How retailers can capitalize on the growing demand for pet food

With pet food sales projected to reach $88 billion (€75.7B) in the US in 2025 according to estimates from the American Pet Products Association (APPA), there are big opportunities for retailers.

A new report by the Food Industry Association (FMI), the national trade association for the food industry in the US, notes that retailers have a good opportunity to profit if they use pet aisles and dedicated spaces to meet the needs of pets and their owners.

“To capitalize on shoppers making a special trip for pet food purchases, create destination zones in-store that offer convenience and entertainment,” says Tom Duffy, FMI’s Senior Advisor of Industry Relations. 

The industry body also recommends using cross-merchandising with complementary items, “such as positioning treats near grooming supplies.”

Planning purchases ahead 

Nearly 8 out of 10 (79%) of shoppers plan their pet purchases ahead, according to Duffy. This is an opportunity for retailers to “showcase offerings in mailers, apps, websites, social media and in-store signage,” he adds. 

The association advises retailers to make pet products easy to find and shop by creating a clear category, allocating space based on sales potential, aligning assortments with shopper needs, placing related items together, using signage to attract shoppers and maintaining consistent promotions and merchandising.

Omnichannel opportunity 

According to FMI’s report, shoppers tend to spend more when they have omnichannel fulfillment options.

Data insights suggest that 20% of shoppers are buying more pet products online, while 31% purchase both online and in-store equally.

“Retailers that offer seamless transitions between digital and physical channels, such as online ordering with in-store pickup or subscription services, can capture more share,” Duffy explains.

When buying online, customers’ top reasons include ease of access, best value and high quality, affordability and a variety of choices.