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Market Trends: Natural, Organic and "Eco-Friendly" Pet Products


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Faced by rampant discounting and shrinking margins, pet product marketers are charting new courses of growth via premium products, and natural products—including organic and eco-friendly items—are at the center of the new product explosion. The number of new pet products (both food and non-food supplies) tagged “natural” or “organic” almost doubled in 2003, while the number of products making other “natural-related” claims more than doubled, and the new product surge continued through 2004, when approximately 500 new products with natural, organic, or natural-related tags appeared. Altogether, Packaged Facts estimates that natural and organic food and non-food supplies for pets racked up sales of approximately $527 million in 2004, based on double-digit annual sales gains that show no sign of abating, such that sales are expected to top the $1 billion mark by 2009. Key market drivers include the cross-over of much larger companies into the field, product proliferation at the mass-market level, “natural” as a competitive appeal by independent pet specialty retailers, and the growing emphasis on natural and organic pet products by leading health supermarket chains like Whole Foods, as well as by PETsMART and PETCO.

This all-new report from Packaged Facts examines the most dynamic area of the domestic pet products market, based on comprehensive secondary research as well as primary research, including interviews with industry insiders, attendance at industry trade shows, and an on-site examination of mass-market outlets and pet specialty shops. The U.S. Market for Natural Pet Products explores key competitive trends in three categories—natural pet food (including organic and raw pet food), natural/alternative cat litter, and natural pet health products (including grooming products, supplements/nutraceuticals, OTC medications, odor/stain-control products, and assorted other health-related products—making cross-category comparisons not available elsewhere. For each category, the report charts historical sales and projections; analyzes marketing and new product trends driving sales of natural pet products; and examines cross-tabulated Simmons Market Research Bureau data on multiple pet owner shopping trends in pet specialty vs. mass-market outlets.

Introducing Market Trends
Market Trends is the latest product line from Packaged Facts. These timely, compact reports offer insight and analysis into new product trends, demographic shifts, and consumer behaviors that affect the food, beverage and consumer goods and services industries.

Report Methodology
The information in Market Trends: The U.S. Market for Natural Pet Products was obtained from both primary and secondary research. Primary research entailed attendance at the 2004 APPMA (American Pet Products Manufacturers Association) show, an on-site examination of the retail milieu including veterinary clinics, grooming shops, and pet specialty shops; and interviews and informal discussions with trade associations and magazines. Secondary research included extensive Internet canvassing and research- and data-gathering from relevant trade, business, and government sources; company reports including annual reports, 10Ks, and other financial releases from public companies; company profiles in trade and consumer publications; and other reports by Packaged Facts, which has been reporting on pet-related markets for nearly two decades. Our market size estimates are based on trade association membership statistics and consumer surveys, U.S. Bureau of Labor Statistics Consumer Expenditure Surveys, interviews with the above-noted industry participants, market size estimates appearing in the trade press, and reported revenues of major service providers. Our analysis of consumer demographics derives primarily from the Simmons Market Research Bureau spring 2004 consumer survey.

What You’ll Get in this Report
Market Trends: The U.S. Market for Natural Pet Productsoffers unique perspective on this burgeoning market. No other market research report provides the analysis and trends coverage that this report offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.


Chapter 1: Executive Summary

  • Scope and Methodology
    • Scope of Report
      • Natural vs. Organic

    • Report Methodology

  • Market Overview
    • Market to Top $1 Billion by 2009
    • Figure 1-1: U.S. Retail Sales of Natural Pet Products, 2000-2009 (in millions of dollars)
    • Overall Pet Market Trends Mostly Favorable
    • Natural Products Top of Mind for Pet Store Shoppers
    • The New Product Surge
    • Expansion into Mass-Market Outlets
    • Competitive Overview
    • A Natural Connection: Multiple Pet Owners and Pet Specialty Store Shoppers

  • Natural Pet Food
    • Retail Sales Estimated at $375 Million in 2004
    • Cross-Over Marketers

  • Natural/Alternative Litter
    • Retail Sales to Reach $255 Million in 2009
    • Marketer Overview

  • Natural Pet Health Products
    • Retail Sales Projected to More Than Double
    • Figure 1-2: U.S. Retail Sales of Natural Pet Health Products, 2004 vs. 2009 (in millions of dollars)
    • The New NASC Guidelines
    • Marketer Overview

Chapter 2: Market Overview

  • Market Trends
    • Three Product Categories
    • Market to Top $1 Billion by 2009
    • Food Accounts for Most of Market
    • Table 2-1: U.S. Retail Sales of Natural Pet Products, 2000-2009 (in millions of dollars)
    • Figure 2-1: Share of U.S. Retail Sales of Natural Pet Products by Category: 2000, 2004, 2009 (percent)

  • Market Drivers
    • Natural/Organic Sales Growth Far Above Average
      • Natural Products Top of Mind for Pet Store Shoppers
      • Holistic Veterinary Practitioners a Key Market Component

    • The New Product Surge
    • Figure 2-2: Number of Natural, Organic, or “Natural-Related” New Pet Products, 2000-2004
    • Table 2-2: Number of New Pet Products by “Natural-Related” Package Tag, 2000-2004
    • The Pet Specialty Store Push
    • On the Web
    • Table 2-3: Use/Influence of Internet: Cat and Dog Owners vs. All U.S. Adults, 2004 (percent)
    • Expansion into Mass-Market Outlets
    • Overall Pet Market Trends Mostly Favorable
      • The Aging Pet Population
      • Pet Pampering

    • Table 2-4: Pets as Family Members, 2003 and 2004 (percent)
    • Table 2-5: Humans and Pet Well-Being, 2003 and 2004 (percent)
      • The Growing Pet Population
      • Favorable Human Demographics

    • Competitive Overview
      • Crossing Category Lines
      • The PETsMART/PETCO Factor
      • The Natural Supermarket Factor
      • The E-tailing Contingent
      • Table 2-6: Selected E-tailers of Natural Pet Products, 2004

    • Consumer Trends
      • Methodology and Data Sources
      • Overall Pet Ownership Rates at 33% of U.S. Households for Dogs, 25% for Cats
      • Table 2-7: Household Penetration Rates for Selected Pet-Owning Classifications, 2000 vs. 2004 (U.S. adults)
      • Table 2-8: Household Populations for Selected Pet-Owning Classifications, 2000 vs. 2004 (U.S. adults)
      • A Natural Connection: Multiple Pet Owners and Pet Specialty Store Shoppers
      • Figure 2-3: Shopping in Specialty Pet Supply Outlets: By Number of Cats or Dogs Owned, 2004 (U.S. adult pet owners)
      • Table 2-9: Percentage of Pet Owners Who Shop for Pet Supplies in Specialty vs. Mass-Market Outlets: By Cats or Dogs Owned, 2004 (U.S. adult pet owners) Table 2-10: Number of Pet Owners Who Shop for Pet Supplies Overall and in Specialty vs. Mass-Market Outlets: By Number of Cats or Dogs Owned, 2004 (U.S. adult pet owners)
      • Table 2-11: Pet Owner Indices for Shopping for Pet Supplies in Specialty vs. Mass-Market Outlets: By Number of Cats or Dogs Owned, 2004 (U.S. adult pet owners)
      • An Upscale Skew for Pet Specialty Store Shoppers
      • The Quintessential Purchaser of Natural Pet Products
      • Table 2-12: Percentage of Pet Owners Who Shop in Specialty vs. Mass Pet Supply Outlets: By Demographic Trait, 2004 (U.S. adult pet owners)5
      • Table 2-13: Indices for Shopping in Specialty vs. Mass Pet Supply Outlets: By Demographic Trait, 2004 (U.S. adult pet owners)
      • Table 2-14: Top Demographic Groups by Total Number of Specialty Pet Supply Shoppers, 2004 (U.S. adult pet owners)
      • Table 2-15: Demographic Characteristics Favoring Purchasing of Natural Pet Products, 2004 (U.S. adults)

Chapter 3: Natural and Organic Pet Food

  • Market Trends
    • Category Definition: Natural and Organic
      • Defining “Natural”
      • Defining “Organic”
      • Natural vs. Organic

    • Retail Sales Estimated at $375 Million in 2004
    • Table 3-1: U.S. Retail Sales of Natural Pet Food, 2000-2004 (in millions of dollars)
    • Table 3-2: IRI-Tracked Sales of Natural Pet Food, 2000-2004 (in thousands of dollars)
    • Market Drivers and Drawbacks
    • Retail Sales to Reach $754 Million by 2009
    • Table 3-3: Projected U.S. Retail Sales of Natural Pet Food, 2004-2009 (in millions of dollars)

  • Competitive Trends
    • Marketer Overview
    • Cross-Over Marketers
    • Del Monte
      • Hill’s Pet Nutrition (Science Diet)
      • Newman’s Own

    • Mass-Market Underdeveloped
    • Table 3-4: IRI-Tracked Dollar Sales of Natural Pet Food, 2000-2004 (in dollars)
    • Advertising Trends
    • New Product Trends: Human Themes Apparent Across the Board
    • Figure 3-1: Number of New Dog Food Products by Natural/Organic or “Natural-Related” Package Tag, 2000-2004
    • Figure 3-2: Number of New Cat Food Products by Natural/Organic or “Natural-Related” Package Tag, 2000-2004
    • Table 3-5: Dog and Cat Food New Product Selling Points by Package Tags, 2000-2004
      • Functional Appeals
      • Snack, Holiday, and Kosher Appeals
      • Gourmet Appeal

    • Going Organic
    • Figure 3-3: U.S. Retail Sales of Organic Pet Food, 2000-2004 (in millions of dollars)
      • Natura Pet Products
      • Castor & Pollux Pet Works

    • Raw and Homemade Pet Foods
      • The Ups
      • The Downs
      • The Market
      • Increased Advertising
      • New Product Trends
      • In-Store Merchandising

    • Natural Trends in Non-Dog/Cat Food
    • Looking Ahead
    • Table 3-6: Selected Marketers and Brands of Natural Pet Food, 2005

Chapter 4: Natural/Alternative Litter

  • Market Trends
    • Category Definition: Natural and Alternative
    • Retail Sales Estimated at $107 Million in 2004
    • Table 4-1: U.S. Retail Sales of Natural Cat Litter, 2000-2004 (in millions of dollars)
    • Table 4-2: IRI-Tracked Sales of Natural Cat Litter, 2000-2004 (in millions of dollars)
    • Retail Sales to More Tha Double by 2009
    • Table 4-3: Projected U.S. Retail Sales of Natural Cat Litter, 2004-2009 (in millions of dollars)

  • Competitive Trends
    • Marketer Overview
    • The Mass-Market Leaders
    • Figure 4-1: Natural Cat Litter Brands by Share of IRI-Tracked Sales, 2003 vs. 2004 (percent)
    • Table 4-4: IRI-Tracked Dollar Sales of Natural Cat Litter, 2003 vs. 2004 (percent)
    • Product Positioning
      • Eco-Friendliness
      • Safety

    • Mass-Market Expansion
    • Distribution Exclusivity
    • Trade Advertising and Support
      • The Veterinary Connection

    • Consumer Advertising Trends: Up With Swheat Scoop
    • New Product Trends
      • Small Animal Litter a Key Growth Area
      • Going Scoopable
      • Citrus Scents
      • Litter Boxes

    • Looking Ahead
    • Table 4-5: Selected Marketers and Brands of Natural Litter, 2005

Chapter 5: Natural Pet Health Products

  • Market Trends
    • Category Definition
      • Natural Pet Grooming Products
      • Natural Pet Supplements and Nutraceuticals

    • The New NASC Guidelines
    • Favorable Usage Demographics
    • Retail Sales Estimates and Projections
    • Figure 5-1: U.S. Retail Sales of Natural Pet Health Products, 2004 vs. 2009 (in millions of dollars)

  • Competitive Trends
    • Smaller Marketers, Limited Means
    • Cross-Over Marketers
      • Nutraceutical Corp.
      • Hartz Mountain
      • Eight in One Pet Products
      • Earth’s Balance

    • Multi-Category Marketers
    • Category Specialists
    • Nature’s Answer
      • Other Specialists
      • Table 5-1: Selected Marketers and Brands of Natural Pet Health Products, 2005

  • Marketing Trends
  • Wooing the Trade
    • New Product Trends
      • Botanical-Based Pest-Control Shampoos
      • Aromatherapy and Spa Products
      • Supplement Segmentation by Health Condition

    • Looking Ahead
    • Table 5-2: Natural Pet Health Products: Selected New Product Introductions, 2004-2005

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