Pet
Pet Food and Pet Care Products

Pet Food And Pet Care Products in the US

USA

Euromonitor International's Pet Food And Pet Care Products in the US market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Tables: 66  |  Publication date: Oct 2008
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Product coverage

Dog and cat food; Dog and cat food by price platform (excl treats and mixers); Dog and cat food by price platform (incl treats and mixers); Dog and cat food by type (excl treats and mixers); Other pet food; Pet care products

Executive summary

Aftershocks of pet food recall continue to affect manufacturers

The pet food recall of 2007 sent shockwaves throughout the pet food industry. It affected a number of manufacturers and a wide variety of brands ranging in price from economy to super premium. The principal culprit is believed to be melamine found in wheat gluten in pet food that caused kidney failure in some pets and eventual death. The recall dominated the news during 2007 although headlines continued to rumble on and in 2008 the epidemic continued as pets fed with Nutro products became sick. In June 2008 the FDA cited one of Petco’s plants that produced the food. Perhaps the largest dent in consumer confidence came through a recall of organic foods that had also caused pets to become ill. Although the FDA has not investigated or substantiated any claims that these products are as dangerous as those recalled in 2007, the psychological impact of the news put added strain on an already wary consumer base. Even although these manufacturers quickly responded to remove the products and to address consumer inquiries in order to stave off panic, the incidents raised more questions regarding the overall quality of pet food and eroded consumer trust which manufacturers had spent years building.

Premium brands avoid much of the fallout from the recall

Economy brands of dog food suffer from the reluctance of owners to feed their pets with less expensive varieties of food and has little to do with the product recall in 2007. In fact, that event only intensified owners’ aversion to these brands. In the wake of the recall, it became clear that premium brands within the wet pet food sectors did not suffer the same problems that plagued cheaper products. This is not to say, of course, that manufacturers offer economy brands because they are able to produce them with decreased governmental intervention. Several premium brands were also involved with the recall. For instance, Iams, Nutro, and Eukanuba were all included on the list of affected brands. Even although these were versions of premium pet food, they too were named in the recall. Eukanuba consequently experienced a one percentage point decline in value sales, although this was a minor development compared to the effects on economy brands. One of these, Alpo’s Come ‘N’ Get It, declined by thirteen percentage points in value sales, and it is a dry brand. Many other brands also experienced a similar fate. Although consumers have historically always favoured premium brands, manufacturers were not aware at the time that the recall would not affect them as adversely as economy brands. Standard premium wet dog food increased dramatically since 2003, with further strong growth likely through to 2013.

Manufacturers struggle to find new strategies in wake of the recall

The gambit of major manufacturers to acquire new brands did not help with the recall’s impact within the industry. For instance, Del Monte’s 2006 purchase of Meow Mix looked as if it would invigorate the company’s troubled pet care range. However, although the manufacturer did see its value share increase by two percentage points that year, sales of its brands have since recorded the same pattern as they had before the acquisition. Although it saw a minor decline in 2007, this is in stark contrast with the jump it had enjoyed the year before. Other manufacturers have attempted similar ploys, and recorded similar results. Most recently, organic foods have attracted the attention of manufacturers. This strategy has seen short-term success, but it is likely that there will be another series of strategies that companies with use to reinvigorate their brands.

Nestlé Purina dominates the pet food industry

The popularity of Nestlé Purina enabled it to endure the aftermath of the product recall. With its popular brands in a position of prominence in the largest sectors, it controlled the marketplace’s competitive environment. In the all-important dog and cat food sector, Purina had a value share of 29%, which was more than twice that of its nearest competitor.

Rising prominence of other distribution channels

The recall not only affected manufacturers, but their respective distributors as well. Menu Foods provided many outlets with store brands offered by retailers such as Wal-Mart, Kroger, and Safeway. As a result, the recall included many store brands in addition to the many brands that the store offers for sale. Although these channels have not seen their market share decline, the other, smaller outlets have recorded an increase in their distribution figures. Over the short term, at least, these smaller retailers will become more popular and see a steadily increasing number of sales.

Table of contents

PET FOOD AND PET CARE PRODUCTS IN THE US : MARKET INSIGHT

EXECUTIVE SUMMARY

Aftershocks of pet food recall continue to affect manufacturers

Premium brands avoid much of the fallout from the recall

Manufacturers struggle to find new strategies in wake of the recall

Nestlé Purina dominates the pet food industry

Rising prominence of other distribution channels

KEY TRENDS AND DEVELOPMENTS

Recall woes continue

Heightened prominence of pet power

Growing pet population takes food market with it

Private label products also feel the effects of the product recall

New distribution channels continue to open

MARKET INDICATORS

Table 1 Pet Populations 2003-2008

MARKET DATA

Table 2 Sales of Pet Food and Pet Care Products by Sector: Volume 2003-2008

Table 3 Sales of Pet Food and Pet Care Products by Sector: Value 2003-2008

Table 4 Sales of Pet Food and Pet Care Products by Sector: % Volume Growth 2003-2008

Table 5 Sales of Pet Food and Pet Care Products by Sector: % Value Growth 2003-2008

Table 6 Dog and Cat Food Company Shares 2003-2007

Table 7 Dog and Cat Food Brand Shares 2004-2007

Table 8 Penetration of Private Label by Sector 2003-2007

Table 9 Sales of Pet Food and Pet Care Products by Sector and Distribution Format: % Analysis 2008

Table 10 Sales of Dog and Cat Food by Distribution Format: % Analysis 2008

Table 11 Forecast Sales of Pet Food and Pet Care Products by Sector: Volume 2008-2013

Table 12 Forecast Sales of Pet Food and Pet Care Products by Sector: Value 2008-2013

Table 13 Forecast Sales of Pet Food and Pet Care Products by Sector: % Volume Growth 2008-2013

Table 14 Forecast Sales of Pet Food and Pet Care Products by Sector: % Value Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

LOCAL COMPANY PROFILES - USA

CLOROX CO, THE - PET FOOD AND PET CARE PRODUCTS - USA

STRATEGIC DIRECTION

KEY FACTS

Summary 2 The Clorox Co: Key Facts

Summary 3 The Clorox Co: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 4 The Clorox Co: Competitive Position 2007

HARTZ MOUNTAIN CORP - PET FOOD AND PET CARE PRODUCTS - USA

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Hartz Mountain Corp: Key Facts

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 6 Hartz Mountain Corp: Competitive Position 2006

HILL'S PET NUTRITION INC - PET FOOD AND PET CARE PRODUCTS - USA

STRATEGIC DIRECTION

KEY FACTS

Summary 7 Hill’s Pet Nutrition Inc: Key Facts

Summary 8 Hill’s Pet Nutrition Inc: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 9 Hill’s Pet Nutrition Inc: Competitive Position 2007

IAMS CO, THE - PET FOOD AND PET CARE PRODUCTS - USA

STRATEGIC DIRECTION

KEY FACTS

Summary 10 The Iams Co: Key Facts

COMPANY BACKGROUND

PRODUCTION

Summary 11 The Iams Co: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 12 The Iams Co: Competitive Position 2007

MERIAL LTD - PET FOOD AND PET CARE PRODUCTS - USA

STRATEGIC DIRECTION

KEY FACTS

Summary 13 Merial Ltd: Key Facts

Summary 14 Merial Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 15 Merial Ltd: Competitive Position 2007

DOG FOOD IN THE US

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR INDICATORS

Table 15 Dog Owning Households: % Analysis 2003-2008

Table 16 Dog Population 2003-2008

Table 17 Dog Food Prepared vs Non-prepared Gap: % Analysis 2003-2008

SECTOR DATA

Table 18 Sales of Dog Food by Type: Value 2003-2008

Table 19 Sales of Dog Food by Type: % Value Growth 2003-2008

Table 20 Sales of Premium Dog Food: Value 2003-2008

Table 21 Dog Food Company Shares 2003-2007

Table 22 Dog Food Brand Shares 2004-2007

Table 23 Dog Treats Brand Shares 2004-2007

Table 24 Forecast Sales of Dog Food by Type: Value 2008-2013

Table 25 Forecast Sales of Dog Food by Type: % Value Growth 2008-2013

CAT FOOD IN THE US

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR INDICATORS

Table 26 Cat Owning Households: % Analysis 2003-2008

Table 27 Cat Population 2003-2008

Table 28 Cat Food Prepared vs Non-prepared Gap: % Analysis 2003-2008

SECTOR DATA

Table 29 Sales of Cat Food by Type: Value 2003-2008

Table 30 Sales of Cat Food by Type: % Value Growth 2003-2008

Table 31 Sales of Premium Cat Food: Value 2003-2008

Table 32 Cat Food Company Shares 2003-2007

Table 33 Cat Food Brand Shares 2004-2007

Table 34 Cat Treats Brand Shares 2004-2007

Table 35 Forecast Sales of Cat Food by Type: Value 2008-2013

Table 36 Forecast Sales of Cat Food by Type: % Value Growth 2008-2013

OTHER PET FOOD IN THE US

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR INDICATORS

Table 37 Other Pet Population 2003-2008

SECTOR DATA

Table 38 Sales of Other Pet Food by Type: Volume 2003-2008

Table 39 Sales of Other Pet Food by Type: Value 2003-2008

Table 40 Sales of Other Pet Food by Type: % Volume Growth 2003-2008

Table 41 Sales of Other Pet Food by Type: % Value Growth 2003-2008

Table 42 Bird Food Brand Shares 2004-2007

Table 43 Fish Food Brand Shares 2004-2007

Table 44 Forecast Sales of Other Pet Food by Type: Volume 2008-2013

Table 45 Forecast Sales of Other Pet Food by Type: Value 2008-2013

Table 46 Forecast Sales of Other Pet Food by Type: % Volume Growth 2008-2013

Table 47 Forecast Sales of Other Pet Food by Type: % Value Growth 2008-2013

PET CARE PRODUCTS IN THE US

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 48 Sales of Pet Care Products by Type: Value 2003-2008

Table 49 Sales of Pet Care Products by Type: % Value Growth 2003-2008

Table 50 Forecast Sales of Pet Care Products by Type: Value 2008-2013

Table 51 Forecast Sales of Pet Care Products by Type: % Value Growth 2008-2013

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