The pet toy category has been booming since 2019, but now faces new challenges as pet parents look for toys as added value to the daily life of their pets.
In line with other pet product categories, pet toys have enjoyed an unexpected boom in popularity over the past 2 years, as the world’s pet population has soared during the pandemic. But unlike food and treats, toy manufacturers could face potential headwinds in the years to come, as pet parents become increasingly choosy.
Spending less?
In addition, according to the 2021-2022 National Pet Owners Survey by the American Pet Products Association, one-third of pet owners plan to reduce their spending on pet supplies other than food in the coming months.
Whether they will actually do so remains the question: a downward trend has yet to manifest itself. But, some industry insiders believe that hesitancy amongst pet parents to purchase toys could be related to growing dissatisfaction with conventional toy options.
In a market driven by increased concern about health and safety – and a desire for social media likes – consumers are tired of the same old chews and ropes. Today’s pet parents, experts believe, are in search of unique, high-quality, sustainable products.
Premium toys
According to Sneha Varghese, senior research consultant at Future Market Insights, pet parents looking for new ways to spoil their pets are increasingly looking for premium pet toys made with higher-quality materials.
Toys marketed as ‘premium’ include those made with more durable materials that stand up to medium and aggressive chewing dogs, as well as a variety of products made with natural materials. Premium also comes with an increased brand awareness among pet parents.
“Pet parents look for products that are safe and made from quality materials. They are taking the time to really get to know brands and want to make sure they are getting the best for their pets,” remarks Lisa Hisamune, director of sales at P.L.A.Y. Pet Lifestyle and You, designer of stylish and eco-friendly pet bedding and toys.
Brand awareness has also shifted as a result of pet parents increasingly purchasing toys online. In fact, according to the 2021-2022 National Pet Owners Survey almost 70% of pet toy purchases were made online in 2020.
Smart toys & social media
Millennials’ twin loves – pets and technology – have boosted the development of AI-powered smart toys for pets. Such toys offer a solution for post-pandemic separation anxiety, as pet parents go back to work and leave their furry companions, who have become used to all-day entertainment, on their own.
However, this trend is facing some unexpected challenges. A worldwide shortage of materials and rising manufacturing costs are impacting manufacturers. Recently, Felik, a smart toys manufacturer headquartered in Seattle, announced that it planned to discontinue production.
But, besides their increasing interest in smart toys, pet parents are also spending more on lower-tech alternatives, including interactive toys, puzzle games and olfactive training toys, according to Daniel Lizarraga, CEO of Gloria Pets in Spain. “Nowadays we like to have fun with our dogs, and we like to share funny pictures or videos with our friends of our dogs with funny toys.”
In fact, social media is impacting the pet toys category in all aspects. Even with plush toys, consumers appear to love fun designs that humanize their pets and make for great Instagram photos. Whether it’s a plush toy shaped like a popular soda brand or food item, or even everyday items like cameras, pet parents are keen on taking photos of their pets and sharing them on social media.
Sustainability & health
At the same time, concern about the health of both pets and the environment has spilled over into pet toy production as well. Consumer demand for more sustainable products has led to a proliferation of toys marketed as being chemical-free, non-toxic, recycled and biodegradable.
“What used to be a niche market, is now gaining traction as consumers’ habits are evolving focused on sustainable alternatives,” says Federica Gabasio, purchasing manager for Farm Company, an Italian- based company that began distributing eco-friendly pet toys over 10 years ago.
The increasing demand for sustainable products has encouraged pet toy manufacturers to use natural and sustainable materials such as straw rope, cotton, wood, natural latex, as well as fur and leather. It may even well be that plastics in pet toys are on their way out. “Plastic- free toys manufactured using only natural resources and local manufacturers are a global trend,” highlights Lizarraga.
Hiccups in the supply chain
However, as with smart toys, manufacturers looking to source local, sustainable materials for their products, are also facing hiccups in the supply chain. “Right now, it is still quite difficult to get certified recycled materials in large quantities,” Anke Schüschke, head of product management and quality management at Texas-based TRIXIE Pet Products points out. “Suppliers have to change their way of working in the future.”
Sustainable pet garments
Nevertheless, when enough fitting materials can be found, today’s consumers are extremely positive about the product offering. The willingness of pet parents to purchase sustainable toys and accessories that come at a higher price, has enabled companies like Farm Company to start expanding into accessories such as collars and leashes.
“We are now working on the pet garments section to provide sustainable and environmentally friendly products in this category as well,” Gabasio concludes. “Our goal is not geared towards expanding our product offering, but to provide a range of sustainable alternatives for pet parents to choose from. No matter if they are buying a snack or a leash.”
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