Pet Industry: Chewy, Mars, Purina and Retail Results — 2026-10-19
The pet industry saw significant shifts in retail footprints and M&A dynamics this week, with PetSmart closing locations to adapt to e-commerce pressures while pet food deal values rose despite fewer transactions. Global market forecasts were updated to reflect a $289 billion valuation for 2026, and new data highlighted rapid growth in specific Amazon pet categories.
Pet Industry: Chewy, Mars, Purina and Retail Results — 2026-10-19
Top developments
PetSmart Adjusts Retail Footprint Amid E-Commerce Growth
PetSmart has shuttered multiple locations as it adjusts to the surge in online shopping, auto-ship subscriptions, and same-day delivery platforms. This move reflects a broader industry trend where traditional brick-and-mortar pet retailers are downsizing physical spaces to compete with digital-first competitors. The closures signal a strategic pivot toward omnichannel efficiency rather than pure physical expansion.
Pet Food M&A Deal Values Rise Despite Fewer Transactions
While the total number of acquisitions in the pet food sector dropped in 2026, the value of individual transactions increased significantly. Companies are focusing on expanding their portfolios with high-value assets, indicating a maturity in the market where strategic fit and brand strength command higher premiums. This trend underscores the need for flexible processing equipment and operational synergies in future deals.
Global Pet Care Market Forecast Updated to $289 Billion
New market analysis projects the global pet care market to grow from $273.42 billion in 2025 to $289.17 billion in 2026, representing a 7.06% CAGR through 2034. This robust growth forecast supports continued investment in premiumization and pet humanization trends, which remain key drivers for major players like Mars and Nestlé Purina. The data highlights the resilience of pet spending even amid broader economic uncertainties.
Local view
German Market: Amazon Pet Categories Show Strong Growth
In the German-speaking DACH region, data from Amazon Seller Central reveals that 10 specific pet categories grew by 15.7%, generating €751.7 million in revenue. This growth rate outpaces the general market, indicating strong consumer demand for niche and premium products on digital platforms. Local stakeholders are closely monitoring these high-growth niches for potential private-label opportunities and brand partnerships.
Context & numbers
Service Sector M&A Multiples and Deal Flow
The U.S. pet services sector continues to attract significant M&A interest, with deal flow up 45% in 2024 and private equity multiples averaging 12.2x. There are currently 28,121 pet care businesses in the U.S., with an average of 7 employees per business. This fragmentation presents a major consolidation opportunity for larger platforms and private equity firms seeking scalable assets.
On the radar
Upcoming Industry Reports and Seasonal Trends
- APPA State of the Industry: Stakeholders are awaiting further details from the American Pet Products Association's ongoing reports to refine 2027 forecasts.
- Holiday Pet Spending: Retailers are preparing for the Q4 holiday season, where pet product sales typically see a significant spike, influencing inventory levels for Chewy, Petco, and Amazon.
- Regulatory Scrutiny on Vet Costs: Continued media attention on rising veterinary costs and private equity ownership may lead to increased regulatory discussions in the coming months.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
