The U.S. Equine Market: Feed, Health Care and Services for Horses

Published: August 1, 2009 - 258 Pages

Table of Contents

  • Executive Summary
    • Scope of Report
      • Report Methodology
    • Introduction
      • History of the Horse
      • A $100 Billion Impact in 2003
      • Growth Projection to 9.3 Million Horses in 2010
        • Table Information Sources
    • The Feed Marketers
      • Regional Mills: A Force to be Reckoned With
      • Where Hay Fits in
      • Supplements Also Face Harsh Criticism
      • Hay: The New Competition
    • Equine Health Marketers Face Similar Competitive Threats as Feed
      • Table Growth Rates, by Company, 2007-2008
      • Colic and GI Issues Number One Concern Among Horse Owners
      • De-Worming Products
      • Brakes Put on Deworming Market Growth
      • The Ulcer Treatment Category also faces intense Competition from Natural Products as well as Alfalfa Hay
      • The Health Care Competitive Landscape
        • Table Post-Merger Sales, Based Upon 2008 Sales (in $ millions)
      • The Middlemen: Veterinary Supply Companies Servicing Equine Veterinarians
        • Table Veterinary Supply Companies, Ranked by Revenues, 2008-2009
        • Table Poll: "How often do you have your horse's teeth floated?"
      • The Economy
      • Horse Supply and Demand
      • There is Some Good News
      • Horsemanship is a Lifestyle
  • The Horse Population
    • Introduction
      • The Equine Population in the US: 7.3 Million are Considered Pets
      • Growth Projections
      • State-by-State Analysis
        • Table Top Three States' Equine Population Growth, 2003-2009
        • Table Breeding Statistics, by State, 2007
      • Horses, by Use
        • Table U.S. Horse Population, by Use (in millions)
      • How are Horses Used?
      • Horse Population, by Breed
        • Table Average/Median Price Per Yearling, 1990-2008
      • Data Discrepancies Abound
      • "Other" Horses Comprise About 40% of the US Population
      • Growth Despite Lower Registrations
      • Where are All These Horses Kept?
        • Table Poll: "How many acres are there where your horse lives?"
  • Horse Owners and Caretakers
    • The American Horse owner
      • Table Number of Horses Owned by Tenure, Presence of Children, Primary Product Purchaser
      • Horse owners by Segment
        • Table The Equine Market Segment Overview
      • Horse owners by Discipline
        • Table Demographics of USTRC Team Ropers, by Age and Gender Characteristics (percent)
      • English Disciplines
      • Natural Horsemanship
      • Sources of Information for Equine Owners
        • Table Information Sources
  • Equine Feed Products and Companies
    • A $9 Billion Industry
      • Feeding Defined
      • The Costs of Feeding Horses
        • Table Items Currently Owned, Amount Spent for Items in the Past 12 Months
      • The Companies Don't Divulge Information
        • Table Two Industry Leaders, at a Glance
    • Florida Market Analysis
      • Top Five Companies Control 75% of Florida's Market
        • Table Volume Share of Equine Feed in Florida Market, by Manufacturer, 2008
    • The Producers
      • Land O'Lakes Purina Feed
      • The Acquisition in 2001
      • History
      • The Parent, Land O'Lakes
      • The Products and Brands
      • Feed Division (LOL/Purina) Financials
        • Table Purina (Land O'Lakes Feed Division) Net Sales, 2004-2009E (in $ millions)
      • 2009 Outlook for Land O' Lakes and Purina
      • Purina Mills Horse Business Group
      • Purina Mills Products and Brands: Strategy remains Purina's 1 Product
      • Production and Distribution
      • Sales, Marketing and Advertising
      • Research and Development: Over $13 million Spent in 2008
      • Competition, According to Purina
      • Farnam Platform: Made by Purina
    • Cargill
      • Cargill and Nutrena, a Rich History of Acquisitions
        • Table Cargill Finances at a Glance
      • Closing Feed Plants
      • Products and Brands
      • Sales and Marketing
      • Nutrena R&D, not exclusively equine
      • Nutrena Targets Horse Owners Concerned About Safety
      • Nutrena's Competition
    • Second-Tier Companies Battle for Market Position Behind Purina and Nutrena
      • Manna Pro and Walmart
      • The Company
      • Calf-Manna: Not Just for Calves
      • Manufacturing and Distribution
      • Equine Product Line
    • Mars, Inc.
      • Buckeye
      • Seminole Feed, Mars Horsecare team up
      • Major Marketing Push in the United States
      • Three Senior Feeds from Buckeye
      • Hay Replacement Products
      • Doane Petcare Purchase
    • Cavalor: New Feed Introduced in the United States
      • The Products
      • Ultium's New Rival is Cavalor
    • Regional Mills: National Influence
      • Over 100 Different Brands Recommended by Veterinarians
    • The Southeast Market
      • Seminole: A Regional Company with National Reputation
      • OBS: Ocala Breeders' Supply Snares 11% of the Florida Market
      • Southern States, a Virginia-based Farmers' Cooperative
      • Regional Companies Own Ohio
      • Pennfield Equine Feed Technologies: Premium Fixed-Formula
    • Distribution
      • Tractor Supply
    • Growth Opportunities for Feed Companies: Equine Disorders and Diseases
      • Obese/Overweight Horses: As high as 51%
      • Feed Grass (or hay), as nature intended
      • Explosion in New Feed Choices
      • Throwing Supplements Away
        • Table Form of Horse Supplements Usually Used
    • Hay and Pasture: The Basics are Back
      • Hay Production
      • Many Middlemen Involved
      • What else is known about Hay?
      • What stable hay prices mean for equine feed companies
      • Beyond 2009
    • Feed Stagnant, At Least for Now
  • Equine Health Products and Companies
    • Table Post-Merger Sales, Based Upon 2008 Sales (in $ millions)
    • Pre-and Post-Merger Market Shares
    • The New #1, Worldwide: Merck
      • The Merger
      • Merial: Steady Sales and Salesforce Structure
      • Animal Care Just a Small Portion of Merck Business
        • Table Merial Sales Growth (in $ billions)
      • Over 90% of racehorses have Gastric Ulcers
      • Unpublicized Facts about Equine Ulcers
      • Free Scoping to Market UlcerGard
      • Non-prescription Competition for Ulcer Prevention
      • Alfalfa hay: Simple and Inexpensive Ulcer Protection
      • New Fecal Blood Test Now Available to diagnose ulcers
      • Equioxx: Merial's Breakthrough in Equine Pain Relief
      • Colic and GI Issues Number One Concern Among Horse Owners
      • Merial Vaccine Marketing to Vets
      • Merial's Zimecterin-brand Wormer # 1 Choice
    • Intervet/Schering-Plough Animal Health: Worldwide Market Leader in Animal Health
      • Table Growth Rates, by Company, 2007-2008
      • Intervet: Pioneer in Vaccines
      • Intervet: Pioneer in Customer Education
      • Banamine, #1 in Brand Awareness in Pain Relief
      • Safe Niche in Wormers, for now
      • Marketing
      • Over 50% of health-conscious horse owners administer their own vaccinations
    • Pfizer and Fort Dodge
      • Fort Dodge
      • Pfizer
      • Fort Dodge: Brand Leader in Vaccines
      • Worming Products Quest and Quest Plus
      • Dewormers are the Leading Health and Nutrition Product Purchased at Retail
      • Competition from "Natural" Worming Products
      • New Product Development
      • Fecal Egg Count: A home test in development?
      • Equimax: Effective and Safe
    • Second-Tier Companies
      • Bayer: 8% of the Animal Health Market Worldwide
      • Novartis Animal Health: 6% market share in animal health
    • Other Companies of Note
      • Virbac S.A.
    • Central Garden and Pet
      • Background
      • Farnam
      • Sales are Currently Flat at CG&P
    • W. F. Young/Absorbine: A Heritage of Innovation Since 1892
      • Absorbine Today
      • Innovative Products Fuel Demand
      • Growth by Acquisition: Equine America
      • One Target Market: Aging Baby Boomers
    • Boehringer Ingelheim Vetmedica: Growth due to Swine not Equine
      • New "Joint Health Management Program" Launched April 2009
      • Surpass Acquired from IDEXX
      • Limited Equine Product Line
    • The Middlemen: Veterinary Supply Companies
      • Table Veterinary Supply Companies, Ranked by Revenues, 2008-2009
      • Butler Animal Health
      • MWI is #2 in Sales
      • AHI of Westlake, TX, is Catching Up
      • What About Webster? #2 in Companion Animal Supply
      • PVPL: The Only Veterinary-Owned Distributor
      • Why Do Equine Vets Need so much TLC?
  • Equine Services
    • A $13 Billion Market
    • Veterinary Care
      • In the Top 10 Fastest Growing Professions
        • Table Equine and Mixed Animal Veterinarians, 2006-2012
        • Table The Veterinarian's Role
        • Table Veterinary Expenditures, by Pet Type
      • Guarded Future
      • Products Bought Through Vets
        • Table Supplements/Medications Obtained from Your Veterinarian versus Other Retail Outlet
      • Marketing to Vets
    • Hoof Care
      • Improving Knowledge
        • Table Poll: "During the past 3 years, which of the following methods have you used to mprove our hoof-care knowledge?"
      • Meet the Farriers
        • Table Type of Horses Handled by Farriers
      • Barefoot vs. Shoes, a Hot Topic, even among Veterinarians
        • Table Poll: "Excluding foals and brood mares, what percentage of horses that you provide hoof care for go barefoot year round?"
        • Table Charges for Hoof-Care Work, by Region
        • Table Poll: "How many horses do you provide footcare for in an average day?"
    • Dental Care
      • 8,000 Equine Dentists in the U.S.
      • Cost of Dental Work
      • Dental Care is Becoming "Routine"
        • Table Poll: "How often do you have your horse's teeth floated?"
      • Future Outlook for Equine Dental Care
      • Market Size Guesstimate
    • Other Health Services
      • Massage
      • Equine Acupuncture
    • Training and Boarding
      • Table Amount Spent on Services in the Past 12 Months
      • Transportation: $3 billion and shrinking
      • Insurance
  • Future Outlook and Trends
    • Introduction
    • Unwanted Horses
      • The Unwanted Horse Coalition Releases its Survey Data
      • Wild Horses: 10,000 more than "acceptable" levels
      • Slaughter
      • Natural Horsemanship
      • Natural Equine Products
      • Senior Horses and Senior People
        • Table Baby Boomers, by Age
      • Equestrian Communities: A Major Marketing Opportunity
      • The Economy
      • Horsemanship is a Lifestyle

Abstract

There are approximately 10.5 million equines in the United States, which are used primarily for recreation and entertainment. These horses are responsible for generating over $40 billion per year in spending.

In this one-of-a-kind report, we examine:

  • The Horses: The life of a horse (and the amount of money spent on it) is dramatically different based upon its function. Unlike the majority of dogs and cats, only 7 million of the nation’s 10.5 million horses are considered “pets” or companion animals. This report is the first to dissect the horse population by function, and examine each segment individually.

  • The People: This report scrutinizes horse owners by riding discipline, so that readers can make informed decisions about advertising and marketing based upon the specific demographics of horse owners. However, in many cases the owner is not the person making feeding and care decision, rather it is the trainer or boarding facility manager. This report explains how marketers can understand and influence these key decision makers.

Equines, regardless of their use and value, have basic ongoing needs and often require special services, which we explore in The U.S. Equine Market: Feed, Health Care and Services for Horses:

  • The report examines the top health products companies, as well as second-tier companies. It also takes a look at two significant product categories—de-worming and ulcer prevention & treatment. Two of the leading parasitologists in the world offer their opinions on what is now considered to be the most critical issue facing horse owners, caretakers, and marketers: ineffective parasite-control products.

  • Equine feeding is examined, starting with the two market leaders, Purina and Nutrena, and then delving into the regional feed mills. This report also examines hay and hay replacement products and their impact on the shrinking grain concentrates market. Opinions from leading equine nutritionists on equine feeding, including supplements, forage, and concentrates are included.

  • Largely unregulated, equine services range from necessary (vaccines and hoof care) to frivolous (acupuncture, massage, chiropractic). Other services, such as equine dentistry, are rapidly becoming mainstream as more owners and trainers recognize the importance of proper toothcare in horses.

Current and future trends are analyzed, with an eye on the current economic situation. With each horse costing upwards of $2,000 per year, on average, to maintain, The U.S. Equine Market: Feed, Health Care and Services for Horses addresses what impact the sagging economy will have upon the equine market, and what strategies marketers can employ to retain, if not expand, their market shares.

Read an excerpt from this report below.

Report Methodology

The information contained in this report was obtained from primary and secondary research spanning nine months. Primary research entailed interviews with market participants and knowledgeable observers in the various segments, as well as interviews with the major (and minor) breed associations and over a dozen rider associations. Packaged Facts also visited feed stores and went to equine events sponsored by healthcare and feed companies. We interviewed equine veterinarians, farriers, dentists, and massage therapists. We even interviewed a couple of horse transporters. We spoke to clinicians, barn managers, trainers, agriculture inspectors, the USDA and agricultural departments on the state level. We even interviewed plant managers at feed mills. In total, almost 100 telephone and in-person interviews were conducted.

Secondary research included information- and data-gathering from relevant consumer business and trade publications including: The Horse, Horse-Journal.com, Feedstuffs, Tack ‘n Togs, EQUUS, Practical Horseman, Horse & Rider, Horse Illustrated, Western Horseman, Natural Horse, Equine Wellness, Stable Management, Hay and Forage Grower, GrainNet, Feed Management, AllAboutFeed.net, Veterinary Practice News, DVM News, Journal of Veterinary Science, Veterinary Forum, and JAVMA. New product announcements and advertising were of exceptional interest, and readership poll data from online subscribers to The Horse proved to be invaluable as an up-to-the-minute barometer on equine caregivers’ opinions and practices.

We obtained direct-mail pieces from equine veterinarians in an effort to determine what company is mailing what. Extensive reviews of companies’ websites and marketing materials were conducted in order to compile product information.

This report also includes 2009-2010 National Pet Owners Survey data made available to Packaged Facts on an exclusive basis by the American Pet Products Association (formerly the American Pet Products Manufacturers Association, prior to its name change in 2008). The 2009-2010 National Pet Owners’ Survey was expanded to include 280 statistically relevant in-depth interviews with horse owners across the United States. It is the most current and up-to-date survey of its kind, and a must-have for any company involved in equine products and marketing. Brakke Consulting and Fountain AgriCounsel LLC also provided valuable information for use in this report.

We also incorporated information from The American Horse Council’s landmark study, released in 2005.

About the Author

Despite growing up in New York City, Andrea Haller owned a horse as a teenager. After a successful 20-plus year career in market research and consulting, she returned to a life with horses. For the past 15 years she has owned two horse farms, and has been actively involved in many facets of the industry including breeding, boarding and training, and horse transportation. During the past several years she has rehabilitated dozens of unwanted horses.


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