Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition

Published: July 1, 2010 - 278 Pages

Table of Contents

  • Executive Summary
    • Introduction
      • Scope of Report: Pet Food and Pet Care
      • Report Methodology
    • Market Trends
      • U.S. Retail Sales, 2005-2014
        • Table U.S. Retail Sales of Natural Pet Products, 2005-2014 (in millions of dollars)
      • Pet Food vs. Pet Care
      • Organic Pet Food Sales
      • Litter Dominates Pet Care Classification
      • Mass-Market Sales Trends
      • Natural Supermarket Sales Trends
      • Market Share by Retail Channel
    • Competitive Trends
      • Natural Pet Market Tracking Human Path
      • Procter & Gamble Plus Natura
      • New Brands and Line Extensions
      • Raw Pet Food Market Leaders
      • Freshpet and Tyson Join Forces in Refrigerated Pet Food
      • Natural Product Leaders in the Pet Specialty Channel
      • Natural Product Leaders in Tracked Mass-Market Channels
      • Top Ten Brands in the Natural Supermarket Channel
    • New Product Trends
      • "Natural" Leads New Product Surge
      • "Natural-Related" Claims
      • "Green" Claims
    • Consumer Trends
      • Purchasing Patterns for Natural/Organic Dog Products
      • Purchasing Patterns for Natural/Organic Cat Products
      • Independent Pet Stores Are Highest-Indexing Channel for Natural Product Purchasers
      • Availability and Affordability as Impediment to Natural Product Purchasing
  • Introduction
    • Scope & Methodology
      • Scope of Report: Pet Food and Pet Care
      • Report Methodology
    • Market Definitions and Terminology
      • Natural Pet Food
      • Defining Natural
      • What "Natural" Isn't
      • Defining Organic
      • April 2010 NOP Recommendation Muddies Organic Pet Food Waters
      • Organic Standards as of May 2010
      • Sustainability and Other Ethical Issues
      • Third-Party Accreditation
      • Natural vs. Organic
      • Raw Pet Food Product Definition
      • Dr. Billinghurst's BARF Diet
      • The Raw Meaty Bones (Prey Model) Approach
      • Raw Food Processing
      • Freeze-Drying
      • Pasteurization
      • Raw Food Regulation
      • Terms Often Associated with Natural and Organic
      • "Healthy" Ingredients
      • "Unhealthy" Ingredients
      • Natural Pet Care Products
      • Natural and Alternative Litter
      • Natural Pet Health Products
      • Natural Pet Grooming Products
      • Natural Pest-Control Products
      • Natural Pet Supplements
      • Other Natural Pet Care Products
    • "Ethical" and Environmental Issues
      • Key Ethical Issues
      • Eco-Friendly ("Green")
      • Locally Grown and "Food Miles"
      • Humane Treatment of Animals
      • No Animal Testing/Cruelty-Free
      • No Genetic Modification or Cloned Animals
      • Fair Trade/Ethically Sourced
      • Sustainable Agriculture and Development
      • Corporate Responsibility
      • The Global Reporting Initiative
      • Governmental and Non-Governmental Criteria and Certification
      • Consumers Union Lists 150 Different "Eco-Labels"
  • Market Trends
    • Market Size & Growth
      • U.S. Retail Sales, 2005-2014
        • Table U.S. Retail Sales of Natural Pet Products, 2005-2014 (in millions of dollars)
      • Pet Food vs. Pet Care
        • Table U.S. Retail Sales of Natural Pet Products by Classification and Category: 2005, 2009 and 2014 (in millions of dollars)
        • Table Share of U.S. Retail Sales of Natural Pet Products: 2005, 2009 and 2014 (percent)
      • Food Sales by Type
        • Table Share of U.S. Retail Dollar Sales of Natural Dog and Cat Food by Form, 2009 (in millions of dollars)
      • Organic Pet Food Sales
        • Table U.S. Retail Sales of Organic Pet Food, 2003-2009 (in millions of dollars)
      • Raw Pet Food Sales
      • Litter Dominates Pet Care Classification
      • Mass-Market Sales Trends
        • Table U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Pet Food, Litter, and Dog/Cat Needs vs. Total Pet Food, Litter, and Dog/Cat Needs: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars)
      • Dog and Cat Food
        • Table Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Total Pet Food and Natural Pet Food by Animal Type: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent)
        • Table Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog Food and Total Dog Food by Product Type: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent)
        • Table U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog and Cat Food vs. Total Dog Food by Category: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars)
        • Table Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Cat Food and Total Cat Food by Product Type: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent)
      • Cat Litter
        • Table U.S. SymphonyIRI-Tracked Dollar, Unit, and, Volume Sales of Natural Cat Litter vs. Total Cat Litter: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars, units and pounds)
      • Natural Supermarket Sales Trends
        • Table Dollar Sales of Pet Products in the Natural Supermarket Channel by Category, 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (in millions of dollars)
      • Market Share by Retail Channel
    • Market Outlook
      • Recession Takes a Toll
        • Table Symphony/IRI-Tracked Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2008 (in millions of dollars, units and pounds)
      • Slow But (Apparently) Steady Recovery Underway
      • Pet Market Consumers a Bullish Bunch
        • Table Level of Agreement with Statement "I Am Spending Less on Pet Products These Days Because of the Economy": Dog Owners and Cat Owners Overall vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply Purchasers, 2010 (percent of U.S. pet owners)
        • Table Level of Agreement with Statement "I Am Spending Less These Days Because of the Economy": Dog Owners and Cat Owners Overall vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply Purchasers, 2010 (percent of U.S. pet owners)
        • Table Level of Agreement with Statement "I Anticipate Spending More on Pet Products Over The Next 12 Months": Dog Owners and Cat Owners Overall vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply Purchasers, 2010 (percent of U.S. pet owners)
      • Heightened Consumer and Governmental Focus on Product Safety
      • New Regulations for Flea/Tick "Spot-ons"
      • Heightened Focus on the Environment
      • Focus on Organic and Sustainable
      • New NOP Recommendation Threatens Organic Pet Food
      • Recession Takes a Toll
      • Organic Ingredient Surplus and Higher Costs to Producers
      • Is Organic Really Better?
      • Confusion over Natural vs. Organic, "Green"
      • A "Greenwashing" Backlash?
      • OTA Bullish on Organic Growth
      • Government Steps Up Support of Organic Industry
      • Strong Consumer Interest
      • Favorable Trends in Multiple Retail Channels
        • Table Level of Change in Sales Volume Among Independent Pet Specialty Retailers, 2007-2010 (percent)
        • Table Natural Product Share of Independent Pet Specialty Store Sales by Animal Category, 2009 (percent)
        • Table Share of Independent Pet Specialty Store Sales Derived from Natural Products: By Animal Category and Percentage Level, 2009 (percent)
        • Table Change in Amount of Natural/Holistic Products Sold: "Has the Amount of Natural/Holistic Products Your Store Sells Increased, Remained the Same, or Decreased In the Last 12 Months?" (percent)
      • Petco Programs
      • PetSmart and Martha Stewart
      • Room to Grow at Whole Foods
      • A Boom in Mass Channels?
      • Internet a Big Plus for Natural Pet Products
        • Table Level of Pet Owner Agreement with Statement: "I Use the Internet to Help Find and Choose Pet Products," February 2010 (percent)
        • Table Level of Pet Owner Agreement with Statement: "I Buy Pet Products Online," February 2010 (percent)
        • Table Selected Internet-Related Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)
      • The Human/Animal Bond
      • Premium Demographics
        • Table Change in Pet Market Consumer Base: Household Income $60K or More vs. Household Income Under $60K, 2005 vs. 2009 (U.S. dog- or cat-owning households)
      • Impact of Aging Pet Population
      • Impact of Pet Overweight, Obesity
  • Competitive Trends
    • Introduction
      • Natural Pet Market Tracking Human Path
      • Key Acquisitions
      • Procter & Gamble Plus Natura
      • Possible Future Acquisitions Targets
      • New Brands and Line Extensions
      • No Guarantee of Success
      • Mainstreaming Backlash
      • Organic vs. Natural
      • HSUS Debuts Humane Choice Organic Pet Food
      • Focus on Raw Pet Food
      • Focus on Product Safety
      • Paw Naturaw Committed to "Wholesale Direct"
      • The Freezer Case Hurdle
      • Raw Foods Mainstreaming
      • Freshpet and Tyson Join Forces in Refrigerated Pet Food
      • The Next Big Thing: Jarred Pet Food?
    • Marketer and Brand Rankings
      • Pet Specialty Still the Locus
      • Natural Pet Food Leaders in the Pet Specialty Channel
        • Table Pet Specialty Channel Marketer and Brand Leaders in Dog Food and Cat Food: 2004-2008 (percent)
      • Natural Pet Care Leaders in the Pet Specialty Channel
      • Natural Cat Litter Marketers
      • Multi-Category Natural Pet Care Marketers
      • Category Specialists
      • Mass-Market Marketer and Brand Rankings
      • Dog Food
      • Cat Food
      • Cat Litter
      • Dog/Cat Needs
      • Top Ten Brands in the Natural Supermarket Channel
        • Table U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog Food by Marketer, Brand, and Category: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars)
        • Table U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Cat Food by Marketer, Brand, and Category: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars)
        • Table Share of U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter by Marketer and Brand: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent)
        • Table U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter by Marketer and Brand: 52 Weeks Ending April 2010 vs. Year-Ago Period (in millions of dollars)
        • Table U.S. SymphonyIRI-Tracked Dollar Sales of Natural Dog/Cat Needs by Marketer and Brand: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars)
        • Table Top Brands of Pet Products in the Natural Supermarket Channel: Dollar Sales - 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (in millions of dollars)
    • Marketing Trends
      • Celebrity Kick
      • Cause-Related Marketing
      • Pet Food Producers Position on Safety
      • Direct Selling via Internet
      • Advertising and Promotion
    • Focus on Sustainability
      • Pet Industry Embracing Sustainable Initiatives
        • Table What Are The Reasons Your Operation Is Adopting Green and Sustainable Practices? (percent)
        • Table Sustainability Practice Areas That Have Already Delivered or Have Significant Potential to Deliver a Strong Return on Investment (ROI) for Your Operation (percent)
      • Sustainable Initiatives in Factory Conversion and Construction
      • Sustainability and Ethical as Company Positioning
      • Sustainability in Product Design
      • Eco-Friendly Cat Litter at the Fore
      • Sustainability in Packaging
      • Retailers Also Going Green
        • Table Marketers and Brands of Natural, Organic and Eco-friendly Pet Food, 2010
        • Table Marketers and Brands of Natural, Organic and Eco-friendly Pet Care Products, 2010
    • New Product Trends
      • "Natural" Leads New Product Surge
        • Table Number of New Natural and Organic Dog Food, Cat Food, and Pet Healthcare Products and Share of Total Category Launches, 2005-2010 (number and percent)
      • "Natural-Related" Claims
      • "Green" Claims
      • Smaller Marketers Continue to Lead Natural Charge
        • Table Number of Natural and Organic Pet Food Launches by Company, 2007-2009
      • Natural/Upscale Overlap
      • Natural Plus Gourmet
      • Merrick Pet Care a Gourmet/Natural Pioneer
      • Natural/Gourmet Treat Combos
      • Three Dog Bakery Introduces Bake to Nature Packaged Line
      • Rachael Ray Extends Nutrish Line with Just 6 Treats
      • Senior, Weight Management, and "Special Needs" Products
      • The Holistic Buzz
        • Table Number of Dog Food and Treat Launches and Percentage Share of All Dog Food and Treat Launches by Marketing Claim/Package Tag, 2006-2009
        • Table Number of Cat Food and Treat Launches and Percentage Share of All Cat Food and Treat Launches by Marketing Claim/Package Tag, 2006-2009
        • Table Number of Pet Healthcare Product Launches and Percentage Share of All Pet Healthcare Launches by Marketing Claim/Package Tag, 2006-2009
    • Pet Food
      • All About Ingredients
      • Petco Launches Nutrition Education Campaign
      • Human-Grade Ingredients
      • Honest Kitchen Makes Honest Claim Out of "Human Grade"
      • Country-Coded and U.S.-Sourced Ingredients
      • Locally Sourced Ingredients
      • Functional Ingredients and Condition-Specific Claims
      • Trend Profile: Dogswell, LLC
      • Grain-Free Foods and Treats
      • Ancestral Diets
      • Hypoallergenic
      • No Wheat Gluten
    • Focus on Raw and Refrigerated Foods
      • Going Organic and Playing Up "Natural"
      • Raw and Human-Grade
      • Raw and Hypoallergenic/Grain-Free
      • New Zealand Appeal
      • Freeze-Dried and Dehydrated
      • Focus on Convenience
      • Focus on Felines
      • Pet Food Mixes and Homemade Foods
      • Company Snapshot: Honest Kitchen
      • Company Snapshot: Nature's Variety
    • Pet Care Products
      • Cat Litter
      • Scoopable and Multi-Cat Formulations
      • New Clay Litters Co-Opting "Natural"
      • Eco-Friendliness
      • Product Safety
      • Litter Boxes and Accessories
      • Pest Controls
      • Grooming Products
      • Spa/Gift/Travel Appeals
      • Clean-Up Products
      • Supplements and Health Remedies
      • Pet Beds
      • Toys
      • Collars and Leads
      • Carriers, Housing, and Bowls
      • Non-Dog/Cat Supplies
  • Consumer Trends
    • Note on Data Sources
    • Cat-Owning Households Have Slightly Higher Propensity to Buy General-Market "Green" Products
      • Table Purchasing of General-Market Natural, Organic, or Eco-Friendly Products, July 2009-March 2010 (percent of U.S. households)
    • Overall Purchasing Patterns for Natural/Organic Dog Products
      • Table Overview of Dog-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Any, 2009/2010 (percent and number among U.S. dog-owning households)
      • Table Overview of Dog-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Natural Dog Food Brand and Organic Pet Food, 2009/2010 (percent and number among U.S. dog-owning households)
    • Urban, Upper-Middle Class, and Gen Y Base for Natural Dog Products
    • Older Boomers Twice as Likely to Buy Natural Dog Foods
    • Spanish TV Is Prime Time for Natural Dog Food Brands
      • Table Key Demographic Indicators for Purchasing Natural Products for Dogs: Overall, Pet Food/Treats, and Non-Food Supplies, May/June 2010 (index among U.S. dog owners)
      • Table Selected Demographics for Purchasing Natural Brand Dog Foods, July 2009-March 2010 (percent and index among U.S. dog-owning households)
      • Table Selected Lifestyle Indicators for Purchasing Natural Brand Dog Foods, July 2009-March 2010 (index among U.S. dog-owning households)
      • Table Selected Psychographic Indicators for Purchasing Natural Brand Dog Foods, July 2009 March 2010 (index among U.S. dog-owning households)
    • Demographics for Organic vs. Natural Dog Food Brands
      • Table Selected Demographics for Purchasing Organic Dog Food, July 2009-March 2010 (percent and index among U.S. dog-owning households)
    • The Consumer Mindset for Organic Dog Food
      • Table Selected Psychographic Indicators for Purchasing Organic Dog Food, July 2009-March 2010 (index among U.S. dog-owning households)
    • Overall Purchasing Patterns for Natural/Organic Cat Products
      • Table Overview of Cat-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Any Natural/Organic Pet Food or Supplies, Natural/Organic Pet Food/Treats, Natural/Organic Pet Supplies Other Than Pet Food/Treats, Natural/Organic Cat Litter and Natural/Organic Flea & Tick Care 2009/2010 (percent and index among U.S. cat-owning households)
      • Table Overview of Cat-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Organic Pet Food, Natural/Alternative Brand Cat Litter, 2009/2010 (percent and index among U.S. cat owning households)
    • Hispanics Index at 158 for Purchasing Natural Cat Products
    • Metropolitan Skew for Organic Cat Food
    • Psychographic Indicators for Purchasing Organic Cat Food
      • Table Key Demographic Indicators for Purchasing Natural Products for Cats: Overall, Pet Food/Treats, and Non-Food Supplies, May/June 2010 (index among U.S. cat owners)
      • Table Selected Psychographic Indicators for Purchasing Organic Cat Food, July 2009-March 2010 (index among U.S. cat-owning households)
    • The Natural/Alternative Cat Litter Consumer
    • Independent Pet Stores Are Highest-Indexing Channel for Natural Product Purchasers
      • Table Retail Channel Patterns: Purchasers vs. Non-Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (percent and index among U.S. pet-owning households)
    • Retail Draws: PetSmart vs. Petco
      • Table Patterns for Shopping at PetSmart vs. Petco: Purchasers vs. Non-Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (percent and index among U.S. pet owning households)
    • Availability as Impediment to Natural Product Purchasing
      • Table Level of Agreement with Statement, "If Natural/Organic Pet Products Were More Available Where I Shop, I Would Buy Them More Often," 2010 (percent of U.S. pet owners)
      • Table Level of Agreement with Statement Among Dog Owners Who Purchase Natural/Organic Pet Products, "If Natural/Organic Pet Products Were More Available Where I Shop, I Would Buy Them More Often," 2010 (percent of U.S. dog owners)
      • Table Level of Agreement with Statement Among Cat Owners Who Purchase Natural/Organic Pet Products, "If Natural/Organic Pet Products Were More Available Where I Shop, I Would Buy Them More Often," 2010 (percent of U.S. dog owners)
    • Affordability as Impediment to Natural Product Purchasing
      • Table Level of Agreement with Statement, "If Natural/Organic Pet Products Were More Affordable Where I Shop, I Would Buy Them More Often," 2010 (percent of U.S. pet owners)
      • Table Level of Agreement with Statement Among Dog Owners Who Purchase Natural/Organic Pet Products, "If Natural/Organic Pet Products Were More Affordable Where I Shop, I Would Buy Them More Often," 2010 (percent of U.S. cat owners)
      • Table Level of Agreement with Statement Among Cat Owners Who Purchase Natural/Organic Pet Products, "If Natural/Organic Pet Products Were More Affordable Where I Shop, I Would Buy Them More Often," 2010 (percent of U.S. cat owners)
      • Table Percent Who Strongly Consider Availability or Affordability as Impediments to Further Purchasing of Natural/Organic Pet Products: By Pet Owner Classification, 2010 (percent)

Abstract

Although the 2008-2009 recession took a notable toll, natural and organic pet products continue as a top-growth market segment on their way to becoming the standard for premium pet products in the pet specialty channel and other upscale venues. Doing their part, all of the major mass-market and cross-channel marketers are tapping into the trend as well, keeping pressure on smaller marketers to scale up their product offerings even further. Most recently, in mid 2010 Procter & Gamble rocked the pet food industry by acquiring Natura Pet Products, whose natural and organic pet food brands include Innova, Evo, California Natural and Karma—a move that suggests that the natural pet food party is just getting started on the mass-market side.

Also underpinning steady market advancement is consumer demand for products perceived to be safer, an appeal that got a big boost from the Spring 2007 recalls and one that continues to define the way marketers formulate and position products. According to pet owner surveys conducted by Packaged Facts, 40% of dog owners and 38% of cat owners purchase natural/organic pet products; nearly half of pet owners would buy more natural/organic pet products if they were more affordable; and almost two-fifths would do so if they were more available. Featuring exclusive consumer data such as these, the report homes in on food and nonfood purchasing trends across multiple categories, as well as attitudes and demographic characteristics of natural and organic pet product purchasers.

Building on the analysis presented in the previous two editions of this report, Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition divides the market into two classifications—pet food and pet care—with the latter defined as encompassing all nonfood pet supplies (cat litter, grooming products, flea/tick care products, supplements, clean-up products, etc.). For each classification, coverage includes historical and projected retail sales estimates from 2005 through 2014, competitive strategies of key players, and trends in new product development such as human-grade pet food, raw/frozen pet food, fresh (refrigerated) pet food, eco-friendly nonfood pet products, corporate sustainability initiatives, and cause marketing. Additional data sources include SymphonyIRI marketer/brand sales data for mass-market channels, SPINSscan data for the natural supermarket channel, Datamonitor Product Launch Analytics data tracking new product introductions, and Experian Simmons data profiling trends in pet ownership and product purchasing.

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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