Global pet food sales to reach €227B by 2034, driven by premiumisation and humanisation trends

The global pet food market is projected to rise from €129 billion in 2024 to €227 billion by 2034, according to a new report by Allied Market Research. The study, Pet Food Market – Global Opportunity Analysis and Industry Forecast, 2025–2034, forecasts a compound annual growth rate of 6.1%, reflecting continued expansion fuelled by rising pet ownership, humanisation of pets, and growing demand for premium and functional nutrition products.

Dogs remain the dominant pet type, and dry food continues to lead the category due to convenience and longer shelf life. Specialised pet shops held the largest share of sales in 2024, though online channels are growing rapidly.

Market growth is underpinned by shifting household structures, higher disposable incomes, and increased focus on animal health. Around 95% of pet owners reportedly view their pets as family members, driving interest in premium, organic, and functional food options. 

However, the report also highlights key challenges, including pet obesity and product recalls. Over half of US pets are now considered overweight, while contamination incidents have underscored the need for stronger safety and traceability measures. 

Regionally, North America leads the market, supported by high pet ownership rates and strong demand for nutritious, protein-rich, and low-calorie foods. In Europe, growth is driven by smaller households and increasing investment in health-oriented and organic options, particularly in Spain, the Netherlands, and Poland.

Key players are focusing on innovation through functional ingredients, sustainable packaging, and personalised nutrition, as well as expanding through strategic mergers, partnerships, and direct-to-consumer models.

The findings point to a decade of strong growth potential shaped by evolving consumer expectations, digital transformation, and continued premiumisation across global pet food markets.

Germans demand trustworthy labels, prize those with 3d party endorsement

A study by Simon-Kucher in Germany highlights that two out of three consumers actively consider food labels when shopping – but only selected labels inspire real trust and willingness to pay more. Conducted with 1,000 participants, the research found that 71% factor certifications into their purchasing decisions, with “organic” (75%) and “fair trade” (67%) among the strongest motivators. Product claims such as “sugar-free” (75%) and “natural ingredients” (80%) also influence choices, particularly among health- and sustainability-oriented shoppers.

While consumers are open to paying a premium for products that align with their lifestyle, price tolerance remains limited. Around 70% would accept higher prices for organic products, but overall, only 46% of consumers are prepared to spend significantly more. High markups are tolerated mainly for specific religious certifications, such as halal or kosher.

However, trust is the decisive factor. One in three consumers doubts sustainability and climate-related claims, and suspicions of greenwashing sharply reduce willingness to pay. Younger shoppers, especially Gen Z, are driving demand for credible, transparent labelling but are also the most critical. 

Mercadona tops among European chains for loyal customers

Spanish supermarket giant Mercadona has reinforced its position as Europe’s most revered retailer, according to the latest NielsenIQ data. So far in 2025, Mercadona customers have spent 37% of their total FMCG budget with the chain — the highest share of wallet across Europe.

The share of wallet indicator reflects the proportion of consumer spending devoted to a retailer, offering a clear measure of customer loyalty beyond market share.

Joining Mercadona in Europe’s top ten is another Spanish retailer, Consum, which ranks tenth with a 22% share. France’s E.Leclerc follows Mercadona with 32.5%, while the UK’s Tesco sits third at 29.2%. The ranking also features Carrefour, Intermarché, Esselunga, Coopérative U, Selex and Edeka.

However, NielsenIQ warns that customer loyalty is weakening as e-commerce and discount retailers fragment the market. Only two of the top ten have grown their share since 2023.

Circana suggests now is the time to be brave and innovate

Circana’s report “Europe’s Innovation Pacesetters 2025” analyses over 75,000 new product launches and product innovations in 2024, covering food and beverages, household, personal care, baby and pet products. Point of sale data were used from 6 EU countries: France, Germany, Italy, the Netherlands, Spain and the UK.

Key findings are:

  • The Covid Effect: Five years on, the aftershocks of the pandemic are dramatically re-shaping the innovation landscape. In 2024, the number of innovations declined by 20% in comparison with 2023. NPD has fallen since the pandemic, with between 15% and 17% fewer launches each year.

  • Inflationary impact shows a mixed picture with sales down in most countries but pockets of positivity. In 2024, around 62% of new product launches struggled to deliver sales over €100,000 per SKU, compared to an average of 80% in previous years. The UK and the Netherlands saw the highest inflation of the EU6 in 2024 and therefore bearing the brunt of innovation declines in terms of value sales. 

Three main trends emerge from Circana’s analysis:

  1. Smaller manufacturers have been highly innovative, and their launches are very effective in terms of driving sales
  2. The reinvention of older, heritage brands is significant
  3. Private label products fill the innovation gaps in the market
IGD: Traditional physical stores are here to stay

“The hyper-connected store” report from IGD reveals that physical retail is being reinvented, not replaced. Despite widespread predictions of decline, traditional formats — supermarkets, discounters and convenience stores — are expected to retain 94% of global grocery market share by 2029, generating around €8.9 trillion in sales. Crucially, physical stores are forecast to add a further €1.6 trillion between 2024 and 2029 — proof that bricks-and-mortar retail remains essential, provided it embraces transformation.

The “hyper-connected store” puts technology at the heart of retail evolution. Advances in automation, AI, computer vision and robotics are already improving efficiency, reducing labour costs and elevating the shopper experience. IGD identifies three interlinked “power zones” for success: enhanced shopper experiences, empowered store teams and improved operations. Together, they form a digital flywheel that drives profitability, productivity and loyalty.

For suppliers, connected stores promise real-time data on demand, inventory and promotional performance — enabling faster activations, reduced waste and stronger brand execution. Shoppers gain from accurate pricing, product visibility, easier navigation and smoother checkouts. Meanwhile, retailers benefit from unified commerce, linking stores, ecommerce, loyalty, and data platforms into one seamless ecosystem.

Says IGD, omnichannel shoppers spend two to four times more than single-channel customers — reinforcing the importance of integration.

The report closes with a call to leadership: appoint a store digitalisation lead, redesign stores around profitability, unify data, and upskill managers in digital fluency. For Europe’s private label sector, the message is clear — collaboration, data sharing and innovation will determine who wins in the era of the hyper-connected store.

What food means to Generation Alpha

Family mealtimes are losing significance for Generation Alpha (born 2010–2025). According to a recent study by Cologne-based research institute Innersense, food for this age group is less about shared rituals and more about self-expression, experimentation, and self-optimisation.

Children increasingly eat alone or with friends, often preferring snacks or home-baked treats to traditional meals. While parents still provide guidance and healthy options, they aim to minimise conflict and grant independence, frequently relying on influencers, brands, and digital tools as modern parenting aids.

The study identifies six key motives shaping Gen Alpha’s approach to food:

  • Self-care over bonding – Food provides comfort and autonomy, though branded treats still symbolise closeness.
  • Fluid routines – Mealtimes adapt to varied schedules and family structures, with familiar brands offering stability.
  • Identity building – Cooking and baking, inspired by digital platforms, allow creative self-expression.
  • Self-optimisation – Nutrition is seen as a tool for managing performance, with protein-rich and low-calorie choices gaining ground.
  • Influence and advocacy – Children often drive healthy habits, armed with arguments from social media.
  • Customisation – Products tailored to moods and identities resonate strongly.

Ultimately, food has become a platform for orientation, control, and belonging. While Gen Alpha is heavily influenced by parents, their habits reveal a generation growing up individualised, digitally shaped, and conscious of health and sustainability. Brands that recognise these values can strengthen trust and engagement.

IGD reveals its global private label trends

In its latest report IGD asserts private label has evolved beyond just offering shoppers value. Ranges are now key, strategic levers enabling retailers to drive innovation, enable collaborations, and deliver sustainable solutions to help them stand out.

Highlights:

  • Globally, private label accounts for 45.7% of total grocery volume and is growing twice as fast as brands (1.4% vs 0.7%).
  • Europe will lead the way for private label globally in 2025, followed by North America, which will be the fastest growing region.
  • In some European markets, private label value share has dropped year-on-year as brands fight back with promotions.
  • Sub-brands continue to emerge, echoing last year’s momentum, as health and sustainability trends shape innovation.
  • Private label continues to lead by swiftly adapting to trends. Collaboration helps to deliver distinctive, consumer-driven product innovations quickly.
EU: Share of consumer spending on retail declines

The share of private consumption allocated to retail – rather than savings, services, or leisure – continues to decline across the European Union. In 2024, this trend persisted for the third consecutive year, with EU citizens spending just 32.6 percent of their disposable income in retail. Croatia recorded the highest share, with nearly every second euro spent in retail. These insights come from a study by NIQ Geomarketing, offering a comprehensive overview of retail trends across Europe.

Although purchasing power and retail turnover are rising in Europe, the proportion of consumer spending directed toward retail has been steadily declining for the past three years. In 2024, retail accounted for just 32.6 percent of total private consumption, underscoring this ongoing trend. However, regional differences remain significant. Consumers in Eastern European countries, in particular, allocate a considerably larger share of their purchasing power to retail.

Discounters girding for strong global growth

According to new research from IGD, the discount grocery retail channel is expected to expand by €191.6 billion globally between 2024 and 2029, making it the fastest-growing format in physical grocery retail.

Europe continues to be the core market for discounters, with all of the top 14 countries by market share located in the region. By 2029, discount retailers are projected to account for more than 23% of total grocery sales across Europe.

Central and Eastern Europe, along with Portugal, are identified as key growth markets, supported by high levels of discount penetration and strong forecasted sales growth through 2029.

Globally, the discount segment is gaining momentum, with new entrants, geographic expansion by established discounters, and increased strategic focus by retailers on their discount formats.

NIQ says consumers are redefining their brand preferences

While private labels were once viewed mainly through the lens of availability, consumer perceptions are shifting toward value, quality, and community support, finds a new report from NIQ: “Finding Harmony on the Shelf: 2025 Global Outlook on Private Label and Branded Products.

The report says “the brands that succeed will be those that recognise the strengths each brings to consumers – whether it’s value and local relevance or quality and prestige – and embrace opportunities for growth together.” Consumer perception of private label products is completing a dramatic turnaround. As retailers invested in quality and improvements, private label sales reached new heights.  

Success for one kind of label doesn’t have to come at the expense of others. Every player can win a little and grow categories if the reins of control shift in favour of collaboration. The report reveals what is driving brand shifts and how harmony among private and name brands can expand sales.