Pet Market Outlook in the United States: 2014-2015
Marketers have increasingly recognized that if you are going to compete in the pet industry, you need to be passionately focused on the pet industry. Because of this, several players have chosen to go all-in in the last year: Del Monte Foods sold its non-pet business to emerge as Big Heart Pet Brands, while Eli Lilly increased its commitment to animal health. And several players, including P&G and Novartis, are leaving the pet industry due to their inability to give the pet market the attention it needed.
In the latest report Pet Market Outlook in the United States: 2014-2015, Packed Pacts is all in as well. We’ve reformulated our market sizing to investigate all of the ways pet products are sold. We’ve added new data from Packaged Facts' proprietary Pet Owners Survey and analyzed the key trends that are shaping the pet market – whether M&A, new product, retail, demographic/psychographic, or consumer behavior. If you’re in the pet industry, this is the one report you don’t want to be without.
Scope of Report and Methodology
In this newest edition, the Pet Market Outlook in the United States: 2014-2015 report provides a complete understanding of the current U.S. pet industry. This report charts the future directions for pet marketing and retailing. Observations on consumer purchasing patterns are included, which consist of veterinary services, pet food, nonfood pet supplies, and non-medical pet services (such as grooming, boarding, and training). The report also sizes each category in the market and forecasts its growth; examines new product activity; surveys the retail channel trends, including cross-channel shopping vs. shopper loyalty; and analyzes shifts in the needs of today’s pet parents.
The report tracks pet product sales channel by channel, using data from sources such as IRI, whose Market Advantage service tracks sales in supermarkets, drugstores, mass merchandisers (Walmart), and select club stores, dollar stores and military commissaries; GfK, which tracks pet specialty stores, veterinary clinics and farm/feed stores; and SPINS, Inc., whose SPINSscan service tracks sales in the natural supermarket channel and in the specialty gourmet supermarket channel. Supplementing Packaged Facts’ exclusive Pet Owner Survey is an extensive analysis of Simmons’ Fall 2013 National Consumer Study, which is based on approximately 25,000 adult respondents surveyed from October 2012 through November 2013, as well as previous Simmons surveys for historical trending. This report also includes many numerical tables and charts, photographs of new products and advertising, and screen shots and other images across key channels.
Market Insights: A Selection From The Report
Big Players Continue Expansion into Services
During the past two decades, national players including VCA Antech and Banfield on the veterinary side, and PetSmart and Petco on the non-medical pet services side, have become major forces in the market. As a result, although thousands of individual veterinary, grooming, and boarding and training facilities remain, today’s pet care services market is no longer restricted to locally owned independents or small regional chains. Rather, the industry mix is now leaning steadily toward corporate chains, as well as franchises and privately owned multi-location facilities. Although the services side of the market still segments fairly neatly into providers of veterinary services and providers of non-medical pet services, a common focus is on premium options with distinct health, pampering, and convenience appeals.
VCA Antech and Banfield Lead Veterinary Services
Two national players—Banfield and VCA Antech—are the biggest operators of veterinary services, together running more than 1,400 animal hospitals nationwide. As of December 31, 2013, VCA Antech operated 609 animal hospitals serving 41 states and four Canadian provinces. California is tops on the list, with 108 of VCA Antech’s hospitals (as of December 31, 2013). VCA employs over 3,100 doctors, serves over 2.7 million pets through 8.3 million annual visits. As of 2013, Banfield, the largest private operator of animal hospitals in the United States, had over 850 clinics in operation, including 837 located inside PetSmart stores. At the same time, the veterinary field continues to bifurcate between costly private specialty clinics offering high-cost advanced treatments, and single-veterinarian hospitals focusing on affordable preventive care.