Pet Food and Supplies - US

Published by: Mintel International Group Ltd.

Published: Jul. 1, 2009 - 117 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Advertising creative

Abbreviations and terms

EXECUTIVE SUMMARY

Market at a glance

Pet market resilient to the recession, but value emphasis on the rise

Private label making gains in larger segments

Pet spending holds up against other expenditures, up to a point

Big CPGs dominate FDM, but smaller companies thrive in other channels

Dog food grows on nature and science

Continued growth in supplies reflects pets’ status in the household

Cat food sales growing slowly on indulgence and natural ingredients

Many retail channels compete

Pet population on the rise, for now

Pets follow kids

New product activity heaviest in snacks and treats

Pet wellness a pervasive theme in new products

Ad spending remains heavy

Pets found in a majority of households

Use of dry dog food is universal, canned declining post-recall

Dry cat food is dominant, but canned holds steady

Purchase of most pet products and services holding steady

Pet insurance on the rise

MARKET SIZE AND FORECAST

Key points

Pet market resilient to the recession, but value emphasis on the rise

Figure 1: Total U.S. retail sales of pet food and supplies, at current prices, 2004-14

Figure 2: Total U.S. retail sales of pet food and supplies, at inflation-adjusted prices, 2004-14

Walmart sales

COMPETITIVE CONTEXT

Big CPGs dominate FDM, but smaller companies thrive in other channels

Private label making gains in larger segments

Figure 3: FDMx private label share in select pet food and supply sub-segments, 2008-09

Pet spending holds up against other expenditures, up to a point

SEGMENT PERFORMANCE

Key points

Four distinct segments related only indirectly

Figure 4: U.S. sales and forecast of pet food and supplies, by segment, at current prices, 2004-14

Figure 5: Sales of pet food and supplies, by segment, 2007 and 2009

SEGMENT PERFORMANCE—DOG FOOD

Key points

Dog food grows on nature and science

Figure 6: U.S. sales and forecast of dog food, 2004-14

Figure 7: Dog food sales in FDMx, share by form, 2006-08

SEGMENT PERFORMANCE—PET SUPPLIES

Key points

Continued growth in supplies reflects pets’ status in the household

Figure 8: U.S. sales and forecast of pet supplies, 2004-14

SEGMENT PERFORMANCE—CAT FOOD

Key points

Cat food sales growing slowly on indulgence and natural ingredients

Figure 9: U.S. sales and forecast of cat food, 2004-14

Figure 10: Cat food sales in FDMx, share by form, 2006-08

SEGMENT PERFORMANCE—OTHER PET FOOD (NON-DOG/CAT)

Key points

Sales of food for pets other than dogs and cats hold steady

Figure 11: U.S. sales and forecast of other pet food (non-dog/cat), 2004-14

RETAIL CHANNELS

Key points

Pets a path to shopper loyalty

Figure 12: U.S. sales of pet food and supplies, by retail channel, 2007 and 2009

RETAIL CHANNELS—SUPERMARKETS

Key points

Supermarkets make efforts to regain lost pet share

Figure 13: U.S. sales of pet food and supplies at supermarkets, 2003-09

RETAIL CHANNELS—MASS MERCHANDISERS AND OTHERS

Key points

Many channels compete

Mass merchants offer and value

Pet specialty stores

Figure 14: U.S. sales of pet food and supplies at other channels, 2004-09

THE NATURAL CHANNEL

Sales of pet food and supplies in the natural channel.

Figure 15: Natural product supermarket retail sales of pet food and supplies, at current prices, three years

ending May 16, 2009

Figure 16: Natural product supermarket retail sales of pet food and supplies, at inflation-adjusted prices, three

years ending May 16, 2009

Implications

Natural channel sales by segment

Figure 17: Natural product supermarket retail sales of pet food and supplies by segment, 2007-09

Manufacturer and brand sales

Figure 18: Manufacturer brand natural supermarket sales of pet food and supplies, 2007 and 2009

Natural channel sales of Pet Food by organic

Figure 19: Natural product supermarket retail sales of pet food, by organic/non-organic, 2007 and 2009

MARKET DRIVERS

Pet population on the rise, for now

Figure 20: U.S. pet population, 2005-09

Pets follow kids…

Figure 21: Types of pets in the household, by presence of children, April 2009

…but households with kids are not increasing

Figure 22: Households, by presence of children, 1998-2008

Population growth among Hispanic children to outpace other groups

Figure 23: Population projections for children under age 18, by race and Hispanic origin, 2004, 2009, 2014

LEADING COMPANIES

Key points

Nestlé extends its lead with multi-brand strategy

Figure 24: FDMx sales of leading pet food and supplies companies, 2008 and 2009

SELECT BRAND ANALYSIS—DOG FOOD

Key points

Leading brands follow different paths to superior nutrition

Nature

Science

Figure 25: Manufacturer and brand FDMx sales of dog food, 2008 and 2009

Types and brands of canned dog food used

Figure 26: Types of canned dog food used, by household, October 2007-December 2008

Figure 27: Brands of canned dog food used, by household, October 2007-December 2008

Types and brands of packaged dry dog food used

Figure 28: Types of dry dog food used, by household, October 2007-December 2008

Figure 29: Brands of dry dog food used, by household, October 2007-December 2008

Dog biscuits/treats

Figure 30: Brands of dog biscuits/treats used, by household, October 2007-December 2008

SELECT BRAND ANALYSIS—PET SUPPLIES

Key points

Growth in segment comes from smaller pet care companies

Nestlé Purina sees opportunity in fragmented pet gear sub-segment

Figure 31: Manufacturer and brand FDMx sales of pet supplies, 2008 and 2009

Types and brands of cat filler/litter used

Figure 32: Types of cat box filler/litter used, by household, October 2007-December 2008

Figure 33: Brands of cat box filler/litter used, by household, October 2007-December 2008

Brands of flea and tick care products used

Figure 34: Brands of flea and tick care products used, by household, October 2007-December 2008

SELECT BRAND ANALYSIS—CAT FOOD

Key points

Share movement reveals trends in cat food

Indulgence

Health and wellness

Price-Value

Figure 35: Manufacturer and brand FDMx sales of cat food, 2008 and 2009

Types and brands of canned cat food used

Figure 36: Types of canned cat food used, by household, October 2007-December 2008

Figure 37: Brands of canned cat food used, by household, October 2007-December 2008

Types and brands of dry cat food used

Figure 38: Types of dry cat food used, by household, October 2007-December 2008

Figure 39: Brands of cat dry cat food used, by household, October 2007-December 2008

Brands of snacks and treats used

Figure 40: Brands of cat snacks and treats used, by household, October 2007-December 2008

SELECT BRAND ANALYSIS—PET FOOD (NON-DOG/CAT)

Key points

Larger brands slip, but niche opportunities still exist

Figure 41: FDMx brand sales of pet food (non-dog/cat), 2008 and 2009

BRAND QUALITIES

Man vs. beast

Iams

Pedigree’s pedigree

INNOVATION AND INNOVATORS

New product activity heaviest in snacks and treats

Figure 42: New product introductions of pet food, by subcategory, 2005-09

Pet wellness a pervasive theme in new products

Figure 43: Leading product claims in pet food, by share of all introductions, 2005-09

New dog treats and snacks

Tooth and oral care

Natural/Holistic

Real and low fat

New dog food

Natural/premium

Healthy and antioxidant

For sensitive skin and stomachs

New cat treats and snacks

New cat food

Organic

Gourmet

Meal replacement

Healthy by lifestage

Healthy and ‘free-from’

Supplies

Figure 44: Leading product claims in pet supplies, by share of all introductions, 2005-09

ADVERTISING AND PROMOTION

Overview

Figure 45: Measured advertising spending for select pet food and supplies brands, 2007 and 2008

Natural, balanced ingredients

Figure 46: Beneful dog food, television ad, 2009

Figure 47: Iams Healthy Naturals cat food, television ad, 2009

Indulgent dining experiences

Figure 48: Fancy Feast Elegant Medleys, television ad, 2008

Emotional connections

Figure 49: Pup-Peroni, television ad, 2009

Pet adoption

Figure 50: Iams Pet Adoption, television ad, 2009

Celebrity pet food

Ellen DeGeneres and Halo

Rachael Ray’s Nutrish

Figure 51: Rachael Ray’s Nutrish, television ad, 2008

Infomercial powers nail trimmer

PET OWNERSHIP

Key points

Pets found in a majority of households

Figure 52: Presence of pets in the household, by age, October 2007-December 2008

Figure 53: Presence of pets in the household, by household income, October 2007-December 2008

Figure 54: Presence of pets in the household, by presence of children, October 2007-December 2008

Figure 55: Presence of pets in the household, by region, October 2007-December 2008

An average of 1.74 dogs in dog-owning households

Figure 56: Number of dogs in the household, by household income, October 2007-December 2008

Figure 57: Number of dogs in the household, by region, October 2007-December 2008

Cat owners own an average of two cats per household

Figure 58: Number of cats in the household, by household income, October 2007-December 2008

Households with kids own a greater variety of pets

Figure 59: Types of pets in the household, by presence of children in household, April 2009

TYPES OF PET FOOD AND SUPPLIES USED

Key points

Use of dry dog food is universal, canned declining post-recall

Figure 60: Types of dog food used, 2005-08

Dry cat food is dominant, but canned holds steady

Figure 61: Types of cat food used, 2005-08

TYPES OF STORES WHERE PET FOOD AND SUPPLIES PURCHASED

Supermarkets most common, but others gaining

Figure 62: Types of stores where pet food and supplies purchased, by household income, October 2007-

December 2008

USE OF AND INTEREST IN PRODUCTS OR SERVICES

Key points

Purchase of most pet products and services holding steady

Pet insurance on the rise

Higher income households more likely to spend on pet products and services

Figure 63: Use of and interest in selected pet products and services, by household income, April 2009

Presence of children motivates spending on pet services

Figure 64: Use of and interest in selected pet products and services, by presence of children in household, April

2009

PERCEPTION OF ORGANIC PET FOOD

Most pet owners not willing to pay the price for organic

Figure 65: Perception of organic pet food, by age, April 2009

CHANGING PET FOOD DUE TO THE ECONOMY

Most pet owners have not traded down in pet food

Figure 66: Changing pet food due to the economy, by age, April 2009

Figure 67: Changing pet food due to the economy, by household income, April 2009

IMPACT OF RACE/HISPANIC ORIGIN

Pet ownership

Figure 68: Presence of pets in the household, by race/Hispanic origin, October 2007-December 2008

Figure 69: Types of pets in the household, by race/Hispanic origin, April 2009

Interest in organic pet food high among Hispanics

Figure 70: Perception of organic pet food, by race/Hispanic origin, April 2009

Pet products and services

Figure 71: Use of and interest in selected pet products and services, by race/Hispanic origin, April 2009

Changing pet food due to the due to the economy

Figure 72: Changing pet food due to the economy, by race/Hispanic origin, April 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Number of dogs in household

Figure 73: Number of dogs in the household, by age, October 2007-December 2008

Figure 74: Number of dogs in the household, by presence of children in household, October 2007-December

2008

Figure 75: Number of dogs in the household, by race/Hispanic origin, October 2007-December 2008

Number of cats in household

Figure 76: Number of cats in the household, by age, October 2007-December 2008

Figure 77: Number of cats in the household, by presence of children in household, October 2007-December

2008

Figure 78: Number of cats in the household, by region, October 2007-December 2008

Figure 79: Number of cats in the household, by race/Hispanic origin, October 2007-December 2008

Type of pets in household

Figure 80: Types of pets in the household, by age, April 2009

Figure 81: Types of pets in the household, by household income, April 2009

Figure 82: Types of pets in the household, by region, April 2009

Figure 83: Types of dog food used, by age, October 2007-December 2008

Type of dog food used

Figure 84: Types of dog food used, by household income, October 2007-December 2008

Figure 85: Types of dog food used, by presence of children in household, October 2007-December 2008

Type of cat food and supplies used

Figure 86: Types of cat food and supplies used, by age, October 2007-December 2008

Figure 87: Types of cat food and supplies used, by household income, October 2007-December 2008

Figure 88: Types of cat food and supplies used, by presence of children in household, October 2007-December

2008

Source of pet food and supplies

Figure 89: Types of stores where pet food and supplies purchased, by age, October 2007-December 2008

Figure 90: Types of stores where pet food and supplies purchased, by presence of children in household,

October 2007-December 2008

Figure 91: Types of stores where pet food and supplies purchased, by race/Hispanic origin, October 2007-

December 2008

Interest in selected pet products and services

Figure 92: Use of and interest in selected pet products and services, by age, April 2009

Figure 93: Use of and interest in selected pet products and services, by region, April 2009

Perception of organic pet food

Figure 94: Perception of organic pet food, by gender, April 2009

Figure 95: Perception of organic pet food, by household income, April 2009

Figure 96: Perception of organic pet food, by presence of children in household, April 2009

Figure 97: Perception of organic pet food, by region, April 2009

Changing pet food due to the economy

Figure 98: Changing pet food due to the economy, by region, April 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

Among the most universal insights into pet care is the notion that pet owners view pets as members of the family. Research conducted recently by the AP and pet care website petside.com found that 50% of American pet owners consider their pets to be “as much a part of the family as any person in the household.” Fully two-thirds of single women hold this view, but the percentage drops considerably, to 46%, among married women. A similar disparity exists between single and married men, although at lower levels overall. These findings would seem to suggest that when children are present relationships with pets can become secondary.

But that view discounts the powerful relationships that can form between pets and children and the important roles pets can play in households with children. Beyond simple play and companionship, research points to deep emotional benefits that children can receive when pets are present at home. The American Academy of Child & Adolescent Psychiatry outlines many of the benefits associated with pets:

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