U.S. Pet Market Outlook, 2021-2022

 
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Published Mar 30, 2021 | 311 Pages | Pub ID: LA16110877
U.S. Pet Market Outlook, 2021-2022

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U.S. retail sales of pet products and services reached $107 billion in 2020, up 9% over 2019, due largely to a COVID-19 driven spike in pet population. All pet and veterinary industry trends—from how and why we get new pets to which pet care services we use and where—now intertwine with retail channel shopping trends.

Because most of the pet industry impacts associated with COVID-19 are in fact accelerations of existing trends, only a limited “return to normal” can be expected. Instead, COVID-19 has fast-forwarded the industry into the future. In 2021 and beyond, this new iteration of an “omnimarket” competitive landscape will be evident in several trends and effects:
  • A permanent remix of physical and digital shopping behaviors.
  • A growing role for direct manufacturer-to-consumer selling and shipping, along with retailer-based autoship and same-day delivery.
  • A continued diversification of the veterinary sector, including through in-store clinics or at-store vet clinic pop-ups, along with online pet pharmacies.
  • An expanded role for store-anchored (brick-and-mortar and/or virtual) pet acquisition or adoption, new pet set up, and training/obedience services.
Along with the re-confirmed recession resistance of the pet industry, several factors support a very positive near- and long-term outlook for the pet market. A surge in pet acquisition and adoption, across pet types, continued through the Christmas/Winter Holidays 2020. And once pets are homed, as evident in robust pet product sales and veterinary service revenues despite COVID, most pet care spending is non-discretionary. Moreover, stay-at-home and work-from home dynamics during the pandemic have deepened human/pet bonds, increasing the disposition among pet owners and “pet parents” to spend generously on pet care products and services to keep their pets (and themselves) healthy and happy.

Scope and Methodology

This report analyzes current and projects future retail sales and trends across the U.S. pet industry, factoring in the known and longer-term impacts of the coronavirus pandemic. The report examines collectively and separately four sectors of pet products and services—pet food, non-food pet supplies, veterinary services, and non-medical pet services—paying particular attention to the market impact of e-commerce and technology-driven and other emerging products and services.

The information contained in this report was obtained from primary and secondary research. Primary research includes national online consumer polls of U.S. adult pet owners (age 18+) conducted on an ongoing basis by Packaged Facts, to measure purchasing patterns and attitudes regarding pet products and services. With sample sizes of approximately 2,000 pet owners, these surveys are based on national online research panels that are census representative on the primary demographic measures of age, gender, geographic region, race/ethnicity, and household income. The proprietary Packaged Facts surveys primarily cited in this report were conducted in November/December 2000, February 2021, and February/March 2021.

The discussion of consumer patterns also draws on trended MRI National Consumer Study data though the Fall 2020 release, with field dates through November 2020, thereby capturing COVID-19 impacts.

Our primary research also includes interviews with pet market experts and participation in pet industry events including the American Pet Products Association’s Global Pet Expos, Petfood Industry/Watt Publishing’s Petfood Forums, and the North American Veterinary Community (NAVC) VMX Veterinary Conferences and Media E-Commerce Summits. The analysis also reflects on-site examination of retail and service provider venues and Internet canvassing.

Secondary research includes information- and data-gathering from consumer business and trade publications including Pet Age, Pet Business, Pet Product News International, Petfood Industry, and Veterinary Practice News; company profiles in trade and consumer publications; annual reports of companies in the pet market; and information culled from Packaged Facts’ extensive pet market research database and report collection.

Our estimates of market size and company performance are based on reported revenues of pet product manufacturers, retailers, and pet services providers; background sales data from syndicated sales-tracking sources; surveys of independent and chain pet store retailers; government data including U.S. Bureau of Labor Statistics Consumer Expenditure Surveys; and figures from other market research sources.

This report also provides proprietary new pet ownership data for 2020, factoring in the recent surge in pet adoption as well as full-year 2020 product sales trends.

  • Executive Summary
    • Scope & Methodology
      • Scope of Report
      • Report Methodology
    • Market Size and Growth
      • Pet Industry Reset: Above Average Growth in Three of Four Sectors
      • Pet Product and Service Spending Per Pet-Owning Household
      • Retail Channel: Pandemic Accelerates E-commerce
      • Looking Ahead: Growth Market-wide Through 2025
        • Table Projected 2021-2025 U.S. Retail Sales of Pet Products and Services: By Sector (in billions of dollars)
    • Market Drivers
      • COVID Economy Impact on Pet Owner Spending Mindset
      • Pandemic Intensifies Focus on Health and Wellness
      • Pandemic Fuels Pet Population Boom
      • Dog and Cat Ownership Down Among Lower-Income Households
      • Catering to Deal-Seekers
      • Pandemic Accelerates Digital Pet Care
      • Pet Rescue Efforts Ramp Up During Pandemic
      • Sustainability and Animal Welfare
      • Investment and M&A
    • Overall Industry Trends
      • Pandemic Reset: Birdseye View
      • Industry Overview
    • Focus on Pet Food & Treats
      • Pandemic Reset: Accelerated Innovation
      • Channel Choices
      • Pet Food Industry Investment Shows Strategic Directions
      • Four Natural Pet Food Pioneers Change Hands
      • Superpremium
      • Fresh Pet Food
      • Sustainable Dovetailing with Alternative Protein
      • Science-Based Diets Dovetailing Into Natural
      • Lessons in DCM/Grain-Free Stumble
    • Focus on Non-Food Pet Supplies
      • Pandemic Reset: Health, Home, New Pets
      • Channel Choices
      • Pet Supplements in COVID Overdrive
      • Pet Medications Also Riding COVID-Driven Hyper Health Wave
      • Focus on Home: Pets, Products, Positioning
      • BarkBox/Northern Star Merger Klieg-lights Subscription/DTC Sales
      • "Smart" Products Get Pandemic Push
    • Focus on Veterinary Services
      • Pandemic Reset: Adaptation to the COVID Crisis
      • The Internet Challenge
      • The "Retail-ization" of Vet Care
      • Telemedicine and the Digitalization of Vet Care
      • Success of Curbside
      • Peak Usage Rates for Veterinary Services
      • Generation Gap Hurdles Remain
      • Veterinary Visit Patterns
    • Focus on Non-Medical Pet Care Services
      • Pandemic Reset: Travel Bust, DIY Pet Care Shift Dampen Spending
      • PetSmart and Petco (Even Further) All In On Services
      • Independents Also Big On Pet Services
      • Walmart Launches Walmart Pet Care
      • Franchise Operations
      • Big Shifts in Digital Pet Care
      • Pet Insurance Advancing, Pandemic Notwithstanding
    • Internet and Retail Trends
      • Pandemic Reset: A Permanent Remix of Physical and/or Digital
      • Overview of Internet and Retail Channel Sales and Shares
      • Channel Shopping Choices
      • Generational Skews
      • Fulfillment Patterns for Digital Pet Product Shopping
      • Curbside and Inside Pickup
      • The E-Commerce Dollar Sales Leaders: Amazon vs. Chewy
      • Shopper Draw Among Pet Product Websites
      • Top Pet Product Types Purchased Online
      • Autoship Rates Double, Manufacturer Direct Gains Traction
      • Not Just Virtual Shopping Carts
    • Pet Population Trends
      • Pandemic Reset: Pet Population Churn
      • Pet Acquisition by Generational Cohort
      • Acquisition by Type of Pet
      • Overview of Pet Ownership
      • Dog and Cat Population Trends
    • Opportunities
      • Health &Wellness
      • Home
      • New Pets
      • Other Pets, Multiple Pets Households
      • Overweight and Senior Pets
      • Omnimarket
      • E-commerce
      • Subscriptions and Customization
      • Fresh Pet Food
      • Wet Pet Food
      • Private Label
      • The Feline Factor
      • The Vet Card
      • Veterinarians: Digital and Curbside
      • Sustainability
      • Same-Day Delivery
      • Keeping Pet Care Affordable for Lower-Income Households
      • CBD
  • Market Size and Growth
    • Chapter Highlights
    • Market Size & Growth
      • Pet Industry Reset: Above Average Growth in Three of Four Sectors
        • Table U.S. Pet Market Retail Sales by Sector, 2015-2020 (in billions of dollars)
        • Table U.S. Pet Market Retail Sales Annual Change by Sector, 2015-2020 (percent change over previous year)
        • Table Sector Share of U.S. Pet Market Retail Sales: 2019, 2020, and 2025P (percent)
        • Table Sector Share of U.S. Pet Market Retail Sales by Animal Type: Dog, Cat, Other, 2020 (percent)
      • Pet Product and Servicing Spending Per Pet-Owning Household
        • Table Dollar Sales Per Pet-Owning Household by Sector, 2015-2020 (millions of dollars and dollars)
        • Table Dollar Sales Per Dog-Owning Household by Sector, 2015-2020 (millions of dollars and dollars)
        • Table Dollar Sales Per Cat-Owning Household by Sector, 2015-2020 (millions of dollars and dollars)
        • Table Dollar Sales per Individual Dog and Cat by Sector, 2020 (millions of dollars and dollars)
      • Retail Channel: Pandemic Accelerates E-commerce
        • Table Share of U.S. Retail Channel Sales of Pet Products by Channel Classification: Pet Food & Treats, Non-Food Pet Supplies, Total, 2020 (percent)
      • Looking Ahead: Growth Market-wide Through 2025
        • Table Projected Growth by Pet Market Sector and Channel, 2021-2022 (millions of dollars)
        • Table Projected 2020-2025 U.S. Retail Sales of Products and Services (in billions of dollars)
        • Table Projected 2021-2025 U.S. Retail Sales of Products and Services: By Sector (in billions of dollars)
        • Table Projected 2020-2025 Annual Change in U.S. Retail Sales of Products and Services: By Sector (percent change over previous year)
        • Table U.S. Pet Market Compound Annual Growth Rates by Sector: 2015-2020 vs. 2020-2025 (percent)
    • Market Drivers
      • COVID Economy Impact on Pet Owner Spending Mindset
        • Table $70K+ Household Share of Pet Market Expenditures: By Classification, 2012-2019 (percent)
        • Table Level of Agreement with Statement: "I consider my dogs/cats/other pets to be part of the family," February 2021 (percent of pet owners)
        • Table Level of Agreement with Statement: "My pets are important to my physical/mental health," February 2021 (percent of dog, cat, and other pet owners)
      • Pandemic Intensifies Focus on Health and Wellness
      • Pandemic Fuels Pet Population Boom
        • Table Overview of Pet Ownership by Type, 2019 vs. 2020 (percent and millions of households)
        • Table Top Sources of Acquisition/Adoption of New Pets, February 2021 (percent of pet owners who have acquired new pet in last 12 months)
      • Dog and Cat Ownership Down Among Lower-Income Households
      • Catering to Deal-Seekers
      • Pandemic Accelerates Digital Pet Care
      • Pet Rescue Efforts Ramp Up During Pandemic
      • Sustainability Initiatives Increasingly Part of the Plan
      • Animal Welfare
      • Investment and M&A
  • Overall Industry Trends
    • Chapter Highlights
    • Industry Trends
      • Pandemic Reset: Birdseye View
    • Industry Overview
      • An "Omnimarket" Era
      • Leading Pet Product Marketers and Brands
      • Leading Veterinary and Non-Medical Pet Service Operators
      • Fast-Growing Franchises and Private Companies
      • Pet Industry Leaders Launch Venture Funds Targeting Promising Start-Ups
      • Pandemic Resilience Spurs Investment Boom
      • Recent Mergers, Acquisitions, Investments, and Restructuring
  • Focus on Pet Food & Treats
    • Chapter Highlights
    • Pet Food and Treats
      • Pandemic Reset: Pet Food Sector Superpremium Steam
      • Pet Food Industry Investment Shows Strategic Directions
      • Four Natural Pet Food Pioneers Change Hands in 4Q 2020
      • Superpremium
      • The New Pet Food "Superpremium"
      • Fresh Pet Food
      • Sustainable Dovetailing with Alternative Protein, Superpremium
      • Science-Based Diets Dovetailing Into Natural
      • Lessons in DCM/Grain-Free Debacle
      • CBD Pet Treats Gaining Ground, Illegality Notwithstanding
  • Focus on Non-Food Pet Supplies
    • Chapter Highlights
    • Non-Food Pet Supplies
      • Pandemic Reset: Health, Home, New Pets
      • Pet Supplements in COVID Overdrive
        • Table U.S. Retail Sales Pet Supplements, 2015-2020 (million dollars and percent)
        • Table U.S. Retail Sales of Pet CBD Products, 2016-2020 (in millions of dollars and percent)
      • Pet Medications Also Riding COVID-Driven Hyper Health Wave
      • Focus on Home: Pets, Products, Positioning
      • BarkBox/Northern Star Merger Klieg-lights Subscription/DTC Sales
      • "Smart" Products Get Pandemic Push
  • Focus on Veterinary Services
    • Chapter Highlights
    • The Veterinary Sector
      • Pandemic Reset: Veterinary Sector Rises to the COVID Occasion
        • Table U.S. Veterinary Sales and Sales Growth, 2015-2020 (in billions of dollars and percent change)
        • Table Overview of U.S. Veterinary Sector Sales: Overall and by Product or Service Type, 2019 vs. 2020 (in millions)
      • Veterinary Market Landscape
      • The "Retail-ization" of Vet Care
      • Telemedicine and the Digitalization of Vet Care
        • Table Selected Veterinary Services and Technology Psychographics, 2021 (percent of pet owners)
      • Success of Curbside
    • Veterinary Care Customer Patterns
      • Peak Usage Rates for Veterinary Services
        • Table Use of Veterinary Services by Dog or Cat Owner Classification, Fall 2016-Fall 2020 (percent using in last 12 months)
      • Regular Check-Up vs. Urgent/Emergency Visits to Vet
      • Local Vet Clinics Regain Step in COVID Era
      • Generation Gap Hurdles Remain
        • Table Selected Psychographics About Veterinary Care Services, 2021 (percent of pet owners)
        • Table Selected Veterinary Service Options Psychographics, 2021 (percent of pet owners)
      • Historical and Generational Patterns by Number of Veterinary Visits
        • Table Use of Veterinary Services by Number of Visits, Fall 2011 - Fall 2020 (percent share for 1, 2, or 3+ visits)
        • Table Use of Veterinary Services by Dog or Cat Owners: By Generational Cohort and Number of Visits, Fall 2020 (percent using in last 12 months)
      • Veterinary Care Spending Patterns
        • Table Share of Veterinary Care Spending in Last 12 Months by Dollar Ranges and Generational Cohort, Fall 2020 (percent)
  • Focus on Non-Medical Pet Care Services
    • Chapter Highlights
    • Non-Medical Pet Care Services Sector
      • Pandemic Reset: COVID-Related Travel Bust, DIY Pet Care Shift Dampen Spending
        • Table U.S. Sales of Non-Medical Pet Services by Type, 2019 vs. 2020 (in billions)
        • Table Use of Non-Medical Pet Care Services, 2019 vs. 2020 (percent of dog and cat owners)
        • Table Overview of Pet Acquisition in 2020
      • PetSmart and Petco (Even Further) All In On Services
      • Independents Also Big On Pet Services
      • Walmart Launches Walmart Pet Care
      • Franchise Operations
      • Best Friends Pet Care
      • Internet as Pet Care Assistant
      • Big Shifts in Digital Pet Care
      • Pet Insurance Advancing, Pandemic Notwithstanding
        • Table Percent of Dog and Cat Owners Who Have Medical Coverage/Plan for Their Pets, 2020 vs. 2021 (percent of dog and cat owners)
  • Internet and Retail Trends
    • Internet and Retail
      • Pandemic Reset: A Permanent Remix of Physical and/or Digital
      • Overview of Internet and Retail Channel Sales and Shares
        • Table U.S. Retail Channel Sales of Pet Products: Sales & Shares by Channel Classification, 2015, 2019, and 2020 (dollar sales in billions and percent share)
      • The Mass-Market vs. Specialty Channel Reset
    • Overview of Shopping Patterns
      • Note on Packaged Facts February 2021 Survey
      • 2020 Brings Remix of Pet Product Channel Shopping Choices
      • Overview of Pet Product Shopping Platform Usage
      • Frequency of Store vs. Online Shopping
        • Table Time Frame for Most Recent Purchase of Pet Products: In a Store, Online, Through Smartphone, By Generational Cohort, February 2021 (percent of pet owners)
      • Fulfillment Patterns for Digital Pet Product Shopping
      • Same-Day Delivery
      • Curbside and Inside Pickup
        • Table Top Ways to Receive or Pick Up Pet Products Ordered by Internet or Smartphone: By Generational Cohort, February 2021 (percent of digital pet product shoppers)
      • Store Brand Reset
      • Customer Loyalty and Rewards Programs
      • Independent Pet Stores and the Role of Local
        • Table Agreement with Selected Statements About Retailer and Manufacturer Role in Pet Welfare Causes: By Generational Cohort, February 2021 (percent of pet owners)
    • Channel Sales and Shopping Patterns: Pet Foods vs. Pet Supplies
      • Note on Shopper Draws
      • Shopping Patterns for Pet Food
        • Table Within last 3 months, through which channels have you purchased pet food products? February 2021 (percent of pet product shoppers)
      • Shopping Patterns for Pet Supplies (Non-Food)
        • Table Within the last 3 months, through which channels have you purchased pet supply products other than pet foods or pet medications? February 2021 (percent of pet product shoppers)
      • Shopping Patterns for Pet Medications and Supplements
        • Table Within the last 3 months, through which channels have you purchased pet medications or supplements? February 2021 (percent of pet product shoppers)
    • E-Commerce and the Internet's Influence
      • The E-Commerce Dollar Sales Leaders: Amazon vs. Chewy
        • Table Sales & Shares of Selected Pet Product E-Commerce Leaders: By Channel and Website, 2019 vs. 2020 (in millions of dollars and percent)
      • Shopper Draw Among Pet Product Websites
        • Table Cross-Shopping Patterns Among Top Pet Product E-Commerce Websites, February 2021 (percent)
      • Top Pet Product Types Purchased Online
      • Autoship Rates Double, Manufacturer Direct Gains Traction
        • Table Autoship Purchasing Rates for Pet Products in Past 12 Months by Type: By Generational Cohort, February 2021 (percent of dog or cat product shoppers)
      • Not Just Virtual Shopping Carts
        • Table Product Purchasing and Other Uses of the Internet in Past 12 Months: Selected Pet Product Types, February 2021 (percent of dog or cat pet product shoppers)
        • Table Agreement with Statement, "I look out for lower prices, special offers, and sales on pet products": By Generational Cohort, February 2021 (percent of pet product shoppers)
      • The Wingspan of Internet Influence
        • Table Agreement with Selected Statements About Technology and Pet Care: By Generational Cohort, February 2021 (percent of pet owners)
  • Pet Population Trends
    • Chapter Highlights
    • Pet Population and Pet Ownership
      • Pandemic Reset: Pet Acquisition in Response to COVID-19
      • First-Time Pet Owners
      • Multiple Pets, Multiple Types of Pets
      • COVID Motivators for Pet Acquisition
        • Table Patterns for Working at Office/Company and Working at Home: Adults Overall and Pet Owners, Fall 2019 vs. Fall 2020 (percent)
      • Pet Population Churn
      • Pet Acquisition by Generational Cohort
        • Table Overview of Pet Acquisition in 2020 Among Current Pet Owners: By Generational Cohort, (percent of current pet owners who've had pets 2+ years)
      • Acquisition by Type of Pet
        • Table Types of Pets Acquired in Last 12 Months, February 2021 (percent of current pet owners who've had pets 2+ years)
      • Population Gains for "Other" Pets
      • Characteristics of Pet Acquisition
      • Pet Gifting for Winter Holidays 2020
      • Pet Shelters vs. Other Sources of Pet Acquisition
        • Table Sources of Pet Acquisition in Last 12 Months, February 2021 (percent of pet owners acquiring new pets)
    • Topline Overview of Pet Ownership
      • Pet Ownership Rates
        • Table Topline Pet Ownership Rates by Type, 2016-2020 (percent of overall households)
        • Table Number of Pet-Owning Households by Type, 2016-2020 (in millions)
        • Table Number of Pet Dogs and Cats, 2016-2020 (in millions)
      • From Smaller Dogs to Medium
        • Table Size of Pet Dogs: Previously Acquired and Recently Acquired, February 2020 vs. February 2021 (percent of dog owners)
        • Table Dog Population by Size of Dogs, 2016-2020 (percent and number of overall households)
      • Age of Dog and Cat Population
        • Table Dog and Cat Population by Age Bracket of Pet, 2016-2020 (percent of overall households)
        • Table Puppy/Kitten vs. Senior Share of Pet Population: Dogs vs. Cats, 2016-2020 (percent of overall households)
      • Overweight and Special Needs Pets
        • Table Share of Dog or Cat Owners Who Report Having Overweight, Special Needs, or Handicapped Pets, February 2021 (percent of pet owners)

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