Opportunities for Pet Care Brands’ Go-To-Market Strategy

Global pet care is projected to grow at a 3% CAGR over 2025-2030 to reach USD242 billion (constant retail value terms). A growing pet population and increasing levels of pet humanisation are the fundamental growth drivers.

68% of global online respondents indicated they consider pets beloved members of the family

^{Source: Euromonitor’s Voice of the Consumer: Lifestyles Survey, fielded January to February 2025}

The growing sophistication around how pets are perceived supports demand for pet offerings with attributes typically found in the human or baby space.

An industry that offers good growth prospects driven by an expanding consumer base, evolving consumer sentiment and relative resilience to pricing pressures not only makes incumbents thrive but also attracts new players. Despite the potential it offers, the cost of entering a new market could hinder business opportunities. Here, we compare the size of the opportunity vs the associated cost to access it.

Sizing the pet care opportunity

With varied economic and consumer landscapes, opportunities are not homogeneous across markets. While mature markets like the US and UK offer a more premium appeal, the volume and velocity of sales will be moderated. On the other hand, growth of consumption opportunities is stronger in emerging regions such as Asia Pacific.

A look at projected performance in select markets highlights this. The UK, for instance, is a more mature pet care market; while spend levels are relatively high, value and volume growth prospects are muted. In the more developed Asian economy of Hong Kong, volume growth is looking flat, while value growth offers slightly better prospects. The underlying drivers here are premiumisation, increased sophistication in feeding habits, and a wide assortment.

On the other hand, both consumption and value growth are projected to be relatively stronger in Malaysia. Growth contributors include an expanding pet population, a feeding switch from table scraps to packaged food, and a younger generation of more aware pet owners.

While similar growth drivers may be observed across markets, varying degrees of intensity define where stronger growth is expected to come from. A brand’s go-to-market strategy must identify the target consumer segment and the factors driving that cohort’s consumption.

Cost considerations of accessing a market

Robust go-to-market considerations must also include a thorough assessment of market entry costs. Labour, marketing and third-party logistics (3PL) are tangible and unavoidable localisation costs. For instance, 3PL expenses in Malaysia can be 5-8% per USD1 million of revenue⁽¹⁾. These increase to 10-13% in the UK. Labour costs in emerging markets will be significantly lower than those in developed ones.

When looking at marketing investments, returns vary by category velocity and brand strength. A slow-moving, emerging brand, for instance, can expect a low dollar revenue return for every marketing dollar spent. But this tends to be very high for fast-moving, generic brands already possessing market recognition. Additional costs can include intangible types relating to regulatory approvals and set-up administration. All these factors combined significantly impact the ease of market entry for foreign brands.

How can emerging pet care brands achieve unit economies of scale?

Emerging pet brand owners must aim to reduce costs by significantly improving marketing efficiency through:

1. Consciously investing in brand building to establish presence and social proof.
2. Investing in omnichannel distribution infrastructure.
3. Developing enhanced B2B relationships that can unlock significant brand exposure, such as connections with distributors and procurement officers in retail chains.
4. Creatively lowering operating costs. For instance, as sell-through picks up, brands benefit from operational savings such as improved 3PL rates and labour efficiency.
5. Bundling emerging brands with complementary generic brands that have higher returns on marketing spend to improve marketing efficiency.

^{Source: (1)Factoring in customs clearance, local authority approvals, and legal requirements for local operating business entity set-up.}

This article has been authored in collaboration with Algo Group. For more insights, listen to our webinar, Cut Costs, Not Corners: Smarter Market Entry Strategies for Pet Care Brands, where our panel discusses go-to-market challenges and considerations for pet care brands in more detail.

To learn more about the pet care industry, please read Innovation in Pet Care: A Convergence of Functionality, Premiumisation, and Route to Consumers and Where Consumers Shop for Pet Care.