Article - September 3, 2024

Pet Supplements: Investing Behind Pet Health and Humanization

More people are focusing on their health and wellness, and they’re extending that mindset to their pets. For a growing number of pet owners, that means adding supplements with nutritional and functional benefits to their animals’ diets.

Below, senior professionals in our Consumer Group share what this pet supplements trend means for investors and highlight recent Harris Williams engagements that exemplify the opportunity.

Enhancing Pet Wellbeing

As consumers continue to apply healthier lifestyle choices to their pets, supplements are poised for substantial growth. In fact, an estimated 74% of U.S. and 88% of E.U. adults are now taking dietary supplements to fill nutrition gaps and optimize their overall welfare.1

“Pet trends typically follow human trends, and there’s rising consumer awareness of supplements’ role in our health,” says Ryan Budlong, a managing director. “What we’re seeing bodes well for the pet supplements category, particularly with increasing interest in products that enhance a pet’s quality of life.”

“Pet owners want to keep their friends active and healthy for as long as possible, and supplements can help achieve just that,” adds Will Bain, a managing director. “They offer numerous benefits to pets, from lengthening their lifespans and improving digestion to strengthening their joints and preventing potential health concerns.”

These factors are leading to heightened demand for pet supplements, but their current pet owner penetration is low compared to other similar categories like premium food. This is putting top pet supplements companies on investors’ radar.

“Pet supplements share many of the themes driving demand in high-end and specialty pet food while offering appealing white space for expansion,” notes Bain. “By educating pet owners on the many advantages of supplements, brands and their investors can unlock significant growth.”

The pet supplements segment also offers investors several ways to build best-in-class platforms. For example, the vet and direct-to-consumer (DTC) channels both offer opportunities to create leading brands, establish positive reputations, and expand into other channels or ancillary products.

“Regardless of which channel a pet supplement business starts in, growth rests in creating authenticity, authority, and awareness with customers,” notes Konstantin Molinari, a director. For instance, a vet’s endorsement can go a long way in gaining consumer confidence in a supplement’s efficacy. At the same time, DTC brands can drive customer acquisition and loyalty through their digital marketing and experience expertise, with some finding success by providing online pet health content, resources, and tools.

Two recent Harris Williams engagements, almapharm and Lintbells, are prime examples of how pet supplement brands with differentiated products and channel strategies can create strong consumer connections and long-term growth.

Almapharm: A Leader in Nutraceuticals

Almapharm develops nutraceuticals for pets and farm animals, an accelerating market opportunity that aligns closely to pet food premiumization and natural ingredient trends. Its natural and healthy range of food additives support disease prevention as well as complementary therapy for various indications related to the immune system, nervous system, digestive tract, urinary tract, musculoskeletal system, circulatory system, skin, ears, and eyes.

“Thanks to almapharm’s powerful and loyal network of vet advocates, it has built a trusted brand name in the nutraceutical space that’s well known for sustainability, natural ingredients, and premium quality,” says Molinari.

In addition, almapharm owns and manages its entire value chain from product development and production to logistics, sales, and compliance certifications.

“For almapharm, there is substantial upside ahead through further expansion into complementary offerings and additional channels and markets,” says Bain.

Lintbells: Addressing Key Pet Concerns

Lintbells provides scientifically proven pet supplements that make a visible difference in chronic health conditions. The company focuses on joint mobility—the largest and most fundamental segment to pet health—as well as products that aid digestion, anxiety, skin and coat health, and dental health. Its offering falls under the well-known YuMOVE brand, a holistic ecosystem of pet health and nutrition products aimed to keep pets active for life.

“Lintbells differentiates itself through an emphasis on scientific product support and meeting veterinarian specifications,” explains Budlong. “This generates superior product advocacy. Its products are backed by clinical trials, continuous research and development, and the company’s intellectual property.”

The company’s brand also has broad and growing appeal that drives further veterinarian and pet parent advocacy across multiple channels. In addition, its in-house expertise, established infrastructure, ESG credentials, and sustainability-driven culture help make Lintbells a unique brand with long-term growth potential.

“After successful penetration into new channels and markets, especially the U.S., Lintbells continues to leverage its resources and expertise to drive accelerated growth,” notes Bain. “The company plans to bring its science-backed formulations, clinical efficacy, and vet-endorsed, patented products to an ever-broadening universe of pet parents in the years ahead.”

Multiple Paths for Growth

Supported by long-term pet health and humanization tailwinds, pet supplements are poised for rapid growth with many ways of building leading brands. And as pet wellbeing continues to be prioritized by consumers, we expect to see a lift in several related categories such as natural, fresh, and raw pet food, freeze-dried treats, and pet tech solutions such as trackers and health and nutrition apps.

“Health and wellness are top of mind for many pet owners,” says Budlong. “We’re excited to see this trend translate into increased demand for a variety of products focused on pet wellbeing.”

To discuss M&A opportunities throughout the pet landscape, please contact our senior professionals.