Cat litter trends in the US

Slowing down

Because cat litter is a mature category drawing a very high percentage of cat owners, its advancement depends largely on growth in the number of cat-owning households, which has slowed of late. Additionally (and unlike pet food, where premiumization has been a major factor boosting dollar sales), the cat litter category lacks a steady influx of new super-premium options, and price points have remained relatively flat.

Channels

Two-thirds of cat litter sales occur through mass-market channels, including roughly a third in mass merchandisers/supercentres (such as Walmart) and a fourth in supermarkets. The pet specialty channel accounts for another fourth of the market. For the foreseeable future, the bulk of retail sales will continue to occur through mass-market channels – although internet sales, currently incremental, will begin to advance.

Modest but steady

As reported in Packaged Facts’ U.S. Pet Market Outlook 2017-2018, product sales in the pet industry, and for pet supplies in particular, picked up the pace in both 2015 and 2016. Packaged Facts estimates that retail channel pet supplies sales (excluding pet food) reached $16 billion (€13.6 billion) in 2016, with cat litter accounting for approximately 17% of that total. Packaged Facts estimates that sales of cat litter will continue along their modest but steady growth trajectory to approach $3 billion (€2.6 billion) at retail by 2021. Growth will be fuelled by the slowly expanding number of cat-owning households but also moderated by the maturity of the category. Scoopable clay formulations, used by 73% of cat litter purchasers in the US, continue to dominate the category. Even so, cat owners have a wide range of litter types to choose from, including natural and eco-friendly litter and the relatively new lightweight options. Regardless of the litter type, at the top of cat owners’ litter requirements are acceptance by cats, odour control, and ease of use.

Eco-friendly

Environmental concerns are, nonetheless, slowly becoming more of a factor in the market. Packaged Facts estimates the amount of clay produced in the US for cat litter at over 2.6 million tonnes in 2016. Though these clays do an excellent job of absorbing cat waste and odour, they are also hard on the environment, and there is also the environmental impact of the cat waste itself.

Natural and eco-friendly pet products are a key driver of overall pet market growth and have impacted every facet of the market, with special significance in the cat litter category. Given both the environmental and potential health implications of clay- and silica-based litter, cat owners are beginning to seek out more natural options that are safe for their pets and more eco-friendly. The cat litter market is therefore ripe for further inroads by natural and environmentally friendly products.

Potential

In addition, pet populations that have particular significance for sales growth in the cat litter market are the elderly cat population and rescue animals. These two groups have unique needs in terms of litter, and there is market potential in targeting cat owners with older cats or rescue cats that have lost bladder or bowel control or that have difficulty transitioning into a household environment.

Market players

Over fifty marketers compete in the cat litter category in the US market, but only a handful of the largest pet market competitors claim a significant market share. Many of the smaller marketers compete with niche products, such as natural litter or litter that addresses specific needs.

Competition in cat litter is very strong, and participants focus heavily on bolstering their own product lines through line extensions, reformulations and new product releases, all supported by chain retailer relationships and heavy consumer marketing and advertising. With cat litter being a mature category as well, it is difficult for newcomers to enter – and challenging even for established brands seeking to gain or even maintain.

Part of the competitive logjam is that few cat litter brands are marketed exclusively in the pet specialty channel, unlike the case in the pet food category, where many natural/organic and super-premium products are available only through pet specialty retailers. At the same time, major chain retailers of pet products have robust private label programmes, typically including cat litter.

Some retailers have even upgraded their private cat litter offerings to capitalize on premium trends, adding specialty formulations such as lightweight and multi-cat litter products. This lack of exclusivity helps explain why the pet specialty channel does not play as significant of a role in cat litter as in cat food or dog food, and points to an opportunity for market growth

Consumer trends

Packaged Facts consumer survey data from September 2017 show that multi-cat litter is a top feature sought out by cat litter purchasers, with 35% selecting this type of litter when making their purchase in the past 12 months. Odour control is also a key product characteristic, with 30% buying longer-lasting odour control products and 29% buying extra-strength odour control products.

Since its introduction in 2011, lightweight litter has been a major factor in new product development in the litter category, and no other technological advance has had comparable impact in the intervening years. Consumers like the reduced weight because the product is easier to handle, easier to scoop, and generally easier to manage.

In addition, a growing subset of the litter category is health monitoring litter, a product that allows owners to keep tabs on their cat’s health by examining changes in the litter box. Cats are good at concealing when they are in pain or poor health. As a result, hidden health issues can grow worse with cat owners being completely unaware. A related trend is special needs litter designed for cats with allergies or injuries, and for ageing pets that no longer accept conventional litter.

Such trends tie into a larger development across food and non-food pet product classifications in the US market. While pet food and pet medications remain at the core of the pet wellness market, pet parent concerns – and innovative products and services introduced to address those concerns – are extending well beyond.