This week: Pets At Home posts FY2025 results; South Korea's cat population surges

Happy Friday! It’s been another dynamic week in the pet industry.

Pets at Home released preliminary full-year results, South Korea reported a 35.7% surge in its companion cat population, and new research revealed that pet parents are willing to pay a premium for dog food with health-focused labels like “allergy relief,” “weight management,” and “sensitive skin.”

And in a major development, Nestlé has made its first direct investment in India by acquiring a minority stake in Drools, putting the latter into unicorn territory. Don’t miss our spotlight on this below!

We also caught up with Polish startup VetApp, which helps pet owners avoid unnecessary trips to the vet, thanks to its database of 8,000+ symptoms and real vet case data.

Read the full interview here.

Have a fantastic weekend!

IN TODAY’S EDITION

🇬🇧 Pets At Home posts prelim FY2025 results ● Pets At Home reported underlying pre-tax profit of £133 million (US$179.2 million) for the year ended March 27, versus £132 million pounds a year earlier, in line with the company’s expectations. The company expects another ‘subdued’ year for pet products.

🇬🇧 British Veterinary Association says competition authority’s proposals “disproportionate” and “unworkable” ● The BVA has published a response to the Competition and Markets Authority’s working paper on its investigation into the UK veterinary services market for household pets.

🇺🇸 K9 Resorts Luxury Pet Hotel names Scott Schubiger Chief Growth Officer ● Schubiger will lead the strategic growth of K9 Resorts across the USA and overseas. He most recently served as Chief Growth Officer of The Picklr.

🐕️ Study shows dog owners willing to pay more for foods with specific health-promoting claims ● The study by Journal of Agricultural and Applied Economics said the highest average prices commanded per pound of dry dog food carried labels like “allergy relief”, “weight management”, “sensitive skin” and “sensitive digestion.”

🇦🇺 Champion Petfoods launches distribution network in Australia for ORIJEN ● Champion Petfoods has launched a dedicated local team and direct distribution network in Australia to drive growth of ORIJEN.

🇰🇷 South Korea's pet population reaches 3.49 million as industry jobs grow by 15% ● South Korea’s pet population grew 6.3% over the previous year, according to the country’s Animal and Plant Quarantine Agency. The number of companion dogs rose 5.9% to 3.43 million, versus a 35.7% surge in cats to 60,000.

PRODUCT NEWS

🐶 Elfin launches Kickstarter campaign for Elfin Fountain D1 and D1 Pro ● Elfin, a community that aims to transform pet care through smart technology, has launched a crowdfunding campaign for the Elfin Fountain D1 and D1 Pro on Kickstarter.

🇲🇽 Kimberly-Clark de México enters pet food market ● Hygiene and personal care company Kimberly-Clark de México has entered Mexico’s pet market with the launch of two new pet food brands.

FROM OUR SPONSOR

SPOTLIGHT: NESTLE BACKS INDIA’S FIRST PET FOOD UNICORN, DROOLS

Pet food heavyweight Nestlé has made its first direct investment in India’s pet space by acquiring a minority stake in Drools, one of the country's fastest-rising premium pet food brands.

According to Drools, the deal values the Bengaluru-based company at over US$1 billion, putting it in unicorn territory. Drools will retain strategic and operational independence under the deal.

Founded in 2010, Drools now holds 38% of India’s branded pet food market and exports to 22 countries. With Nestlé's backing, it’s set to expand in India’s growing market. 

Nestlé’s move is likely just the latest tail-thumping endorsement of the Indian pet industry’s growth potential:

• L Catterton invested US$60 million in Drools in June 2023;

• Pet care startup Vetic raised approximately US$26 million in its Series C round led by Bessemer Ventures this month;

• India's pet care market is forecast to grow at a compound annual growth rate of 9.4% from 2024 to 2029, according to Euromonitor International. This makes it one of the most dynamic markets in the Asia-Pacific region.

Watch this space. India is one of the few markets where demand for luxury remains robust, meaning premium pet deals may well follow.

FROM OUR SPONSOR

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