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Due primarily to a downturn on the equine side of the market, sales of pet supplements and nutraceutical treats felt the recessionary cold, but the market now appears set to track back up. Many positive factors are at play, including Americans’ (and especially Baby Boomers’) receptiveness to supplements in general, the expanding health needs of the aging pet population, the steady influx of new products, growing consumer preference for natural remedies vs. pharmaceuticals, greater availability and exposure at retail (including private labels), increasing acceptance and recommendation of pet supplements by the veterinary community, and the relative affordability of nutraceutical treats as a mode of “functional pampering” during the down economy. As a result, even though formal regulatory status continues to evade pet supplements, sales are expected to reach $1.6 billion by 2015, a 27% increase from 2010.
This expanded 3rd edition of Packaged Facts’ definitive Pet Supplements and Nutraceutical Treats in the U.S. report segments the market into two categories—supplements and nutraceutical treats (i.e., those containing supplements or novel botanical ingredients addressing specific health conditions, such as glucosamine for joint health)—with a primary focus on products for dogs and cats, but also extending to horses and other types of companion animals including birds, small mammals, and reptiles. The report provides a forward-looking examination of the market from every angle, including breakouts by supplement type and retail channel, analysis of the complex and evolving regulatory situation, competitive structure and marketing trends, new product tracking, and consumer profiling.
The report also homes in on high-growth segments such as senior and natural products, emerging ingredients, and untapped consumer demographics—such as the millions of pet owners who use human supplements but not pet supplements and who are thus excellent future prospects. A special feature of this new edition is proprietary survey data from Packaged Facts’ fall 2010 pet owner survey, which charts trends in usage of OTC and veterinary-dispensed pet supplements, compared with usage of special-purpose nutritional formula pet foods and treats.
Market Insights: A Selection From The Report
Share of Supplement Sales by Function
Underscoring the importance of the senior segment in particular, products specifically
designated for joint and/or senior health account for approximately one-third of retail sales of
dog supplements and one-fifth of sales of cat supplements as of 2010, Packaged Facts
estimates based on level of product representation in bricks-and-mortar retail venues, catalogs
and online. Among canine supplements, joint/senior products are followed by
multivitamin/mineral products (23%) and skin/coat (22%) supplements, with weight
supplements much further down the list at just 1%. Multivitamins rank No. 1 among feline
supplements at 28%, with other top conditions including skin/coat (23%) and digestive health
(15%). Joint products—predominantly glucosamine, chondroitin, hyaluronic acid and
MSM—also lead on the equine side, accounting for almost one-third of horse supplement
sales (32%), followed by digestion supplements, general supplements, and hoof supplements.
Sales by Distribution Channel
Sales of supplements and nutraceutical treats for small animals (including dogs, cats, and
other small companion animals) are concentrated in pet specialty shops, which account for
over two-fifths (44%) of sales by Packaged Facts estimates. Veterinarians move
approximately one-quarter of these products (26%), followed by health and natural stores.
Reflecting the fringe nature of pet supplements and the tendency of mass marketers to tread
lightly in this field because of the regulatory uncertainty, mass-market outlets (supermarkets,
drugstores and mass merchandisers like Wal-Mart) are so far a relatively minor factor in this
market, accounting for approximately 11% of non-equine supplement sales.
Use of Pet Supplements Among Dog and Cat Owners
According to a proprietary Packaged Facts online survey conducted in September 2010, 21% of dog owners use any type of nutritional supplements for their dogs, while 15% of cat owners use supplements for their cats (“supplements” were defined for survey respondents as “vitamin/mineral-type products in pill, tablet, liquid, or powder form”). [Figure 6-2]
Retail Channel Choices: 48% of Pet Supplement Buyers Purchase at Pet Superstores
Packaged Facts survey data indicate that dog and cat owners buy supplements for pets from a wide range of retail and other suppliers, as well as cross-purchasing to a significant degree across these various sources. [Table 6-8]In the News
Sales of Pet Supplements for Dogs and Cats Not "Recession Resistant," but Nevertheless Resilient
New York, January 11, 2011 — Making good on its famed "recession resistance," the overall U.S. pet industry has fared well during the recession relative to many other consumer packaged goods industries, but pet owners have not been immune to the economic downturn. As a result, certain industry segments saw growth stall in 2009, including the pet supplements industry. However, Pet Supplements and Nutraceutical Treats in the U.S., 3rd Edition by market research publisher Packaged Facts forecasts a return to strength for supplement sales as the optimism of pet owners gradually recovers in harmony with the general economy.
"As the economy improves, so should all things pet, but that recovery continues to appear modest," says David Lummis, senior pet market analyst for Packaged Facts. "Spending on supplements will increase but ‘restraint’ will likely continue to characterize how pet owners shop and what they buy during 2011 and even 2012, making value appeals based on pet health, safety, professionalism, practicality, and yes, pricing, more important than ever."
Packaged Facts estimates total U.S. retail sales of pet supplements and nutraceutical treats at more than $1 billion in 2010, reflecting a compound annual growth rate (CAGR) of 4% during the five-year period beginning in 2006. Sales growth stalled in 2009 and 2010 as the recession took hold and held on, a slow-down attributable almost entirely to a downturn on the equine side. As a result, the small animal category-including products for dogs and cats-gained ground between 2006 and 2010, increasing from 45% to 52% of the market and surpassing equine as the larger category last year.
U.S. retail sales of pet supplements and nutraceutical treats are expected to begin to pick back up in 2011, with the annual sales growth regaining steam through 2015. By this account, the annual percentage increases will rise from more than 2% in 2011 to almost 7% in 2015, lifting sales to an estimated $2 billion. Growth will be considerably faster on the small animal side than on the equine side. For both animal classifications, the pace will be faster in nutraceutical treats, which will continue to gain ground because of their indulgence advantage and a steady influx of more heavily marketed products. Ultimately, small animals will account for 58% of the market by 2015.
Pet Supplements and Nutraceutical Treats in the U.S., 3rd Edition segments the market into two categories-supplements and nutraceutical treats (i.e., those containing supplements or novel botanical ingredients addressing specific health conditions, such as glucosamine for joint health)-with a primary focus on products for dogs and cats, but also extending to horses and other types of companion animals including birds, small mammals, and reptiles. The report provides a forward-looking examination of the market from every angle, including breakouts by supplement type and retail channel, analysis of the complex and evolving regulatory situation, competitive structure and marketing trends, new product tracking, and consumer profiling. .
About Packaged Facts —Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services.
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