Pet Market Research Bundle: Pet Supplies and Pet Care Products in the U.S. & Natural, Organic, and Eco-Friendly Pet Products in the U.S.

Pet Supplies and Pet Care Products in the U.S.

Chapter 1: Executive Summary

Scope & Methodology

Market Definition

Exclusions

Four SymphonyIRI-Tracked Product Categories

Report Methodology

Market Trends

Retail Sales Sluggish Post Recession

Figure 1-1: U.S. Retail Sales of Pet Supplies, 2007, 2011, 2016 (in millions of dollars)

Mass-Market Sales at $1.9 Billion

Sales by Animal Type

Figure 1-2: Share of U.S. Retail Sales of Pet Supplies by Animal Type: 2011 (percent)

Share of Dog Supply Sales by Product Category

Share of Cat Supply Sales by Product Category

Share of Mass-Market Sales by Product Category

Market Share by Retail Channel

Competitive Trends

Number and Types of Marketers

Market Leaders

M&A Activity Picks Up Post Recession

Competitive Trends

Brand Stables

Retailer/Vendor Collaboration

Channel Expansion and Exclusivity

Nonfood/Food Cross-Over

Private Label

Nestlé Purina Leads in SymphonyIRI-Tracked Sales

Figure 1-3: Marketer Shares of Pet Supplies in SymphonyIRITracked Outlets: 2012 (percent)

Marketing and New Product Trends

Advertising Trends

Social Media

Cause Marketing

New Product Common Denominators

Pet Health

Natural and Eco-Friendly

Human-Style

High-Style and “Child-Like”

Functional

Dental Health/Oral Care

Brand Licensing and Celebrity Appeal

Convenience and Automation

Senior/Special Needs

Retail Trends

Pet Shoppers Looking for Deals at Retail

Figure 1-4: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” September 2011 vs. March 2012 (percent)

Channel Loyalty on the Decline

Pet Product Purchasing Rates by Channel

Walmart Tops Recent Shopper List

Expanding Distribution of Formerly Vet-Only Flea/Tick Spot-Ons

Consumer Trends

56% of Households Own Pets

Overall Pet Ownership Rates Are Edging Up

Usage Gains for Flea/Tick Care and Pet Supplements

Figure 1-5: Household Purchasing Rates for Dog or Cat Supplies by Category, 2012 (percent of U.S. households)

Patterns by Pet Channel and Product Type

Toys/Rawhide Chews, Litter Are Most Common Purchase

Table 1-1: Overview of Pet Supply Product Purchasing in Last 3 Months: For Dogs or Cats, March 2012 (percent of dog or cat owners)

Chapter 2: The Market

Introduction

Market Definition

Exclusions

Four SymphonyIRI-Tracked Product Categories

Trade Associations and Shows

Regulatory Agencies and Trends

Report Methodology

Market Size and Growth

Retail Sales Sluggish Post Recession

Table 2-1: U.S. Retail Sales of Pet Supplies, 2007-2011 (in millions of dollars)

Mass-Market Sales at $1.9 Billion

Cat Litter

Other Dog/Cat Supplies

Dog Chews

Non-Dog/Cat Supplies

Table 2-2: SymphonyIRI-Tracked Sales of Pet Supplies by Category, 2011 vs. 2010 (in millions of dollars and units)

Table 2-3: Growth of SymphonyIRI-Tracked Sales of Pet Supplies: By Category, 2006-2009 (percent)

Pet Product Performance in the Natural Supermarket Channel

Table 2-4: Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)

Table 2-5: Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)

Pet Product Performance in the Specialty/Gourmet Supermarket Channel

Table 2-6: Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)

Table 2-7: Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)

Market Composition

Sales by Animal Type

Figure 2-1: Share of U.S. Retail Sales of Pet Supplies by Animal Type: 2011 (percent)

Share of Dog Supply Sales by Product Category

Table 2-8: Share of U.S. Retail Sales of Dog Supplies by Category, 2011 (in millions of dollar and percent share)

Table 2-9: Average Annual Dog Supply Expenses by Category, 2011 (in dollars)

Share of Cat Supply Sales by Product Category

Table 2-10: Share of U.S. Retail Sales of Cat Supplies by Category, 2011 (in millions of dollars and percent share)

Table 2-11: Average Annual Cat Supply Expenses by Category, 2011 (in dollars)

Share of Mass-Market Sales by Product Category

Figure 2-2: Share of SymphonyIRI-Tracked Sales of Pet Supplies by Product Category: 2011 (percent)

Table 2-12: Share of SymphonyIRI-Tracked Sales of Pet Supplies by Product Category: 2003, 2006 and 2009 (percent)

Share of Independent Pet Store Sales by Animal Category

Table 2-13: Share of Independent Pet Store Pet Supply Sales by Animal Type/Category: 2011 vs. 2010 (percent)

Table 2-14: Area of Largest Expected Revenue Increase During Following Year: By Animal Type/Category, 2011

Share of Dog Category Sales by Product Type

Table 2-15: Share of Independent Pet Store Sales of Dog Products: By Category, 2011 vs. 2010 (percent)

Share of Cat Category Sales by Product Type

Table 2-16: Share of Independent Pet Store Sales of Cat Products: By Category, 2011 vs. 2010 (percent)

Share of Aquarium Fish Category Sales by Product Type

Table 2-17: Share of Independent Pet Store Sales of Aquarium Fish Products: By Category: 2011 vs. 2010 (percent)

Share of Small Mammal Sales by Product Type

Table 2-18: Share of Independent Pet Store Sales of Small Mammal Products: By Category, 2011 vs. 2010 (percent)

Share of Bird Category Sales by Product Type

Table 2-19: Share of Independent Pet Store Sales of Bird Products: By Category, 2011 vs. 2010 (percent)

Share of Herptile Category Sales by Product Type

Table 2-20: Share of Independent Pet Store Sales of Herptile Products: By Category, 2010 (percent)

Natural and Organic Product Sales and Market Share

Figure 2-3: U.S. Retail Sales of Natural and Organic Pet Care Products: 2008, 2011 and 2014 (in millions of dollars)

Figure 2-4: Share of U.S. Retail Sales of Natural Pet Care Products by Category: 2008, 2011, 2014 (litter, health, other, percent)

Natural Product Percentage of Sales by Category

Table 2-21: Percentage of Sales Derived from Natural Products by Category, 2011 vs. 2010

Market Share by Retail Channel

Table 2-22: Share of U.S. Pet Supply Sales by Retailer Type, 2009 vs. 2011 (percent and dollars in millions)

Dog/Cat Household Pet Supply Purchasing by Channel

Table 2-23: Pet Product Purchasing Rates by Retail Classification: Percentage of Pet Households, Winter 2011 vs. Winter 2012 (number and percent)

Market Drivers

Market in Perspective

Table 2-24: Retail Dollar Sales and Percentage Share of U.S. Pet Market by Category: 2011 (in billions of dollars)

Slow Economy Continues to Dampen Consumer Confidence

Table 2-25: Selected U.S. Economic Measures: 2008-2012 (percent and number in millions)

Table 2-26: Pet Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2008-2011 (U.S. pet-owning households)

Table 2-27: Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2008-2011 (U.S. pet-owning households)

Pet Owners Spending Less

Table 2-28: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2012 (percent)

Price Resistance

Table 2-29: Level of Agreement with Statement: “Many pet products are becoming too expensive,” 2011 vs. 2012

Pet Ownership and Population Trends

Table 2-30: Total Number of Pets in the United States: By Type, 2000-2010

Table 2-31: Changes in the U.S. Population and Pet-Owning Population, 1996-2010 (number and percent)

Table 2-32: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2006-2012 (percent of U.S. households)

Canine Population Shifting Toward Smaller Dogs

Figure 2-5: Size of Dog Owned: Small, Medium or Large, 2000 vs. 2010 (percent of U.S. dog-owning households)

Pets as Family

Table 2-33: Pet Owner Attitudes and Behavior Characterizing Human/Animal Bond, 2012 (percent)

Focus on Pet Health/Wellness

Figure 2-6: U.S. Retail Sales of Pet Supplements and Nutraceutical Treats: Total, Small Animal (Dog, Cat, Other), Equine, 2006, 2010, 2015 (in millions of dollars)

Figure 2-7: Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)

Focus on Product Safety

Figure 2-8: Level of Agreement with Statement: “I am very concerned about the safety of the pet products I buy,” 2012 (percent)

Figure 2-9: Level of Agreement with Statement: “I prefer to purchase pet products made by smaller companies I trust,” 2012 (percent)

Ongoing Interest in Premium Products

Table 2-34: Amount Spent on Pet Products in Last 30 Days, March 2012 (percent)

Table 2-35: Pet Product Purchasing by Price Level: Food vs. Nonfood, March 2012 (percent)

Ongoing Interest in Natural Products

Figure 2-10: Level of Agreement with Statement:“Natural/organic brand pet products are often better than standard national brand products,” 2011 vs. 2012 (percent)

Table 2-36: Level of Agreement with Statement: “If natural/organic pet products were more available where I shop, I would buy them more often,” 2011 vs. 2012 (percent)

Table 2-37: Level of Agreement with Statement: “If natural/organic pet products were more affordable where I shop, I would buy them more often,” 2011 vs. 2012 (percent)

Rise in Pet Travel Favors Many Product Categories

Pet-Positive Media Exposure

Illustration 2-1: Subaru “Stolen Parking Space” Commercial

The Aging Pet Population

Table 2-38: Age of Dogs and Cats, 2012 (percent of pet owners)

Table 2-39: Average Age of First, Second, and Third Dog in Household, 2010 vs. 2000

Table 2-40: Average Age of First, Second, and Third Cat in Household, 2010 vs. 2000

Pet Overweight and Obesity

Table 2-41: Percentage and Number of Overweight and Obese Dogs and Cats, 2011

Higher-Income Household Market Boost Moderates

Table 2-42: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2005, 2009, 2010 (percent)

Market Projections

Sales to Reach $13.8 Billion in 2016

Table 2-43: Projected U.S. Retail Sales of Pet Supplies: 2011-2016 (in millions of dollars)

Pet Ownership and Population Growth Essential

Table 2-44: Level of Agreement with Statement: “People should adopt pets from shelters and not purchase them from shops/breeders,” 2012 (percent)

Figure 2-11: Level of Agreement with Statement: “My pet has a positive impact on my health”: Physical vs. Mental, 2012 (percent)

Smaller Dogs

Feline Potential

Chapter 3: The Marketers

Competitive Overview

Number and Types

Multi-Category Market Leaders

Central Garden & Pet

Hartz Mountain Corp.

Petmate

Rolf C. Hagen

Sergeant’s Pet Care Products

Spectrum Brands (United Pet Group)

Second-Tier Multi-Category Marketers

Category Leaders and Competitive Trends

Carriers, Crates, Shelter

Cat Litter

Clean-Up/Odor-Control Products

Collars and Leads

Dog Chews

Flea/Tick-Control Products

Grooming Products

Supplements

Toys

Training Products

Non-Dog/Cat Supplies

M&A Activity Picks Up Post Recession

United Pet Group Buys Furminator

Wind Point Partners Acquires Petmate

Petmate Acquires Bamboo, Kennel-Aire, and Wetnoz

Contech Acquires G&B Marketing

Quaker Pet Group Acquires Watson’s Senior Pet Supplies, Sherpa

Unicharm Takes Stake in Hartz

Additional M&A

Investment Activity

Worldwise Acquired by Mistral Equity

Nutri-Vet Acquired by Imperial Capital/Petra Pet

Competitive Trends

Brand Stables

Illustration 3-1: Petmate Pavilion at Global Pet Expo 2012

Retailer/Vendor Collaboration

Channel Expansion and Exclusivity

Nonfood/Food Cross-Over

Illustration 3-2: Kong Premium Treats

Private Label

Figure 3-1: Private-Label Share of SymphonyIRI-Tracked Sales of Pet Supplies by Category, May 2012 (percent)

Table 3-1: SymphonyIRI-Tracked Sales of Private-Label Pet Supplies by Category: 2003, 2006 and 2009 (in millions of dollars and percent)

Marketer and Brand Shares

Methodology

Nestlé Purina Leads in SymphonyIRI-Tracked Sales

Figure 3-2: Marketer Shares of Pet Supplies in SymphonyIRITracked Outlets: 2012 (percent)

Cat Litter Defies Private-Label Onslaught

World’s Best Takes No. 1 Spot in Natural Segment as Traditional Cat Litter Marketers Weigh In

Figure 3-3: Top Natural Cat Litter Brands by Share of SymphonyIRI-Tracked Sales: 2012 (percent)

Other Dog/Cat Supplies: Flea/Tick Spot-ons Hopping

Changing Ranks in Dog Chews

Non-Dog/Cat Supplies: Central Garden & Pet and Spectrum on Top

Brand Rankings in the Pet Specialty Channel

Table 3-2: Marketer Sales and Shares of Pet Supplies in SymphonyIRI-Tracked Outlets by Category: 2011 vs. 2012 (in millions of dollars and percent)

Table 3-3: SymphonyIRI-Tracked Sales of Cat Litter by Marketer and Brand: 2011 vs. 2012 (in millions of dollars and percent)

Table 3-4: Cat Litter Marketers by Dollar Change in SymphonyIRI-Tracked Sales: 2011 vs. 2012 (in millions of dollars)

Table 3-5: Cat Litter Brands by Dollar Change in SymphonyIRI-Tracked Sales: 2011 vs. 2012 (in millions of dollars)

Table 3-6: Top Natural Cat Litter Brands by SymphonyIRITracked Sales: 2011 vs. 2012 (in millions)

Table 3-7: Top Natural Cat Litter Brands by Share of SymphonyIRI-Tracked Sales: 2011 vs. 2012 (percent)

Table 3-8: SymphonyIRI-Tracked Sales of Other Dog/Cat Supplies by Marketer and Brand: 2011 vs. 2012 (in millions of dollars and percent)

Table 3-9: Other Dog/Cat Supplies Marketers: By Dollar Change in SymphonyIRI-Tracked Sales, 2011 vs. 2012 (in millions of dollars)

Table 3-10: Other Dog/Cat Brands by Dollar Change in SymphonyIRI-Tracked Sales: 2011 vs. 2012 (in millions of dollars)

Table 3-11: SymphonyIRI-Tracked Sales of Dog Chews by Marketer and Brand: 2011 vs. 2012 (in millions of dollars and percent)

Table 3-12: Dog Chews Marketers by Dollar Change in SymphonyIRI-Tracked Sales: 2011 vs. 2012 (in millions of dollars)

Table 3-13: Dog Chews Brands by Dollar Change in SymphonyIRI-Tracked Sales: 2011 vs. 2012 (in millions of dollars)

Table 3-14: SymphonyIRI-Tracked Sales of Non-Dog/Cat Supplies by Marketer and Brand: 2011 vs. 2012 (in thousands of dollars and percent)

Table 3-15: Non-Dog/Cat Supplies Marketers by Dollar Change in SymphonyIRI-Tracked Sales: 2011 vs. 2012 (in thousands of dollars)

Table 3-16: Non-Dog/Cat Supplies Brands by Dollar Change in SymphonyIRI-Tracked Sales: 2011 vs. 2012 (in thousands of dollars)

Table 3-17: Pet Specialty Market and Brand Leaders in Key Pet Supply Categories: 2006, 2008 and 2010 (percent)

Table 3-18: U.S. Market for Pet Supplies: Selected Marketers and Leading Brands, 2012

Chapter 4: Marketing and New Product Trends

Advertising Trends

Trade Advertising and Promotions

Social Media

Illustration 4-1: Screenshot of Hartz’s Facebook Page

Cause Marketing

New Product Common Denominators

Pet Health

Natural and Eco-Friendly

Human-Style

High-Style and “Child-Like”

Functional

Dental Health/Oral Care

Illustration 4-2: PetZLife Oral Care Spray and Gel

Brand Licensing and Celebrity Appeal

Illustration 4-3: Synergy Labs’ Licensed Dog Whisperer Dog Grooming and Odor Removal Products

Convenience and Automation

Senior/Special Needs

Illustration 4-4: Quaker Pet Group’s Silver Tails Collection of Senior Pet Products

Illustration 4-5: Pet Flys’ Upholstered Pet Steps

Illustration 4-6: Dog Quality Enterprises’ Dogger Dog Stroller

Travel Products

Product Safety

Illustration 4-7: Brochure Cover for JLA Pets’ Simmons Pet Bedding

Illustration 4-8: K&H Products’ Heated Pet Beds

Carriers, Crates, Shelter

Illustration 4-9: Kurgo Pet Travel Products

Illustration 4-10: Pet Gear Pet Strollers at Global Pet Expo 2012

Illustration 4-11: Solvit’s HoundAbout Bicycle Trailer at Global Pet Expo 2012

Illustration 4-12: Carlson Pet Containment “Cribs” at Global Pet Expo 2012

Illustration 4-13: Bergan’s Canine Crate

Illustration 4-14: Advantek’s Pet Gazebo Tent-Top Outdoor Kennel

Illustration 4-15: Petmate’s Look ‘N See Portable Kennel

Cat Litter and Accessories

Illustration 4-16: Cat’s Pride Fresh & Light Multi-Cat Scoopable Litter

Illustration 4-17: Fresh Step’s “Litter Science 101” Web Page

Illustration 4-18: Omega Paws’ Roll’ N Clean Litter Box

Illustration 4-19: Tidy Cats Breeze Litter Box

Clean-up Products

Illustration 4-20: Bissell’s Online Pet Lovers Community

Illustration 4-21: PetSmart Web Page Featuring Simple Solution’s PawSafe Line

Collars, Leashes, Harnesses

Illustration 4-22: Absolutely New’s Power Leash Weighted Exercise System

Illustration 4-23: Angel Pet Supplies’ Athens Series Fashion Dog Collars

Illustration 4-24: Coastal Pet Products’ New Earth Collars and Leads

Dog Chews

Illustration 4-25: Target’s Boots & Barkley Rawhides Rack Display

Illustration 4-26: Summma International’s Canine Chews Dental Care Line

Flea/Tick Products

Illustration 4-27: Central Garden & Pet’s Bio Spot Defense Smart Shield Applicator

Grooming Products

Illustration 4-28: Furminator’s New At-Home Grooming Tool Collection

Illustration 4-29: Jarden Animal Solutions’ “As Seen on TV” Shed Monster De-Shedding Tool

Illustration 4-30: Trade Ad for Wahl’s Pet Grooming Product Line

Illustration 4-31: Tropiclean’s Spa Pet Shampoo and Conditioner Line with Redesigned Packaging

Supplements

Illustration 4-32: Steadfast Joint Health Supplement from Arenus (Novus International)

Illustration 4-33: Herbsmith’s Microflora Plus for Digestion for Dogs and Cats

Illustration 4-34: Garmon Corp.’s Slim-N-Fit Weight Control Canine Supplement

Illustration 4-35: Trade Ad for Tomlyn’s New Gel Supplements

Toys

Illustration 4-36: Scratch Lounge Cat Scratchers

Illustration 4-37: Simply Fido’s Organic Pet Toy Collection

Training and Behavior

Illustration 4-38: Greenberry Eco Industries’ Eco-Friendly Puppy Pads

Water/Feeding Bowls and Devices

Illustration 4-39: Petmate’s Drinkwell Lotus Pet Fountain

Illustration 4-40: PetSafe’s Drinkwell Hydrate H20 Filtration System

Illustration 4-41: Bergan’s Ergoflo Elevated Bowls with Wood Base

Illustration 4-42: Hing Designs’ Designer Pet Bowls in Fish and Bone Styles

Illustration 4-43: Van Ness’s Pureness Eco-Friendly Pet Dishes

Non-Dog/Cat Supplies

Health/Functional

Illustration 4-44: Dunlea Farms Pet Hay Tidy Feeder

Illustration 4-45: Harrisons’ Pet Products’ Sunshine Factor and Booster Supplements

Natural/Eco-Friendly

Illustration 4-46: APD Pet’s Green Dreamzzz Small Pet Bedding

Kid-Appeal

Illustration 4-47: JW Pet Co.’s PetVille Palace for Small Animals

Illustration 4-48: Absorption Corp.’s Healthy Pet Confetti Small Pet Bedding

Convenience/Effectiveness

Illustration 4-49: Richell’s Mobile Critter Condo

Illustration 4-50: Absolutely News’ Squirrel-Proof Wild Bird Feeder

Style

Illustration 4-51: Rolf C. Hagen’s Fluval Spec Desktop Aquarium

Travel

Illustration 4-52: Marshall Pet Products Pack-n-Go Small Animal Carrier

Chapter 5: Retail Channel Trends

Pet Shoppers Looking for Deals at Retail

Figure 5-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” September 2011 vs. March 2012 (percent)

Figure 5-2: Level of Agreement with Statement: “I shop for pet products at a variety of stores,” September 2011 vs. March 2012 (percent)

Premium Shopper Survives

Figure 5-3: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer the best products available, even if they are more expensive,” 2011 (percent)

Figure 5-4: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer natural/organic and other specialty brand products,” 2011 (percent)

Channel Loyalty on the Decline

Table 5-1: Channel Loyalty in Pet Product Purchasing: All Channels, 2007-2011 (percent and number)

Table 5-2: Share of Customer Base Who Are Channel-Loyal by Leading Retail Channels or Pet Superstore Chains, 2007-2011 (percent)

Coupon Use on the Rise

Figure 5-5: Percent Who Use Pet Food Coupons: Dog Owners vs. Cat Owners, 2006- 2011 (percent)

Pet Product Purchasing Rates by Channel

Table 5-3: Household Purchasing Overview for Pet Products by Retail Classification: U.S. Households Overall vs. Dog or Cat Owners, 2011 (number and percent)

Pet Superstores Gaining Ground

Table 5-4a: Purchasing Rates for Pet Products by Selected Retail Channels and Pet Superstore Chains: 2007-2011 (percent of dog or cat owners)

Table 5-4b: Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains: 2007-2011 (U.S. dog or cat owners in thousands)

Walmart Tops Recent Shopper List

Table 5-5: Channel Choices for Pet Product Shopping in Last Three Months: Pet Food, Pet Medications, Other Pet Supplies, 2012 (percent of pet product buyers)

Private-Label Share Tops 20% in Pet Supplies

Figure 5-6: Level of Agreement with Statement: “I am buying more store-brand pet products these days,” 2011 vs. 2012 (percent)

Figure 5-7: Level of Agreement with Statement: “Store-brand pet products are often as good as national brand-name products,” September 2011 vs. March 2012 (percent)

Table 5-6: SymphonyIRI-Tracked Sales of Private-Label Pet Supplies by Category, 2011 vs. 2012 (in millions of dollars)

Table 5-7: Private-Label Share of SymphonyIRI-Tracked Sales of Pet Supplies by Category, 2011 vs. 2012 (percent)

Table 5-8: Purchasing Patterns for Store-Brand Cat Litter: By Retail Channel Shopped, Spring 2007 vs. Summer 2011 (percent of cat-owning households)

Expanding Distribution of Formerly Vet-Only Flea/Tick Spot-Ons

Table 5-9: Level of Agreement with Statement: “With spot-on (topical) flea/tick products, I would trust generic or storebrand products if they contained the same active ingredients”: Dog Owners vs. Cat Owners, 2011 (percent)

Table 5-10: Level of Agreement with Statement: “Veterinariandispensed spot-on (topical) flea/tick products are too expensive”: Dog Owners vs. Cat Owners, 2011 (percent)

Table 5-11: Level of Agreement with Statement: “With Spot-On (Topical) Flea/Tick Products, the Products Available in Stores Are Just as Effective as Those Available Through Veterinarians”: Dog Owners vs. Cat Owners, 2011 (percent)

Mass-Market Trends

Market Polarization Not Good for Mass

Walmart Bucking the Trend

Illustration 5-1: Mars Pedigree/”Pets Love Walmart” Promotion

Another Bright Spot: Drugstores

Illustration 5-2: Walgreens’ Pet Shoppe Store Brand Natural Bones

Illustration 5-3: Walgreens’ Pet Shoppe Store Brand Pet Collars and Leashes

Mass Channels Tapping into Pet Med Potential

Illustration 5-4: Walmart Floor Talker for PetTrust Heartworm Preventive (HeartGard Generic): “Save on Pet Medications”

Pet Specialty Trends

Independents View Economy as Top Challenge

Table 5-12: Top Challenges Pet Specialty Retailers Face in Next Two Years: 2008-2009, 2009-2010, 2010-2011, 2011-2012 (percent)

Table 5-13: Level of Agreement with Statement: “I usually shop for pet products in pet superstores or pet stores because they carry the specialty brands I like,” 2011 (percent)

Table 5-14: Level of Agreement with Statement: “I usually shop for pet products in pet superstores or pet stores because of the customer service they provide,” 2011 (percent)

PetSmart and Petco Advance Their Lead

Table 5-15: PetSmart and Petco Sales and Number of Stores: 2001-2011 (cumulative, in millions of dollars and number of units)

PetSmart Banking on Exclusive Brands

Advantage and K-9 Advantix Flea and Tick Topicals

Martha Stewart

GNC Pet Supplements

Illustration 5-5: Banner Ad for GNC Pets Products Line on PetSmart.com

Toys “R” PetSmart

The Bret Michaels Pet Rock Collection

Illustration 5-6: PetSmart’s Bret Michaels Pets Rock Collection (Website Announcement)

Illustration 5-7: Bret Michaels Pets Rock Cuddler Bed

Petco Advances Unleashed

Petco Acquires Complete Petmart

Moochie & Co. and Mini Moochies Top 40 Units

Illustration 5-8: Exterior of Moochie & Company Mall-Based Pet Specialty Shop, Columbus, OH

The Natural Thrust

Canadian Pet Retailer Global Pet Foods Crosses U.S. Border

Online Shopping

Shopper Base Up, Buying More

Figure 5-8: Level of Agreement with Statement: “I am buying pet products online more than I used to,” September 2011 vs. March 2012 (percent)

Figure 5-9: Time Frame for Most Recent Online Purchase of Pet Products, March 2012 (percent of pet owners)

Heightened Competition

Table 5-16: Top Websites for Purchasing Pet Products Online in Last 12 Months, 2011 (percent of dog/cat owners—9 websites)

Table 5-17: PetMed Express Sales, 2007-2011 (in millions of dollars)

VIPPS Certification May Give Internet a Boost

Up and Comers

Veterinarians

Natural Supermarkets

Dollar Stores

Agricultural/Feed-Seed Stores

Home Improvement Stores

Illustration 5-9: Pet Department in Lowe’s

Home Stores

Illustration 5-10: Bed Bath & Beyond’s Online Pet Product Selection

Chapter 6: The Consumer

Pet Ownership Trends

Note on Data Sources

56% of Households Own Pets

Table 6-1: Household Penetration Rates for Selected Pet-Owning Classifications: Overall and by Generational Cohort, 2012 (percent, number and indexes of U.S. households)

Seniors Edge Up in Pet Ownership Rates

Table 6-2: Household Ownership of Pets by Age Bracket, 2004-2012 (percent of U.S. households)

Overall Pet Ownership Rates Are Edging Up

Table 6-3: Household Ownership of Selected Pet-Owning Classifications, 2006-2012 (percent and number of U.S. households)

Pet Dog Population Characteristics

Table 6-4: Projected Pet Dog Population, 2012 (percent and number of U.S. households)

Table 6-5: Distribution of Dog Population by Age of Pet, 2012 (percent of U.S. dog owners)

Table 6-6: Size (Weight) Patterns for Pet Dog Population, 2012 (percent of U.S. dog owners)

Table 6-7: Indoor/Outdoor Patterns for Pet Dog Population, 2012 (percent of U.S. dog owners)

Pet Cat Population Characteristics

Table 6-8: Projected Pet Cat Population, 2012 (percent and number of U.S. households)

Table 6-9: Distribution of Cat Population by Age of Pet, 2012 (percent of U.S. cat owners)

Table 6-10: Indoor/Outdoor Patterns for Pet Cat Population, 2012 (percent of U.S. cat owners)

Overview of Dog and Cat Supply Purchasing

Usage Gains for Flea/Tick Care and Pet Supplements

Figure 6-1: Household Purchasing Rates for Dog or Cat Supplies by Category, 2012 (percent of U.S. households)

Table 6-11: Households Purchasing Rates for Dog or Cat Supplies by Category, 2004-2012 (percent of U.S. households)

Top-Line Purchasing Rates by Product Type

Table 6-12: Household Purchasing of Dog or Cat Supplies by Category and Type, 2012 (percent and number of U.S. dogor cat-owning households)

Patterns by Pet Channel and Product Type

Table 6-13: Pet Supply Purchasing Rates by Retail Channel: By Pet Supply Type, 2012 (percent of U.S. pet-owning households)

Table 6-14: Total Number of Pet Supply Purchasing Households by Retail Channel: By Pet Supply Type, 2012 (U.S. pet-owning households in thousands)

Table 6-15: Pet Supply Purchasing Indices by Retail Channel: By Pet Supply Type, 2012 (U.S. pet-owning households)

Half Would Be Receptive to More Affordable Natural/Organic Pet Products

Table 6-16: Pet Owner Disposition to Buy Natural/Organic Pet Foods or Pet Supplies, March 2012 (percent)

Close-Up on Product Purchasing

Toys/Rawhide Chews, Litter Are Most Common Purchase

Table 6-17: Overview of Pet Supply Product Purchasing in Last 3 Months: For Dogs or Cats, March 2012 (percent of dog or cat owners)

Toys/Chews or Durable Goods Also the Top Impulse Purchases

Table 6-18: Impulse Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Toys/Chews, Habitat Products, and Grooming Products Show Highest Rates of Pet Pampering/Indulgence Choices

Non-Prescription Meds and Nutritional Supplements Show Highest Rates of Natural/Organic Purchasing

Table 6-19: Pampering/Indulgence Product Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Table 6-20: Natural/Organic or Eco-Friendly Product Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Roughly One in Five Product Choices Are Store Brand

Pet Stores/Superstores Are Top Choices for Carriers and Crates

Natural Supermarkets/Food Stores Are Strong in Supplements

Table 6-21: Store-Brand Product Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Table 6-22: Pet Store/Pet Superstore Retailer Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Table 6-23: Natural Supermarket/Natural Food Store Retailer Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

39% of Flea/Tick Product Purchases Are From Veterinarians

Roughly One in Four Pet Supply Products Are Purchased on Sale or Promotion

Toys/Chews Are Least Subject to Comparison Shopping

Table 6-24: Veterinarian Product Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Table 6-25: Sale/Promoted Product Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Table 6-26: Comparison Shopping-Based Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Pet Litter Is Most Likely Repeat Purchase

Table 6-27: Repeat Purchasing Rates for Pet Supplies by Type, March 2012 (percent)

Fish Products Are Most Common Purchase Among Owners of Other Pets

Table 6-28: Overview of Pet Supply Product Purchasing in Last 3 Months: For Pets Other Than Dogs or Cats, March 2012 (percent of owners of pets other than dogs or cats)

Consumer Focus: Flea and Tick Care Products

46% Use Topical/Spot-On Products

Table 6-29: Purchasing Overview for Flea/Tick Care Products for Dogs and Cats: Overall and by Purpose, Type and Brand, 2012 (percent and number of U.S. dog- or cat-owning households)

Advantage Surges in Brand Use

Table 6-30: Purchasing Rates for Flea/Tick Care Products for Dogs and Cats: Overall and by Purpose, Type and Brand, 2006-2012 (percent of U.S. dog- or cat-owning households)

Cross-Usage by Product Type

Table 6-31: Cross-Purchasing of Flea/Tick Products by Type, 2012 (U.S. pet-owning households)

Demographics by Product Type and Brand

Table 6-32: Purchasing Indices for Flea/Tick Care Products: By Gender, 2012 (U.S. dog- or cat-owning households)

Table 6-33: Purchasing Indices for Flea/Tick Care Products: By Adult Age Bracket, 2012 (U.S. dog- or cat-owning households)

Table 6-34: Purchasing Indices for Flea/Tick Care Products: By Race/Ethnicity, 2012 (U.S. dog- or cat-owning households)

Table 6-35: Purchasing Indices for Flea/Tick Care Products: By Region, 2012 (U.S. dog- or cat-owning households)

Table 6-36: Purchasing Indices for Flea/Tick Care Products: By Household Income Bracket, 2012 (U.S. dog- or catowning households)

Consumer Focus: Cat Litter

84% Use Cat Filler/Litter

Table 6-37: Purchasing Overview for Cat Filler/Litter Products: Overall and by Type, Brand, and Frequency of Use, 2012 (percent and number of U.S. cat-owning households)

Shares for Scoopable Litter and Leading Brands Edge Upward

Table 6-38: Purchasing Rates for Cat Filler/Litter Products: Overall and by Type, Brand, and Frequency of Use, 2006-2012 (percent of U.S. cat-owning households)

Table 6-39a: Purchasing Patterns for Cat Filler/Litter Products by Type, 2006-2012 (percent of U.S. cat-owning households)

Table 6-39b: Purchasing Patterns for Cat Filler/Litter Products by Type, 2006-2012 (thousands of U.S. cat-owning households)

Indicators for Above-Average Use

Table 6-40: Purchasing Indices for Cat Box Filler/Litter: By Gender, 2012 (U.S. cat-owning households)

Table 6-41: Purchasing Indices for Cat Box Filler/Litter: By Adult Age Bracket, 2012 (U.S. cat-owning households)

Table 6-42: Purchasing Indices for Cat Box Filler/Litter: By Race/Ethnicity, 2012 (U.S. cat-owning households)

Table 6-43: Purchasing Indices for Cat Box Filler/Litter: By Region, 2012 (U.S. cat-owning households)

Table 6-44: Purchasing Indices for Cat Box Filler/Litter: By Household Income Bracket, 2012 (U.S. cat-owning households)

Consumer Focus: Pet Supplements

15 Million Purchase Nutritional Supplements for Dogs or Cats

Figure 6-2: Consumer Base for Nutritional Supplements for Dogs or Cats, 2006-2012 (percent and number of U.S. dogor cat-owning households)

Higher Indexes for Hispanics, Blacks

Table 6-45: Purchasing Indices for Pet Supplements: By Selected Demographic Traits, 2012 (U.S. dog- or cat-owning households)

Natural, Organic, and Eco-Friendly Pet Products in the U.S.

Chapter 1: Executive Summary

Scope & Methodology

Scope of Report: Pet Food and Pet Care

Report Methodology

Market Trends

Market Size & Composition

Note on Market Sizing

U.S. Retail Sales Top $4 Billion in 2012

Litter Dominates Pet Care Classification

Figure 1-1: Share of U.S. Retail Dollar Sales of Natural Pet Care Products by Segment: Litter, Health, Other, 2012 (percent)

Mass-Market Sales Trends

Market Share by Retail Channel

Superpremium Increasingly = Natural

Figure 1-2: Level of Agreement with Statement:

“Natural/organic brand pet products are often better than standard national brand products,” 2011 vs. 2012 (percent)

Product Safety/Purity Concerns a Plus

Natural a Key Thrust for the Pet Specialty Channel

Sales to Top $9 Billion in 2017

Competitive Trends

Market Structure and Retail Dynamics

Pet Specialty Channel Marketer Ranking

Natural Cat Litter Leaders in the Pet Specialty Channel

Marketer and Brand Shares of Mass-Market Sales of Natural Dog Food

Marketer and Brand Shares of Mass-Market Sales of Natural Cat Food

Marketer and Brand Shares of Mass-Market Sales of Natural Cat Litter

Marketer and Brand Shares of Mass-Market Sales of Other Natural Dog/Cat Products

Marketing and New Product Trends

Differentiation Via Ingredients Claims

Illustration 1-1: Trade Ad for Nutro Natural Choice Pet Food (Pet Business, May 2012)

Pet Care Products Focus on the Environment

Illustration 1-2: Web Page for Petco’s Planet Petco Products

Consumer Trends

59% of Dog- or Cat-Owning Households Purchase General

Market Natural or Organic Products

Natural/Organic Pet Product Purchasing Shows Uptick 21% of Dog Owners and 15% of Cat Owners Buy Natural/Organic or Eco-Friendly Pet Products

Figure 1-3: Dog and Cat Owner Purchasing Rates for Natural, Organic or Eco-Friendly Pet Products: Overall and by Gender, August 2012 (percent)

Pet Food and Treats Show Highest Rates of NOEF Product Purchasing

Chapter 2: Introduction

Scope & Methodology

Scope of Report: Pet Food and Pet Care

Report Methodology

Market Definitions and Terminology

Natural Pet Food

Defining Natural

California Proposition 37

A Basic Natural Pet Food Profile

Defining Organic

Pet Food Task Force Formed to Clarify Standards

U.S. Organic Standards as of October 2012

Third-Party Organic Accreditation

Natural vs. Organic

“Ethical” Issues Related to Organic

Raw Pet Food

Freeze-Drying

Pasteurization

Terms Often Associated with Natural and Organic Pet Food

Natural Pet Food Ingredients

Undesirable Ingredients

Natural Pet Care Products

Natural and Alternative Cat Litter

Natural Pet Health Products

Natural Pet Grooming Products

Natural Pest-Control Products

Natural Pet Supplements

Other Natural Pet Care Products

Ethical Issues

Key Ethical Issues

Eco-Friendly (“Green”)

Locally Grown and “Food Miles”

Humane Treatment of Animals

No Animal Testing/Cruelty-Free

No Genetic Modification or Cloned Animals

Fair Trade/Ethically Sourced

Sustainable Agriculture and Development

Corporate Responsibility

FTC Cracking Down on “Eco-friendly” Labels

Illustration 2-1: Greener Choices Online Eco Label Evaluator

Chapter 3: Market Trends

Market Size & Composition

Note on Market Sizing

U.S. Retail Sales Top $4 Billion in 2012

Table 3-1: U.S. Retail Dollar Sales of Natural Pet Products:Pet Food, Pet Care, Total, 2008-2012 (in millions of dollars)

Figure 3-1: Share of U.S. Retail Dollar Sales of Natural Pet Products: Pet Food vs. Pet Care, Total, 2008-2012 (percent)

Organic Pet Food Sales

Table 3-2: U.S. Retail Sales of Organic Pet Food, 2003-2011 (in millions of dollars)

Raw and Refrigerated Pet Food Sales

Figure 3-2: U.S. Retail Sales of Commercially Prepared Raw Pet Food: 2008-2012 (in millions of dollars)

Litter Dominates Pet Care Classification

Table 3-3: U.S. Retail Dollar Sales of Natural Pet Care

Products by Segment: Cat Litter, Pet Health, Other, 2008 vs.2012 (in millions of dollars and percent)

Figure 3-3: Share of U.S. Retail Dollar Sales of Natural Pet Care Products by Segment: Litter, Health, Other, 2012 (percent)

Natural Product Percentage of Pet Specialty Sales by Category

Figure 3-4: Share of Independent Pet Specialty Store Total Sales Derived from Natural Products, 2011 (percent)

Table 3-4: Share of Independent Pet Specialty Store Sales Derived from Natural Products: By Animal Category and Percentage Level, 2011 (percent)

Table 3-5: Percentage of Sales Derived from Natural Products by Category, 2011 vs. 2010

Mass-Market Sales Trends

Table 3-6: SymphonyIRI-Tracked Sales of Natural Pet Products: Total and by Food and Nonfood Category and Segment, 2011 vs. 2012 (in millions of dollars and pounds)

Table 3-7: Natural Product Share of Total SymphonyIRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2011 vs. 2012 (percent)

Table 3-8: Share of SymphonyIRI-Tracked Sales of Natural Pet Products by Food and Nonfood Category and Segment,2011 vs. 2012 (percent)

Natural Supermarket Sales Continue Upward Path

Table 3-9: Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2011 vs. 2012 (in millions of dollars)

Table 3-10: Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment,2011 vs. 2012 (percent)

Specialty/Gourmet Supermarket Sales Up 21%

Table 3-11: Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2011 vs. 2012 (in millions of dollars)

Table 3-12: Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2011 vs. 2012 (percent)

Market Share by Retail Channel

Table 3-13: Share of U.S. Retail Dollar Sales of Natural Pet Products by Distribution Channel, 2012 (percent)

Market Outlook

Natural and Organic Going Strong on the Human Side

In the Pet Market, Superpremium Increasingly = Natural

Figure 3-5: Level of Agreement with Statement:“Natural/organic brand pet products are often better than standard national brand products,” 2011 vs. 2012 (percent)

Figure 3-6: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer natural/organic and other specialty brand products,” 2011 (percent)

Figure 3-7: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer the best products available, even if they are more expensive,” 2011 (percent)

Product Safety/Purity Concerns a Plus

Figure 3-8: Level of Agreement with Statement: “I am very concerned about the safety of the pet products I buy,” March 2012 vs. August 2012 (percent)

Figure 3-9: Level of Agreement with Statement: “I prefer to purchase pet products made by smaller companies I trust,”2012 (percent)

Natural a Key Thrust for the Pet Specialty Channel

Figure 3-10: Level of Agreement with Statement: “Natural products sold in pet specialty stores (such as Petco,PetSmart, or independent pet stores) are superior to natural products sold in regular stores (such as Walmart,supermarkets, drugstores),” 2012 (percent)

Figure 3-11: “In which product categories is a natural marketing proposition important?” (percent)

Table 3-14: Purchasing Rates for Pet Products in the Pet Specialty Channel: 2007-2011 (percent of dog or cat owners)

Petco Advances Unleashed

Illustration 3-1: Natural Brands Carried by Unleashed by Petco (Website Screenshot)

Product Recalls Muddy the Natural Pet Food Waters

Raw Food Roadblocks?

Pet Market Macrotrends

Pet Owners Cut Back Due to Economic Doldrums

Table 3-15: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2012 (percent)

Pet Ownership and Population Trends

Table 3-16: Household Penetration Rates for Dogs and Cats,2007-2012 (U.S. households—percent and number in thousands)

The Aging Pet Population

Table 3-17: Age of Dogs and Cats, 2012 (percent of pet owners)

Pet Overweight and Obesity

Table 3-18: Percentage and Number of Overweight and Obese Dogs and Cats, 2011

Figure 3-12: “My pet would be considered overweight or obese,” 2012 (percent)

Pets as Family

Table 3-19: Pet Owner Attitudes and Behavior Characterizing Human/Animal Bond, 2012 (percent)

Market Projections

Sales to Top $9 Billion in 2017

Table 3-20: Projected U.S. Retail Dollar Sales of Natural Pet

Products: Pet Food, Pet Care, Total, 2012-2017 (in millions

of dollars)

Table 3-21: Level of Agreement with Statement: “Many pet

products are becoming too expensive,” 2011 vs. 2012

(percent)

Table 3-22: Level of Agreement with Statement: “If

natural/organic pet products were more available where I

shop, I would buy them more often,” 2011 vs. 2012 (percent)

Table 3-23: Level of Agreement with Statement: “If

natural/organic pet products were more affordable where I

shop, I would buy them more often,” 2011 vs. 2012 (percent)

Chapter 4: Competitive Trends

Market Structure and Retail Dynamics

Acquisitions and Mergers

Investors Tap In

WellPet Doing Well

Traditional Marketers Tap In via Line Extensions, New Brands

Purina One Beyond

Illustration 4-1: Purina One Beyond

Illustration 4-2: Purina One’s Bowl by Bowl Shelter Support Game

Dad’s Reorganization as Ainsworth Breeds Success

Walmart Launches Pure Balance Store Brand

Hill’s Science Diet Going Natural

Illustration 4-3: Hill’s Science Diet Ideal Balance

Illustration 4-4: Science Diet’s Better Life Product Groupings

Illustration 4-5: Science Diet’s Better Life Package Design

Natura Opens Innova Distribution to Pet Specialty Chains

Organic Pet Products Growing Up

Illustration 4-6: Merrick/Castor & Pollux’s Natural/Organic Food Revolution (Website Screenshot)

Natural Pet Care Leaders and Up-and-Comers Pet Care Category Specialists

Worldwise and Walmart?

Advertising Trends

Illustration 4-7: Consumer Ad for Blue Dog Food (Natural Dog,2013 Annual)

Social Media

Illustration 4-8: Merrick’s “Faces of the Revolution” Facebook Page

Illustration 4-9: Natural Balance’s Tillman page

Illustration 4-10: Petco Nutro Discussion on Facebook

Illustration 4-11: PetSmart World’s Best Cat Litter Promotion on Facebook

Cause Marketing

Illustration 4-12: Rachael Ray Nutrish and Rachael’s Rescue (Website Screenshot)

Direct Selling Via Internet

Illustration 4-13: Sojos Online Pet Food Store

Corporate Responsibility and Sustainability

Rolf C. Hagen

Cardinal Labs

Novus International

Natura

Mars

Nestlé Purina

Eco-friendly Packaging

Pet Food Producers Position on Safety

Marketer and Brand Rankings

Methodology for Estimates

Pet Specialty Channel Marketer Ranking

Pet Age Retailer Ranking of Dog Food and Cat Food Market Leaders

Table 4-1: Pet Specialty Channel Marketer and Brand Leaders in Dog Food and Cat Food: 2006-2010 (percent)

Natural Cat Litter Leaders in the Pet Specialty Channel

Figure 4-1: Pet Specialty Channel Marketer and Brand Leaders in Cat Litter 2006-2010 (percent)

Marketer and Brand Shares of Mass-Market Sales of Natural Dog Food

Marketer and Brand Shares of Mass-Market Sales of Natural Cat Food

Marketer and Brand Shares of Mass-Market Sales of Natural Cat Litter

Table 4-2: Share of U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter by Marketer and Brand: 52 Weeks Ending September 9, 2012 vs. Year-Ago Period (percent)

Marketer and Brand Shares of Mass-Market Sales of Other Natural Dog/Cat Products

Brand Leaders in the Natural Supermarket Channel

Table 4-3: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog Food by Marketer, Brand, and Segment: 52 Weeks Ending September 9, 2012 vs. Year-Ago Period (in millions of dollars)

Table 4-4: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Cat Food by Marketer, Brand, and Segment: 52 Weeks Ending September 9, 2012 vs. Year-Ago Period (in millions of dollars)

Table 4-5: U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter by Marketer and Brand: 52 Weeks Ending September 9, 2012 vs. Year-Ago Period (in millions of dollars)

Table 4-6: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog/Cat Needs by Marketer and Brand: 52 Weeks Ending September 9, 2012 vs. Year-Ago Period (in millions of dollars)

Table 4-7: Marketers and Brands of Natural and Organic Pet Food, 2012

Table 4-8: Marketers and Brands of Natural, Organic and Eco-Friendly Pet Care Products, 2012

Chapter 5: Marketing and Product Trends

Pet Food

Differentiation Via Ingredients Claims

Illustration 5-1: Trade Ad for Nutro Natural Choice Pet Food (Pet Business, May 2012)

Grain-Free Pet Foods

Illustration 5-2: Hill’s Science Diet Ideal Balance Grain-Free Dog Food

Illustration 5-3: Blue Buffalo’s Freedom Grain-Free Dog and Cat Food

Illustration 5-4: Trade Ad for Spring Naturals Grain-Pet Food (Pet Age, October 2012)

Illustration 5-5: Trade Ad for Against the Grain Pet Food (Pet Business, September 2012)

Grain-Free Treats

Low-Glycemic

Illustration 5-6: Trade Ad for Darford’s Zero/G Low-Glycemic Dog Food (Pet Business, March 2012)

Meat First—No Byproducts

Illustration 5-7: Consumer Print Ad for Blue Buffalo Pet Food

Illustration 5-8: Purina One Beyond vs. Blue Buffalo Comparison Chart

Human Grade

Natura Forced to Retract Human-Grade Claims, Pay Settlement

Limited Ingredients

Illustration 5-9: Natural Balance’s L.I.D. Limited Ingredient Diets (Website Screenshot)

Made in the USA, Locally Grown, Family Farms

Functional Ingredients and Specialized Diets

Illustration 5-10: Consumer Ad for Solid God Sun Dancer Dog Food with Curcumin (AKC Family Dog, September/October 2012)

Illustration 5-11: Dogswell Functional Dog Treats

Illustration 5-12: Trade Ad for Fruitables Skinny Minis Dog Treats (Pet Product News International Buying Guide, 2013 Annual)

Illustration 5-13: Trade Ad for Fromm’s Large and Small Breed Dog Food (Pet Age, October 2012)

Illustration 5-14: Banner Ad for Castor & Pollux’s New Organix Small Breed Kibble (Website Screenshot)

Hypoallergenic

Natural Plus Gourmet

Illustration 5-15: Trade Ad for Evanger’s Slow Cooked Grain-Free Stews (Pet Business, May 2011)

Illustration 5-16: Consumer Ad for Natural Balance Delectable Delights (Natural Dog, 2013 Annual)

Baked Treats

Illustration 5-17: Three Dog Bakery’s Bake to Nature Dog Treats

Focus on Raw Pet Food

Market Leaders and Upstarts

Illustration 5-18: Trade Ad for Stewart Raw Pet Food (Pet Business, May 2012)

Product Mainstreaming

Complete and Balanced

Freeze-Dried and Dehydrated

Illustration 5-19: Honest Kitchen Dehydrated Raw Dog Food Mixes

Illustration 5-20: Trade Ad for Sojos Pet Food Mixes (Pet Business Guide to Buying, Selling and Marketing—Natural Pet Products special issue, May 2012)

Illustration 5-21: Trade Ad for Stella & Chewy’s Freeze-Dried Cat Dinners (Pet Age, 2012)

Illustration 5-22: Dogswell Nutrisca Freeze-Dried Dog Food

Illustration 5-23: Halo’s Liv-A-Littles Freeze-Dried Treats Convenience Forms and Packaging

Illustration 5-24: Nature’s Variety’s New Instinct Raw Bites (Website Screenshot)

Illustration 5-25: Trade Ad for Nature’s Variety’s New Instinct Raw Boost (Pet Business, May 2012)

Focus on Product Safety

The Freezer Case Factor

Illustration 5-26: Trade Ad for Nature’s Variety’s Freezer Case Program (Pet Business, March 2011)

New Zealand Appeal

Other Trends in Raw Foods

Frozen Treats

Illustration 5-27: Nature’s Variety SweetSpots Frozen Dog Treats

Refrigerated Pet Food: Freshpet Drives Category to New Heights

Expanding Distribution, Product Lines

Illustration 5-28: Freshpet Pet Food and Treats Brand Lines (Website Screenshot)

Big Investors, National TV Advertising

Pet Care Products

Focus on the Environment

Illustration 5-29: Online List of Eco-friendly Petmate Products

Illustration 5-30: Web Page for Petco’s Planet Petco Products Cat Litter

Illustration 5-31: Petco’s Planet Petco Pine Cat Litter

Illustration 5-32: PetSmart’s ExquisiCat Naturals Cat Litter (Website Screenshot)

Illustration 5-33: Cat’s Pride Fresh & Light Multi-Cat Scoopable Litter

Illustration 5-34: Trade Ad for World’s Best’s New Cat Litter Packaging (Pet Business, May 2102)

Flea/Tick Products

Illustration 5-35: Dermagic’s Diatomaceous Earth Flea Bar Grooming Products

Illustration 5-36: Tropiclean’s Spa Pet Shampoo and Conditioner Line with Redesigned Packaging

Illustration 5-37: Trade Ad for Wahl’s Pet Grooming Line Including All Natural Shampoo

Illustration 5-38: Tropiclean “Green” Shampoo and Conditioner Clean-Up Products

Illustration 5-39: Pawganics Pet- and Baby-Safe Pet Clean-up Products

Illustration 5-40: Greenberry Eco Industries’ Eco-Friendly Puppy Pads

Pet Supplements

Illustration 5-41: Herbsmith’s Microflora Plus for Digestion for Dogs and Cats

Health Remedies

Illustration 5-42: Dermagic Pet All Natural Pet Skincare Products

Illustration 5-43: Opie and Dixie’s SnoutStik Dog Nose Balm

Illustration 5-44: PetZLife Oral Care Spray and Gel Beds

Illustration 5-45: Trade Ad for West Paw Design’s New Hemp Dog Beds (Pet Age, October 2012)

Toys

Illustration 5-46: Katie’s Bumpers Eco-friendly U.S.-Made Toys

Illustration 5-47: Scratch Lounge Cat Scratchers

Collars and Leads

Illustration 5-48: Trade Ad for Coastal Pet Products’ New Earth

Collars and Leads

Other Eco-friendly Pet Products

Illustration 5-49: Van Ness’s Pureness Eco-Friendly Pet Dishes

Chapter 6: Consumer Trends

Overview of Natural/Organic Product Purchasing

Note on Data Sources

59% of Dog- or Cat-Owning Households Purchase General Market Natural or Organic Products

Figure 6-1: Percentage Who Especially Look for Organic/Natural Foods Generally vs. Buy Any Packaged Organic Foods: Households Overall, Dog Owners, and Cat Owners, 2010 vs. 2012

Table 6-1: General Market Purchasing Patterns for Organic/Natural Products: Households Overall vs. Dog- or Cat-Owning Households, 2010 vs. 2012 (percent of U.S. households)

Natural/Organic Pet Product Purchasing Shows Uptick

Figure 6-2: Purchasing Rates for Selected Natural, Organic or Eco-Friendly Pet Product Classifications, 2010 vs. 2012 (percent)

Table 6-2: Purchasing Patterns for Selected Natural or Organic Pet Product Classifications: Dog- or Cat-Owning Households, 2010 vs. 2012 (percent of U.S. households)

Purchasing Patterns by Product Type

21% of Dog Owners and 15% of Cat Owners Buy Natural/Organic or Eco-Friendly Pet Products

Figure 6-3: Dog and Cat Owner Purchasing Rates for Natural, Organic or Eco-Friendly Pet Products: Overall and by Gender, August 2012 (percent)

Pet Food and Treats Show Highest Rates of NOEF Product Purchasing

Table 6-3: Natural, Organic or Eco-Friendly Product Purchasing Rates for Dog Supplies by Type, August 2012 (percent of dog owners)

Table 6-4: Natural, Organic or Eco-Friendly Product Purchasing Rates for Cat Supplies by Type, August 2012 (percent)

Pet Superstores, Walmart Are Top Retailers for NOEF Product Purchasing

Table 6-5: Where Natural, Organic or Eco-Friendly Dog Food or Treats Are Purchased: Selected Channels, August 2012 (percent among product purchasers)

Table 6-6: Where Natural, Organic or Eco-Friendly Cat Food or Treats Are Purchased: Selected Channels, August 2012 (percent among product purchasers)

Table 6-7: Where Natural, Organic or Eco-Friendly Dog Supplies Other Than Dog Food or Treats Are Purchased: Selected Channels, August 2012 (percent among product purchasers)

Table 6-8: Where Natural, Organic or Eco-Friendly Cat Supplies Other Than Cat Food or Treats Are Purchased: Selected Channels, August 2012 (percent among product purchasers)

Organic, Grain-Free Lead by NOEF Pet Food Formulation Type

Figure 6-4: Types of Natural, Organic or Eco-Friendly Pet

Food or Treats Purchased: Dog Owners vs. Cat Owners, August 2012 (percent among product purchasers)

Purchasing Rates by NOEF Pet Food Brand

Table 6-9: Selected Brands of Natural, Organic or Eco- Friendly Dog Food or Treats Purchased, August 2012 (percent among product purchasers)

Table 6-10: Selected Brands of Natural, Organic or Eco- Friendly Cat Food or Treats Purchased, August 2012

(percent among product purchasers)

Fresh Scoop Natural Step Is Natural Cat Litter Brand Leader

Table 6-11: Selected Brands of Natural, Organic or Eco- Friendly Cat Litter Purchased, August 2012 (percent among product purchasers)

Consumer Profiles

Mixed Demographics for Organic Pet Food

Strong Relationship Between Purchasing of General Market Natural/Organic Products and Organic Pet Food

Figure 6-5: Top Demographic Indicators for Purchasing of Organic Pet Food, 2012 (percent of dog- or cat-owning households)

Table 6-12: Overview of the Organic Pet Food Purchaser, 2012 (percent, number and index of dog- or cat-owning households)

Regional Skews for Purchasing of Natural Dog Foods

The Nutro Dog Food Purchaser

Table 6-13: Demographic Indexes for the Natural Dog Food Brand Purchaser, 2012 (dog-owning households)

Table 6-14: Overview of the Nutro Brand Dog Food Purchaser, 2012 (percent, number and index of dog-owning households)

Figure 6-6: Top Demographic Indicators for Purchasing of Nutro Dry Dog Food, 2012 (dog- or cat-owning households)

The Natural Balance Dog Food Purchaser

Table 6-15: Selected Indicators for Purchase of Natural Balance Brand Dog Food, 2012 (percent, number and index of dog-owning households)

The Nature’s Recipe Dog Food Purchaser

Table 6-16: Selected Indicators for Purchase of Nature’s Recipe Brand Dog Food, 2012 (percent, number and index of dog-owning households)

The Goodlife Recipe Pet Treat Purchaser

Table 6-17: Selected Indicators for the Purchase of Goodlife Recipe Brand Pet Treats, 2012 (percent, number and index of dog- or cat-owning households)

The Natural Cat Litter Purchaser

Table 6-18: Selected Indicators for Purchasing of Natural Brand Cat Litter, 2012 (index of cat-owning households)