
Although pet food inflation eased in Canada during 2023, prices remained high in 2024. The cost of pet ownership may be influencing Canadian dog and cat owners’ purchasing decisions. Packaged Facts analysts reviewed the Canadian pet food market and reported results from their survey of pet owners in Canada.
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Pet foods and products outpaced overall inflation during the pandemic and its aftermath. At its peak, Canadian pet food inflation increased nearly 13% between January 2022 and January 2023. Compare that to pre-pandemic inflation growth of 2% between January 2019 and January 2020. Quarterly consumer spending on pet food, supplies, veterinary and other pet services ranged from a low of CAD2,996 million in the first quarter of 2022 to a high of CAD3,284 in the first quarter of 2024. Packaged Facts referenced the Consumer Price Index from Statistics Canada for this data.
“Although inflation has diminished, the resulting high prices persist,” analysts wrote. “In Packaged Facts June 2024 survey, 70% of respondents reported spending more on pet products than they used to.”
In the Packaged Facts survey, more than half of pet owners stated that they had spent more in 2023 than in 2022.
“Packaged Facts survey results confirm growing concerns about pet expenses, with over three-quarters of pet owners agreeing that many pet products are becoming too expensive,” they wrote. “One way that pet owners have been dealing with higher prices is by seeking out more value-focused products.”
As Canadian pet owners embrace premium private-label brands, they increasingly base their shopping decisions on the availability of those brands.
About the Canadian pet food industry
The Canadian pet food industry has experienced steady growth over recent years. The market is characterized by a preference for natural marketing claims, reflecting broader consumer trends toward health and wellness. Pet owners are increasingly seeking products that not only meet their pets' nutritional needs but also align with their own values, such as sustainability and ethical sourcing. Canadian pet owners also increasingly demand transparency, with manufacturers providing more detailed information on sourcing and production processes.
Innovation drives the Canadian market, with companies investing in research and development to introduce new products, including alternative protein sources like insects and plant-based ingredients. E-commerce continues to grow as a distribution channel, with many pet owners preferring the convenience of online shopping. However, brick-and-mortar stores remain significant, especially for premium and specialty products.