Move over fancy gadgets and the metaverse, pet products are the new fad in the UAE, with the pet retail market projected to see a whopping seven-fold jump in just two years to $2 billion from the estimated $300 million market size currently.
The fast growing number of “pet parents” – comprising mostly younger owners and expats – coupled with the remote work culture and changing attitudes – the ‘humanizing’ of pets – are the factors cited for the surge in market growth.
The predicted massive demand surge in the market, in turn, has triggered an aggressive expansion drive among leading sector players such as The Petshop.
“The rise of ‘pet parents’ in the UAE – as also in the wider Middle East region – in the recent years reflects how central pets have become in our hearts and households, so much so that people feel like they are part of the family,” Amr Hazem, CEO of The Petshop, billed as UAE’s largest omni-channel pet specialist retailer, told Arabian Business.
“This shift also underscores the importance of responsible pet ownership and the need for businesses like ours to offer comprehensive solutions which meet the needs of both pets and their devoted owners,” said Hazem, a former senior corporate executive with global biggies such as Unilever, Americana, and Gulf Food Industries.
He said the UAE has embraced pets like never before over recent years, with it now becoming home to one million owners – mostly conventional pets like cats and dogs.
The pandemic period saw the maximum jump in pet ownership – as much as 30 percent – driven by a craving for the companionship of pets to get through solitude, and the growing awareness of the benefits of being around pets – from encouraging physical activity to reducing stress.
Middle East’s pet retail grows at double the rate of general retail
Industry insiders said along with the UAE, the whole Middle East market is also seeing a scorching market growth for pet retail, estimated at double the rate of general retail, currently.
“This is due to a combination of factors, chiefly the region’s growing pet culture, increased disposable income, and awareness of well-being as a result of having pets,” an industry expert said.
The region’s market, which has registered an estimated 13 percent growth in 2022, is expected to continue to grow at a 10 percent rate till 2030.
Saudi Arabia is projected to see even a higher growth rate at 16 percent this year.
Hazem said ancillary services such as pet grooming, groceries and pet daycare are driving the demand.
“Besides, the market is also seeing a shift to premium products [of late],” he said.
International players, e-commerce add to market surge
Hazem said the surge in demand has led to continued entry of several players into the regional market.
“There is a mix of both local and international companies present in the region. Besides, the market is also seeing a thriving e-commerce business, along with in-person sales in stores,” he said.
“The Petshop, for instance, operates both online and through strategically located physical stores across the UAE, with plans for further expansion across key markets.”
The Petshop was acquired by the UAE-based Private Equity firm Aliph Capital in November 2022. Amr previously founded Petsville, the leading pet daycare, boarding, and grooming company, which was acquired by The Petshop prior to Aliph Capital’s buyout.
Post-acquisition, Aliph Capital is injecting significant growth capital into the company to expand across the Middle East.
Hazem said the company has lined up aggressive growth plans across the wider Middle East, which include opening new brick-and-mortar stores, enhancing e-commerce capabilities, and expanding the product and service offerings.
“We aim to become the one-stop shop for all pet needs.”
Middle East can adopt many lessons from mature pet retail markets
Hazem said the Middle East pet market can draw many valuable lessons from mature pet retail markets around the world.
Prioritizing pet welfare, responsible ownership, and offering a diverse range of high-quality products and services are essential, he said, adding that building strong online presence and creating a seamless omnichannel shopping experience are also a must to enhance customer engagement.
“As the Middle East’s pet retail sector continues to evolve, these principles can guide its growth and development,” he said.
Hazem said the pet industry’s resilience and growth potential in the UAE – and also in the wider region – may make it an attractive option for companies considering public offerings in the future – as we have seen in international markets.
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