U.S. Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent Spending

Published: March 1, 2010 - 136 Pages

Table of Contents

  • Market Performance
    • Introduction
      • Scope of Report
      • Report Methodology
    • Market Performance
      • Impact of Economic Recession and Recovery
        • Table U.S. Pet Market Retail Sales by Category: 2009-2011 (in billions of dollars and percent change over previous year)
      • Signs of Economic Recovery
      • Market Climate Favorable to Mass Retailers, Brands
        • Table 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)
      • Strong Market Underpinnings Bode Well for Rebound
        • Table Level of Pet Owner Agreement with Statement: "I Am Spending Less on Pet Products Because of the Economy," February 2010
        • Table Percent of Pet Owners Who Anticipate Spending Less on Pet Food/Supplies or Pet Services in Next 12 Months, February 2009
        • Table Pet Owner Patterns: By Change in Financial Situation Compared With 12 Months Ago, 2009 (percent of U.S. pet-owning households)
        • Table Pet Owner Population: By Change in Financial Situation Compared With 12 Months Ago, 2009 (number of U.S. pet-owning households in millions)
        • Table Pet Owner Indexes: By Change in Financial Situation Compared With 12 Months Ago, 2009 (U.S. pet-owning households)
      • Human/Animal Bond Strengthens During Recession
      • Product Premiumization and Premium Demographics
        • Table Change in Pet Market Consumer Base by Purchase of Selected Premium Pet Products: Flea/Tick Care, Treats, Heartworm Control Products, Scoopable Litter, 2005 vs. 2009 (number and percent of U.S. dog- or cat-owning households)
      • Pet Insurance: The Right Place at the Right Time
      • Impact of Pet Aging, Overweight
        • Table Percentage and Number of Overweight and Obese Dogs and Cats: 2007 vs. 2008
      • Pet Market Momentum
        • Table Number of New Pet Product Introductions: Reports and SKUs, 2005-2009 (percent)
      • Future Factors
      • Additional Human Company Cross-Over
      • Human-Animal Correlation an Untapped Goldmine
      • Market Forecast: A $72 Billion+ Market by 2014
        • Table Projected U.S. Retail Sales of Pet Products and Services, 2009-2014 (in millions of dollars)
        • Table U.S. Pet Market Compound Annual Growth Rates by Category:2005-2009 vs. 2009-2014 (percent)
        • Table Percentage Share of U.S. Pet Market Retail Sales by Category: 2005, 2009 and 2014
  • Marketing Trends
    • Competitive Overview
      • Overview
      • Pet Services Industry "Corporatization" Continues
      • VCA Antech, PetSmart/Banfield and Petco Continue as Leading Market Consolidators
      • The Independent Pet Specialty Services Push
      • Franchising Altering Pet Services Terrain
      • Pet Products Market Structure and Competitive Shifts
      • M&A Activity Continues During Recession
        • Table Timeline of U.S. Pet Product Market Mergers, Acquisitions and Sales: 2001-2009
    • Marketing Trends
      • Pet Parent Priorities Post-Recession
      • Wellness Is Primary Theme in New Product Introductions
        • Table Top 25 Marketing Claims by Number of New Pet Product Reports: 2005, 2007 and 2009 (number and percentage of all product launches)
      • Wellness Plus "Human-Style"
        • Table Selected Health & Medical Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)
      • The Senior, Weight Management, and Special Needs Thrust
        • Table U.S. Retail Sales of Senior, Weight Management, and Special Needs Pet Products: 2004, 2008 and 2013 (in millions of dollars)
      • The Natural and Organic Thrust
        • 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, 2009 (percent of U.S. dog or cat owners)
      • Specialty and Functional Food Formulas
      • Pet Supplements and Nutraceutical Treats
      • Pet Medications
      • Focus on Product Safety
      • Celebrity Kick
      • Cause-Related Marketing
      • Good for the Planet, Good PR: Pet Marketers Embracing Sustainable Initiatives
        • Table Selected "Green" Shopping Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)
      • Multiservice
      • Luxury Services Expected to Rebound
      • At-Home Pet Services Predicted to Soar
      • Pet Sitting
      • Mobile Grooming
      • Mobile Veterinary Care
      • Veterinary Specialization
      • Geriatric Care
      • Specialized Care for Overweight Pets
      • Hospice Care
      • Canine Rehabilitation
      • Holistic/Alternative Care
      • Bereavement Services
    • Media Trends
      • Pet Market Advertising Expenditures
        • Table Media Breakout of U.S. Advertising Expenditures on Pet Products, 2004-2008 (percent)
      • Human/Animal Bond More Important Than Ever
      • Value-Focused Advertising
      • Non-Traditional Media and Internet Advertising
        • 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)
        • Table Selected Media & Marketing Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)
      • Social Networking Becoming a Pet Market Craze
      • Pet Retailers Also Turning to Blogs, Social Networking, Mobile Commerce
  • Retail Channel Trends
    • Shopper Deal-Seeking, Retailer Promotions in Full Force
      • Table Level of Pet Owner Agreement with Statement: "I Shop for Pet Products at a Variety of Stores to Find the Best Prices, Special Offers and Sales," February 2010 (number and percent of pet owners)
      • Economic Concerns Intensify Cross-Channel Competition
        • Table Pet Product Purchasing Patterns Among Dog or Cat Owners by Retail Channel: By Change in Financial Situation Compared With 12 Months Ago, 2009 (percent of U.S. dog- or cat-owning households)
        • Table Pet Product Purchasing Indexes Among Dog or Cat Owners by Retail Channel: By Change in Financial Situation Compared With 12 Months Ago, 2009 (U.S. dog- or cat-owning households)
      • Pet Superstores vs. Discount Stores
      • Independents and Supermarkets Continue to Slide
        • Table Pet Product Purchasing Patterns Among Dog or Cat Owners: By Retail Channel, 2007-2009 (percent and millions of number of U.S. dog- or cat-owning households)
      • Channel Loyalty Trends
        • Table Retail Channel Loyalty in Pet Product Purchasing Among Dog or Cat Owners, 2007-2009 (percent and in millions of number of U.S. dog- or cat-owning households)
        • Table Overview of Retail Channel Loyalty in Pet Product Purchasing Among Dog or Cat Owners, 2004 vs. 2009 (percent and in millions of number of U.S. dog- or cat-owning households)
      • Walmart Strengthens Pet Market Push
        • Table Level of Pet Owner Agreement with Statement: "When I Want to Buy Specialty Brand Pet Products, I Usually Shop in Pet Superstores or Pet Stores", February 2010 (percent of pet owners)
        • Table Level of Pet Owner Agreement with Statement: "I Usually Shop for Pet Products in Pet Superstores or Pet Stores Because They Carry the Specialty Brands I Like," February 2010 (percent of pet owners)
      • Down Economy Gives Store Brands a Boost
        • Table IRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2008 (in millions of dollars)
        • Table Private-Label Share of IRI-Tracked Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2008 (percent)
      • PetSmart and Petco Continue to Shape Pet Market Landscape
        • Table PetSmart and Petco Sales and Number of Stores: 2001-2009 (cumulative, in units and millions of dollars)
      • Martha Stewart Line to Debut as PetSmart Exclusive in Mid 2010
      • Petco Launches "Unleashed" Store Format, Staff Training Program, and Consumer Educational Campaign
      • Retailer Exclusivity
      • Independent Pet Stores: An Evolving Breed
      • Non-Traditional Channels, Internet Going Strong
  • Pet Ownership Trends
    • Number of Dog and Cat Households Trending Upward
      • Table Change in Pet Market Consumer Base: Number of Dog or Cat Owners, 2005 vs. 2009 (U.S. dog- or cat-owning households)
      • Higher-Income Households Playing a Growing Role
        • 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)
      • 17 Million "Premium Pet" Households
      • The Boomer Factor
        • Table Household Penetration Rates for Selected Pet-Owning Classifications by Generational Cohort: Gen Y Adults vs. Gen X Adults, 2009 (percent and number)
        • Table Household Penetration Rates for Selected Pet-Owning Classifications by Generational Cohort: Boomers vs. Seniors, 2009 (percent and number)
        • Table Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2009 (U.S. households)
        • Table Number and Share of Total U.S. Population Growth for Selected Age Brackets: 2010, 2015 and 2020 (in thousands of number and percent)
      • Role of Gen Ys and Gen Xers
      • No-Kid Pet Household Clout
        • Table Change in Pet Market Consumer Base: Households with Kids vs. Households Without Kids, 2005 vs. 2009 (U.S. dog- or cat-owning households)
        • Table Childless Dog or Cat Owners by Household Composition: Dog/Cat Ownership Rates and Share of Total Dog/Cat Owners: 2003, 2006 and 2009 (percent)
      • Pet Ownership Trends by Minority Group
        • Table Dog and Cat Ownership Trends by Race/Ethnicity, 2005-2009 (percent and number of U.S. dog- or cat-owning households)
        • Table Change in Pet Market Consumer Base: White Non-Hispanics vs. Minorities, 2005 vs. 2009 (number and percent of U.S. dog- or cat-owning households)

Abstract

As the U.S. economy moves out of recession and into recovery, the purse strings of many pet parents will loosen, but shoppers will continue to demand greater value in the pet products and services they purchase as well as from the channels they shop. U.S. Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent Spending provides essential insights into the U.S. pet market overall as well as each of its four core categories: veterinary services, pet food, non-food pet supplies, and non-medical pet services (grooming, boarding, training, etc.). Benefiting from many current trends and “future factors,” the market will rise from $53 billion in 2009 to over $70 billion in 2014, the report forecasts, with strong demand for products and services that both enhance pet health and pamper lifting many boats as pent-up pet parent demand begins to kick in during 2010.

Continuing the market tracking and forecasting of the previous edition of Packaged Facts’ annual report (see U.S. Pet Market Outlook 2009-2010: Surviving and Thriving in Challenging Economic Times, the 2010-2011 edition projects sales, market growth drivers, and competitive and marketing opportunities. In a new focus discussion, it details retail channel trends including the increasingly aggressive competitive differentiation between pet specialty and mass-market suppliers and retailers, cross-channel shopping vs. shopper loyalty, and the growing role of non-traditional channels including Internet. The report also includes expanded discussions of the market’s competitive structure and of new product and media trends, with analysis and illustrations of numerous products and advertising campaigns.

Additional chapters detail the market’s ongoing strong prospects, including a human/animal bond that is stronger than ever as a result of the recession; analysis of the competitive situation including opportunities for cross-pollination across product and service segments; and consumer demographic and mindset trends representing changes, challenges and calls to action in meeting the needs of today’s more demanding pet parent population. Other trends examined include what the report calls “a broad-base societal shift toward greater acceptance of ‘pets as family’,” an increased focus on the human/animal health connection; “bang for the buck” value appeals balancing price, function and indulgence; “ethical” (organic/natural, sustainable, humane, etc.) appeals and cause marketing; the shift toward non-traditional media including social networking; and recent and possible mergers, acquisitions and spin-offs.

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