Nestle Takes Small Bite of India’s Fast-growing Pet Food Market, Acquires Stake in Drools

Nestle India’s parent company, Nestle SA, has acquired a minority stake in pet food company Drools, marking the Switzerland-based FMCG giant’s first-ever investment in an Indian brand. The home-grown pet food brand will continue to remain strategically and operationally independent, said Drools in a statement on Monday. 

“This milestone not only reaffirms Drools’ leadership in India’s fast-growing pet care sector but also marks one of the strongest institutional validations of an Indian consumer brand in this space,” said Drools in the statement. 

The development comes at a time when the Indian pet food market is projected to increase from $1.01 billion in 2025 to $2.2 billion at 16.74% CAGR, according to a Mordor Intelligence report.

Also Read: Nestle India To Acquire Pet Foods Business Of Purina Petcare For Rs 124 Crore

Drools was founded in 2010 and since then has been the dominant player in the country’s pet food market. Its presence isn’t just limited to India but spreads across 22 international markets. The home-grown pet food company has recently become a unicorn.  

The acquisition move strengthens Nestle’s bet on the Indian pet market as a key growth area. Earlier in 2022, Nestle India had acquired the PURINA Petcare business for Rs 123.5 crore to integrate the pet food business firm with its FMCG major, driven by the rise in the market following the Covid-19 pandemic. 

“Post the pandemic, the category has accelerated to smaller towns and in general retail stores and on e-commerce. With a faster rate of pet adoption along with portfolio and town expansion opportunities, there are significant synergies upon integrating PFB of Purina Petcare India to help unleash the full potential,” the company had said. 

But Nestle isn’t the only FMCG giant eyeing the pet market boom. Earlier in April this year, Godrej Consumer Products Subsidiary, Godrej Pet Care (GPC) launched pet food brand Godrej Ninja with an investment worth Rs 500 crore.