The European Union's new €3 (US$3.51) customs duty on low-value imports could squeeze the price advantage enjoyed by non-EU sellers of pet treats, supplements and other lightweight products, but is unlikely to have any tangible impact on the mainstream European pet food market. Instead, the measure could accelerate a shift toward larger online orders, EU-based warehousing and local fulfillment as overseas sellers adapt to the new rules.
The EU introduced a temporary €3 (US$3.51) customs duty on low-value consignments worth less than €150 (US$175) from July 1, 2026, replacing the previous customs-duty exemption for such shipments.
The reform was driven largely by the rapid growth of e-commerce imports, particularly from China. EU authorities argued that the previous €150 (US$175) exemption gave non-EU online sellers an advantage over European retailers.
In 2025, 5.8 billion low-value parcels entered the EU, up 26% year over year, with platforms such as Temu and Shein driving much of the growth.
Pet food was among the products imported through this low-value e-commerce channel, particularly lightweight items such as treats, supplements and other pet products sold directly to consumers, though the exact volume of such trade remains unknown.
Unlikely to be a game changer
For the European pet food industry, the new duty is unlikely to be a major game changer, according to observers.
"The great majority of pet food supplied to European pet owners is manufactured within the EU or imported in compliance with applicable EU requirements," the press office of FEDIAF, the European pet food industry federation, told Petfood Industry.
"Given the sanitary and phytosanitary controls, certification obligations and border checks that already apply to products of animal origin, FEDIAF does not expect the new low-value import duty to have a material impact on the pet food sector overall," FEDIAF added.
At the same time, FEDIAF welcomed the underlying principle behind the move.
"Pet food placed on the EU market must meet high standards for safety, traceability and consumer protection, irrespective of where it is produced," FEDIAF added. "Measures that support consistent enforcement of these requirements and help ensure a level playing field for all operators are therefore positive developments."
FEDIAF is not alone in backing the measure, with several other industry and trade organizations also welcoming the reform as a way to address the competitive and enforcement challenges posed by the rapid growth of low-value imports.
CLECAT, the European Association for Forwarding, Transport, Logistics and Customs Services, supports the EU's decision to introduce a flat-rate customs duty on low-value e-commerce imports, Nicolette van der Jagt, CLECAT director general, told Petfood Industry.
"The very rapid growth of low-value consignments entering the EU has created significant challenges for customs authorities and legitimate European businesses, and we believe that measures which contribute to a more level playing field and better compliance with EU rules are justified," van der Jagt added.
Supply chain adapts
The measure will inevitably affect some existing e-commerce business models, including those relying heavily on direct low-value shipments from third countries, such as pet food imports from China, according to van der Jagt.
"We would expect the industry and its supply chains to adapt, for example through changes in sourcing, consolidation or distribution models," van der Jagt added.
The additional customs duty could eliminate much of the price advantage on individual low-priced treats or supplements, Nandini Roy Choudhury, a senior analyst with Future Market Insights, a think tank, told Petfood Industry.
At the same time, Choudhury added, its effect will be smaller on larger baskets, premium products and differentiated products for which consumers are purchasing functionality rather than simply the lowest price.
Analysts note that competition from non-EU direct-to-consumer sellers remains relatively limited in mainstream European pet food.
"We estimate that direct low-value imports account for a low-single-digit share of the overall EU pet food market," Choudhury said. "The market is still dominated by EU manufacturers, multinational brands with European production, supermarkets and established specialist retailers such as Zooplus and Fressnapf."
Future Market Insights expects the reform to be more likely to change the operating model of major non-EU sellers than to remove them from Europe, with larger brands and marketplace sellers able to adapt by consolidating orders into higher-value shipments and establishing EU warehouses or fulfillment centers.
Other available tools include supplying European marketplaces through EU importers, raising minimum-order thresholds, promoting multipacks, or shifting from direct parcel shipping to bulk imports and local distribution.
"Mainstream dry food, wet food, fresh or frozen food and veterinary diets should experience limited direct impact," Choudhury said. "These segments are already protected by weight economics, established European distribution, regulatory requirements and stronger consumer sensitivity regarding safety and nutritional reliability."
