President Beth Stultz-Hairston.

Adapting to client demand

In a conversation with GlobalPETS, Stultz-Hairston noted that the services offered by pet sitters have increased since the pandemic to adapt to client demand.

“From offering deep litter box cleaning packages to transportation to the vet or groomer, [PSI] adopted additional safety protocols, such as contactless dog walking or paperless payment and forms,” she adds.

According to Stultz-Hairston, professional pet sitters are already achieving unprecedented financial success, surpassing their pre-pandemic earning potential.

Currently, the average cost of a basic pet care visit in the US is $24.18 (€22), while a dog-walking visit costs $22.55 (€20.40).

Most of the services offered by PSI members are for cats (96%), dogs (94%), small animals (73%), birds (70%), freshwater fish (66%) and reptiles & amphibians (56%).

The new proposal has laid out the main points it will address, which involve ensuring minimum common animal welfare standards for breeding. This includes the keeping and placing of dogs and cats bred or kept in establishments on the market.

The legislative text also proposes strict traceability requirements, together with automated checks for the online sale of animals. According to the EU Commission, this will help authorities control the breeding and trade of dogs and cats and buyers to check that the identification and registration process is correct.

Brussels officials expect this new regulation to resolve the divergence between Member States on animal welfare standards for the professional breeding, keeping and selling of dogs and cats.

Countries will have to report every 3 years to the European Commission on the application of the new set of rules.

Online trade and registration

According to official figures, trade in dogs and cats has grown considerably in recent years and now represents an annual value of €1.3 billion ($1.4B).

The proposal establishes a mandatory identification and registration of dogs and cats in national databases to fight illegal trade and better control animal welfare conditions.

The estimated number of pet owners who purchased a cat or dog online is around 60%. Those acquiring an animal through online platforms will now be able to verify the authenticity of the animal. The prospective owner can do this by cross-checking identification and registration through a website connected to national databases.

Reducing animal suffering

Non-EU countries exporting dogs and cats into Europe must also register animals accordingly and fulfill the basic welfare requirements.

The body exporting the animal must provide the person acquiring it proof of its identification and registration and list its vital information, for example, breed, sex, country and date of birth.

Under the stated guidelines, animals kept by breeders and sellers must meet minimum requirements to ensure that their needs are met and that they are healthy when passed to their new owners.

Some conditions that must be adhered to include providing dogs and cats with the necessary quantity and quality food to receive proper nutrition and hydration. In addition, the EU Commission wrote that it is vital to ensure ease of movement and to keep the animal in a safe and clean environment.

Europe also wants to establish stricter limits on the maximum breeding frequency and age of the animals that can be used for breeding.

Next steps

The Federation of Veterinarians (FVE) and other associations recently called EU officials to publish the new proposal.

“The veterinary profession has long been working towards and calling for EU rules to protect the welfare of dogs and cats, including mandatory identification and registration,” says Nancy De Briyne, Executive Director of FVE.

The legislative text will now be submitted to the European Parliament and the Council for consideration. The European Food Safety Authority (EFSA) will deliver a scientific opinion on the proposed measures by March 2025.

The company told investors it plans to open between 4 and 8 new practices by the end of next year.

The practices will be supplemented with Chewy’s custom-built open platform, which can be applied both to Chewy Vet Care and third-party partner practices. According to Mita Malhotra, President of Chewy Health, expanding into veterinary care is a “natural step” in Chewy’s evolution.

Chewy Vet Care is another addition to Chewy’s pet health portfolio, which includes Connect with a Vet, a pet pharmacy and tele-triage service, and CarePlus, an insurance branch.

$3 billion

The announcement comes just a few months after retailer giant Walmart announced the opening of a new pet service center in Georgia.

According to the latest figures, Chewy Health made over $3 billion (€2.7B) between Q3 2022 and Q3 2023. Internal research conducted by the retailer suggests that 50% of US pet parents would “definitely” or “probably” want to switch to Chewy Vet Care clinics if presented with this service.

Warning for unapproved animal antibiotics

Chewy has also come under fire recently as it received a warning from the U.S. Food and Drug Administration (FDA) for selling products containing unapproved antibiotics and other antimicrobial drugs for animals, such as penicillin and amoxicillin.

The FDA warns that these could potentially “contribute to the development of antimicrobial resistance, which affects both human and animal health.”

The retailer has been granted until the end of the year to state how they will address the violations, failure to which may result in the regulator taking legal action, which may include product seizure or a court order to stop the distribution of unapproved products.

This acquisition follows the company’s interest in the pet insurance space, which it announced in 2022.

“Increased scale in home and pet not only supports Admiral’s diversification strategy but also supports our aim to provide customers with a stronger multi-product offering, choice and convenience,” says Milena Mondini de Focatiis, CEO at Admiral Group.

Prior to 2022, Admiral Group offered pet coverage via a third party. The group then launched its own pet insurance, offering customers a 24/7 helpline to consult with a qualified vet.

RSA UK CEO Ken Norgrove described the deal as the “perfect fit,” adding, “This transaction aligns with our strategic ambition.”

More details

Admiral stated they will pay £82.5 million ($103.7M/€94.4M) upon completion of the deal, which is expected to be closed in the second quarter of 2024. The business could potentially pay £32.5 million ($40.8M/€37.9M) more “depending on the number of policies successfully migrated to Admiral.”

Under the deal, around 300 employees from RSA will transfer to Admiral.

RSA’s Personal Lines operations generated approximately £165 million ($207.5M/€192.9M) of gross written premiums in 2022.

Officials concluded that it is unlikely for Woolworths, Australia’s largest retail group, to leverage its retail position into the specialty pet industry in an anti-competitive way.

“Market feedback indicated that specialty pet retail and grocery are distinct channels in the pet industry, and specialty pet retail stores have a very different product and service offering to supermarkets and discount department stores,” says the ACCC’s Chair Gina Cass-Gottlieb.

The ACCC accepted the pet retailer’s proposal to divest 41 specialty pet retail stores, 25 co-located veterinary hospitals, 4 brands and 2 online retail stores to Woolworths’ portfolio.

Petstock is Australia’s second-largest specialty pet retailer, with over 270 stores.

The investigation

The ACCC launched an investigation earlier this year after voicing concerns about the negative impact of the operation valued at AU$586 million ($392M) and some acquisitions by Petstock that the competition authority was not notified of.

Smaller competitors were concerned that this purchase would enable the retail giant to leverage its buyer power into pressuring suppliers to stock key specialty products in its supermarkets. The ACCC points out that most suppliers who supply both Woolworths and Petstock were not concerned.

Australian law firm Clayton Utz says the ACCC’s decision to “publicly investigate Petstock’s historical acquisitions of competitor stores” is “rare.”

The company explained that the move signals a “more interventionist approach to merger clearances by the ACCC, which is advocating for merger reform, including mandatory notification.”