Operating environment

Musti operates in the Nordic pet care market, broadly defined as the sale of pet food, treats, products, services and veterinary care across Finland, Sweden and Norway.1 While Musti does offer some veterinary services, it is to a limited extent and management do not currently consider veterinary care as part of Musti’s core addressable market. As such, Musti’s core addressable market amounts to approximately EUR 1.7 billion

Musti’s core market is defined by the company’s management. Source: Euromonitor for the historical information and future scenarios of pet food, pet products and pet treats. Source for the future scenarios of services and veterinary services from a study ordered by the company from an independent international consulting company.

Historically, the pet care market has developed at a stable rate, having grown at a compounded annual growth rate of 4.6 percent since 2013. According to Euromonitor the market is estimated to be worth approximately EUR 2.8 billion, with Sweden as the largest market, accounting for approximately EUR 1.2 billion, and Finland and Norway estimated to amount approximately EUR 820 million and approximately EUR 790 million respectively. Musti is the market leader with an estimated 22 percent market share across the Nordic countries2. The company is over 6x larger than the next largest pet specialist.

1 Market figures across this section exclude other pet food (i.e. food for pets other than cats and dogs). All market figures across this section include VAT; including calculations relating to Musti’s market share.

2 The information is based on the company’s view and on the study ordered by the Company from an independent international consulting company. The market share for 2018 Nordic pet food and pet care market. Musti’s market share calculated using consumer sales, market share for 2018 based on FY19 consumer sales.

Trends in the Nordic pet care market

Pet parenting

Pet humanisation is a major development in pet care that continues to have a profound impact on the global pet care market. People are increasingly treating their dogs and cats like members of their family, spending more on higher quality and more premium food, as well as a more diverse range of products and services.

Global consumer megatrends

There are several other global consumer megatrends that are highly visible across the pet care market. These include increasing environmental consciousness, desire for convenience at shopping, increasing focus on health and wellness, supply chain transparency and increased demand for services.

Pet population growth

The number of households continues to grow (forecasted at a CAGR of 0.9% to 2023; from 9.8 million to 10.2 million Nordic households). The Nordic pet population is expected to continue growing at a slightly slower CAGR of 0.7% to 5.4 million pets in 2023 (3.2 million cats and 2.2 million dogs).

Market development and channel structure

A key characteristic of the pet care market is the stable, recurring nature of purchases. The increasing prevalence of pet parents across the Nordic countries has led to a channel shift towards pet specialists (including online stores).

Resilience of the Nordic pet care market

Consumers display a willingness to sustain spend on pet care through economic downturns, preferring to cut expenditure on alternative spend categories. In the Nordic countries this phenomenon was clearly evidenced throughout the 2007–2009 downturn.

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