Steady growth through premiumisation
US pet care growth improved in 2013 due to moderately improved volume sales and especially through ongoing product premiumisation. Dog and cat treats and non-therapeutic premium pet food led the pet food industry’s growth. The increased humanisation of pets continued to fuel growth in the market, with pet products strongly benefiting from this trend.
Growth through reverse innovation: The more natural, the better
Echoing recent years’ trend towards natural products, 2014 growth in the pet food industry was spurred by premium products including grain-free, organic, freeze-dried and raw pet food varieties. In an ironic twist of inventiveness, frozen raw pet foods are emerging as leaders in the pro-natural wave as wary consumers, concerned about the sourcing, transparency and adequacy of food ingredients, seem to be going back to basics, seeking niche products whose value added resides in not appearing manufactured.
Increased consolidation and portfolio diversification
The pet food industry has experimented rampant consolidation pressures throughout the review period, with merger and acquisition activities intensifying since 2009. Most of these trends have been fuelled by the growth of premium natural and healthier pet food products. Through an increased consumer awareness of healthy diets and intensified pet humanisation, the demands for better-quality formulas and healthier ingredients have permeated preferences across price platforms. The proliferation of brands with healthier claims has motivated major global pet care leaders to further consolidate in order to expand their portfolio selection to secure a strong market share across all segments.
The tip of the iceberg of internet retailing
Whilst pet superstores continue to account for the largest share of retail sales, internet retailing has been the fastest-growing distribution channel. Despite the impressive growth rates of online sales, the US internet retailing take-off has been slow relative to that of other developed markets. The best is yet to come. Cognizant of the impending growth potential of online sales, the hegemonic pet superstores have tried to secure their market foothold by offering value-added services. Nonetheless, creative partnerships and new business strategies will be needed to trump the convenience, affordability and wide variety brought forth to pet lovers through the consumer-friendly internet.
Pet demographics and growth potential
Pet ownership decisions reflect consumer confidence in the state of the economy in the current and near-term expectations. As the sluggish economic recovery takes a stronger foothold, pet populations are on the rebound, reflecting the time-lagged adjustment of consumer expectations. Preferences have adjusted to the demands of current on-the-go lifestyles, with urbanisation playing a key role in driving the differential rate of growth of pet types, strongly favouring smaller-sized pets. As the downsizing of pets continues throughout the forecast period, the deceleration of volume sales will pose new challenges, further increasing the industry’s reliance on premiumisation. Growth will be driven through innovative products whose manufacturers are capable of emphasising their natural features.
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The Pet Care in USA market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Pet Care in USA?
- What are the major brands in USA?
- How did the downturn affect pet care spending?
- Which is the best-performing category within pet care?
- Which is the fastest-growing pet food manufacturer?
- How have pet specialists fared in recent years?
- What are growth prospects for pet care in the next 5 years?
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This industry report originates from Passport, our Pet Care market research database.