Are Grocery Retailers Overlooking the Opportunity in Pet Food?
By Stefano Di Napoli, founder of CPGS · Originally published 31 March 2026
Key insights
Pet food is a structurally attractive category: European market valued at $60.4bn at the start of 2026, according to Mordor Intelligence as cited in the original article, driven by pet humanisation and rising single-person households.
Grocery retailers are losing share fast (−5.5 percentage points between 2020 and 2025, according to Euromonitor as cited in the original article), with e-commerce and specialists capturing disproportionate growth.
The category punches above its weight: ~2% of sales but delivers significantly higher margins (driven by premiumisation and strong loyalty).
Premium and functional segments dominate (~⅔ of sales), creating a clear opportunity to trade shoppers up and increase basket value.
Winning requires a strategic shift: elevate pet food through premium assortments, private label, manufacturer partnerships, and dedicated formats
Related consumer goods expertise
Market context: the European market estimate is also reported in Stefano Di Napoli’s article in ESM Magazine (9 April 2026)
Original article: Are Grocery Retailers Overlooking the Opportunity in Pet Food?