Speeding up

Packaged Facts estimates the overall pet products and services market at $77 billion (€70 billion) in 2015, with the retail channel pet food category at $30 billion (€27 billion) in 2014, up nearly 3%. Retail non-food pet supplies are a smaller category at $15 billion (€13 billion) in sales for 2015, but that figure was up nearly 5% from the previous year. 

By retail channel, product sales are distributed across pet specialty stores (with pet specialty chains led by PetSmart and Petco cornering 24% of the market) and mass, multi category stores (with mass merchandisers led by Walmart and Target garnering 21%). As in recent years, pet food and pet supplies are experiencing much of their growth outside of the mass market, particularly in channels such as online and farm- or feed supplies stores. 

Older pets

By type of pet, dogs dominate at 68% of overall market sales, with cats at 27% and all other types of pets (including fish and birds) at only 5%. Many U.S. pet owners have older dogs and cats, an important trigger for premium and super-premium pet food purchases and for more discretionary purchases of pet supplies. As of March 2016, 36% of dog owners have a dog age 7 or older, while 37% of cat owners have a cat in that oldest age bracket, as shown by Packaged Facts national pet owner survey data. The growing population of older pets means more companion animals are suffering from age-related conditions including joint, coronary, cognitive, and immune-system-related, as well as diabetes and cancer. Senior-targeted pet products address all of these aging-related needs as well as routine daily concerns, and because of their more specialized health focus, senior products and services are typically priced well above the market average. 

Smaller dogs

U.S. per owners also continue to favour smaller dogs and dog breeds. As shown by February/March 2016 Packaged Facts, a higher percentage (53%) and growing percentage of U.S. households have small dogs (under 25 lbs.), while ownership rates for large dogs (40+ lbs.) are lower (33%) are notching downward, in keeping with trends toward urban and indoor or apartment/condo dog keeping, along with pet pampering.

Part of the familiy 

The pet parent and human-animal bond phenomenon continues to be a key catalyst for growth in the pet industry. Not surprisingly, the majority of today’s pet owners characterize their pets as family members, and those who do so tend to be willing to spend more money on their pets, both to ensure their health and wellbeing and to pamper them. Packaged Facts’ February/March 2016 consumer survey shows that 79% of dog owners and 77% of cat owners agree with the statement “I consider my dog(s) or cat(s) to be part of the family.” Not coincidentally, many of the premium and super-premium pet food products entering the market today are directly reminiscent of human fare, and address human nutritional and dietary concerns as well as culinary trends such as exotic or grass-fed meat, ancient grains, or legumes. Pet supplies, similarly, are increasingly evident in human-grade incarnations, especially for durable pet supplies that are being designed and displayed as stylish household furnishings and accessories.

Pet owners are also in step with Americans overall when it comes to increasing usage of digital tech. In fact, pet owners are even more likely to have recently used digital devices and technologies than their non-pet-owning counterparts. For example, nearly half (48%) of U.S. pet owners use mobile apps on at least a weekly basis, compared with only 36% of U.S. adults who don’t own pets.

Internet sales

Moreover, while online sales still pale in comparison to sales at physical stores, sales in the digital realm continue to grow at a rapid pace. As of 2015, Packaged Facts estimates that Internet sales account for approximately 4% of the $45 billion (€40.5 billion) U.S. market for pet products in 2015 – around $1.9 (€1.7 billion) billion at retail. Packaged Facts projects Internet sales of pet products to grow between 10% and 15% annually through 2018, thereby accounting for a significant slice of overall market growth.