Purina Faces Tough Economic Landscape and Softening Consumer Trends in 2024: What It Means for Pet Owners

Vevey, Switzerland – Purina is playing a big role in Nestlé’s overall growth. According to their financial report for 2024, released on February 13, the pet care division saw modest growth. The success came mainly from premium, science-backed brands like Purina ProPlan, Purina ONE, and Friskies.

Nestlé’s Petcare sales reached CHF 18.9 billion (about $20.9 billion USD) in 2024, showing a small rise from the previous year. The company reported a Real Internal Growth (RIG) of 2.1%, along with a pricing increase of 0.6% and overall organic growth of 2.7%.

“This growth was mainly due to RIG,” said Anna Manz, Nestlé’s chief financial officer. While pricing had dropped, it started to stabilize toward the end of the year.

Despite a slowdown in growth within the segment, Nestlé anticipates a growth rate of 4% to 5% through 2025. The company plans to invest more in therapeutic pet food, a booming market worth over CHF 600 billion (around $663.1 billion USD). Their focus will be on innovation, veterinary partnerships, and direct-to-consumer sales.

Laurent Freixe, Nestlé’s CEO, commented on growth opportunities in Asia, Oceania, and Africa, hinting at significant plans for investment in those regions. He noted a resurgence in growth during the latter half of 2024, helping to gain market share.

To enrich its product line, Purina recently introduced GOURMET REVELATIONS Fine Cuts in Gelée to Europe and Fancy Feast Gems in the US.

Overall, Nestlé reported sales of CHF 91.4 billion ($101 billion USD) for 2024, down slightly by 1.8% from 2023. However, the company did experience a positive RIG of 0.8% compared to a decline of 0.3% the previous year. Organic growth shrank to 2.2% from 7.2% in 2023, attributed to changing consumer demand and other factors.

Pricing changes also reflected this softer market, with a 1.5% increase compared to 7.5% in 2023. The company’s gross profit margin climbed to 46.7%, improving from 45.9% the year before, while net profit fell to CHF 10.9 billion ($12.0 billion USD), down 2.9% from 2023.

Freixe remarked, “Given the tough economic landscape, we’ve achieved a solid performance consistent with our guidance. We’re focused on growth through better product quality, market strategy, and innovative ideas.”

Nestlé has begun a three-year cost-saving initiative, aiming for savings of CHF 2.5 billion ($2.8 billion USD). They reported good progress, already securing CHF 300 million ($331.8 million USD) in savings for 2025.

Breaking it down by regions, North America saw sales of CHF 25.3 billion ($28.0 billion USD). Organic growth dipped by 0.5%, driven mainly by pet care. Europe, on the other hand, reported CHF 18.9 billion ($20.9 billion USD) in sales with an organic growth increase of 3.3%, boosted by brands like Purina ONE. In Asia, Oceania, and Africa, sales climbed to CHF 16.8 billion ($18.6 billion USD) with significant growth led by Felix and Purina ONE brands.

Looking ahead, Freixe is optimistic about improving organic sales growth in 2025 despite ongoing economic uncertainties. “We have a clear strategy and the resources to succeed,” he said.