The U.S. pet food market has not just survived the spring 2007 recalls but proven its resiliency, with 2007 sales up over previous years and healthy growth continuing through 2008. Yet heightened safety concerns on the part of pet food makers and consumers continue to shape product development and marketing, as well as the choices of pet owners looking for the safest and healthiest products possible. At the top of the list are kibble, canned and raw/frozen foods made with ingredients that are natural, organic, grain-free/non-allergenic and pure, as well as made in the U.S.A., locally grown, “whole” (fruits, vegetables, grains, etc.) and human-grade. Foods making functional appeals also continue to proliferate, especially those targeting age- and weight-related conditions via the inclusion of novel ingredients like glucosamine, omega fatty acids, antioxidants and probiotics. In other words, premium pet foods remain the primary value growth driver in the U.S. market, with ever higher quality ingredients fueling the premium wave. At the same time, one thing marketers and retailers at all levels of the market cannot afford given the faltering U.S. and global economies is complacency. More than ever before the ability to convert pet owners to higher priced products—or keep them buying them—will depend on marketers’ success in communicating product benefits and tapping into the ever-potent human/animal bond. Helping to make the case are new celebrity spokespersons like Cesar Millan with his new Dog Whisperer line, and Ellen DeGeneres with her co-ownership in Halo Purely for Pets, with other positive trends including rapid growth in the natural supermarket channel and an increasingly globalized market in which ingredients suppliers like Cargill are looking to stake a deeper claim in pet food (in Cargill’s case by specifically targeting the U.S. agricultural retail channel as well as global markets). At the same time, new products continue to flood the market, which saw more entries in 2008 than in any previous year. Pegging 2008 U.S. sales at $17 billion and global sales at $49 billion—and projecting steady growth through 2013—the report provides market size estimates for the overall retail universe, while quantifying mass-market sales to the marketer/brand share level using data from Information Resources, Inc., and also providing market size and marketer share figures for the natural supermarket channel. The report thoroughly documents competitive, new product and retail trends, as well as trends in pet food purchaser demographics and lifestyle pursuits (media and marketing psychographics, Internet usage, “green” involvement, etc.), based on data from Simmons Market Research Bureau, BIGresearch, the American Pet Products Association and other sources. Bringing to bear more than 20 years of experience in analyzing this market and drawing on Packaged Facts’ broad cross-category expertise, Pet Food in the U..S pinpoints strategic directions for current and prospective marketers, with a forward-looking focus on high-growth product segments and market-driving trends. The report provides a comprehensive Market Overview covering cross-market trends. New features of our 2009 edition include focus sections on:
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Market Insights: A Selection From The Report Small Animal Food Purchaser Trends and Demographics Food treats are the most popular type of small animal food, used by 45% of small animal owners in 2006, followed closely by bagged pellets at 44%; however, usage of food treats grew by eight percentage points between 2002 and 2006, while bagged pellets declined by a point during the same period. Alfalfa/hay products also experienced substantial growth, increasing by six percentage points to reach 41% in 2006. Three other types fall into the 25-35% range: fruits/vegetables, hamster/gerbil mix and special mixes (i.e., for specific animal types). Boxed pellets experienced the largest drop in share in 2006, only being used by 5% of small animal food purchasers (down from 10% in 2002). [Figure 5-12] Slightly more than 2% of U.S. adults (or nearly 2.4 million people) keep a pet rabbit or hamster based on Spring 2008 Simmons data (rabbits and hamsters are the only small animals represented in the survey). Larger households, especially those with children, are more likely than average to keep these two types of small animal pets. Additionally, homemakers, married couples and individuals without a high school degree are also more likely than average to own rabbits and hamsters, as are consumers with an employment income of $20,000-$39,999 or households with a combined income between $50,000-$99,999. [Table 5-19] Pet Owners Splurge on Premium, Fortified Food for Animal Companions New York, January 13, 2009 - The premiumization trend in the global pet food market indicates that pet owning consumers are as willing to spend more on premium food infused with health fortifying ingredients such as glucosamine, omega fatty acids, antioxidants, and probiotics for their pets as they are for themselves. Premium pet foods cover all bases—from natural/organic to functional/nutraceutical to special diet (segmented by lifestage, weight, health condition, breed, etc.) to gourmet—while also often reflecting trends in human foods. Driven by premiumization the global pet food market reached an estimated $49 billion in 2008, according to market research publisher Packaged Facts in the all-new report, Pet Food in the U.S.: Health, Humanization and High Quality Ingredients in an Increasingly Value-Driven Global Market, 8th Edition. The 2008 global total marked a compound annual growth rate (CAGR) of almost 5% for the preceding five-year period. North America accounted for the largest share of global pet food sales in 2008 with 40%. “Particularly in the United States, the premiumization trend goes beyond the tendency Americans have to be better educated about health and nutrition issues. In addition, the pervasive humanization dynamic cannot be underestimated. Pet owners often view their pets as part of the family, or even as surrogate ‘children.’ Thus they are looking for the safest and healthiest products possible,” says Tatjana Meerman, Publisher of Packaged Facts. Pet Food in the U.S.: Health, Humanization and High Quality Ingredients in an Increasingly Value-Driven Global Market, 8th Edition examines the global pet food market (sales overall and by world region, marketer shares, new product trends, U.S. export trends, etc.); strategic directions for current and prospective marketers; high-growth product segments; and trends in pet food purchaser demographics and lifestyle pursuits (media and marketing psychographics, Internet usage, “green” involvement, etc.). The report has separate chapters each discussing food for dogs, cats, and other companion animals. For further information visit: http://www.packagedfacts.com/Pet-Food-1653956/.
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