Reliance Mulls Debut in Pet Foods Sector; Sets Off Campa-Like Pricing Strategy

Reliance Consumer Products (RCPL), the fast-moving consumer goods arm of Reliance Industries, is reportedly planning to foray into the pet foods market. The company is expected to challenge traditional players such as Pedigree and Purina, as well as newer entrants like Nestlé and Godrej Consumer Products.

According to The Economic Times (ET), RCPL has informed its distributors and trade partners that it plans to launch pet food products priced 20–50% lower than existing brands. Citing company executives, the report said Reliance intends to deploy the same aggressive pricing strategy it used for its Campa Cola relaunch to take on established players in the fast-growing pet care market, driven by rising pet ownership and premiumisation.

The pet food range will be rolled out through general trade and semi-urban stores in major tier-2 markets. The newspaper noted that Reliance Consumer Products typically prices its products 20–40% below established competitors across segments such as soft drinks, juices, energy drinks, water and staples. This approach has forced rivals to boost promotions, increase trade margins or introduce smaller, lower-priced packs. However, none of RCPL’s brands have achieved nationwide distribution yet.

A Redseer Strategy Consultants report estimates that India’s pet care market will double to $7 billion by 2028, up from $3.5 billion currently. The number of pets in Indian households has grown to 32 million in 2024 from 26 million in 2019. The report highlights strong trends in premiumisation and subscription services for food, grooming and healthcare.

This growth has also encouraged established FMCG players like Nestlé and Godrej to deepen their presence. In June, Nestlé India’s parent company acquired a minority stake in pet food maker Drools, its first investment in an Indian brand, while Godrej Consumer Products launched its pet food brand, Godrej Ninja, with an outlay of ₹500 crore in April.

Post the Covid-19 pandemic, the size of India’s “petconomy” has expanded sharply and is projected to grow from $10.5 billion in FY24 to $16.2 billion by FY2032 at a CAGR of 5.65%.

Several Indian companies have also entered the segment. Himalaya Pet Food was an early mover in 2019, while Emami entered the category by acquiring a 30% stake in Cannis Lupus Services India in 2022. The space has further attracted startups such as Drools, Heads Up For Tails and Wiggles. Global majors including Mars Petcare, Nestlé Purina PetCare and Royal Canin already have a strong foothold.

With rising demand and intensifying competition, experts anticipate a price correction in what has traditionally been a premium category. This shift could open opportunities for large FMCG companies and retailers to reshape the market.

“The category is seeing stronger demand and more competition, which is driving prices down,” marketing and branding expert Akshay D’Souza earlier told Outlook Business. “There is room for serious price-led disruption in a segment long dominated by premium pricing, especially if larger FMCG players and retailers enter more aggressively.”