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U.S. Pet Market Outlook, 2015-2016


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U.S. Pet Market Outlook, 2015-2016

The past year helped confirm the pet industry as one of the most dynamic parts of the U.S. economy. Even when sales haven’t kept up with the growth of recent years, the industry has managed to attract a slew of investment. The pet industry saw the biggest private equity deal of the year, when a group of investors bought PetSmart and took it private. And while one company focused on human products got out of the pet business (P&G), another got in (J. M. Smucker).

The industry has been a hotbed of innovation, with new products using the latest in technology and being promoted through social media and mobile apps. In fact, this year’s Global Pet Expo saw a record number of new products, exhibit space and attendees.

With this latest edition of our Pet Market Outlook, Packaged Facts delivers all you need to know about the pet industry in one source. This year’s edition includes the latest in market sizing and projections, hot new product trends, developments in marketing and packaging, as well as data from Packaged Facts proprietary Pet Owners Survey. The report has everything you need to know about mergers and acquisitions, retail channel trends, and pet owner demographics, psychographics, and spending habits.

Scope

Combining Packaged Facts’ extensive monitoring of the pet market with a proprietary Pet Owner Survey hot off the presses—U.S. Pet Market Outlook 2015-2016 is the go-to source for a complete understanding of the U.S. pet industry. In its 7th edition, the report evaluates current trends and future directions for marketing and retailing, along with consumer patterns across the full spectrum of the market, including veterinary services, pet food, nonfood pet supplies, and non-medical pet services (grooming, boarding, training, etc.).

The report forecasts market size and growth for each category; examines new product activity; surveys retail channel trends including cross-channel shopping vs. shopper loyalty; and analyzes trends and shifts in the needs of today’s pet parents. The report tabulates pet product sales channel by channel, using data from sources including IRI, whose Market Advantage service tracks sales in supermarkets, drugstores, mass merchandisers including Walmart, and select club stores, dollar stores and military commissaries; 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 2014 National Consumer Study, which is based on approximately 25,000 adult respondents surveyed from October 2013 through November 2014, as well as other years of Simmons surveys. The report contains dozens of numerical tables and charts, as well as numerous photographs of new products, advertising, screen shots and other images across key channels.


  • Executive Summary
    • Introduction
      • Scope and Methodology
      • Report Methodology
    • Market Performance
      • Pet Industry Sees Relatively Slow Growth
        • Table U.S. Pet Market Retail Sales by Category, 2010-2014 (in billions of dollars)
      • Market Share by Category and Animal Type
      • Some Consumers Still Spending Less
        • Table Level of Agreement with Statement: "I am spending less on pet products because of the economy," 2010-2015 (percent)
      • Pets Are No Spring Chickens
      • Overweight Pets at Risk
      • Industry Banks on Higher-Income Households
      • Human/Animal Bond Still a Dominant Theme for Marketers
    • Industry Trends
      • Market Structure
      • M&A and Investment Activity
      • Premiumization Continues But Not All Rosy
      • Humanization Continues to Drive Market
      • Pet Businesses Attract Entrepreneurs
      • New Products Make Waves
    • Retail Trends
      • The Wide World of Pet Product Retail
      • Let's Make a Deal
        • Table Level of Agreement with Statement: "I look out for lower prices, special offers, and sales on pet products," 2013-2015 (percent)
      • Private Label Has Weak Showing, But National Brands Outpace Market
      • Petco and PetSmart Think Small
    • Pet Ownership Trends
      • Pet Ownership at Almost 54% of U.S. Households
        • Table Household Penetration Rates for Selected Pet-Owning Classifications, 2010-2014 (percent and number in millions of U.S. households)
      • Dog and Cat Ownership Rates by Age
        • Table Dog or Cat Ownership Rates by Age Bracket, 2008-2014 (percent of U.S. households)
      • Multiple Pet Ownership Trends
      • Oldest Boomers Nearing 70
      • The Gen X and Gen Y Pet Owners
  • Market Trends
    • Market Performance
      • Pet Industry Sees Relatively Slow Growth
        • Table U.S. Pet Market Retail Sales by Category, 2010-2014 (in billions of dollars)
        • Table U.S. Pet Market Retail Sales by Category, 2011-2014 (percent change over previous year)
        • Table Projected Total U.S. Retail Sales of Pet Products and Services, 2013-2019 (in billions of dollars)
        • Table Projected U.S. Pet Market Retail Sales by Category, 2015-2019 (in billions of dollars)
        • Table U.S. Pet Market Compound Annual Growth Rates by Category: 2009-2014 vs. 2014-2019 (percent)
      • Market Share by Category and Animal Type
        • Table Percentage Share of U.S. Pet Market Retail Sales by Category: 2009, 2014, 2019
        • Table Share of U.S. Pet Market Sales by Category and Animal Type: Dog, Cat, Other, 2014 (percent)
      • Share of Pet Product Sales by Channel
        • Table Share of U.S. Retail Channel Sales of Pet Products Market by Channel Classification, 2014 (percent)
      • IRI-Tracked Channels Up Marginally
        • Table IRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, December 2014 (in millions of dollars, units and pounds)
      • Natural Supermarket Sales Have Another Standout Year
        • Table Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2013 vs. 2014 (in millions of dollars)
        • Table Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2013 vs. 2014 (percent)
      • Specialty/Gourmet Supermarket Sales Slip
        • Table Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2013 vs. 2014 (in millions of dollars)
        • Table Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2013 vs. 2014 (percent)
    • Market Drivers
      • Optimism in Economy Increases, But Consumers Still Wary
        • Table Pet Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2010-2014 (U.S. pet-owning households)
        • Table Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2010-2014 (U.S. pet-owning households)
      • Some Consumers Still Spending Less
        • Table Level of Agreement with Statement: "I am spending less on pet products because of the economy," 2010-2015 (percent)
        • Table Level of Agreement with Statement: "Many pet products are becoming too expensive," 2011-2015
        • Table Amount Spent on Pet Products in Last 30 Days, January 2015 (percent)
        • Table Pet Food Purchasing by Price Level: Dog vs. Cat Owners, 2014 vs. 2015 (percent)
      • Pet Ownership and Population Trends
        • Table Household Penetration Rates for Selected Pet-Owning Classifications, 2010-2014 (percent and number of U.S. households in millions)
      • Shelter Adoption
      • The Little Dog Laughed to See Such Trends
        • Table Size in Pounds of Dogs, 2012-2015 (percent of pet owners)
        • Table Size in Pounds of Most Recently Acquired Dog, 2014 vs. 2015 (percent of pet owners)
      • Pets Are No Spring Chickens
        • Table Age Bracket of Dogs and Cats, 2015 (percent of pet owners)
      • Overweight Pets at Risk
        • Table Agreement With Statement: "I have an overweight dog/cat," 2014 vs. 2015 (percent)
      • Industry Banks on Higher-Income Households
        • Table Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 2001-2013 (percent)
        • Table $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2008-2013 (percent)
      • Baby Boomers a Key to Industry Success
      • Human/Animal Bond Still a Dominant Theme for Marketers
      • Human/Animal Bond Has Health Benefits
        • Table Level of Agreement with Statement: "I consider my dog(s) or cat(s) to be part of the family," 2014 (percent)
        • Table Level of Agreement with Statement: "My dog or cat has a positive impact on my mental health," 2015 (percent)
        • Table Level of Agreement with Statement: "My dog or cat has a positive impact on my physical health," 2015 (percent)
        • Table Level of Agreement with Statement: "I enjoy purchasing pet products that pamper my dog or cat," 2015 (percent)
      • New Cat Cafes and Dog-Friendly Restaurants Unveiled
      • Kids and Pets
      • Marketers Create Buzz
      • Other Marketers Celebrate Human/Animal Bond
      • Marketers Lean on Cause Marketing
        • Table Level of Agreement with Statement: "The participation by pet product retailers in pet welfare and rescue causes and events plays a significant role in where I buy pet products," 2014 vs. 2015 (percent)
        • Table Level of Agreement with Statement: "The participation by pet product brands in pet welfare and rescue causes and events plays a significant role in which brands I buy," 2014 vs. 2015 (percent)
        • Table Agreement With Statement: "I have contributed time or money to pet welfare or rescue causes, 2015 (percent)
      • Focus on Cats
  • Industry Trends
    • Introduction
      • Market Structure
      • M&A and Investment Activity
      • Cross-Market Trends
    • Pet Services
      • Retailers and Vets Continue to Add Services
      • Banfield and VCA Top Veterinary Services
      • Veterinary Visit Statistics
        • Table Percentage of Dog and Cat Owners Who Have Visited Vet in Past Year: Routine Checkup vs. Sick/Emergency Care, 2015 (percent)
      • Fairness to Pet Owners Act Still on the Table
      • Pet Insurance Making Strides
      • Non-Medical Services Critical to Pet Specialty Chains
        • Table PetSmart and Petco Sales of Pet Services, 2001-2014 (separately and cumulative, in millions of dollars)
      • Interest in Doggie Daycare and Overnight Care
        • Table Number of PetSmart PetsHotels in Operation, 2006-2014
      • PetSmart Promise Enters Third Year With More Locations
      • Pet Businesses Attract Entrepreneurs
    • Pet Products
      • New Products Make Waves
      • Pet Owners Believe in Pet Food's Preventive Health Benefits
        • Table Level of Agreement With Statement: "High-quality dog foods/cat foods are effective for preventive health care," 2014 vs. 2015 (percent)
      • Product Safety A Concern, But Diminishing
      • Marketers Emphasize Made in the USA Claims
      • The Nuances of Natural
      • Pet Food Leaders
      • Hill's Talks Metabolic Technology; Expands into Wet Food
      • Natural Players Lead Product Innovation
      • Grain-Free Has Staying Power
      • Gluten-Free Continues to Show Strength
      • Ancestral Lines Take Pets into the Wild
      • The Loyalty of Cat Owners
      • Making the Grade on Human-Grade
      • Pet Companies Hop on Yogurt Bandwagon
      • Niche Diets
      • Refrigerated/Frozen Category Continues Strong Growth
      • Treat Segment Reflects the Industry's Trends
      • Play with Your Food
      • Supplement Sales Affected by Nutraceutical Treats
      • Small Pet Food Mirrors Natural Trends
      • The Pet Medications Market
      • Seasonal/Holiday Pet Product Purchasing
        • Table Level of Agreement with Statements: "I will buy Christmas/ Winter Holiday treats and gifts for my pets," 2014 (percent)
        • Table Agreement With Statement: "Over the recent Christmas/ Winter Holiday season, my dog(s)/cat(s) got special gifts or treats," 2015 (percent)
      • The Nonfood Pet Supplies Market
      • Multiple Trends Seen in Pet Supplies
      • Innovators Target Cat Litter Category
      • Pet Toys Get Nostalgic
      • More Pet Toys
      • Pet Beds and Habitats
      • Other Pet Supplies
  • Retail Trends
    • The Wide World of Pet Product Retail
    • Let's Make a Deal
      • Table Level of Agreement with Statement: "I look out for lower prices, special offers, and sales on pet products," 2013-2015 (percent)
    • Premium Growth Threatened?
      • Table Level of Agreement with Statement: "I am willing to spend extra to ensure the wellness of my pet," 2013 vs. 2014 (percent)
    • Consumer Loyalty Levels Off
      • Table Channel Loyalty in Pet Product Purchasing: All Channels, 2008-2014 (percent and number)
      • Table Share of Customer Base Who Are Channel-Loyal by Leading Retail Channels or Pet Superstore Chains, 2009-2014 (percent)
      • Table Channel-Loyal Customer Base for Pet Products by Leading Retail Channel or Pet Superstore Chain, 2009-2014 (number in thousands)
    • Coupon Use Goes Down
    • Pet Product Purchasing Rates by Channel
      • Table Household Purchasing Overview for Pet Products by Retail Classification: U.S. Households Overall vs. Dog or Cat Owners, Fall 2014 (number and percent)
    • Most Channels Retreat in 2014
      • Table Purchasing Rates for Pet Products by Selected Retail Channels and Pet Superstore Chains, 2009-2014 (percent)
      • Table Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains, 2009-2014 (U.S. dog or cat owners in thousands)
    • Top Channel is Walmart
      • Table Channel Choices for Pet Product Shopping, Last Three Months: Pet Food, Pet Medications, Other Pet Supplies, January 2015 (percent of pet product buyers)
    • Private Label Has Weak Showing
      • Table IRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Nonfood Category and Segment, December 2014 (in millions of dollars, units and pounds)
      • Table Private-Label Share of IRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2013 vs. 2014 (percent)
    • National Brands Outpace Market
      • Table IRI-Tracked Sales of Branded Pet Products: Total and by Food and Nonfood Category and Segment, December 2014 (in millions of dollars, units and pounds)
    • The Mass-Market
      • Walmart's Pet Focus
      • Target Also Building Its Pet Department
    • Pet Specialty Chains
      • PetSmart and Petco's Sales Surpass $11 Billion
        • Table PetSmart and Petco Sales and Number of Stores, 2001-2013 (cumulative, in units and millions of dollars)
      • PetSmart and Petco Seek out Exclusivity
      • Petco and PetSmart Think Small
      • Other Pet Specialty Players
    • Wholesale Clubs
    • Drugstores/Convenience Stores
    • One-Hour Delivery Becomes Latest Retail Trend
    • Online Sales
      • Table Level of Agreement with Statement: "I am buying pet products online more than I used to," 2011-2015 (percent)
      • Table Time Frame for Most Recent Online Purchase of Pet Products, 2012-2015 (percent of pet owners)
    • Other Retail Markets
      • The Pet Professionals
      • Natural Supermarkets
      • Dollar Stores
      • Agricultural/Feed-Seed Stores
      • Home Improvement Stores
      • Closeout Stores: T.J. Maxx and Marshall's
      • Apparel Retailers
      • Luxury Retailers
      • Food Co-ops
  • Pet Ownership Trends
    • Pet Ownership at Almost 54% of U.S. Households
      • Table Household Penetration Rates for Selected Dog- or Cat-Owning Classifications, 2008-2014 (percent of U.S. households)
      • Table Household Populations for Selected Dog- or Cat-Owning Classifications, 2008-2014 (thousands of U.S. households)
      • Table Household Penetration Rates for Selected Pet-Owning Classifications, 2010-2014 (percent and number in millions of U.S. households)
    • Changes in Pet Households by Income Level
      • Table Change in Pet Market Consumer Base: Households Earning $100,000 or More vs. Households Earning Under $100,000, 2010 vs. 2014 (number of U.S. dog- or cat-owning households)
    • Dog and Cat Ownership Rates by Age
      • Table Dog or Cat Ownership Rates by Age Bracket, 2008-2014 (percent of U.S. households)
    • Multiple Pet Ownership Trends
      • 32% of Pet Households Keep Multiple Types
        • Table Multiple Pet Ownership by Animal Type, 2010 vs. 2014 (percent of pet-owning households)
        • Table Ownership of Multiple Pets of a Single Type, 2010 vs. 2014 (percent of U.S. households who own a given type of pet)
    • Oldest Boomers Nearing 70
    • The Gen X and Gen Y Pet Owners
      • Table Household Penetration Rates for Selected Pet-Owning Classifications: By Generational Cohort, 2014 (percent of U.S. households)
      • Table Household Populations for Selected Pet-Owning Classifications: By Generational Cohort, 2014 (number of U.S. households in thousands)
      • Table Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2014 (U.S. households)
      • Table Indexes for Dog or Cat Ownership: By Age Cohort, 2010 vs. 2014 (U.S. households)
      • Table Indexes for Dog or Cat Ownership: Younger vs. Older Boomers, 2010 vs. 2014 (U.S. households)
      • Table Number of Total U.S. Population Growth for Selected Age Brackets, 2015-2060 (in thousands)
      • Table Share of Total U.S. Population Growth for Selected Age Brackets, 2015-2060 (in percent)
    • Full House
      • Table Dog/Cat Ownership Rates by Household Composition, 2008-2014 (percent)
      • Table Share of Total Dog/Cat Owners by Household Composition, 2008-2014 (percent)
      • Dog vs. Cat Households
        • Table Dog Ownership Rates by Household Composition, 2008-2014 (percent)
        • Table Share of Total Dog Owners by Household Composition, 2008-2014 (percent)
        • Table Cat Ownership Rates by Household Composition, 2008-2014 (percent)
        • Table Share of Total Cat Owners by Household Composition, 2008-2014 (percent)
    • Pet Ownership Grows Among Minorities
      • Table Change in Pet Market Consumer Base: White Non-Hispanics vs. Minorities, 2010 vs. 2014 (number and percent of U.S. dog- or cat-owning households)
      • Table Dog and Cat Ownership Trends by Race/Ethnicity, 2008-2014 (percent and number of U.S. dog- or cat-owning households)
      • Table Dog vs. Cat Ownership Trends by Race/Ethnicity, 2010 vs. 2014 (percent and number of U.S. dog- or cat-owning households)
      • Table Demographic Snapshot of the U.S. Population, 2014
      • Table Projected Population Growth of Hispanics, 2015-2060 (in thousands)
    • Pet Owner Psychographics
      • Health and Medical Related Sentiments and Practices
        • Table Selected Health & Medical Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2014 (percent and index)
        • Table Selected Health & Medical Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2014 (percent and index)
    • "Green" Sentiments and Practices
      • Table Selected Sustainability Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2014 (percent and index)
      • Table Selected Sustainability Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2014 (percent and index)
      • Media, Marketing and Channel Related Sentiments and Practices
        • Table Selected Media and Marketing Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2014 (percent and index)
        • Table Selected Media and Marketing Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2014 (percent and index)

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