All in the Family

The ‘pets as people’ approach fuels product innovation.

“Retailing pet products in the United States has never been more competitive

That proclamation, from Packaged Facts’ U. S. Pet Market Outlook, released in June 2013, illustrates both the challenge and the opportunity that lie in stocking pet food and supplies.

According to that report, U.S. pet industry sales totaled $59.12 billion in 2012, up from $56.67 billion in 2011. A subsequent report, Pet Food in the U.S., 10th Edition, released in July 2013, showed U.S. retail sales of pet food totaled $20 billion in 2012, recovering from a recessionary slump with a 4.5 percent increase over 2011 sales.

“Considering pet food sales through all outlets, dog food accounts for approximately three-fifths (62 percent) of sales…followed by cat food, at about one-third (33 percent), and other pet food, at 5 percent,” Pet Food in the U.S. reveals.

Trends Driving Sales

The upswing in sales of pet food and supplies comes courtesy of two trends.

First is what Rockville, Md.-based Packaged Facts calls “the humanization trend,” which the company describes as “a natural expression of the ‘pets as family’ trend, whereby pet owners treat their pets like children and are highly receptive to products similar to the ones they use for themselves.”

That has spurred development of products reminiscent of what people eat and wear: supplements like glucosamine and omega-3s, human-grade foods containing superfruits or touted as gluten-free, and designer pet supplies such as Burberry apparel and Simmons Beautyrest pet beds. Such products, Packaged Facts says, “are no doubt appealing to the pet owner as much as the pet.”

Examples of products with that appeal:

Freshpet (www.freshpet.com) food is made with locally farmed fresh meats, poultry and vegetables cooked in small batches, and then immediately refrigerated to preserve key nutrients. According to Secaucus, NJ.-based Freshpet, these “nutritious meals, designed specifically for pets and their unique dietary needs,” were born of the question, “If our families eat healthier, fresher foods, then why shouldn’t our dogs and cats?”

Hartz Precision Nutition Adult Dog Multivitamins (www.hartz.com) offer fiber for digestive support, antioxidant vitamins C and E to support immunity, and taurine for heart and eye health.

Milk-Bone Brushing Chews (www.MilkBone.com) is a new dog dental treat “designed to revolutionize pet parents’ ability to care for their dog’s oral health at home.” When fed to dogs daily, the chews “are clinically proven to be as effective as brushing a dog’s teeth twice per week, based on reduction of tartar and halitosis, and have earned the Veterinary Oral Health Council’s Seal of Acceptance for the product’s effectiveness in retarding calculus accumulation.”

PetRageous Designs (www.petrageousdesigns.com) clothing line includes coats, sweaters, hoodies, pajamas, sweater dresses and nonskid socks, all made of easy-care fabrics. The Burlington, Mass.-based company even makes a “comfortable fit” possible by offering an online measuring guide.

The second, related trend is concern about overweight pets.

According to the Association for Pet Obesity Prevention (APOP), pet obesity — which leads to diabetes, joint problems and other health issues — is the No. 1 health threat to pets. In its sixth annual National Pet Obesity Awareness Day Survey, conducted in October and December 2012, Calabash, N.C.-based APOP found that 53 percent of dogs and 58 percent of cats are overweight or obese, Packaged Facts reports.

Purina Dog Chow Light & Healthy (dogchow.com/lightandhealthy), which hit stores in July 2013, is an example of food formulated to help dogs maintain an ideal weight “without giving up portion size or, more importantly, taste.” The product, which has 20 percent fewer calories and less fat than Purina Dog Chow Complete & Balanced, also helps dogs maintain lean muscle mass and supports immune health.

The Supermarket Advantage

With so many specialty shops dotting the retail landscape, grocery stores might question the wisdom of boosting their inventory of pet products.

Industry data, however, shows consumers’ shopping habits open a door of opportunity for supermarket retailers.

Looking at household purchasing of pet food and pet supplies by outlet type, pet stores (46 percent) wrested the lead from supermarkets (40 percent) from 2008 through 2012, although supermarkets (31 percent) retained their lead over pet stores (30 percent) by the share who shop for pet products solely in one channel, according to Packaged Facts’ Pet Food in the U.S., 10th Edition report.

“All the leading channels for pet products, however, are losing their exclusive hold on pet product shoppers, given that the percentage of pet owners who shop miscellaneous ‘other’ channels for pet products has jumped to 35 percent, with 20 percent of pet owners only shopping exclusively at these ‘other’ outlets, which include warehouse clubs, drug stores and convenience stores, as well as veterinarians,” that report says. In addition, Packaged Facts’ Pet Market Outlook report noted that 52 percent of shoppers seek deals on pet products by visiting a variety of stores.

Supermarkets can capitalize on that willingness to shop around by increasing their inventory of ontrend products and offering promotions to attract pet owners.

“Even with the declines felt by supermarkets and discount stores, these outlets maintain a considerable lead in terms of channel loyalty,” Packaged Facts concludes. “Consumers visit these outlets on a frequent basis to meet a wide range of shopping needs, and it’s hard to beat the convenience of picking up the pet supplies along with the groceries and other household items.”

“If our families eat healthier, fresher foods, then why shouldn’t our dogs and cats?”
—Freshpet