Stable consumer activity supports recovery in online retail

Germany’s e-commerce sector recorded quarterly growth throughout 2025 for the first time since 2021. Full-year gross merchandise revenue reached €83.1 billion, according to the German E-Commerce and Distance Selling Trade Association (bevh).

When digital services revenue of €14.4 billion is included, total industry turnover approached the €100 billion mark.

Within this recovery, the #petcategory emerged as one of the strongest performers.

---

Pet Supplies: Third-Strongest Performing Online Category

#Petsupplies ranked as the third-fastest-growing e-commerce category in 2025, increasing by 5%.

Only groceries (5.5%) and pharmaceuticals (6%) recorded stronger growth.

While many online sellers focused on restructuring and cost control, #petretailers invested counter-cyclically to expand online market share as consumer sentiment showed signs of improvement.

This suggests confidence in the long-term structural strength of the #petsegment.

---

Consumer Activity: Frequency and Order Value Remain Strong

Despite continued economic uncertainty, consumer behavior signals resilience:

• The share of customers planning to reduce online spending fell to 24.6%, a four-year low
• Frequent e-commerce buyers remained stable at 34.2%
• Roughly 1 in 3 customers orders online at least twice per week
• Average order value rose to €146.19, up from €144.12 in 2024
• Customer satisfaction remained high at 96.2%

These metrics indicate consolidation rather than contraction.

---

The Economics of Pet E-Commerce in Germany

In early 2025, 1 in 4 euros spent on #petproducts in Germany was spent online.

Revenue structure within the pet category:

• 30% from #petaccessories and #pettoys
• 70% from #petfood

Pet food remains the revenue backbone. In 2024 alone, pet food sales reached €4.3 billion, according to ZZF and IVH.

This confirms that repeat-purchase consumables continue to drive digital performance.

---

AI Shopping: High Visibility, Low Adoption

Despite growing technological discussion, AI-driven purchasing remains limited in practical use.

Only 6.3% of online customers currently complete their purchases entirely via AI.

Trust remains the key barrier.

Industry representatives have emphasized the need for regulatory clarity to ensure AI platforms do not distort competition or reduce transparency in purchase recommendations.

For now, AI is more narrative than transaction engine.

---

2026 Outlook: E-Commerce Expected to Outperform Traditional Retail

Total online and offline retail turnover increased by 2.7% in real terms in 2025, according to provisional data from Destatis.

For 2026:

• Overall retail growth is forecast at 2%
• E-commerce with goods is expected to grow at 3.8% nominal revenue

Despite geopolitical instability and domestic economic pressures, e-commerce is projected to outperform traditional retail channels.

Pet remains positioned within the stronger digital-performing segments.

---

What This Means for Pet Brands

Germany shows a pattern increasingly visible across mature European markets:

1. Online shopping frequency is stable
2. Average basket value is rising
3. Pet remains structurally resilient
4. Consumables drive revenue concentration
5. AI adoption remains limited due to trust concerns

The market is not expanding explosively — it is consolidating around reliable purchasing behavior.

---

What This Means for Pet Brands Working with OEM Partners

For brands manufacturing pet products for the German market, several implications emerge:

• Pet food and consumables require scalable, repeat-order production capacity
• Accessories and toys must differentiate within a stable but competitive segment
• Packaging and compliance must meet strict EU regulatory standards
• Inventory planning must align with stable but not hyper-growth demand

As Germany moves into a steady 3–4% e-commerce growth phase, operational discipline and cost structure alignment become decisive.

At Verde Pets, we see OEM collaboration as a long-term infrastructure partnership—especially in markets where stability replaces volatility.

^{Source:GlobalPETS}

^{https://www.vyansaintelligence.com/industry-report/germany-pet-care-market}