Gross sales within the Russian pet meals market jumped 17.7% in 2024, reaching 510 billion rubles (US$6.2 billion), in keeping with a advertising examine by Zooinform, a Moscow-based consultancy. The expansion momentum, nonetheless, is slowing considerably, and the market now faces the looming risk of rising taxation that trade consultants warn may devastate companies.
The 2024 development fee represents a pointy deceleration from the earlier yr’s explosive 31.2% improve, almost halving the tempo of enlargement. Regardless of this slowdown, Zooinform emphasised that the expansion stays substantial by trade requirements.
If these estimates show correct, Russia turned Europe’s largest pet meals market in 2024, surpassing France, the place the pet meals market grew marginally to US$6 billion, and Germany, which reached €4.3 billion (US$4.9 billion).
Continued development anticipated regardless of headwinds
All forecasts point out the Russian pet meals market will preserve its upward trajectory within the coming years, albeit at a extra reasonable tempo. Kirill Dmitriev, president of the Russian Nationwide Affiliation of Zoo Trade, estimates gross sales will climb one other 12% in 2025 to achieve 560 billion rubles (US$7 billion).
The market’s enlargement has been outstanding. Since 2021, when the market was valued at simply 265 billion rubles (US$3.4 billion), it has almost doubled in dimension, in keeping with Dmitriev.
A number of elements drive this development. Over the previous three years, pet possession in Russia has surged 13% to 75 million animals, Dmitriev famous. This improve in pet possession, coupled with a major shift towards ready-made pet meals, alerts rising market demand.
Technique Companions, a Moscow-based suppose tank, tasks the Russian pet meals market will increase by almost 50% by 2034.
The super-premium pet meals phase accounts for almost half the market, producing 313 billion rubles (US$4 billion) in 2024. This phase, which features a substantial portion of imported pet meals, demonstrates the best development charges throughout all market classes — 20.8% final yr in comparison with simply 18% within the funds phase.
Manufacturing challenges mount
Russian pet meals manufacturing can also be rising, with output rising 10% to 1.5 million tonnes final yr, Zooinform calculated. Nonetheless, the trade’s growth faces vital obstacles.
A lot of the expansion in recent times was fueled by investments from Mars and Nestle of their pet meals factories between 2018 and 2021. Western sanctions imposed on Russia have compelled each corporations to halt their funding plans, Technique Companions reported.
Wanting forward, the trade’s development can be constrained by Russia’s declining inhabitants and shortages of key elements, together with meat-and-bone meal, in keeping with Technique Companions.
Client conduct presents further issues. Dmitriev warned that Russian pet meals consumers stay extremely price-sensitive and are responding to the inhabitants’s falling buying energy and very excessive borrowing prices for companies.
A number of Russian corporations have invested in pet meals manufacturing in recent times to capitalize on import-replacement alternatives. Nonetheless, funding flows to the trade have seemingly narrowed just lately.
Observers primarily blame the Central Financial institution’s key rate of interest, which reached an all-time excessive of 21% in October 2024 and was lowered solely barely to twenty% in June 2025. At present charges, financial institution loans stay almost unaffordable for pet meals producers.
New excise tax threatens trade stability
The trade faces a brand new risk from Russian lawmakers’ latest initiative to topic pet meals manufacturing and imports to a brand new excise tax of 1 ruble per kilogram.
The proposed levy goals to offer further funding for accountable animal remedy. In line with the explanatory observe printed by the State Duma, Russia’s decrease parliamentary chamber, Russian areas wrestle with stray animal issues as shelters are overcrowded and current infrastructure requires modernization.
The Russian pet meals trade has strongly opposed the initiative, arguing it might impose an unacceptable monetary burden on the worth chain.
“This initiative appears like some form of sabotage,” Dmitriev warned, including that regardless of rising gross sales and increasing manufacturing, companies’ monetary well being stays precarious.
“It’s unimaginable to introduce further excise taxes in the mean time, because the trade is already going via troublesome occasions,” Dmitriev defined. “First, the method of import substitution is progressing with issue. Second, uncooked supplies are continually turning into costlier, together with meat, meat and bone meal, and feed components. Third, the market has solely simply gone via the introduction of labelling.”
The Russian authorities imposed necessary labeling of dry pet meals from October 1, 2024, and moist pet meals from March 1, 2025 — a transfer that contributed to a pointy rise in pet meals prices in Russia final yr, Dmitriev stated.
“The brand new excise tax will result in even better price will increase and can hit the low-income strata of the inhabitants,” he warned.
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