Unlocking Opportunities: The Surge of Pet Food Investments in Eastern Europe

Several new projects are sprouting in Eastern Europe’s pet food market. This suggests that, despite economic ups and downs, the region is seen as a good place for investment.

In July 2025, China’s WH Group acquired Pupil Foods. Nandini Roy Choudhury from Future Market Insights mentioned in an interview that this shows how foreign companies view Eastern Europe as a key production hub. The WH Group aims to diversify its offerings and strengthen its foothold in Europe’s rapidly growing pet food market.

This acquisition is just one example of the vibrant investment scene in Eastern Europe. In Hungary, for instance, Nestlé Purina invested €141 million (about $153 million) to expand its facility in Bük in 2024. This expansion will enhance production capacity to nearly 500,000 tonnes annually, with most of the output heading to Western Europe.

Romania is also seeing significant developments. United Petfood announced a €35 million ($38 million) plant in Răcari in 2025, highlighting Southeast Europe’s growing role in pet food production. In the Baltics, Ukraine’s Kormotech is building a €60 million ($65 million) wet-food factory in Lithuania, supported by EBRD financing, with plans for further expansion through 2028.

Local companies are also making strides. Zew Natury from Poland is working to tap into export markets. Czech manufacturer VAFO acquired the Polish distributor AZAN in 2025 to expand its reach. In addition, Akvatera (KIKA Group) is building a high-tech wet food facility in the Baltics, while Kauno Grudai in Lithuania is expanding its operations.

On the investment front, private equity interest continues to grow. CVC Capital Partners bought a majority stake in Partner in Pet Food in 2024 to spur European growth.

Despite challenges like high energy costs and rising labor rates, Eastern Europe remains an attractive spot for investors. Choudhury noted that the region offers lower operating costs compared to Western Europe while providing access to the European single market. The private-label segment is blooming, with large European retailers sourcing products from the region due to its scale and quality.

Favorable regulations for pet food production further enhance this appeal. Hungary, for instance, supports major foreign investments with incentives. Poland’s strong poultry and pork industries provide plenty of animal by-products for pet food, adding to vertical integration opportunities.

Growing pet ownership and increased spending in Central and Eastern Europe are also driving demand. Despite any immediate economic hurdles, the region’s pet food sector holds significant potential that companies and investors are starting to realize.

Long-term growth appears promising, as this region is often viewed as having more potential compared to Western Europe. Even amid current slowdowns, the pet food market continues to develop, driven by opportunities in premium products and evolving consumer preferences.



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