U.S. Pet Market Outlook 2009-2010: Surviving and Thriving in Challenging Economic Times

Published: March 1, 2009 - 92 Pages

Table of Contents

  • Introduction
    • Scope of Report
      • Report Methodology
    • Overview
      • Economy, Value and Recession Resistance
      • Pet Humanization
        • Table Percent of Pet Owners Who Anticipate Spending Less on Pet Food/Supplies or Pet Services in Next 12 Months, February 2009
      • Premium Demographics
      • Pet Market Momentum
        • Table Number of New Pet Product Introductions: Reports and SKUs, 2005-2009
        • Table Top 20 Marketing Claims by Number of New Pet Product Reports, 2008
      • Illustration 1-1: Nestlé Purina's Friskies Flea Repellent Drops (France)
      • A $57 Billion Market by 2010
        • Table U.S. Pet Market Retail Sales by Category: 2009 and 2010 (in billions of dollars)
        • Table U.S. Pet Market Compound Annual Growth Rates: 2004-2008 vs. 2008-2013 (percent)
  • Humanization
    • More Than a Trend
      • A Three-Pronged Movement
        • Table Mean Number of Veterinary Visits: By Human/Animal Bond Among Dog and Cat Households, 2006
        • Table Mean Veterinary Expenditures: By Human/Animal Bond Among Dog and Cat Households, 2006 (in dollars)
      • Illustration 2-1: Jakks Pacific's White Bites Oral Care Dog Treats with Arm & Hammer Baking Soda
      • Illustration 2-2: Bissell Website Banner for New Pet Lovers Products Collection
      • Illustration 2-3: Consumer Advertising for Procter & Gamble's New Febreze Pet Odor Eliminator Extensions
      • Illustration 2-6: Trade Advertising for Spa Lavish Your Pet's Botanical Grooming Collections
      • A Societal Shift
  • Health and Wellness
    • The Ultimate Value Appeal
      • Natural/Organic/Holistic Products
        • Table Percent of Pet Owners Who Purchased Natural/Organic Pet Products in Last 3 Months: Dog Owners vs. Cat Owners, February 2009 (percent of U.S. dog or cat owners)
        • Table Percent of Pet Owners Who Would Buy More Natural/Organic Pet Products If They Were More Available or More Affordable, February 2009 (percent of U.S. dog or cat owners)
      • Functional Products
        • Table Household Purchasing of Light/Weight Management and Senior Dry and Canned Dog and Cat Food: 2004 vs. 2008 (percent of U.S. households with dogs or cats)
      • Holistic Labeling
      • Pet Services Riding Pet Health Wave
      • Complimentary/Holistic Pet Care
      • The Pet Insurance Boom
      • Ethical/Green Interest, Appeals
  • Competition
    • Overview/Market Structure
      • Additional Market Consolidation
        • Table PetSmart and Petco Combined Sales: 2000-2008 (in millions of dollars)
        • Table Timeline of U.S. Pet Product Marketer and Brand Acquisitions and Sales: 2001-2009
      • Franchising Altering Pet Services Terrain
      • Celebrity Marketing
      • Media Trends
      • Illustration 4-1: Email Coupon for S.C. Johnson & Son's New Pledge Fabric Sweeper for Pet Hair
      • Illustration 4-2: Petco Coupon Mailer Featuring Halo Purely for Pets
      • Retail Trends
        • Table Household Purchasing of Pet Products by Retail Channel: Total Purchasers and Sole Purchasers, 2006 vs. 2008 (percent of U.S. households with pets)
        • Table Percent of Pet Owners Who Do or Do Not Anticipate Spending Less on Pet Foods/Supplies in the Next 12 Months: By Retail Channel Always or Often Shopped, February 2009
        • Table Indices for Spending Level Expectations for Pet Food/Supplies in the Next 12 Months: By Retail Channel Always or Often Shopped for Pet Products, February 2009
        • Table Percent of Pet Owners Who Purchase Pet Food/Supplies by Retail Channel: Always, Often, Occasionally, February 2009 (percent of U.S. pet owners)
      • Internet Potential
  • Consumer Demographics
    • Number of Dog and Cat Households Trending Upward
      • Premium Demographics
      • The Boomer Factor
      • PONK (Pet Owner/No-Kid) Clout
      • Ethnic Energy

Abstract

During the current macroeconomic environment the much touted recession resistance of the pet industry is being put to the test like never before—and appearing to hold up as of March 2009. Whereas total U.S. retail sales rose just 1.4% overall in 2008 according to the National Retail Federation, No. 1 pet specialty retailer PetSmart posted an 8.4% sales increase in fiscal year 2008; top five pet food marketers Del Monte and Hill’s recently reported double-digit growth, with Del Monte’s pet product net sales up 15.1% during the third quarter of fiscal year 2009 (ending May 3), and Hill’s revenues up 13.5% in fourth-quarter calendar 2008; leading veterinary hospital operator VCA Antech posted 6.7% revenues growth during fourth-quarter 2008; and online merchant PetMed Express reported a 16% increase in net sales during the fourth-quarter 2008. Looking at the pet industry as a whole, Packaged Facts predicts overall steady performance in 2009 and 2010, although the market growth rate will drop back slightly due to cutbacks in some of the more discretionary categories.

Featuring February 2009 pet owner survey data polling 2,600 U.S. adults, this all-new Packaged Facts trend report will bring you up to the minute with regard to the four core market categories—veterinary services, pet food, non-food pet supplies, and other pet services (grooming, boarding, training, etc.)—projecting sales and analyzing key growth drivers and competitive opportunities for each. The report is divided into five chapters, beginning with an Overview examining why the pet industry has been performing better than other industries of comparable size and maturity, and what marketers, retailers and product developers can do to help keep their own market momentum going. Four additional chapters examine ongoing and emerging trends in four focus areas—Humanization, Health and Wellness, Competition, and Demographics—covering such topics as the multifaceted notion of value during the recession; impact of the human/animal bond on consumer expenditures; adaptation of human brands, drugs and service types; natural, organic and green products; functional products including pet medications and supplements; impact of the fast-growth pet insurance industry; effect of big-box expansion and franchising in the pet services field; the rise of celebrity marketing, non-traditional media, and cause marketing; and pet ownership trends in key consumer segments including premium demographics, aging Baby Boomers and PONKS (Pet Owners/No Kids).

Read an excerpt from this report below.

About the Author

David Lummis is the senior pet market analyst for Packaged Facts. He is also author of the monthly "Market Outlook" column in Pet Product News International, and a regular contributor of articles and market insight to other pet industry magazines as well as major business media including The New York Times and CNNMoney. Mr. Lummis also is President of New Orleans-based Marigny Research Group, Inc., a producer of custom market research reports for Packaged Facts. Since 1986, MRG has prepared more than 175 studies on consumer packaged goods markets and developed full report lines covering pet, demographic, retail and financial markets. Mr. Lummis, who graduated from Yale University, has also written approximately 75 other published B2B reports and is the author of the book, "Value Retailing in the 1990s."

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