The food and drink category is the most popular type of subscription box in the U.K, and fresh food box delivery companies like Hello Fresh and Gousto continue to show strong growth in the human food market. With the trend for humanization in the pet food market not dying down any time soon, it’s no wonder that fresh pet food delivery companies are also going from strength to strength.
Butternut Box, a B2C fresh dog food delivery company in the U.K, has raised £15 million (US$19 million) in new investments and intends to expand its offerings to include toys, snacks and pet wellness products, as well as launching into Europe. The new round of funding was led by European venture capital firms White Star Capital and food tech funding specialists Five Seasons Ventures, with existing backers Literacy Capital, Kreos Capital and Passion Capital also involved.
A rapidly growing segment of the market
In the relatively short time Butternut Box has been in operation (it launched in 2016), it’s grown rapidly, with revenue growth around 700% in 2018 and more than 8 million meals produced for their canine customers in the U.K. Offering food made from freshly prepared ingredients and portions designed to be as individual as the dogs themselves (based around things like the dog’s age, breed and activity level), the company’s aim is to develop as a leading pet wellness company across Europe.
Why direct-to-consumer works
In a market where convenience is often key, what can be more convenient than buying pet food online for home delivery? Pet food e-commerce continues to grow, and specialized fresh pet food delivery companies offer a number of USPs (Unique Selling Propositions) that go above and beyond simply buying branded pet food online. Things like food tailored to the individual animal, fresh ingredients and homemade recipes all attract consumers who value the health and well-being of their pets. Other U.K.-based fresh pet food delivery companies include tails.com and Different Dog, and it’s without doubt a segment with great growth potential.