Pet Food in the U.S.: Health, Humanization and High Quality Ingredients in an Increasingly Value-Driven Global Market, 8th Edition : Packaged Facts

Pet Food in the U.S.: Health, Humanization and High Quality Ingredients in an Increasingly Value-Driven Global Market, 8th Edition

Jan 1, 2009
565 Pages - Pub ID: LA1653956

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Abstract

Table of Contents

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Chapter 1: Executive Summary

Scope of Report

Report Methodology

Global Market Perspective

Value of Pet Food Retail Sales

Figure 1-1: Global Retail Sales of Pet Food: 2004, 2008 and 2013 (in billions of dollars)

Trends by World Region

Marketer Shares and Shifts

Market Size and Growth

U.S. Pet Food Sales Near $17.0 Billion in 2008

2008 Mass-Market Dollar Sales of Pet Food Up, But Volume Sales Down

Dog Food Three-Fifths of the Market

Market Share by Retail Channel

Market to Approach $19 Billion by 2013

Looking Ahead

Competitive Overview

Top Five Players Control Four-Fifths of the Market

Figure 1-2: Top Five U.S. Marketers of Pet Food: 2006 vs. 2008 (percent)

Four Companies Dominate Mass-Market Sales

Pet Specialty Channel More Fragmented

Mega Marketers Tap In to Natural Segment

Multinational Powerhouse Cargill Taps Into Feed/Seed Channel

Private Label Pet Food Has Room to Grow in the U.S.

Pet Food Producers Position on Safety

Marketing and New Product Trends

Pet Market Advertising at $520 Million in 2007

Marketers Embracing Non-Traditional Media

Advertising Positioned on a Few Major Themes

Celebrities Kick In

2008 a Record Year for New Pet Food Products

Product Premiumization: Natural, Upscale and Functional Appeals

Retail and Consumer Trends

Economic Concerns and Increased Competition

Over 60 Million Households Own Pets

Dog/Cat Ownership Rates Edge Up

Minorities Over-Index for Semi-Moist and Canned Products

Canned Food Is Stronger in Cat Arena

Chapter 2: Market Overview

Introduction

Scope of Report: Three Main Categories

Terminology

Exclusions

Other Marketing Classifications

Global Pet Food Market Perspective

Value of Pet Food Retail Sales

Figure 2-1: Global Retail Sales of Pet Food: 2004, 2008 and 2013 (in billions of dollars)

Market Share and Trends by Region

Figure 2-2: Share of Global Pet Food Sales by Region: 2008 (percent)

Marketer Shares and Shifts

Figure 2-3: Pet Food Global Market Leaders: 2008 (percent)

Trends in New Product Introductions

Figure 2-4: Number of Global Pet Food New Product Launches: Reports and SKUs, 2002-2008

Figure 2-5: Share of Global Pet Food New Product Launches by Region: 2000, 2004 and 2008 (percent)

Top Marketing Claims Involve Natural, Functional Appeals

Figure 2-6: Top 20 Package Tags/Marketing Claims: By Number of Global Pet Food New Product Launches, 2008

Global Market Outlook

Table 2-1: Top Global Pet Food Industry Forecast Factors: 2007 (percent)

Table 2-2: Top Global Pet Food Industry Forecast Trends: 2007 (percent)

U.S. Pet Food Exports Up 15%

Canada, Japan Are Top Export Markets for U.S. Pet Foods

Table 2-3: U.S. Exports of Dog & Cat Foods by Leading Country Markets: 2003-2007 (in thousands of dollars)

Table 2-4: U.S. Exports of Dog & Cat Foods by Leading Country Markets: January-September 2007 vs. January-September 2008 (in thousands of dollars)

Figure 2-7: Top National Destinations for U.S. Exports of Dog & Cat Foods: January-September 2008 (percent)

Table 2-5: U.S. Exports of Dog & Cat Foods by Regional Markets: 2003-2007 (in thousands of dollars)

Table 2-6: U.S. Exports of Dog & Cat Foods by Regional Markets: January-September 2007 vs. January-September 2008 (in thousands of dollars)

Table 2-7: Export Concentration Ratios for U.S. Exports of Dog & Cat Foods by Top, Top 4 and Top 8 Markets: 2003-September 2008 (% of total dollar value)

European Union Down as Export Destination

Figure 2-8: Share of Total U.S. Exports of Dog & Cat Foods by Top Destination Markets: Canada, Japan and the European Union, 1996 vs. 2008 (% of total dollar value)

Mars Targets Export Growth Markets in Africa

Figure 2-9: Percent of Survey Respondents Ranking Import/Export Trends as “Very Important” to Development of Pet Food Industry: By Global Region

Rising Costs, Down Economy Shape Market Environment

Market Size and Growth

Pet Food Sales Near $17.0 Billion in 2008

Table 2-8: U.S. Retail Sales of Pet Food: 2004-2008 (in millions of dollars)

2008 Mass-Market Dollar Sales of Pet Food Up, But Volume Sales Down

Table 2-9: IRI-Tracked Dollar, Pound and Unit Sales of Pet Food: 2008 vs. 2007 (in millions of dollars, pound and unit sales)

A Gradual Improvement from 2003 to 2007

Figure 2-10: IRI-Tracked Sales of Pet Food: 2003-2008 (in millions of dollars)

Dog Food Delivers the Most Dollar Growth

Table 2-10: IRI-Tracked Sales of Pet Food: By Category, 2003- 2008 (in millions of dollars)

Table 2-11: Annual Growth/Decline in IRI-Tracked Sales of Pet Food: By Category, 2004-2008 (percent)

Table 2-12: Total Growth/Decline in IRI-Tracked Sales of Pet Food: By Category, 2003-2007 (in millions of dollars)

Table 2-13: Total Growth/Decline in IRI-Tracked Sales of Pet Food: By Segment, 2003-2007 (in millions of dollars)

Market Composition

Dog Food Three-Fifths of the Market

Figure 2-11: Share of IRI-Tracked Sales of Pet Food by Category: 2001, 2003, 2005, 2007 and 2008 (percent)

Figure 2-12: Share of Pet Food Sales in Natural Supermarkets: By Type, 2008 (percent)

Dry Food Increasing in Market Share

Figure 2-13: Share of IRI-Tracked Sales of Dog and Cat Food by Form: 2003, 2005, 2007 and 2008 (percent)

Table 2-14: Share of IRI-Tracked Sales of Pet Food by Form: 2003, 2005 and 2007 (percent)

Alternative Pet Food Share of Sales

Independent Pet Stores: Share of Sales by Animal Type

Table 2-15: Alternative Pet Food Segment Performance Relative to Total U.S. Pet Food Market: 2003-2007 (percent, growth rate)

Table 2-16: Share of Independent Pet Store Pet Supply Sales by Animal Type: 2005-2007 (percent)

Table 2-17: Pet Food and Treats Share of Category Sales by Animal Type in Independent Pet Stores: 2006 vs. 2007 (percent)

Dog Food Is Top Category in Pet Specialty Stores

Table 2-18: Share of Pet Specialty Retailer Sales by Category: 2006 vs. 2007 (percent)

Market Share by Retail Channel

Figure 2-14: Share of U.S. Pet Food Sales by Retail Outlet Type: 2008 (percent)

Household Purchasing of Pet Supplies by Retail Outlet Type

Table 2-19: Household Purchasing of Pet Products by Retail Channel: Total Purchasers and Sole Purchasers, 2006 vs. 2008 (percent of U.S. households with pets)

Figure 2-15: Degree of Channel Loyalty Among Purchasers of Pet Supplies by Outlet Type: 2008 (percent of U.S. households with pets)

Chain Merchandising Trends in the Mass Market

Dry Dog Food the Most Heavily Merchandised

Ephemeral vs. Incremental Merchandising Gains

Price Discounting in Chains Is Steepest for Cat Food

Table 2-20: IRI-Tracked Retailer Merchandising Trends for Pet Food: By Category and Segment 4th Quarter 2006 through 3rd Quarter 2008 (percent of sales volume)

Table 2-21: IRI-Tracked Promotion of Dog, Cat and Other Pet Food: Ratio of Average Promoted Price to Average Overall Price, 2003 - Third Quarter 2008 (percent)

Market Outlook

All Eyes on the Economy

Figure 2-16: U.S. Grocery Industry Sales Growth: 2001-2007 (percent)

Table 2-22: Percentage of Adults with Little or No Confidence in Short-Term Prospects for the Economy: April 2003-April 2008 (U.S. adults)

Table 2-23: Percentage of Adults Who Are More Practical or Realistic in Their Purchases, Month Over Month: October 2007-April 2008 (U.S. adults)

Pet Market Impact

Pet Food Prices, Costs at Record Highs

Figure 2-17: Consumer Price Index for Pet Food: 1998-2008

Figure 2-18: Producer Price Index for Pet Food: 1998-2008

Impact of Spring 2007 Pet Food Recalls

Figure 2-19: Effect of Pet Food Recall on Pet Food Sales in Pet Specialty Stores: May 2007 (percent)

Figure 2-20: Effect of Pet Food Recall on Pet Specialty Retailer Pet Food Selection: January 2008 (percent)

Figure 2-21: Seasonal Pattern of Pet Food Sales in the Natural Supermarket Channel: January 2005-December 2007

Product Premiumization and Premium Demographics

Table 2-24: IRI-Tracked Volume Sales of Pet Food by Category and Segment: 2003 - Third Quarter 2008 (in millions of volume units)

Table 2-25: Average U.S. Household Expenditures on Pet Food: 1997-2007 (in dollars)

Figure 2-22: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Brackets, 1997-2007 (percent)

Figure 2-23: Number of New Pet Food Product Introductions: 2001, 2004 and 2008

Natural/Organic Pet Food Going Strong

Figure 2-24: U.S. Retail Sales of Natural Pet Food: 2003, 2007 and 2012 (in millions of dollars)

Pet Humanization a Potent Force

Table 2-26: Mean Number of Veterinary Visits by Human-Animal Bond Among Dog and Cat Households: 2006

Table 2-27: Mean Veterinary Expenditures by Human-Animal Bond Among Dog and Cat Households: 2006 (in dollars)

Enhancing Pet Health

Aging Pet Population Underpins Healthcare Boom

Figure 2-25: Percentage of Dogs and Cats Age 6 and Over: 1996 vs. 2006 (percent)

Number of Dog and Cat Households on the Ups

Figure 2-26: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2003 vs. 2008 (percent of U.S. dogor cat-owning households)

The Boomer Factor

Table 2-28: Dog and Cat Ownership by Adult Age Bracket: 2008 (number, percent and index of U.S. households)

Figure 2-27: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2008 (percent of U.S. households)

Figure 2-28: Share of Total U.S. Population Growth for Selected Age Brackets: 2007-2015 (percent)

Dual-Adult/No-Kid Clout

Figure 2-29: Two-Adult Households/No Kids as Pet Owners: 2003 vs. 2008 (percent)

Celebrities Back Up and Coming Pet Food Lines

Looking Ahead

The New Value Equation

Figure 2-30: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Brackets: 1997-2007 (percent)

Market to Approach $19 Billion by 2013

Table 2-29: Projected U.S. Retail Sales of Pet Food: 2008-2013 (in millions of dollars)

Additional Market Consolidation

Product Innovation

Competitive Overview

Acquisitions Intensify Market Consolidation

Table 2-30: Timeline of U.S. Pet Food Market Acquisitions: 2002- 2008

Mars Plus Nutro

Castor & Pollux, Halo Backed by Private Equity Firms

Top Five Players Control Four-Fifths of the Market

Figure 2-31: Top Five U.S. Marketers of Pet Food: 2006 vs. 2008 (percent)

Four Companies Dominate Mass-Market Sales

Figure 2-32: Top Marketers of Pet Food by Share of IRI-Tracked Sales: 2007 vs. 2008 (percent)

Table 2-31: Leading Marketers of Pet Food by Share of IRITracked Sales: 1999-2007 (percent)

Table 2-32: Leading Marketers of Pet Food: Share of IRI-Tracked Sales by Product Segment: 2007 vs. 2008 (percent)

Pet Specialty Channel More Fragmented

Figure 2-33: No. 1 Brand Leaders in Pet Specialty Stores: 2007 (percent)

Professional Channel Marketers

Value and Superpremium Positioned Marketers

Snacks and Treats Specialists, “Springboarding”

Natural/Organic Specialists Exclusive to Specialty, Natural Channels

Brand Leaders in the Natural Supermarket Channel

Figure 2-34: Share of Sales of Pet Products in Natural Supermarkets by Marketer/Brand: 2008 (percent)

Mega Marketers Tap In to Natural Segment

Raw/Frozen and Homemade Pet Food Specialists

Nature’s Variety a Leader in Raw/Frozen Foods

Freshpet Makes Refrigerated Pet Food Splash

Figure 2-35: IRI-Tracked U.S. Sales of Freshpet Refrigerated Pet Food: 2006-2008 (in millions of dollars)

Channel-Specific Marketing

Multinational Powerhouse Cargill Taps Into Feed/Seed Channel

Crossing Pet Market Lines

Table 2-33: The U.S. Pet Food Market: Selected Leading Marketers and Brands, 2008

Focus on Private Label

Room to Grow

Table 2-34: Number of U.S. Private-Label Pet Food Product Introductions and SKUs: By Category, 2000-2008

Evanger’s and Eagle Pack Report Recall-Related Gains

Store-Brand Share Stabilizes at Mass-Market Level Following Steady Declines

Table 2-35: Private-Label Share of IRI-Tracked Sales of Pet Food: By Product Category and Segment, 1999-2007 (percent)

Mars Plus Doane

Whole Foods and Traders Joe’s Big on Private Label

PetSmart and Petco Heavily Invested in Store Brands

Figure 2-36: National Consumer Advertising Spending for PetSmart and Petco: 2006 and 2007 (in millions of dollars)

Table 2-36: PetSmart and Petco Pet Food and Treat Private-Label Brands: By Trademark Name, Usage and Filing Date

Independent Pet Stores Also Making a Bid

Table 2-37: Purchasing Patterns for Selected Types of Store- Brand Dog and Cat Food: By Retail Channel Shopped, 2008 (percent)

The Global Private-Label Pet Food Picture

The Future of Private Label

Focus on Pet Food Recalls and Product Safety

Competitive Impact of Spring 2007 Pet Food Recalls

Menu Foods Blindsided But on the Mend

Lawsuits Consolidated, Settled

Procter & Gamble’s Iams Unit Loses Sales and Share

Mars Fares Well, Snaps up Nutro and Menu Foods Plant

Pet Food Commission Releases Safety Recommendations

Congress Passes Food and Drug Administration Amendments Act of 2007

New Regulations Also Possible at the State Level

New Requirements for Chinese Imports

Pet Food Producers Position on Safety

The New Food Safety Buzzword: Traceability

Product Safety Still Under Consumer, Government Spotlight

Consumer Website Accuses Nutro of Fielding Unsafe Foods

FDA Targets Evanger’s Plant

Petco Distribution Center Raided by FDA

Mars Recalls Reveal Human-Pet Disease Link

Marketing and New Product Trends

Pet Market Advertising at $520 Million in 2007

Figure 2-37: Media Breakout of National Consumer Advertising for Pet Food and Pet Care Products: 2007 (percent)

Marketers Embracing Non-Traditional Media

Online Marketing and Blogs

Pet Food “SuperBrands”

Advertising Positioned on a Few Major Themes

Celebrities Kick In

Ellen Buys into Halo

Cesar Millan Shakes Hands with Castor & Pollux, Petco

Rachael Ray Teams Up with Dad’s Pet Care

Freshpet Launches Loved Dog Treats

Cause-Related Marketing, Public Relations

Going Green

2008 a Record Year for New Pet Food Products

Table 2-38: Number of New Pet Food Product Introductions: 2001-2008

Product Premiumization: Natural, Upscale and Functional Appeals

Natural Products Go Mainstream

Manufacturers Focusing on Fresh Ingredients

New Goodlife Packaging Is Ingredient-Focused

Safety Theme Apparent in Ingredient-Related Product Appeals

Human-Grade Ingredients

100% US-Sourced Ingredients and “China-Free”

Locally Sourced Ingredients

Raw/Frozen Foods

Homemade Pet Food

“Holistic Labeling”

Functional/Fortified Foods Cover All Bases

Special Diet Formulas

Table 2-39: Household Purchasing of Light/Weight Management and Senior Dry and Canned Dog and Cat Food: 2004 vs. 2008 (U.S. households with dogs or cats)

Nutraceutical Treats

Convenience Another Key Premium Appeal

One Route to Cost Cutting: Smaller Package Sizes

Table 2-40: Pet Food Product Selling Points by Package Tags: 2004-2008

Examples of Advertising

Retail Trends

Economic Concerns and Increased Competition

The PetSmart/Petco Dynamic Duo

Table 2-41: PetSmart and Petco Combined Sales: 2000-2007 (in millions of dollars)

Company Profile: PetSmart, Inc.

Table 2-42: PetSmart Sales: 2000-2007 (in millions of dollars)

Slower Expansion an “Economic Precaution”

Services, Expertise Key to Success

Company Profile: Petco

Table 2-43: Petco Annual Sales: 2000-2007 (in millions of dollars)

Changes and Challenges

Promoting Pet Relationships

Cesar Millan and Ellen DeGeneres

P.A.L.S., Petco.com and Petco Park

Zootoo.com and Pet Welfare

Other Top-Ranked Pet Specialty Chains

Independent Pet Stores: Bad News and Good News

Table 2-44: Top Challenges Pet Specialty Retailers Face in Next Two Years: 2006 vs. 2007 (percent)

Table 2-45: Pet Food Share of Category Sales by Animal Type in Independent Pet Stores: 2006 vs. 2007 (percent)

Walmart Bullish on Pet Supplies

Target Also Coming on Strong

Supermarkets Hanging on After 2007 Recalls

Wholesale Clubs and Dollar Stores

Natural Supermarkets Going Strong

The Internet Effect

Leading E-tailers of Pet Food and Supplies

Pet Ownership Trends and Demographics

The Simmons Survey System

Over 60 Million Households Own Pets

Table 2-46: Pet Ownership in the United States: 2008 (percent and number of U.S. households)

Dog/Cat Ownership Rates Edge Up

Table 2-47: Dog and Cat Ownership in the United States: 2004, 2006 and 2008 (percent and number of U.S. households)

38% of Pet Households Keep Multiple Types

Figure 2-38: Ownership of Multiple Types of Pets: 2008 (percent of pet-owning U.S. households)

63% of Pet Households Keep More Than One Pet

Table 2-48: Ownership of Multiple Pets of a Single Type: 2008 (percent of U.S. households who keep pets of a given type)

Pet Household Demographics

Pet Ownership Holds Up Across Age Brackets

Figure 2-39: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2008 (percent of U.S. households)

Demographic Variations by Type of Pets

Table 2-49: Demographics for Keeping Pets, 2008 (percent, number and index among U.S. consumers)

Table 2-50: Demographic Overview for Selected Pet Classifications, 2008 (percent of U.S. households)

Pet Owners as Consumers

Household Purchasing of Pet Supplies by Retail Outlet Type

Table 2-51: Household Purchasing of Pet Products by Retail Channel: Total Purchasers and Sole Purchasers, 2006 vs. 2008 (U.S. households with pets)

Table 2-52: Demographic Overview for Selected Pet Product Retail Channels, 2008 ( U.S. pet-owning households)

Channel Choices in Organic Pet Food Purchasing

Table 2-53: Where Groceries Are Most Often Purchased by Selected Retailer Type: Shoppers Overall vs. Organic Pet Food Purchasers, August 2008 (percentage of U.S. adults)

Table 2-54: Where Groceries Are Most Often Purchased by Selected Retail Chain: Shoppers Overall vs. Organic Pet Food Purchasers, August 2008 (percentage of U.S. adults)

Pet Food Purchasing Overview for Dog or Cat Owners

Table 2-55: Household Purchasing of Packaged Dog and Cat Food by Type, 2008 (U.S. households with dogs or cats)

Pet Owners Are Internet-Prone

Figure 2-40: Use/Influence of the Internet: Adults Overall vs. Dog or Cat Owners, 2008 (percent of U.S. adults overall vs. dog or cat owners)

Figure 2-41: Use/Influence of the Internet: Adults Overall vs. Dog or Cat Owners, 2008 (index for U.S. dog or cat owners)

Figure 2-42: Dog or Cat Owners as Consumers: Selected Media & Marketing Psychographics, 2008 (percent and index for U.S. dog or cat owners)

Not So “Green”

Figure 2-43: Dog or Cat Owners as Consumers: Selected “Green” Psychographics, 2008 (percent and index for U.S. dog or cat owners)

The Pet Food Coupon Clipper

Table 2-56: Indicators for Use of Pet Food Coupons: 2008 (index among dog- or cat-owning households)

Bulk of Redemption through Grocery Stores

Table 2-57: Coupon Redemption Rates by Selected Retailer Type: 2004-2008 (percent)

Figure 2-44: Coupon Redemption Rates Among Pet Food Coupon Users: By Selected Retailer Type, 2008 (percent)

Grocery vs. Pet Food Coupon Usage Rates

Table 2-58: Coupon Usage Rates by Product Type: 2004-2008 (percent)

On-Shelf Coupons Generate Highest Usage

Table 2-59: Coupon Usage Rates by Product Type: 2004-2008 (percent)

Chapter 3: Dog Food

Introduction

Category Scope: Five Product Segments

Market Size and Growth

Total Dog Food Sales at $10.4 Billion in 2008

Figure 3-1: U.S. Retail Sales of Dog Food: 2005, 2008 and 2013 (in millions of dollars)

2008 IRI-Tracked Dollar Sales of Dog Food Up, But Volume Sales Down

Table 3-1: IRI-Tracked Dollar, Pound and Unit Sales of Dog Food: 2008 vs. 2007 (in millions of dollars, pounds and units)

Gradual Dollar Gains from 2003 to 2007

Figure 3-2: IRI-Tracked Sales of Dog Food: 2003-2007 (in millions of dollars)

Frozen Dog Food Out Front in Market Growth

Table 3-2: IRI-Tracked Sales of Dog Food: By Segment, 2003- 2007 (in millions of dollars)

Table 3-3: Annual Growth/Decline in IRI-Tracked Sales of Dog Food: By Segment, 2004-2007 (percent)

Table 3-4: Total Growth/Decline in IRI-Tracked Sales of Dog Food: By Segment, 2003-2007 (in millions of dollars)

Wet Dog Food Declining in Market Share

Table 3-5: Share of IRI-Tracked Sales of Dog Food by Segment: 2003, 2005 and 2007 (percent)

Premium and Fortified Dog Foods Are Most Commonly Purchased Kinds

Table 3-6: Kind of Dog Food Purchased in the Past 12 Months: 2002 vs. 2006 (percent)

Table 3-7: Use of Specially Formulated Dog Food: 2004 vs. 2006 (percent)

Household Purchasing of Pet Supplies by Retail Outlet Type

Channel Loyalty Increasing Among Online Shoppers

Figure 3-3: Dog Owner Shopping for Pet Products by Retail Channel: 2008 (percent of U.S. dog-owning households)

Figure 3-4: Sole Purchaser Share of Total Purchasers of Pet Supplies by Outlet Type: 2006 vs. 2008 (U.S. households with dogs)

Dog Food Chain Merchandising Trends

Table 3-8: IRI-Tracked Retailer Merchandising Trends for Dog Food: Overall and by Segment, 4th Quarter 2006 through 3rd Quarter 2008 (percent of sales volume)

Price Promotion Patterns Vary by Segment

Table 3-9: IRI-Tracked Promotion of Dog Food by Category and Segment: Ratio of Average Promoted Price to Average Overall Price, 2003 - Third Quarter 2008 (percent)

Marketer and Brand Shares

Methodology

Impact of Acquisitions

Nestlé Purina Dominates Dog Food Category

Figure 3-5: Top Dog Food Marketers by Share of IRI-Tracked Sales: 2008 (percent)

Iams the Most Heavily Leveraged in Dry Dog Food

Nestlé Purina the Top Dog in Dry Food Segment

Figure 3-6: Leading Marketers of Dry Dog Food by Share of IRITracked Sales: 2003 vs. 2008 (percent)

Acquisitions Boost Del Monte and Mars in Dog Biscuits/Treats

Figure 3-7: Leading Marketers of Dog Biscuits/Treats by Share of IRI-Tracked Sales: 2003 vs. 2008 (percent)

Mars Marching Forward in Wet Dog Food

Figure 3-8: Leading Marketers of Wet Dog Food by Share of IRITracked Sales: 2003 vs. 2008 (percent)

Nestlé Purina Controls Semi-Moist Segment

Figure 3-9: Leading Marketers of Semi-Moist Dog Food by Share of IRI-Tracked Sales: 2003 vs. 2008 (percent)

Nestlé Purina Also on Top in Frozen Dog Food

Figure 3-10: Leading Marketers of Frozen Dog Food by Share of IRI-Tracked Sales: 2003 vs. 2008 (percent)

Leading Pet Specialty Channel Brands

Figure 3-11: Dog Food Brand Leaders in Pet Specialty Stores: 2005-2007 (percent)

Table 3-10: Leading Dog Food Marketers by IRI-Tracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 3-11: Leading Dog Food Marketers by Share of IRI-Tracked Sales: 2004, 2006 and 2008 (percent)

Table 3-12: Leading Dog Food Marketers: Share of IRI-Tracked Sales of Dog Food by Segment: 2007 vs. 2008 (percent)

Table 3-13: Marketers and Brands of Dry Dog Food by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 3-14: Brand Shares of IRI-Tracked Sales of Selected Leading Dry Dog Food Products: 2003-2007 (percent)

Table 3-15: Marketers and Brands of Dog Biscuits/Treats by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 3-16: Brand Shares of IRI-Tracked Sales of Selected Leading Dog Biscuit/Treat Products: 2003-2007 (percent)

Table 3-17: Marketers and Brands of Wet Dog Food by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 3-18: Brand Shares of IRI-Tracked Sales of Selected Leading Wet Dog Food Products: 2003-2007 (percent)

Table 3-19: Marketers and Brands of Semi-Moist Dog Food by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 3-20: Marketers and Brands of Frozen Dog Food by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 3-21: Top Dog Food Products by Dollar Gain in IRI-Tracked Sales: 2007 vs. 2008 (in millions of dollars)

Marketing & New Product Trends

Dog Food Advertising “SuperBrands”

Milk-Bone Celebrates 100th Birthday

Mars Expands Pedigree Adoption Drive

Nestlé Purina Expanding Event Marketing Capacity

2008 a Record Year for New Dog Food Products

Figure 3-12: Number of New Dog Food Product Introductions: 2002-2008

Premium Thrust Still Going Strong: Natural, Functional and Special Diet Foods

Figure 3-13: Top 10 Dog Food Package Claims: January- December 2008

Ingredients in the Spotlight

“People Food”

Gluten- and Wheat-Free Claims Highlight Safety Issue

Natural Products Go Mainstream

Honest Kitchen Makes an Honest Claim Out of “Human Grade”

Natural Plus Gourmet

Freshpet Scores Hit with Refrigerated Dog Food

Ongoing Activity in Organic Niche

Special Diet/Functional Foods

Mars Launches WholeMeals

Healthy Weight and Senior Foods

Breed- and Size-Specific Products

Grain-Free Products Picking Up

Non-allergenic Products

Probiotics and Healthy Digestion

Raw/Frozen Foods

“Real Meat” Products Taking a Swing at Raw

Veterinary Appeal

Taste, Variety Still Key Appeals

Functional/Nutraceutical Treats

Figure 3-14: Share of U.S. Retail Sales of Dog Supplements and Nutraceutical Treats by Function: 2007 (percent)

Trend Profile: Dogswell, LLC

Oral Care Treats

Fortified Dog Water

Human-Style Baked, Gourmet and Holiday Treats

Frozen Novelty Treats

New Spins on Convenience

Table 3-22: Dog Food Product Selling Points by Package Tags: 2006-2008

Examples of Dog Food Advertising

Dog Ownership Trends and Demographics

The Simmons Survey System

40 Million Households Keep Pet Dogs

Dog/Cat Ownership Rates Edge Up

Figure 3-15: Dog Ownership in the United States: 2008 (percent of U.S. households)

Table 3-23: Dog and Cat Ownership in the United States: 2004, 2006 and 2008 (percent and number of U.S. households)

Dog Household Demographics

Promising Patterns by Age Bracket

Figure 3-16: Dog Ownership Rates by Age Bracket: 2003 vs. 2008 (percent of U.S. households)

Keepers of the Pack: Multiple-Dog Demographics

Table 3-24: Demographics for Keeping Pet Dogs, 2008 (percent, number and index among U.S. households)

Table 3-25: Demographic Overview for Selected Dog-Owning Classifications, 2008 (percent and index of U.S. households)

Pet Retailer and Dog Food Preferences

Pet Stores Edge Out Supermarkets in Overall Popularity

Table 3-26: Dog Owner Shopping for Pet Products by Retail Channel: Total Purchasers and Sole Purchasers, 2006 vs. 2008 (percent of U.S. dog-owning households)

94% Buy Dry Dog Foods

Figure 3-17: Dog Food Purchasing Rates by Type: 2008 (percent of U.S. dog-owing households)

Table 3-27a: Demographic Overview: Pet Product Shopping Rates by Retail Channel, 2008 (percent of U.S. dog-owning households)

Table 3-27b: Demographic Overview: Pet Product Shopping Indexes by Retail Channel, 2008 (indexes for U.S. dog-owning households)

Minorities Over-Index for Semi-Moist and Canned Products

Treat Purchasing Rates Are Steady at 83% Across Preferences by Dog Food Type

Table 3-28a: Demographic Overview: Dog Food Purchasing Rates by Type, 2008 (percent of U.S. dog-owning households)

Table 3-28b: Demographic Overview: Dog Food Purchasing Indexes by Type, 2008 (indexes for U.S. dog-owning households)

Table 3-29: Dog Food Cross-Purchasing Rates by Type: 2008 (percent of U.S. dog-owning households)

Light, Senior and Puppy Formulations Gain in Usage

Table 3-30: Dog Food Purchasing Patterns by Type: 2004 vs. 2008 (percent of U.S. dog-owing households)

Table 3-31: Dog Food Purchasing Patterns by Type: Single vs. Multiple Dog Owners, 2008 (percent and index)

Table 3-32: Dog Food Purchasing Rates by Type: By Retail Channels Shopped, 2008 (percent of U.S. dog-owning households)

Milk-Bone Is Most Widely Used Brand Line

Figure 3-18: Top Dog Food/Treat Brand Lines by Overall Usage Rates: 2008 (percent of U.S. dog-owing households)

Value Brand Skew Among Multiple-Dog Owners

Table 3-33: Purchasing Patterns for Leading Dog Food/Treat Brand Lines: Single vs. Multiple Dog Owners, 2008 (percent and index)

Table 3-34: Purchasing Patterns for Leading Dog Food/Treat Brand Lines: By Retail Channel Shopped, 2008 (percent)

Demographic Skews: Value Brands vs. Superpremiums

Table 3-35: Selected High-Indexing Demographics by Brand Line for Dog Food and Treats: 2008 (U.S. dog-owning households)

Chapter 4: Cat Food

Introduction

Category Scope: Four Product Segments

Market Size and Growth

Total Cat Food Sales at $5.7 Billion in 2008

Figure 4-1: U.S. Retail Sales of Cat Food: 2005, 2008 and 2013 (in millions of dollars)

2008 IRI-Tracked Dollar Sales of Cat Food Up, But Volume Sales Down

Table 4-1: IRI-Tracked Dollar, Pound and Unit Sales of Cat Food: 2008 vs. 2007 (in millions of dollars, pounds and units)

Meager Dollar Gains from 2001 to 2007

Figure 4-2: IRI-Tracked Sales of Cat Food: 2003-2007 (in millions of dollars)

Dry Food and Snacks Deliver Dollar Gains

Table 4-2: IRI-Tracked Sales of Cat Food: By Segment, 2003- 2007 (in millions of dollars)

Table 4-3: Annual Growth/Decline in IRI-Tracked Sales of Cat Food: By Segment, 2004-2007 (percent)

Table 4-4: Total Growth/Decline in IRI-Tracked Sales of Cat Food: By Segment, 2003-2007 (in millions of dollars)

Dry Food, Snacks Increase Category Share

Table 4-5: Share of IRI-Tracked Sales of Cat Food by Segment: 2003, 2005 and 2007 (percent)

Fortified, Premium and Hairball Formulas Are Most Commonly Purchased Types

Table 4-6: Kind of Cat Food Purchased in Past 12 Months: 2002 vs. 2006 (percent)

Table 4-7: Use of Specially Formulated Cat Food: 2004 vs. 2006 (percent)

Household Purchasing of Pet Supplies by Retail Outlet Type

Supermarkets Jump in Channel Loyalty

Figure 4-3: Cat Owner Shopping for Pet Products by Retail Channel: 2008 (percent of U.S. cat-owning households)

Figure 4-4: Sole Purchaser Share of Total Purchasers of Pet Supplies by Outlet Type: 2006 vs. 2008 (U.S. households with cats)

Cat Food Chain Merchandising Trends

Table 4-8: IRI-Tracked Retailer Merchandising Trends for Cat Food: Overall and by Segment, 4th Quarter 2006 through 3rd Quarter 2008 (percent of sales volume)

Chain Price Discounts Steepest for Wet Cat Food, Cat Snacks

Table 4-9: IRI-Tracked Promotion of Cat Food by Category and Segment: Ratio of Average Promoted Price to Average Overall Price, 2003 - Third Quarter 2008 (percent)

Marketer and Brand Shares

Methodology

Del Monte Jumps to No. 2 in Cat Food Market

Figure 4-5: Top Cat Food Marketers by Share of IRI-Tracked Sales: 2008 (percent)

Del Monte Plus Meow Mix

Del Monte, Mars Recalibrate Wet/Dry/Snack Mix

Del Monte Also Climbs to Second in Dry Cat Food

Figure 4-6: Leading Marketers of Dry Cat Food by Share of IRITracked Sales: 2003 vs. 2008 (percent)

Nestlé Purina Ups Ante in Wet Cat Food

Figure 4-7: Leading Marketers of Wet Cat Food by Share of IRITracked Sales: 2003 vs. 2008 (percent)

Mars Widens Leads in Cat Snacks Segment

Figure 4-8: Leading Marketers of Cat Snacks by Share of IRITracked Sales: 2003 vs. 2008 (percent)

Nestlé Purina Drops Out of Semi-Moist Segment

Leading Pet Specialty Channel Brands

Figure 4-9: Cat Food Brand Leaders in Pet Specialty Stores: 2005-2007 (percent)

Table 4-10: Leading Cat Food Marketers by IRI-Tracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 4-11: Leading Cat Food Marketers by Share of IRI-Tracked Sales: 2004, 2006 and 2008 (percent)

Table 4-12a: Leading Cat Food Marketers: Share of IRI-Tracked Sales of Cat Food by Segment: 2007 vs. 2008 (percent)

Table 4-12b: Leading Cat Food Marketers: Share of IRI-Tracked Sales of Cat Food by Segment: 2005 vs. 2006 (percent)

Table 4-13: Marketers and Brands of Dry Cat Food by IRI-Tracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 4-14: Brand Shares of IRI-Tracked Sales of Dry Cat Food: 2003-2007 (percent)

Table 4-15: Marketers and Brands of Wet Cat Food by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 4-16: Brand Shares of IRI-Tracked Sales of Wet Cat Food: 2003-2007 (percent)

Table 4-17: Marketers and Brands of Cat Snacks by IRI-Tracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 4-18: Brand Shares of IRI-Tracked Sales of Cat Snacks: 2003-2007 (percent)

Table 4-19: Top Cat Food Products by Dollar Gain in IRI-Tracked Sales: 2007 vs. 2008 (in millions of dollars)

Marketing & New Product Trends

Cat Food Advertising SuperBrands

Meow Mix Investing in Branded Content, Event Marketing

Product Introductions Rebound in 2008

Figure 4-10: Number of New Cat Food Product Introductions: 2002-2008

Top Product Themes: Upscale, Functional and Natural

Figure 4-11: Top 10 Cat Food Package Claims: January- December 2008

Healthfulness to the Fore

Natural and Organic Expand Their Reach

Special Diet and Functional Products

Figure 4-12: Share of U.S. Retail Sales of Cat Supplements and Nutraceutical Treats by Function: 2007 (percent)

Healthy Skin/Coat

Senior/Joint

Digestive/Immune System

Grain-Free

Indoor/Hairball Formula

Healthy Weight

Kitten Formulas

Gourmet-Style, Variety Still Key Appeals

Cat Treats Take Health, Indulgence to the Bank

Premium and Convenience Packaging

Table 4-20: Cat Food Product Selling Points by Package Tags: 2006-2008

Examples of Cat Food Advertising

Cat Ownership Trends and Demographics

The Simmons Survey System

29 Million Households Keep Pet Cats

Dog/Cat Ownership Rates Edge Up

Figure 4-13: Cat Ownership in the United States: 2008 (percent and number of U.S. households)

Table 4-21: Dog and Cat Ownership in the United States: 2004, 2006 and 2008 (percent and number of U.S. households)

Cat Household Demographics

Cat vs. Dog Ownership Patterns Diverge by Age Bracket

Figure 4-14: Cat Ownership Rates by Age Bracket: 2003 vs. 2008 (percent of U.S. households)

Patterns by Number of Cats

Table 4-22: Demographics for Keeping Pet Cats, 2008 (percent, number and index among U.S. households)

Table 4-23: Demographic Overview for Selected Cat-Owning Classifications, 2008 (percent and index of U.S. households)

Pet Retailer and Cat Food Preferences

53% of Cat Owners Shop Supermarkets for Pet Products

Table 4-24: Cat Owner Shopping for Pet Products by Retail Channel: Total Purchasers and Sole Purchasers, 2006 vs. 2008 (percent of U.S. cat-owning households)

Demographic Patterns by Retail Channel

Canned Food Is Stronger in Cat Arena

Figure 4-15: Cat Food Purchasing Rates by Type: 2008 (percent of U.S. cat-owing households)

Table 4-25a: Demographic Overview: Pet Product Shopping Rates by Retail Channel, 2008 (percent of U.S. cat-owning households)

Table 4-25b: Demographic Overview: Pet Product Shopping Indexes by Retail Channel, 2008 (indexes for U.S. cat-owning households)

Lower-Income and Hispanic Skews to Semi-Moist Cat Food

Purchasing Rates for Treats Vary by Cat Food Preference

Table 4-26a: Demographic Overview: Cat Food Purchasing Rates by Type, 2008 (percent of U.S. cat-owning households)

Table 4-26b: Demographic Overview: Cat Food Purchasing Indexes by Type, 2008 (indexes for U.S. cat-owning households)

Table 4-27: Cat Food Cross-Purchasing Rates by Type: 2008 (percent of U.S. cat-owning households)

Use of Light/Weight Management Cat Food Jumps to 9%

Table 4-28: Cat Food Purchasing Patterns by Type: 2004 vs. 2008 (percent of U.S. cat-owing households)

Table 4-29: Cat Food Purchasing Patterns by Type: Single vs. Multiple Cat Owners, 2008 (percent and index)

Table 4-30: Cat Food Purchasing Rates by Type: By Retail Channels Shopped, 2008 (percent of U.S. cat-owning households)

Friskies Is Most Widely Used Brand Line

Figure 4-16: Top Cat Food/Treat Brand Lines by Overall Usage Rates: 2008 (percent of U.S. cat-owing households)

Highest Skews Are for Multiple-Cat Fanciers

Table 4-31: Purchasing Patterns for Leading Cat Food/Treat Brand Lines: Single vs. Multiple Cat Owners, 2008 (percent and index)

Table 4-32: Purchasing Patterns for Leading Cat Food/Treat Brand Lines: By Retail Channel Shopped, 2008 (percent)

Demographic Skews: Cats and Crowded Households

Table 4-33: Selected High-Indexing Demographics by Brand Line for Cat Food and Treats, 2008 (U.S. cat-owning households)

Chapter 5: Other Pet Food

Market Size and Composition

Category Scope

Total Other Pet Food Sales at $907 Million in 2008

Figure 5-1: U.S. Retail Sales of Other Pet Food: 2005, 2008 and 2013 (in millions of dollars)

Figure 5-2: Share of Sales of Other Pet Food by Animal Type: 2008 (percent)

2008 IRI-Tracked Dollar Sales Up, Unit Sales Down

Table 5-1: IRI-Tracked Dollar and Unit Sales of Other Pet Food: 2008 vs. 2007 (in millions of dollars and units)

Sales Recover from Multi-Year Downturn

Independent Pet Stores: Share of Sales by Animal Type

Figure 5-3: IRI-Tracked Sales of Other Pet Food: 2003-2007 (in millions of dollars)

Table 5-2: Share of Independent Pet Store Pet Supply Sales by Animal Type: 2005-2007 (percent)

Fish Products: Share of Sales by Product Category

Table 5-3: Share of Independent Pet Store Sales of Fish Products by Category: 2005-2007 (percent)

Bird Products: Share of Sales by Product Category

Table 5-4: Share of Independent Pet Store Sales of Bird Products by Category: 2005-2007 (percent)

Herptile Products: Share of Sales by Product Category

Table 5-5: Share of Independent Pet Store Sales of Herptile Products by Category: 2005-2007 (percent)

Small Mammal Products: Share of Sales by Product Category

Table 5-6: Share of Independent Pet Store Sales of Small Mammal Products by Category: 2005-2007 (percent)

Share of Other Pet Food Sales by Retail Channel

Figure 5-4: Share of U.S. Other Pet Food Sales by Retail Outlet Type: 2008 (percent)

Mass-Market Merchandising Trends for Other Pet Foods

Table 5-7: IRI-Tracked Retailer Merchandising Trends for Other Pet Foods: 4th Quarter 2006 through 3rd Quarter 2008 (percent of sales volume)

Price Discounting in Chains Is Steepest for Cat Food

Table 5-8: IRI-Tracked Promotion of Dog, Cat and Other Pet Food: Ratio of Average Promoted Price to Average Overall Price, 2003 - Third Quarter 2008 (percent)

Competitive Trends

Marketer Overview

Leading Pet Specialty Channel Brands

Central Garden & Pet on Top in Mass-Market Outlets

Figure 5-5: Top Marketers of Other Pet Food by Share of IRITracked Sales: 2007 vs. 2008 (percent)

Audubon Park Posts Biggest Dollar Gains

Wardley and Tetra Control Fish/Reptile Segment

Figure 5-6: Top Marketers of Fish/Reptile Food by Share of IRITracked Sales: 2007 vs. 2008 (percent)

Table 5-9: Other Pet Food Brand Leaders in Pet Specialty Stores: 2004, 2006 and 2007 (percent)

Table 5-10: Leading Marketers of Other Pet Food by IRI-Tracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 5-11: Leading Marketers and Brand of Other Pet Food by Mass-Market Share: 2007 vs. 2008 (percent)

Table 5-12: Marketers and Brands of Other Pet Food by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Table 5-13: Top Ten Other Pet Food Products by Dollar Gain in IRI-Tracked Sales: 2007 vs. 2008 (in millions of dollars)

Table 5-14: Marketers and Brands of Fish/Herptile Food by IRITracked Sales and Market Share: 2007 vs. 2008 (in millions of dollars and percent)

Company Profiles

Central Garden & Pet: Corporate Overview

A Leader in Innovation

Success in Pet Specialty, Mass-Market Channels

Hartz Mountain Corp.

Corporate Overview

Mass-Market Sales Slipping

Figure 5-7: IRI-Tracked Sales and Market Share of Hartz Mountain Other Pet Food: 2003-2008 (in millions of dollars)

Vitakraft/Sun Seed Co

Corporate Overview

Acquisitions Spur Global Growth

A New Leader in the U.S. Pet Specialty Market

Figure 5-8: Percentage of Retailers Citing Sun Seed Brand as No. 1 Brand in Pet Specialty Channel: 2006 vs. 2007 (percent)

Marketing and New Product Trends

Marketing Trends

New Product Thrusts

Trends in Bird Food

Cook and Serve Foods

Bird Treats

Natural and Organic

Single-Serving Sizes

Fortified Foods

Trends in Small Animal Food

Species-Specific Foods

Special Diets and Supplements

Gourmet Foods

Grass Hay

“Growing” Foods

Trends in Fish Food

Fish Treats

Expanded Food Choices

Gourmet Diets

Clean and Clear Water

Trends in Herptile Food

Live Food Innovations

Live vs. Frozen

Species-Specific Prepared Foods

Medicated Foods

Table 5-15: Bird, Small Animal, Fish and Herptile Food: Selected New Product Introductions, 2007-2008

Examples of Other Pet Food Advertising

Consumer Focus: Other Pet Food Purchasers

Methodology

Population Trends: Household Penetration Increasing for All Animal Types

Table 5-16: Pet Ownership in the United States: 2008 (percent and number of U.S. Households)

Fish Food Purchaser Trends and Demographics

Figure 5-9: Type of Freshwater and Saltwater Fish Food Purchased: 1996 vs. 2006 (percent)

Figure 5-10: Outlet Where Freshwater and Saltwater Fish Food Flakes Are Purchased: 2006 (percent)

Demographics for Keeping Pet Fish

Bird Food Purchaser Trends and Demographics

Figure 5-11: Types of Bird Food and Packages Purchased in the Past 12 Months: 2002 vs. 2006 (percent)

Small Animal Food Purchaser Trends and Demographics

Figure 5-12: Type of Small Animal Food Purchased in the Past 12 Months: 2002 vs. 2006 (percent)

Reptile Food Purchaser Trends and Demographics

Figure 5-13: Type of Reptile Food Purchased in the Past 12 Months: 1996 vs. 2006 (percent)

Table 5-17: Demographics for Keeping Pet Fish, 2008 (percent, number and index among U.S. consumers)

Table 5-18: Demographics for Keeping Pet Birds, 2008 (percent, number and index among U.S. consumers)

Table 5-19: Demographics for Keeping Pet Rabbits or Hamsters, 2008 (percent, number and index among U.S. consumers)

Table 5-20: Demographics for Keeping Pet Reptiles, 2008 (percent, number and index among U.S. consumers)

Appendix: Addresses of Selected Marketers

800.298.5294

Int'l: +1.240.747.3095

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