COVID-19 fuels growth in US pet supplements market

Growth surge

As well as triggering a pet adoption boom, the stay-at-home/work-from-home COVID-19 era has heightened owners’ concerns about pet wellness. As a result, pet supplement sales in the US surged by 21% in 2020 to nearly $800 million (€661 million), following several years of growth in the 3% to 5% range.

Dog owners traditionally purchase the majority of pet supplements, spending more than four times as much as cat owners. However, new developments in delivery options and an increasing understanding of the role of nutrition in overall feline wellness have increased cat owner receptiveness to pet supplements such as cat treats.

COVID-19 has increased owners’ concerns

A survey by Packaged Facts in November/December 2020 shows that 41% of pet owners are paying closer attention to pet health and wellness because of COVID-19. The top concerns include anxiety (21%) and immunity (19%). Additionally, 14% of pet owners have changed the healthcare products they buy for their pets and 12% have begun giving their pets supplements since COVID-19.

Overlap between human and pet supplement markets

Among US adults overall, 67% take supplements. Among pet supplement buyers, however, 87% of dog owners and 86% of cat owners take human supplements themselves. This illustrates a clear overlap between the human supplement and the pet supplement markets. Pet supplement marketers are therefore well advised to closely follow product and ingredient trends in human supplements. Evidence of this can be seen in the earlier trend towards omega-3 or chondroprotectives for joint health as well as the current CBD craze. Purchase rates for CBD pet supplements run twice as high among pet owners who use CBD supplements themselves.

Market competition

Pet supplement marketers compete along two major fronts: against established companies fielding mainstream types of supplements in conventional channels, and against fast-moving and typically e-commerce-based entrepreneurs marketing CBD and hemp products. Buoyed by CBD product sales success, these newcomers are broadening out from CBD products to more mainstream formulations and ingredients.

Several of the major pet market mergers and acquisitions that took place in 2019 and 2020 involved pet supplements. In addition, the pet supplements market has seen a peak in expansion-related activity, with marketers entering into new partnerships, expanding into new retail channels and revamping brand lines. Just as in the rest of the pet products market, e-commerce has surged and channel lines have blurred. The current survey data indicates that 40% of pet supplement purchases occur via online retailers, 34% on marketer/brand websites and 24% via smartphone apps.