In Australia, internet retailing has been slower to develop in pet care than in other retail categories like apparel or electronics. However, over the past five years sales of pet care through internet retailing grew faster than sales through any other channel. In fact, between 2012 and 2017 pet care through internet retailing grew by a current value compound annual growth rate (CAGR) of 15%, whilst supermarkets and veterinary clinics increased by CAGRs of 3% and 4% respectively over the same period. As consumers in Australia continue to look for greater convenience via online retailers, the rising familiarity with buying products online continues to drive the growth of the channel. Furthermore, with supermarkets operators increasing the presence of their home brands, the number of consumers moving online has increased as internet retailers are competing with a wider selection of products, as well as more pet food brands, thus further supporting the channel’s growth.
Although grocery retailers are expected to remain vital to the distribution of pet care in Australia, Euromonitor anticipates that internet retailing will continue to grow strongly over the next five years. This will likely be largely supported by the stage of maturity of supermarkets, as at this stage its options for growth are limited. On the contrary, internet retailing will continue to attract the interest of manufacturers of pet care products and brand owners as consumers will continue to look online for pet products not only because the channel offers greater convenience but also because it offers a wider selection of products and price ranges. Furthermore, the busy lifestyles of Australian consumers has encouraged some of them to seek convenience and speed, thus technologies that simplify their purchasing process have been quickly embraced. As such, internet retailing has become a key channel for commerce, with consumers spending more time online.