Purina navigates economic challenges while driving growth for Nestlé

USA – According to Nestlé’s full-year financial report for 2024, Purina’s pet care segment achieved low single-digit growth, with contributions from premium, science-based brands such as Purina ProPlan, Purina ONE, and Friskies.

Nestlé’s Petcare division reported sales of CHF 18.9 billion (US$20.9 billion) in 2024, reflecting a slight increase from the previous year. Real internal growth (RIG) was 2.1%, while organic growth stood at 2.7%, bolstered by volume gains despite a pricing deceleration.

Investment in innovation and market expansion

Purina remains focused on growth through innovation and strategic investments. The company is increasing its stake in the therapeutic pet food segment, which is generating over CHF 600 billion (US$663.1 billion). 

To capitalise on this, Purina is enhancing its science-based product offerings, strengthening veterinary partnerships, and expanding direct-to-consumer engagement.

Nestlé also sees significant opportunities in the Asia, Oceania, and Africa (AOA) zone, where it has intensified investments in market expansion, innovation, and marketing. 

Growth in this region accelerated to double digits in the second half of 2024, supported by increased market share.

New product launches and regional performance

Purina recently introduced GOURMET REVELATIONS Fine Cuts in Gelée in Europe and Fancy Feast Gems in the United States to solidify its market position. These launches align with Nestlé’s strategy of delivering high-quality, science-backed pet nutrition solutions.

Regionally, Purina exhibited varying performance across different zones:

• North America: Sales reached CHF 25.3 billion (US$28.0 billion USD), with pet care being the largest contributor. However, organic growth declined by 0.5% due to pricing challenges.
• Europe: Sales were CHF 18.9 billion (US$20.9 billion), with pet care achieving market share gains and low single-digit growth.
• AOA: Sales totalled CHF 16.8 billion (US$18.6 billion), with high single-digit growth in pet care led by Felix and Purina ONE.
• Latin America: Sales stood at CHF 11.9 billion (US$13.2 billion), with pet care growth remaining flat, primarily supported by Felix and Friskies.
• Greater China: Sales were CHF 4.9 billion (US$5.4 billion), with pet care achieving a 4.3% RIG increase despite a 2.1% pricing decline.

Navigating economic challenges

Nestlé faced an overall decline in full-year sales, reporting CHF 91.4 billion (US$101 billion), down 1.8% from 2023. 

Organic growth slowed to 2.2%, a significant drop from 7.2% in 2023, reflecting weakened consumer demand, pricing deceleration, and hesitancy toward global brands in some markets. 

Net profit fell to CHF 10.9 billion (US$12.0 billion USD), a 2.9% decrease from the previous year.

Despite these challenges, Nestlé is implementing a three-year, CHF 2.5 billion (US$2.8 billion) cost savings program. The company has already secured CHF 300 million (US$331.8 million) in savings for 2025 and is making progress in improving efficiency.

Future outlook

Looking ahead, Nestlé remains optimistic about its long-term growth potential. The company expects organic sales growth to improve in 2025, even as it temporarily experiences a lower operating profit margin due to increased investments.

“While there is macroeconomic uncertainty, we have a clear roadmap to accelerate performance and transform for the future,” said Laurent Freixe, Nestlé’s CEO. “Increasing investment to drive growth is central to our plan.”

Industry projections further support Nestlé’s optimism. According to Mordor Intelligence, the global pet food market is expected to grow from US$208.6 billion in 2025 to US$314.4 billion by 2030, at a CAGR of 8.56%.

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