The U.S. pet food market has not just survived the spring 2007 recalls but proven its resiliency, with 2007 sales up over previous years and healthy growth continuing through 2008. Yet heightened safety concerns on the part of pet food makers and consumers continue to shape product development and marketing, as well as the choices of pet owners looking for the safest and healthiest products possible. At the top of the list are kibble, canned and raw/frozen foods made with ingredients that are natural, organic, grain-free/non-allergenic and pure, as well as made in the U.S.A., locally grown, “whole” (fruits, vegetables, grains, etc.) and human-grade. Foods making functional appeals also continue to proliferate, especially those targeting age- and weight-related conditions via the inclusion of novel ingredients like glucosamine, omega fatty acids, antioxidants and probiotics. In other words, premium pet foods remain the primary value growth driver in the U.S. market, with ever higher quality ingredients fueling the premium wave.
At the same time, one thing marketers and retailers at all levels of the market cannot afford given the faltering U.S. and global economies is complacency. More than ever before the ability to convert pet owners to higher priced products—or keep them buying them—will depend on marketers’ success in communicating product benefits and tapping into the ever-potent human/animal bond. Helping to make the case are new celebrity spokespersons like Cesar Millan with his new Dog Whisperer line, and Ellen DeGeneres with her co-ownership in Halo Purely for Pets, with other positive trends including rapid growth in the natural supermarket channel and an increasingly globalized market in which ingredients suppliers like Cargill are looking to stake a deeper claim in pet food (in Cargill’s case by specifically targeting the U.S. agricultural retail channel as well as global markets). At the same time, new products continue to flood the market, which saw more entries in 2008 than in any previous year.
Pegging 2008 U.S. sales at $17 billion and global sales at $49 billion—and projecting steady growth through 2013—the report provides market size estimates for the overall retail universe, while quantifying mass-market sales to the marketer/brand share level using data from Information Resources, Inc., and also providing market size and marketer share figures for the natural supermarket channel. The report thoroughly documents competitive, new product and retail trends, as well as trends in pet food purchaser demographics and lifestyle pursuits (media and marketing psychographics, Internet usage, “green” involvement, etc.), based on data from Simmons Market Research Bureau, BIGresearch, the American Pet Products Association and other sources.
Bringing to bear more than 20 years of experience in analyzing this market and drawing on Packaged Facts’ broad cross-category expertise, Pet Food in the U..S pinpoints strategic directions for current and prospective marketers, with a forward-looking focus on high-growth product segments and market-driving trends. The report provides a comprehensive Market Overview covering cross-market trends. New features of our 2009 edition include focus sections on:
Read an excerpt from this report below.
Market Insights: A Selection From The Report
Keepers of the Pack: Multiple-Dog Demographics
Demographic segments who are disproportionately likely to keep four or more pet dogs include house renters (at an index of 227), households in the Central region (index of 187) or Southwest (index of 160), Boomer households (index of 127) and Hispanic households (index of 121). Conversely, house owners (at an index of 123) and households with an income of $75,000 plus (index of 120) are disproportionately prone to keep only one pet dog, as to a more moderate degree are non-Hispanic White households (index of 113).
Presumably, the relatively high rate for keeping four or more pet dogs among house renters (at 5%, compared to a 2% rate among households overall) in part reflects a watchdog function in less prosperous neighborhoods. As a point of comparison, homeowners who keep four or more dogs are half again more likely (index of 148) to live in a house valued at less than $75,000, and those who keep two-three dogs are a third again (index of 133) more likely to likely to do so. [Table 2-25]
94% Buy Dry Dog Foods
Nearly all dog owners (98%) buy packaged dog foods. Dry dog foods (94%) and dog treats (81%) are the most popular product types, with canned (30%) and semi-moist (18%) products trailing. [Figure 2-17]
Treat Purchasing Rates Are Steady at 83% Across Preferences by Dog Food Type
Cross-usage is also heavier between the semi-moist and canned dog food types: 45% of those who purchase semi-most products also buy canned products, compared with 31% of dog biscuit/treat purchasers and 29% of dry dog food purchasers. Similarly, 26% of those who buy canned products also buy semi-moist products, compared with only 18% of dog treat purchasers and 16% of dry dog food purchasers.
Pet Owners Splurge on Premium, Fortified Food for Animal Companions
New York, January 13, 2009 - The premiumization trend in the global pet food market indicates that pet owning consumers are as willing to spend more on premium food infused with health fortifying ingredients such as glucosamine, omega fatty acids, antioxidants, and probiotics for their pets as they are for themselves.
Premium pet foods cover all bases—from natural/organic to functional/nutraceutical to special diet (segmented by lifestage, weight, health condition, breed, etc.) to gourmet—while also often reflecting trends in human foods.
Driven by premiumization the global pet food market reached an estimated $49 billion in 2008, according to market research publisher Packaged Facts in the all-new report,Pet Food in the U.S.: Health, Humanization and High Quality Ingredients in an Increasingly Value-Driven Global Market, 8th Edition. The 2008 global total marked a compound annual growth rate (CAGR) of almost 5% for the preceding five-year period.
North America accounted for the largest share of global pet food sales in 2008 with 40%. “Particularly in the United States, the premiumization trend goes beyond the tendency Americans have to be better educated about health and nutrition issues. In addition, the pervasive humanization dynamic cannot be underestimated. Pet owners often view their pets as part of the family, or even as surrogate ‘children.’ Thus they are looking for the safest and healthiest products possible,” says Tatjana Meerman, Publisher of Packaged Facts.
Pet Food in the U.S.: Health, Humanization and High Quality Ingredients in an Increasingly Value-Driven Global Market, 8th Edition examines the global pet food market (sales overall and by world region, marketer shares, new product trends, U.S. export trends, etc.); strategic directions for current and prospective marketers; high-growth product segments; and trends in pet food purchaser demographics and lifestyle pursuits (media and marketing psychographics, Internet usage, “green” involvement, etc.). The report has separate chapters each discussing food for dogs, cats, and other companion animals.
About Packaged Facts - Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services.