Katlego Sekhu
South Africa’s pet sector is one of the fastest-growing in FMCG. Experts say the best is still to come
South Africa’s overall grocery market has been largely flat. Consumer spending is under pressure, volume growth is squeezed, and household budgets are stretched. But inside that flat market, one category is quietly booming.
The pet sector is now valued at R10.4bn, representing 1.2% of the total FMCG market, and growing at 15.8% last year.
Kaya BIZ spoke to Andrea Slabber, Research Leader at Trade Intelligence, and Trevor Paxton, General Manager of Pet Shop Science, to find out what is driving it and where it is heading.
Fur babies and the humanisation of pets
The single biggest driver, both experts agree, is the humanisation of pets. South Africans are no longer buying pet food. They are buying nutrition, wellness and what Slabber describes as fine dining experiences for their animals.
“You get the toppers and the sauces and the dressings because people want the animals to also experience fine dining in a way,” says Slabber. “The products are certainly presented in a way of lovely signalling of fine dining recipes in the product names and flavours.”
Paxton sees it daily on the shop floor. The traditional dry kibble basket is shifting towards fresh food, raw diets and wet food, driven particularly by Gen Z pet owners who apply the same nutritional thinking to their pets as they do to themselves.
Premiumisation under pressure
The growth story is not without tension. Most South Africans spend around R800 or less a month on their pets, and the rising cost of premium nutrition is creating a gap in the market that specialist retailers are moving to fill.
Pet Shop Science responded by developing a private label food, manufactured locally and vet-approved, priced at R18 a day per feed to bridge the distance between entry-level products at R11 a day and premium options at R50 a day. Promotions have also become a significant conversion lever.
“Promotions trigger one in five purchases and is definitely the strongest conversion lever,” says Slabber.
Convenience is the other frontier. Pet Shop Science became the first specialist pet retailer to launch nationwide delivery under 60 minutes through a partnership with 6060, addressing what Paxton calls one of the last gaps in the category.
Where the next growth is coming from
Both experts point to pet wellness and veterinary care as the sector’s next major growth driver. South Africa’s pet insurance penetration sits at around 1%, compared to 30% in the UK and 60% in Sweden. With vet services estimated at between R13bn and R20bn annually, almost all of it unplanned out-of-pocket spending, the gap is significant.
“That speaks to a shock to the system,” says Paxton. “That is definitely a gap we are still trying to solve.”
As pets live longer thanks to better care, the demand for preventative wellness products, joint health supplements and geriatric pet care is set to grow. The emotional bond between South Africans and their animals shows no sign of weakening, and that, more than any other factor, is what makes this sector resilient even in a tough economy.
To hear the full discussion, listen to the podcast.
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