Pet Medications in the U.S., 5th Edition

CHAPTER 1: EXECUTIVE SUMMARY

SCOPE AND METHODOLOGY

Market Definition

Report Methodology

MARKET TRENDS

Market Size & Composition

Table 1-1 Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2017 (percent)

MARKET OUTLOOK

Table 1-2 Projected U.S. Retail Sales of Pet Medications, 2017-2021 (in billions of dollars)

COMPETITIVE OVERVIEW

Prescription and Non-prescription Marketers

Global Animal Health Rankings Get Another Change

Table 1-3 Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2015-2016 (in millions of dollars)

RETAIL PET MEDICATION MARKETERS

Notable Deals

Chewables: The Next Generation

SALES TRENDS

Pet Owners Have Options

Veterinary Pharmacies Online

CONSUMER TRENDS

Most Dog or Cat Households Use Flea/Tick Products

Spot On Still on Top

67% of Dog-Owning Households Use Heartworm Meds

Figure 1-1 Purchasing of Heartworm Medications by Channel, 2017 (U.S. dog owners)

Allergy Meds Top List of Other Pet Medications

Attitudes on Veterinarian/Professional vs. Store Products

Table 1-4 Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications My

Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2017 (percent)

MARKET OPPORTUNITIES

Opportunity 1 – Veterinary Consolidation

Opportunity 2 – Human/Animal Bond

Opportunity 3 – Veterinary Services Growth

Opportunity 4 – Exploring E-Commerce

Opportunity 5 – Generics Increasing Competition, and Spurring Innovation

Opportunity 6 – Millennials

Opportunity 7 – Chewable Tablets

Opportunity 8 – Combo Products

Opportunity 9 – Pet Ownership Growth

CHAPTER 2: MARKET TRENDS

MARKET SIZE & COMPOSITION

U.S. Retail Sales of Pet Medications at $8.6 Billion in 2017

Table 2-1 U.S. Retail Sales of Pet Medications, 2013-2017 (in billions of dollars)

Share of Sales by Animal Type

Figure 2-1 Share of U.S. Retail Sales of Pet Medications by Animal Type: Dog vs. Cat, 2017 (percent)

Share of Sales by Distribution Channel

Table 2-2 Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2017 (percent)

Table 2-3 Share of U.S. Sales of Pet Medications by Type, 2017 (percent)

MARKET OUTLOOK

The Veterinary Market

Higher-Income Households a Key Segment

Table 2-4 $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2009-2015 (percent)

The Human/Animal Bond

Humanization & Wellness

Table 2-5 Level of Agreement with Statement: “I am willing to pay more for pet food products that are healthier for my pets,” by Age Bracket, 2017 (percent)

Age of Pets

Table 2-6 Age of Dogs and Cats, 2017 (percent of pet owners)

Weighty Issues

Table 2-7 Agreement with Statement: “I have an overweight dog/cat,” 2016 vs. 2017 (percent)

Small Dogs Rule, but Medium Sizes Rebound

Table 2-8 Size of Pet Dogs, 2012-2017 (percent of dog owners)

Table 2-9 Size of Most Recently Acquired Pet Dog, 2014-2017 (percent of dog owners)

Illustration 2-1 Trade Ad for Metacam

Millennial Pet Owners

Ownership Trends

Funding from Morris Animal Foundation

A Third Spend Less

Table 2-10 Level of Agreement with Statement: “I am spending less on pet products because of the

economy,” 2011-2017 (percent)

Economy Still Slow, but Many Indicators Show Positive Signs

Table 2-11 Economic Mood of U.S. Pet Households, 2013-2017 (percent)

Table 2-12 Economic Outlook of U.S. Pet Households, 2013-2017 (percent)

Veterinary Visits

Table 2-13 Percentage of Dog and Cat Owners Who Have Visited Vet in Last 12 Months for Routine and Sick/Emergency Vet Visits, 2016

Pet Owners Rely on Vet Advice

Table 2-14 Percentage of Dog and Cat Owners Who Rely on Their Veterinarian for Advice, by Topic of Advice, 2016

LOOKING AHEAD

Projected Market Growth: Sales to Crack $11 Billion by 2021

Table 2-15 Projected U.S. Retail Sales of Pet Medications, 2017-2021 (in billions of dollars)

CHAPTER 3: MARKETERS & PRODUCTS

COMPETITIVE OVERVIEW

Prescription & Non-prescription Marketers

Global Animal Health Rankings Gets Another Change

Table 3-1 Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2015-2016 (in millions of dollars)

Table 3-2 Global Pharmaceutical Marketers by Dollar and Percentage Change in Global Sales: Total vs.

Animal Health, 2015-2016 (in millions of dollars)

Table 3-3 Global Pharmaceutical Marketers by Dollar and Percentage Change in Global Sales: Animal

Health, 2017 (projected) (in millions of dollars)

RETAIL PET MEDICATION MARKETERS

Notable Deals

Illustration 3-1 Trade Ad for Dechra’s Amoxicillin Trihydrate and Clavulanate Potassium Tablets

Generics Increasing Competition, Spurring Innovation

Chewables: The Next Generation

PARASITICIDES – COMPETITIVE LANDSCAPE

Merial Brands Lead the Flea/Tick Charts

Table 3-4 Marketer Shares of U.S. Flea & Tick Sales, 2017 (percent)

Moving Forward with NexGard and Frontline

Illustration 3-2 Coupon Offer for Frontline Gold

Illustration 3-3 Screenshot of NexGardClinic.com

Illustration 3-4 Merial Pup Cup Event at 2017 NAVC Conference

BAYER’S LINEUP PACKS A PUNCH

Bayer’s Channel Diversification

Illustration 3-5

Sponsored Ads on Google for Advantus

Illustration 3-6 Screen Shot from Advantage II for Cats TV Spot

ZOETIS EYES A BIGGER SLICE OF PARASITICIDE MARKET

Illustration 3-7

Screenshot from Simparica TV Ad

ELANCO’S GROWTH

VIRBAC’S OFFERINGS

Illustration 3-8

Screenshot of Virbac Rebates

CEVA PICKS UP GROWTH

Illustration 3-9

Trade Ad for Vectra 3D

Illustration 3-10

Trade Ad for Combiva II

Illustration 3-11

Ceva’s Catego

BRAVECTO GUIDES MERCK ANIMAL HEALTH’S GROWTH

Illustration 3-12 Bravecto Marketing

CENTRAL GARDEN & PET

Illustration 3-13 Facebook Post About Adams’ Amazon Dash Button

Illustration 3-14 Adams Rev Up VIP Racing Experience Sweepstakes

HARTZ

Illustration 3-15

Hartz Post on Facebook

PERRIGO LEADS GENERICS

PETIQ MAKES INROADS WITH OWN BRANDS

FIGHTING FOR YOUR PATENT

Illustration 3-16 Screenshot of 2015 PetAction Plus Ad

Illustration 3-17 Screenshot of PetArmor Plus Ad

Elanco

Illustration 3-18 Screenshot from Trifexis Ad

THE HEARTWORM MARKET

Virbac Sees Competitive Market

Illustration 3-19

Online Trade Ad for SENTINEL Spectrum

Elanco Adds Interceptor Plus to Lineup

Illustration 3-20 Trade Ad for Interceptor Plus

HEARTGARD Keeps Rolling

Illustration 3-21 Screen shot from TV Ad for Merial’s HEARTGARD Plus

Illustration 3-22 Combo Buy Discounts for Merial Brands

Illustration 3-23 Trade Ad for HEARTGARD

Broad Spectrum Wormers

Illustration 3-24

Trade Ad for Drontal Plus

THERAPEUTICS AND VACCINES

Cancer

Illustration 3-25 Palladia

Illustration 3-26 Excerpt from Online Review of Masivet

BRAIN HEALTH

PAIN MANAGEMENT

Major Brands

Illustration 3-27 Ad for Patterson Veterinary’s Levafen (Carprofen)

Illustration 3-28

Trade Ad for Norbrook’s Loxicom

Illustration 3-29

Trade Ad for Bayer’s Quellin

Illustration 3-30 Trade Ad for PREVICOX

Illustration 3-31 Banner Ad for RIMADYL

Illustration 3-32 Trade Ad for Galliprant

DIABETES

Illustration 3-33 Screenshot for Sugar & Spike Diabetes Website

Illustration 3-34 #PetHacks Diabetes Tweet by Merck

HEART HEALTH

Illustration 3-35 Trade Ad for Boehringer Ingelheim Vetmedica’s VETMEDIN

EAR INFECTIONS

Illustration 3-36 Trade Ad for Merial’s Tresaderm

Illustration 3-37 Trade Ad for Bayer Animal Health Claro

Illustration 3-38 Banner Ad for Baytril Otic

SKIN ALLERGIES

Illustration 3-39 Screenshot from APOQUEL TV spot

Illustration 3-40 Two-page Trade Ad for Cytopoint

Illustration 3-41 Search Ad for Cytopoint

Illustration 3-42 Trade Ad for Elanco’s Itrafungol

ANXIETY

Figure 3-1 Pet Calming Product Usage, 2016 (percent of dog or cat owners)

Table 3-5 Purchase of Products to Relieve a Pet’s Anxiety/Stress, Last 12 Months (percent of dog owners vs. cat owners)

Illustration 3-43 Sileo Noise Aversion Gel

VACCINES

Illustration 3-44 Trade Ad for Elanco’s Ultra Vaccine Line

Illustration 3-45 Trade Ad for Nobivac

Illustration 3-46 Trade Ad for Duramune Lyme

OTHER PET MEDICATIONS

Illustration 3-47 Trade Ad for Dechra’s ZYCORTAL

CHAPTER 4: SALES TRENDS

PET OWNERS HAVE OPTIONS

Online Sales

Table 4-1 Level of Agreement with Statement: “I am buying pet products online more than I used to,”2012-2017 (percent)

Table 4-2 Time Frame for Most Recent Online Purchase of Pet Products, 2012-2017 (percent of pet owners)

Vet-VIPPS Changes to the .Pharmacy Domain

Veterinary Pharmacies Online

Illustration 4-1 Trade Ad for Vets First Choice

Illustration 4-2 Screenshot of VetSource Website

Growth Improves for PetMed Express

Illustration 4-3 Banner Ad for 1-800-PetMeds

Table 4-3 PetMed Express Sales, 2007-2017 (in millions of dollars)

Petco Ups Its Pet Med Game

Illustration 4-4 Petco Drs. Foster & Smith Signage

Mass Market Retailers Emphasize Pet Meds

Illustration 4-5 TruProfen’s Mass Market Purchase Locations

Illustration 4-6 Costco’s Pet Medications Web Page

Veterinary Services Inside Pet Superstores

Table 4-4 Percentage of Dog or Cat Owners Who Have Taken Pets to a Pet Superstore for Veterinary

Services in Last 12 Months, 2016 vs. 2017

Illustration 4-7 Vetco Page on Drs. Foster & Smith

Mobile Clinics

Table 4-5 Percentage of Dog or Cat Owners Who Have Visited a Mobile Veterinary Clinic in Last 12 Months, 2017

Fairness to Pet Owners Act

PET SPECIALTY HIGHLIGHTS FLEA & TICK

Illustration 4-8 Screenshot of Ad for Sentry Fiproguard Plus at PetSmart

Illustration 4-9 Flea & Tick Section from PetSmart Flyer, July 2017

Illustration 4-10 Flea & Tick Section from Petsense April-May 2017 Flyer

CHAPTER 5: CONSUMER TRENDS

PET MEDICATION PURCHASING PATTERNS

Most Dog or Cat Households Use Flea/Tick Products

Table 5-1 Percentage of Dog or Cat Owners Who Purchase Flea & Tick Care Medications or Medicated

Products, 2014-2017 (U.S. dog- or cat-owning households in thousands)

Spot On Still on Top

Figure 5-1 Purchasing of Flea & Tick Care Medications: Share by Product Type, 2017 (percent of U.S. dog or cat owners)

Figure 5-2 Purchasing of Spot-On Flea & Tick Care Medications by Channel, 2017 (U.S. dog or cat owners)

Owners Choose Fipronil-Based Products

Table 5-2 Share of Flea & Tick Care Medication Purchasers by Brand, 2017 (U.S. dog owners)

Table 5-3 Share of Flea & Tick Care Topical Medication Purchasers by Brand, 2017 (U.S. cat owners)

DEMOGRAPHICS FOR FLEA & TICK BRANDS

Table 5-4a Index for Use of Flea/Tick Products by Brand, 2017

Table 5-4b Index for Use of Flea/Tick Products by Brand, 2017

67% OF DOG-OWNING HOUSEHOLDS USE HEARTWORM MEDS

Table 5-5 Index for Use of Heartworm Control Medications for Dogs, 2017

Figure 5-3 Purchasing of Heartworm Medications by Channel, 2017 (U.S. dog owners)

Heartworm Brand Preferences

Table 5-6 Share of Heartworm Purchasers by Brand, 2017 (U.S. dog owners)

Allergy Meds Top List of Other Pet Medications

Table 5-7 Use by Type of Selected Other Pet Medications for Dogs and Cats, 2017 (percent)

Table 5-8 Purchasing by Channel of Selected Other Pet Medications for Dogs, 2017 (percent)

Table 5-9 Purchasing by Channel of Selected Other Pet Medications for Cats, 2017 (percent)

Key Brick-and-Mortar Channels

Table 5-10 Brick-and-Mortar Channel Choices for Pet Medications, Last Three Months, 2016 vs. 2017(percent of pet product buyers)

Flea/Tick Owners Favor Amazon

Table 5-11 Purchasing of Flea/Tick Products for Dogs by Online Source, 2017 (percent)

Table 5-12 Purchasing of Flea/Tick Products for Cats by Online Source, 2017 (percent)

PET MED PSYCHOGRAPHICS

Consistency of Pet Med Purchases Among Pet Owners

Table 5-13 Levels of Agreement/Disagreement with Statement, “I Am Buying More Pet Medications Than I Used To”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-14 Levels of Agreement/Disagreement with Statement, “The Current Range of Pet

Medications Is Not Adequate”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-15 Levels of Agreement/Disagreement with Statement, “I Am Interested in New Types of Pet Medications”: Dog Owners vs. Cat Owners, 2017 (percent)

Age- and Weight-Related Issues Not a Purchase Driver

Table 5-16 Levels of Agreement/Disagreement with Statement, “Age-Related Conditions Are the

Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-17 Levels of Agreement/Disagreement with Statement, “Weight/Obesity-Related Conditions

Are the Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2017(percent)

Attitudes on Veterinarian/Professional vs. Store Products

Table 5-18 Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications My

Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-19 Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications Available at the Stores Where I Buy Pet Products”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-20 Levels of Agreement/Disagreement with Statement, “With Spot-On (Topical) Flea/Tick

Products, the Products Available in Stores Are Just as Effective as Those Available Through

Veterinarians”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-21 Levels of Agreement/Disagreement with Statement, “With Spot-On (Topical) Flea/Tick

Products, I Would Trust Generic or Store-Brand Products if They Contained the Same Active

Ingredients”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-22 Levels of Agreement/Disagreement with Statement, “Veterinarian-Dispensed Spot-On(Topical) Flea/Tick Products Are Too Expensive”: Dog Owners vs. Cat Owners, 2017 (percent)

Alternatives to Pet Meds

Table 5-23 Levels of Agreement/Disagreement with Statement, “I Avoid Using Pet Medications as

Much as Possible”: Dog Owners vs. Cat Owners, 2017 (percent)

Table 5-24 Levels of Agreement/Disagreement with Statement, “I Prefer to Try Holistic/Natural Pet

Treatments Including Nutritional Supplements Before Resorting to Pet Medications”: Dog

Owners vs. Cat Owners, 2017 (percent)

Table 5-25 Levels of Agreement/Disagreement with Statement, “High-Quality Pet Foods Are Effective as a Preventive Pet Health Treatment”: Dog Owners vs. Cat Owners, 2017 (percent)

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