Double-digit pet treats sales spurred by pandemic

Sales growth in treats has consistently outpaced that of the more mature pet food market and pet supplies in general, and this growth has accelerated with the COVID-19 pandemic. In addition to the amount of time spent with their animals, the increased focus of parents on health and wellness has resulted in more interest in functional treats.

Shift to health and online
Unlike much of the rest of the pet market, growth in treats sales has been hampered by the advance in Internet sales. Typically, treats are an impulse purchase made when pet owners are shopping for other items. Online shopping does not lend itself to this kind of ‘see it, buy it’ behavior to the degree that in-store shopping does. But, as with so many other items previously purchased in a brick-and-mortar setting, treats have followed the pandemic-driven shift to online sales.

Consumer market research company Packaged Facts estimates that US retail sales of dog and cat treats approached $10B (€9B) in 2021, after 2 years of double- digit increases. By product type, indulgent treats make up the largest share of the market at 36%, followed closely by rawhide and long-lasting chews at 32%. Even so, the pandemic-related focus on health and wellness has driven interest in both functional treats (17%) and dental treats (15%).

Cat treats – new market opportunities
Although dogs make up the bulk of pet treat sales with an 80% market share, the largest growth percentages have come from the cat side of the aisle. Historically, in the US pet market, cats have too frequently been treated as ‘second-class citizens’. This resulted in fewer product offerings and less focus on trend-influenced fare, reflecting the lower population of cats in the US and lower spend-per-pet ratio. However, the tables appear to be turning, with cat treat sales outpacing that of dog treats every year since 2016.

The new opportunities in cat treats and potential higher percentage gains are to be found in the premium and super-premium trends powering dog treats in prior years. As more marketers introduce cat treats with higher-quality ingredients and higher prices, interest in cat treats will grow. It is expected that future sales will maintain healthy momentum.

In the pet industry overall, a uniform focus on pet health has long spearheaded the most important marketing and product development thrusts, driven by pet humanization and pet parents’ heavy involvement in pet care. This increasingly translates into pet owners insistence on – and willingness to pay for – quality products offering demonstrable health benefits on par with those they seek for themselves.

Health and sustainability concerns in post- pandemic times
Packaged Facts’ January 2022 Survey of Pet Owners shows that 38% of dog owners and 35% of cat owners are paying closer attention to their pet’s health and wellness because of COVID-19.

In the US pet treats market, successful products will provide demonstrable health and wellness benefits, such as those with higher-quality ingredients, functional ingredients, or the absence of ingredients perceived to be undesirable, such as artificial flavors, colors and preservatives. Weight control and age- related benefits also fit under the health and wellness umbrella and harbor much additional potential in the treats arena, including the targeting of numerous specific health conditions.

In addition, alternative proteins are ideal for pets with food allergies and intolerances and are frequently a more sustainable option than traditional chicken- and beef based products. Plant-based products have the added advantage of a strong human-food market trend. Packaged Facts survey data from August and September 2021 show a high level of interest (54%) among pet owners in the use of plant-based proteins in pet treats. The long-lasting chew category, in particular, has seen an influx of new products relying on alternatives to rawhide, including plant-based.

Transparency in sourcing
To help their products stand out, progressive marketers are also offering more transparency in their sourcing descriptions, providing a level of detail that would have been unusual even 10 years ago. Locally sourced products are becoming more common among treat selections, as are responsibly sourced offerings made with ingredients guaranteed to adhere to a range of strict guidelines, such as ‘Certified Humane’ and ‘Marine Stewardship Council’-certified.