Eastern Europe: An emerging petfood market with significant potential
Russia leads the way in a part of the world worth investing in
Eastern Europe may be right in the middle of the pack when it comes to regional market performance in the petfood industry-US$5.3 billion in 2012 according to Euromonitor International, ahead of Australasia and the Middle East and Africa (MEA)-but it's a market that bears close watching and potential investment for the global petfood manufacturer.
Emerging markets are expected to play a significant role in the global economy through 2016. Sixty-six percent of global Gross Domestic Product (GDP) growth will come from emerging markets between 2011 and 2016, as 88% of the world's population lives (and their annual disposable income grows) in those markets, according to Euromonitor. In her April 2013 presentation, "Maximising Opportunities in Global Pet Care," Paula Flores, head of pet care research at Euromonitor, demonstrated that the global GDP of emerging and developing countries evened out with that of developed countries in 2012, at a 50%/50% split. Since then, The GDP of emerging and developing countries has continued to gain ground, while the GDP of developed countries is on a steady decline in terms of percentage of the total. This trend, according to Flores, will carry on through 2020.
Emerging markets will then, predictably, remain key to the future of pet care. Eastern Europe is edging out Asia Pacific (US$1.4 billion) in terms of absolute retail value gains through 2017 (US$1.6 billion), also significantly beating out MEA (US$200 million) and Australasia (US$100 million). Clearly, if someone in the industry is looking to focus on a single emerging…