U.S. Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent Spending

Published by: Packaged Facts

Published: Mar. 1, 2010 - 136 Pages

Table of Contents

Chapter 1: Market Performance

Introduction

Scope of Report

Report Methodology

Market Performance

Impact of Economic Recession and Recovery

Table 1-1: U.S. Pet Market Retail Sales by Category: 2009- 2011 (in billions of dollars and percent change over previous year)

Signs of Economic Recovery

Market Climate Favorable to Mass Retailers, Brands

Table 1-2: IRI-Tracked Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2008 (in millions of dollars, units and pounds)

Strong Market Underpinnings Bode Well for Rebound

Table 1-3: Level of Pet Owner Agreement with Statement: “I Am Spending Less on Pet Products Because of the Economy,” February 2010

Table 1-4: Percent of Pet Owners Who Anticipate Spending Less on Pet Food/Supplies or Pet Services in Next 12 Months, February 2009

Table 1-5: Pet Owner Patterns: By Change in Financial Situation Compared With 12 Months Ago, 2009 (percent of U.S. pet-owning households)

Table 1-6: Pet Owner Population: By Change in Financial Situation Compared With 12 Months Ago, 2009 (number of U.S. pet-owning households in millions)

Table 1-7: Pet Owner Indexes: By Change in Financial Situation Compared With 12 Months Ago, 2009 (U.S. petowning households)

Human/Animal Bond Strengthens During Recession

Figure 1-1: “Consider My Pet(s) Part of the Family,” 2009 (percent of Pet, Dog/Cat, Dog and Cat Owners) Product Premiumization and Premium Demographics

Table 1-8: Change in Pet Market Consumer Base by Purchase of Selected Premium Pet Products: Flea/Tick Care, Treats, Heartworm Control Products, Scoopable Litter, 2005 vs. 2009 (number and percent of U.S. dog- or cat-owning households)

Pet Insurance: The Right Place at the Right Time

Impact of Pet Aging, Overweight

Table 1-9: Percentage and Number of Overweight and Obese Dogs and Cats: 2007 vs. 2008

Pet Market Momentum

Table 1-10: Number of New Pet Product Introductions: Reports and SKUs, 2005-2009 (percent)

Future Factors

A Societal Shift

Illustration 1-1: Electrolux Appliance TV Commercial—”Pet Birthday Party”

Illustration 1-2: Kenmore Washer TV Commercial with Dog

Illustration 1-3: Screen Shot of Glenn Close and Pet from Hit TV Series Damages

Additional Human Company Cross-Over

Human-Animal Correlation an Untapped Goldmine

Market Forecast: A $72 Billion+ Market by 2014

Table 1-11: Projected U.S. Retail Sales of Pet Products and Services, 2009-2014 (in millions of dollars)

Table 1-12: U.S. Pet Market Compound Annual Growth Rates by Category: 2005-2009 vs. 2009-2014 (percent)

Table 1-13: Percentage Share of U.S. Pet Market Retail Sales by Category: 2005, 2009 and 2014

Chapter 2: Marketing Trends

Competitive Overview

Overview

Pet Services Industry “Corporatization” Continues

VCA Antech, PetSmart/Banfield and Petco Continue as Leading Market Consolidators

Figure 2-1: PetSmart and Petco: Share of Pet Grooming, Boarding and Training Sales: 2000, 2004, 2008 and 2012 (percent)

The Independent Pet Specialty Services Push

Franchising Altering Pet Services Terrain

Pet Products Market Structure and Competitive Shifts

M&A Activity Continues During Recession

Table 2-1: Timeline of U.S. Pet Product Market Mergers, Acquisitions and Sales: 2001-2009

Marketing Trends

Pet Parent Priorities Post-Recession

Figure 2-2: Important Factors in Product Selection: Percentage of Shoppers Rating Factor as “Important” or “Very Important”

Illustration 2-1: TV Spot for Multiple Purina Cat Food Lines

Illustration 2-2: Internet Banners for Petco’s 2010 President’s Day Sale

Wellness Is Primary Theme in New Product Introductions

Table 2-2: Top 25 Marketing Claims by Number of New Pet Product Reports: 2005, 2007 and 2009 (number and percentage of all product launches)

Wellness Plus “Human-Style”

Table 2-3: Selected Health & Medical Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)

Illustration 2-3: TV Spot for Purina Fancy Feast Appetizers

Illustration 2-4: Print Ad for Mars Cesar Sunrise “Breakfast Food”

The Senior, Weight Management, and Special Needs Thrust

Table 2-4: U.S. Retail Sales of Senior, Weight Management, and Special Needs Pet Products: 2004, 2008 and 2013 (in millions of dollars)

Illustration 2-5: Print Ad for Kong Senior Toys and Treats

The Natural and Organic Thrust

Illustration 2-6: Humane Society’s Humane Choice Organic Pet Food

Table 2-5: Percent of Pet Owners Who Purchased Natural/Organic Pet Products in Last 3 Months: Dog Owners vs. Cat Owners, February 2009 (percent of U.S. dog or cat owners)

Table 2-6: Percent of Pet Owners Who Would Buy More Natural/Organic Pet Products If They Were More Available or More Affordable, 2009 (percent of U.S. dog or cat owners)

Specialty and Functional Food Formulas

Figure 2-3: Percent of Pet Owners Who Purchased Specialty Formula Dog or Cat Food in Last 3 Months: Dog Owners vs. Cat Owners, February 2009 (U.S. dog or cat owners)

Illustration 2-7: Iams Premium Protection Functional Pet Food Line

Illustration 2-8: Pedigree+ Functional Pet Food Line

Pet Supplements and Nutraceutical Treats

Illustration 2-9: Dogswell Shape Up Brand Extension from Treats to Food

Illustration 2-10: Print Ad for Nestlé Purina’ FortiFlora Probiotic Supplement

Illustration 2-11: Print Ad for Merrick’s Elements Vision, Joints & Breath Supplement

Pet Medications

Focus on Product Safety

Celebrity Kick

Cause-Related Marketing

Illustration 2-12: TV Spot for PetSmart Charities “Second Chance for Love Adoption” Valentine’s Day Weekend Event

Good for the Planet, Good PR: Pet Marketers Embracing Sustainable Initiatives

Table 2-7: Selected “Green” Shopping Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)

Multiservice = Convenience = Value in Pet Services

Figure 2-4: Types of Services Pet Care Facilities Have Added in Past 5 Years, 2009 (percent)

Luxury Services Expected to Rebound

At-Home Pet Services Predicted to Soar

Pet Sitting

Mobile Grooming

Illustration 2-13: Petco Mobile Grooming Van

Mobile Veterinary Care

Veterinary Specialization

Geriatric Care

Specialized Care for Overweight Pets

Hospice Care

Canine Rehabilitation

Holistic/Alternative Care

Bereavement Services

Media Trends

Pet Market Advertising Expenditures

Table 2-8: Media Breakout of U.S. Advertising Expenditures on Pet Products, 2004-2008 (percent)

Human/Animal Bond More Important Than Ever

Illustration 2-14: TV Spot for Multiple Purina Cat Food Lines

Value-Focused Advertising

Illustration 2-15: TV Spot for Walmart Pet Brands

Illustration 2-16: TV Spot for PetSmart’s 20% Off Sale and Brands

Non-Traditional Media and Internet Advertising

Table 2-9a: Level of Pet Owner Agreement with Statement: “I Use the Internet to Help Find and Choose Pet Products,” February 2010 (percent)

Table 2-9b: Level of Pet Owner Agreement with Statement: “I Buy Pet Products Online,” February 2010 (percent)

Table 2-10: Selected Internet-Related Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)

Table 2-11: Selected Media & Marketing Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)

Social Networking Becoming a Pet Market Craze

Pet Retailers Also Turning to Blogs, Social Networking, Mobile Commerce

Chapter 3: Retail Channel Trends

Shopper Deal-Seeking, Retailer Promotions in Full Force

Figure 3-1: Deal-Seeking Behavior: Percentage of Shoppers Participating in Activity, 2008 vs. 2009

Table 3-1: Level of Pet Owner Agreement with Statement: “I Shop for Pet Products at a Variety of Stores to Find the Best Prices, Special Offers and Sales,” February 2010 (number and percent of pet owners)

Economic Concerns Intensify Cross-Channel Competition

Table 3-2: Pet Product Purchasing Patterns Among Dog or Cat Owners by Retail Channel: By Change in Financial Situation Compared With 12 Months Ago, 2009 (percent of U.S. dog- or cat-owning households)

Table 3-3: Pet Product Purchasing Indexes Among Dog or Cat Owners by Retail Channel: By Change in Financial Situation Compared With 12 Months Ago, 2009 (U.S. dog- or catowning households)

Pet Superstores vs. Discount Stores

Independents and Supermarkets Continue to Slide

Table 3-4: Pet Product Purchasing Patterns Among Dog or Cat Owners: By Retail Channel, 2007-2009 (percent and millions of number of U.S. dog- or cat-owning households)

Channel Loyalty Trends

Table 3-5: Retail Channel Loyalty in Pet Product Purchasing Among Dog or Cat Owners, 2007-2009 (percent and in millions of number of U.S. dog- or cat-owning households)

Table 3-6: Overview of Retail Channel Loyalty in Pet Product Purchasing Among Dog or Cat Owners, 2004 vs. 2009 (percent and in millions of number of U.S. dog- or cat-owning households)

Figure 3-2: Percent of Pet Product Customers Who Shop Across Channels: By Major Retail Sector, 2004 vs. 2009 (U.S. dog- or cat-owning households)

Walmart Strengthens Pet Market Push

Figure 3-3: Share of U.S. Pet Product Sales: Walmart vs. PetSmart/Petco and Other, 2005 vs. 2009 (percent)

Table 3-7a: Level of Pet Owner Agreement with Statement: “When I Want to Buy Specialty Brand Pet Products, I Usually Shop in Pet Superstores or Pet Stores”, February 2010 (percent of pet owners)

Table 3-7b: Level of Pet Owner Agreement with Statement: “I Usually Shop for Pet Products in Pet Superstores or Pet Stores Because They Carry the Specialty Brands I Like,” February 2010 (percent of pet owners)

Down Economy Gives Store Brands a Boost

Table 3-8: IRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2008 (in millions of dollars)

Table 3-9: Private-Label Share of IRI-Tracked Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2008 (percent)

PetSmart and Petco Continue to Shape Pet Market Landscape

Table 3-10: PetSmart and Petco Sales and Number of Stores: 2001-2009 (cumulative, in units and millions of dollars)

Martha Stewart Line to Debut as PetSmart Exclusive in Mid 2010

Petco Launches “Unleashed” Store Format, Staff Training Program, and Consumer Educational Campaign

Illustration 3-1: Petco Pet Food Label Evaluation Tips

Retailer Exclusivity

Illustration 3-2: Humane Choice Organic Pet Food Retail Display

Independent Pet Stores: An Evolving Breed

Non-Traditional Channels, Internet Going Strong

Illustration 3-3: Orvis Dog Bed Selector Website Banner

Chapter 4: Pet Ownership Trends

Number of Dog and Cat Households Trending Upward

Figure 4-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2003 vs. 2009 (percent of U.S. dog- or cat-owning households)

Table 4-1: Change in Pet Market Consumer Base: Number of Dog or Cat Owners, 2005 vs. 2009 (U.S. dog- or cat-owning households)

Higher-Income Households Playing a Growing Role

Table 4-2: Change in Pet Market Consumer Base: Household Income $60K or More vs. Household Income Under $60K, 2005 vs. 2009 (U.S. dog- or cat-owning households)

Figure 4-2: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 1998-2008 (percent)

Figure 4-3: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 1998 vs. 2008 (percent)

Figure 4-4: Average Household Spending on Pet Products and Services by $70K+ Households, 1998 vs. 2008 (in dollars) 17 Million “Premium Pet” Households

The Boomer Factor

Figure 4-5: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2009 (percent of U.S. households)

Table 4-3a: Household Penetration Rates for Selected Pet- Owning Classifications by Generational Cohort: Gen Y Adults vs. Gen X Adults, 2009 (percent and number)

Table 4-3b: Household Penetration Rates for Selected Pet- Owning Classifications by Generational Cohort: Boomers vs. Seniors, 2009 (percent and number)

Table 4-4: Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2009 (U.S. households)

Table 4-5: Number and Share of Total U.S. Population Growth for Selected Age Brackets: 2010, 2015 and 2020 (in thousands of number and percent)

Role of Gen Ys and Gen Xers

No-Kid Pet Household Clout

Table 4-6: Change in Pet Market Consumer Base: Households with Kids vs. Households Without Kids, 2005 vs. 2009 (U.S. dog- or cat-owning households)

Table 4-7: Childless Dog or Cat Owners by Household Composition: Dog/Cat Ownership Rates and Share of Total Dog/Cat Owners: 2003, 2006 and 2009 (percent)

Pet Ownership Trends by Minority Group

Table 4-8: Dog and Cat Ownership Trends by Race/Ethnicity, 2005-2009 (percent and number of U.S. dog- or cat-owning households)

Table 4-9: Change in Pet Market Consumer Base: White Non- Hispanics vs. Minorities, 2005 vs. 2009 (number and percent of U.S. dog- or cat-owning households)

Abstract

Continuing the market tracking and forecasting of the previous edition of Packaged Facts' annual report (see U.S. Pet Market Outlook 2009-2010: Surviving and Thriving in Challenging Economic Times, the 2010-2011 edition projects sales, market growth drivers, and competitive and marketing opportunities. In a new focus discussion, it details retail channel trends including the increasingly aggressive competitive differentiation between pet specialty and mass-market suppliers and retailers, cross-channel shopping vs. shopper loyalty, and the growing role of non-traditional channels including Internet. The report also includes expanded discussions of the market's competitive structure and of new product and media trends, with analysis and illustrations of numerous products and advertising campaigns.

Additional chapters detail the market's ongoing strong prospects, including a human/animal bond that is stronger than ever as a result of the recession; analysis of the competitive situation including opportunities for cross-pollination across product and service segments; and consumer demographic and mindset trends representing changes, challenges and calls to action in meeting the needs of today's more demanding pet parent population. Other trends examined include what the report calls "a broad-base societal shift toward greater acceptance of 'pets as family'," an increased focus on the human/animal health connection; "bang for the buck" value appeals balancing price, function and indulgence; "ethical" (organic/natural, sustainable, humane, etc.) appeals and cause marketing; the shift toward non-traditional media including social networking; and recent and possible mergers, acquisitions and spin-offs.

Read an excerpt from this report below.

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 300,000 market research reports, company profiles and country profiles from over 700 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.