Pet products emerge as a key growth driver for Russian retail

The Russian pet supplies market continues to expand faster than expected and outpaces overall economic dynamics. According to Zooinform, retail sales of pet products reached $6,4 billion in 2024 — nearly 18% higher than the previous year and above the inflation rate. Around 80% of category turnover is generated by dog and cat food, which remains the main market growth engine.

At the same time, conditions for traditional pet stores are not becoming easier. In major cities, the number of offline outlets declined by 7–12.5% in 2024; in Moscow the decrease reached 12.5%, and in Saint Petersburg about 9.5%. Demand for pet products remains strong, but spending is being redistributed across channels: part of the audience is shifting to marketplaces and grocery retail, where consumers increasingly purchase pet food and cat litter.

Hard discounters are among the main beneficiaries of this trend. From March 2023 to February 2024, pet product sales in this format grew by approximately 29.5% in value terms — significantly above the market average. For low-price chains, pet products are becoming an important part of the daily basket and a stable traffic source.

Pet owners continue to keep a close eye on their budgets, yet many are unwilling to save on their pets. Against this backdrop, private labels are growing rapidly: in pet supplies they expand faster than branded products, particularly in online channels. The online share of category sales has already approached 30% of omnichannel turnover, with average transaction value notably higher online than offline.

For pet store chains, this shift represents both a challenge and an opportunity. They cannot compete with discounters on price or proximity, but they remain strong in expertise, consultation services, veterinary-related offerings, and complex assortments unavailable in low-price stores. Some players see growth potential in premium diets and specialized therapeutic pet food; others — in partnerships with large retailers and marketplaces.

The market is moving toward models that help customers balance pet care with budget control. Discounters and online channels continue to strengthen their positions, while traditional specialty stores must adapt to new competitive conditions. For shopping malls, this shift is also significant: the format of a simple pet store no longer guarantees traffic. It now requires a mix of price competitiveness, service, and a clear operational model that can withstand proximity to expanding discounters.

Source: malls.ru