A recent analysis of factors influencing pet food brands by market research firm NielsenIQ confirmed that price increases would drive the industry this year.
The 2023 Pet Trends for Pet Food and Pet Supply Brands notes that pet food prices increased by an average of $0.30 (€0.28). “This is the largest jump seen in the past 5 years and is concerning for both brands and consumers alike.”
The median spending per item per store per week almost crossed $20 (€18). The report highlights that the average expenditure on pet food in the US increased by 21.4%, which diminished the ability of pet parents to buy a broader variety of products.
While sales are increasing, the reverse is happening for units. As a result of inflation, pet brands are reducing their offering mix to “keep their margins and avoid excess inventory issues.”
The report highlights that in 2022, the total amount of pet food universal product codes (UPCs) sold in the US slumped by 2.4%. It is the first time that assortment in the category fell in more than 4 years.
NielsenIQ points out that assortment optimization is becoming “more important than ever,” mainly for new and emerging brands.
“Pet brands need to ensure that they have reliable data and analysis tools to make informed decisions about their product mix.”
Omnichannel is also a critical trend to watch this year, according to the report.
As many as 22% of American buyers now schedule an in-store shopping visit combined with an online order, according to the report. Omnichannel shoppers will likely search by product attribute rather than label or brand.
The market research firm highlights the increased demand for high-quality pet supplies.
NielsenIQ claims that by the end of 2022, more than 110 million homes were purchasing pet products with a typical value per buyer of $680 (€632), a 10.7% increase over 2021.
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