BOSTON, Oct. 27, 2020 /PRNewswire/ -- Ecommerce
sales in the household and pet care category are expected to
increase by $56.4bn globally by 2025.
Amazon is set to lead the growth in this category, ahead of the
online pet specialists, according to data from a new report from
Edge by Ascential's research and data insight arm, Retail
Insight, The Household & Petcare CPG report.
This new report reveals that ecommerce currently accounts for
19.2% of household and pet care chain retail sales globally, and
will increase to 26.9% by 2025. This shift is further accelerated
by shifting consumer habits towards online and in-home consumption
as a result of the COVID-19 pandemic. Moreover, data from Edge by
Ascential reveals that by the end of 2020, the online share of
sales in this category is expected to rise to 8.9% globally, an
increase of 2.4% on pre-pandemic levels.
The sector will see rapid growth for ecommerce retailers in
particular, with Amazon set to grow the fastest. By 2025, Amazon
sales in this category will increase by 11% to reach $27.2bn in sales. This is followed by Alibaba
(+12.9% to $25.5bn) and JD.com
(+13.8% to $13.7bn). Walmart is still
expected to be the global market leader but will grow at a slower
rate of 2.8% to reach $37.6bn.
Dedicated pet care retailers PetSmart (+10.5% to $20bn) and Zooplus (+10% to $2.5bn) are also set to see strong growth between
now and 2025, with Pet Smart's online platform Chewy.com adding 1.6
million net active customers in Q1 2020.
Florence Wright, Senior Retail
Insight Analyst at Edge by Ascential, said: "Smaller household
sizes, urbanization, aging, along with new social distancing
measures have seen a shift in consumer behaviors which now show a
heightened preference towards online. This, matched with increased
pet ownership and trends around pet humanization (where we see our
pets more and more as family members!) has seen ecommerce pet sales
skyrocket this year. For this reason, brands must begin to
prioritize partnerships with leading ecommerce retailers to best
leverage product sales.
In terms of market outlook, the US (1.9%) is set to experience
the third biggest uplift in household and pet care sales between
pre and post-COVID-19 growth rates in 2020, behind China (4.2%) and Germany (2.9%). Analysts at Edge by Ascential
previously forecasted the UK market to decline this year due to
Brexit-related economic uncertainty, but this has now been reversed
due to changing shopping habits, with growth increasing from -0.3%
to 1.6%.
Florence continues: "With big ecommerce players like Amazon,
Alibaba and JD.com accelerating their pet care offerings, it's
crucial that pet specialists and retailers ensure they are also on
top of shifting consumer trends in the sector, as consumers'
affinity with their pets increase. In order to enhance offerings
in-store, brands and retailers should focus on developing
experiences and improving and curating exclusive ranges across pet
departments to entice shoppers. This should go hand in hand with
upgrading supply chain and fulfillment services to support the
frictionless experience, particularly in light of the current
pandemic."
Retail Insight analysts also have the following additional
predictions for the household and pet care sector
post-COVID-19:
- Ecommerce sales growth is set to compromise store-based retail,
which is set to grow at a rate of 3.5% between 2020-2025. This is
below the 13% forecast for growth in ecommerce.
- According to data from Edge by Ascential's Market Share, which
helps businesses drive growth and performance on Amazon, total
sales of pet supplies on Amazon US have grown 38.2% YoY in the
first half of 2020, reaching $3.9bn
weekly sales. Sales significantly increased during w/c 15th March
spiking at $206.1m as a result of
stockpiling. This is almost double the sales generated in the
previous weeks.
- Within pet supplies on Amazon US, the 'dogs' category is the
highest selling, reaching sales of $931m in the last 12 weeks ending 2nd August. The
next best selling sub-category within pet care is 'Pet Birthday',
reaching sales of $871.3m in the same
period.
Notes:
All figures come from Edge by Ascential's
Household & Pet Care CPG Report, August
2020
Media enquiries
For further information, please contact:
Will Parrott/Georgie Moreton, Propeller PR
Edge@propellergroup.com
About Edge by Ascential
Edge by Ascential gives global brands and retailers the
knowledge to win in digital commerce by providing actionable,
next-generation data, analytics, insights and strategic consulting.
Its unparalleled suite of solutions - including Market Share,
Digital Shelf, Price & Promotions and Retail Insights - enables
brands and retailers to develop and implement strategies that
maximize revenue growth; optimize product listings; increase sales
faster than the category and the competition; and drive margin
growth. More than 500 global brands and retailers depend upon its
weekly, daily and real-time data-driven insights.
A subsidiary of Ascential plc, the global specialist information
company, Edge by Ascential has more than 400 employees in 10
offices across North America,
Europe and Asia. For more information,
visit www.ascentialedge.com.
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