U.S. Pet Market Outlook 2011-2012

Published: April 1, 2011 - 181 Pages

Table of Contents

  • Market Performance
    • Introduction
      • Scope of Report
      • Report Methodology
    • Market Performance
      • Recessionary Impact Stronger in 2010
        • Table U.S. Pet Market Retail Sales by Category: 2010-2012 (in billions of dollars and percent change over previous year)
        • Table Percentage Share of U.S. Pet Market Retail Sales by Category: 2005 vs. 2010
        • Table Share of U.S. Pet Market Sales by Category and Animal Type: Dog, Cat, Other, 2010 (percent)
        • Table Level of Pet Owner Agreement with Statement: "I am spending less on pet products because of the economy," February 2010 vs. February 2011 (percent)
        • Table Level of Pet Owner Agreement with Statement: "I am spending less on pet products because of the economy," Dog Owners vs. Cat Owners, February 2011 (percent)
      • A Challenging Environment
        • Table Level of Agreement with Statement: "I anticipate spending more on pet products over the next 12 months," February 2010 vs. February 2010 (percent of U.S. pet owners)
        • Table Level of Pet Owner Agreement with Statement: "I anticipate spending more on pet products over the next 12 months," Dog Owners vs. Cat Owners, February 2011 (percent)
      • Value Focus Prevails
      • Even Mass Retailers Feel the Cold
        • Table IRI-Tracked Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2010 (in millions of dollars, units and pounds)
      • Natural Sales Moderate, Temporarily
        • 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 Pet Owner Agreement with Statement: "If natural/organic pet products were more available where I shop, I would buy them more often," Total Pet Owners vs. Dog Owners and Cat Owners, February 2011 (percent)
        • Table Level of Pet Owner Agreement with Statement: "If natural/organic pet products were more affordable where I shop, I would buy them more often," Total Pet Owners vs. Dog Owners and Cat Owners, February 2011 (percent)
        • Table U.S. Retail Sales of Natural Pet Products: 2005, 2009 and 2014 (in millions of dollars)
      • Even Higher-Income Households Tighten Purse Strings
        • Table Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 1999-2009 (percent)
        • Table $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 1999, 2008, 2009 (percent)
      • Dog and Cat Treats Beat Recession
      • Another Bright Spot: Refrigerated and Raw/Frozen Pet Food
      • Dog and Cat Supplements and Nutraceutical Treats Continue Upward Track
      • The Pet Food/Treat/Supplements Nutrition Continuum
        • Table Use of Special-Purpose Nutritional Formula Pet Food and Treats vs. Pet Supplements: Dog Owners vs. Cat Owners , 2010 (percent)
      • Pet Insurance Continues to Advance
      • Strong Underpinnings
      • Human Animal Bond
      • Pet Aging and Overweight
        • Table Percentage and Number of Overweight and Obese Dogs and Cats, 2010
      • Premium Demographics
      • Baby Boomers Adding New Dimensions to Market
      • Heavy Advertising, New Product Activity, Outside Investment
      • Market Forecast: 2011-2015
        • Table Pet Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2008-2010 (U.S. pet-owning households)
        • Table Dog Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2008-2010 (U.S. dog-owning households)
        • Table Cat Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2008-2010 (U.S. cat-owning households)
        • Table Owners of Pets Other Than Dogs or Cats: Overview by Change in Financial Situation Compared With 12 Months Ago, 2008-2010 (U.S. households owning pets other than dogs or cats)
        • Table Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2008-2010 (U.S. pet-owning households)
        • Table Dog Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2008-2010 (U.S. dog-owning households)
        • Table Cat Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2008-2010 (U.S. cat-owning households)
        • Table Owners of Pets Other Than Dogs or Cats: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2008-2010 (U.S. households owning pets other than dogs or cats)
        • Table Projected U.S. Retail Sales of Pet Products and Services, 2010-2015 (in millions of dollars)
        • Table U.S. Pet Market Compound Annual Growth Rates by Category: 2006-2010 vs. 2011-2015 (percent)
        • Table Percentage Share of U.S. Pet Market Retail Sales by Category: 2010 vs. 2015
      • A Societal Shift
        • Table Household Penetration Rates for Selected Pet-Owning Classifications, 2009 vs. 2010 (percent of U.S. households in millions)
      • The Next Big Thing: The Pet/Human Health Connection
      • APPA Launches Human Animal Bond Research Initiative Foundation (HABRI)
        • Table Level of Pet Owner Agreement with Statement: "My pet has a positive impact on my physical health," Total Pet Owners vs. Dog Owners, Cat Owners, and Other Pet Owners, February 2011 (percent)
        • Table Level of Pet Owner Agreement with Statement: "My pet has a positive impact on my mental health," Total Pet Owners vs. Dog Owners, Cat Owners, and Other Pet Owners, February 2011 (percent)
  • Marketing Trends
    • Competitive Overview
      • Products and Services
      • Pet Products Market Structure and Competitive Shifts
      • M&A Activity Continues During Recession
      • Del Monte Acquired by Investors
      • Simmons Acquires Menu Foods
      • Procter & Gamble Acquires Natura
      • Nestlé Purina Acquires Waggin' Train
      • Wind Point Partners Acquires Doskocil/Petmate
      • Spectrum Completes Merger with Russell Hobbs
      • Dad's Restructures as Ainsworth
      • Additional M&A
      • Private Equity Firms Continue to Invest
      • M&A Activity Expected to Ramp Up Further
      • Additional Human Company/Brand Cross-Over
      • Pet Services Market Structure and Competitive Shifts
      • VCA Antech, PetSmart/Banfield and Petco Continue to Advance
        • Table Number of PetSmart PetsHotels in Operation, 2005-2010
        • Table Combined Revenues of PetSmart and Petco Pet Services, 2001-2010 (in millions of dollars)
      • The Independent Pet Specialty Services Push
      • Franchising Altering Pet Services Terrain
    • Marketing and Service Trends
      • Product Launches Up for Pet Food, Down for Non-Food Pet Supplies
        • Table Total Number of New Pet Product Introductions: Reports and SKUs, 2001-2010 (percent)
        • Table Number of New Pet Product Introductions by Reports and SKUs: Dog/Cat Food vs. Pet Care, 2001-2010 (percent)
      • Wellness Is Primary Theme in New Product Introductions
        • Table Top 10 Marketing Claims by Number of New Pet Product Reports: 2008, 2009 and 2010 (number and percentage of all product claims)
      • Wellness Plus "Human-Style"
      • "Vet-Only" Flea/Tick Spot-Ons Cross Over
      • Sergeant's Launches Generic Versions of Frontline in Pet Specialty and Mass Channels
      • Merial/Frontline Not Going OTC?
      • Information, Anti-Theft Are Key Concerns in Retail Merchandising
      • Veterinarians Not Happy
      • Pet Supplements Category Attracting Pet Food Top Dogs, Human Brands
      • Natural Products Continue to Move Mainstream
      • Speed Bumps
      • Procter & Gamble and Natura
      • Grain-Free Pet Foods
        • Table Number of New Grain-Free Pet Food Products: Reports and SKUs, 2007-2010
      • Limited Ingredient Foods and Treats
      • Sustainable Initiatives
      • Worldwise and Walmart
      • Social Sustainability
      • Weight Control
      • Calorie Statements on Pet Food Labels
      • Preportioned Servings
      • Product Safety
      • FDAAA Act in Effect
      • Product Recalls Ongoing
      • New EPA Guidelines for Spot-On Flea/Tick Products
      • Veterinary Trends
      • Declining Number of Veterinarian Visits
      • Specialization
      • Technology
      • Nutrition
      • Pain Management
      • Cancer Drugs
      • Trends in Non-Medical Pet Services
      • Luxury Options
      • At-Home Services
      • Pet Sitting
      • Mobile Grooming
      • Mobile Veterinary Care
    • Media Trends
      • Pet Market Advertising Expenditures
        • Table Media Breakout of U.S. Advertising Expenditures on Pet Products, 2004-2009 (percent)
      • Advertising Themes: Human/Animal Bond Plus Value
      • Non-Traditional Media, Promotions
      • Online Content
      • Mobile Commerce
      • Friskies Hosts Hollywood-Style Cat Diaries Premiere
      • Cause-Related Marketing, Public Relations
  • Retail Channel Trends
    • Pet Owners Continue to "Shop Around"
      • 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 vs. February 2011 (percent of pet owners)
      • 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": Dog Owners vs. Cat Owners, February 2011 (percent of pet owners)
      • Coupon Usage Remains Elevated
      • Expanding Distribution of Formerly Vet-Only Flea/Tick Spot-Ons Shakes Things Up
    • Household Purchasing Rates of Pet Products by Channel
      • Table Household Purchasing of Pet Products by Retail Channel or Pet Superstore Chain, 2008-2010 (percent of U.S. households with dogs or cats)
      • Pet Product Shopping Patterns by Change in Economic Situation
        • Table Pet Product Purchasing Patterns Among Dog or Cat Owners by Retail Channel: By Change in Financial Situation Compared With 12 Months Ago, 2010 (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, 2010 (U.S. dog- or cat-owning households)
    • Trends in Channel Loyalty
      • Table Overview of Retail Channel Loyalty in Pet Product Purchasing Among Dog or Cat Owners, 2005 vs. 2010 (percent and millions of U.S. dog- or cat-owning households)
      • Table Retail Channel Loyalty in Pet Product Purchasing Among Dog or Cat Owners, 2007-2010 (percent of U.S. dog- or cat-owning households who shop in specified channel)
    • Private-Label Impact
      • Mass Channels Demonstrate Store-Brand Resistance
        • Table IRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2010 (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. 2010 (percent)
        • Table Level of Pet Owner Agreement with Statement: "I am buying more private-label pet products these days," February 2011 (percent)
      • Independents Also Playing the Store-Brand Game
        • Table Purchasing Patterns for Selected Types of Store-Brand Dog and Cat Food: By Retail Channel Shopped, 2008 vs. 2010 (percent)
      • Private-Label Advances in New Products and Consumer Perception
        • Table Number of U.S. Private-Label Pet Food Product Reports and SKUs: By Category, 2000-2010
        • Table Level of Pet Owner Agreement with Statement: "Private-label pet products are often as good as the national brands," February 2011 (percent)
    • Natural Supermarket Trends and Opportunities
      • Sales Trends by Category
        • Table Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2009 vs. 2010 (in millions of dollars)
        • Table Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2009 vs. 2010 (percent)
      • Brand Leaders in the Natural Supermarket
        • Table Top 10 Brands and Marketers of Pet Products in the Natural Supermarket Channel, 2009 vs. 2010 (retail sales in millions of dollars)
      • Pet Promise's Market Exit Shakes Things Up
    • PetSmart and Petco Continue to Shape Pet Market Landscape
      • Table PetSmart and Petco Sales and Number of Stores: 2001-2010 (cumulative, in units and millions of dollars)
    • PetSmart Focuses on Promotions, Exclusive Brands
      • Martha Stewart Pet Supplies
      • Fisher-Price Pet Toys
      • GNC Pet Supplements
      • Advantage and K-9 Advantix Flea and Tick Topicals
      • Superpremium Foods
    • Petco Moving Forward with Unleashed by Petco Boutique Store Concept
    • Independent Pet Store Trends
      • Moochie & Company Charts Ongoing Expansion
      • Independent Pet Stores Lead in Organic Pet Food
        • Table Purchasing Rates for Organic Pet Food by Channel Shopped for Pet Products, 2010 (percent of U.S. households with pets)
    • Pet Specialty Channel Draws: Specialty Brands, Service, Flea/Tick Cross-Overs, and Exclusive Brands
      • 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 2011 (percent)
      • Table Level of Pet Owner Agreement with Statement: "I usually shop for pet products in pet superstores or pet stores because of the customer service they provide," February 2011 (percent)
    • Walmart Making Big Pet Market Moves
      • Pet Care Specialists Looking to Expand Grooming Salons in Walmart Stores
      • Walmart Pet Insurance?
    • Target Also Building Pet Department
    • Non-Traditional Channels, Internet Going Strong
      • Table Level of Pet Owner Agreement with Statement: "I use the Internet to help find and choose pet products," February 2011 (percent)
      • Table Level of Pet Owner Agreement with Statement: "I anticipate doing more of my pet product purchasing online over the next 12 months," February 2011 (percent)
      • Table Online Purchasing as a Percent of Total Purchasing: Pet Food vs. Non-Food Pet Supplies, 2011 (percent of dog/cat owners)
      • Table Top Websites for Purchasing Pet Products Online, 2011 (percent of dog/cat owners)
      • Pet Medications Competition Heating Up Online
  • Pet Ownership Trends
    • Growth in Pet Ownership Slows with Economy
      • Table Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2005 vs. 2010 (percent of U.S. households)
      • Table Change in Pet Market Consumer Base: Number of Dog or Cat Owners, 2005 vs. 2010 (U.S. dog- or cat-owning households)
      • Table Household Penetration Rates for Selected Pet-Owning Classifications, 2007-2010 (percent of and number of U.S. households in millions)
    • Higher-Income Households a Crucial Segment
      • Table Change in Pet Market Consumer Base: Household Income $60K or More vs. Household Income Under $60K, 2005 vs. 2010 (U.S. dog- or cat-owning households)
    • Dog and Cat Ownership Rates by Age
      • Table Dog or Cat Ownership Rates by Age Bracket: 2005-2010 (percent of U.S. households)
    • Trends in Multiple Pet Ownership
      • 34% of Pet Households Keep Multiple Types
        • Table Multiple Pet Ownership in the United States, 2006 vs. 2010 (percent of pet-owning households)
      • 61% of Pet Households Keep More Than One Pet
        • Table Ownership of Multiple Pets of a Single Type, 2010 (percent and number of U.S. households who keep pets of a given type)
      • Bucking Trend, Ownership of Multiple Dogs Is on the Rise
        • Table Ownership of Multiple Pets of a Single Type, 2006 vs. 2010 (percent of U.S. households who keep pets of a given type)
    • Impact of Boomers and Graying Population
      • Table Household Penetration Rates for Selected Pet-Owning Classifications: By Generational Cohort, 2010 (percent of U.S. households)
      • Table Household Populations for Selected Pet-Owning Classifications: By Generational Cohort, 2010 (number of U.S. households in millions)
      • Table Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2010 (U.S. households)
      • Table Indexes for Dog or Cat Ownership: By Age Cohort, 2005 vs. 2010 (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 Xers and Gen Ys
    • Households Without Kids vs. Those With Kids
      • Households Without Kids
      • Households With Kids
      • Dog vs. Cat Households
        • Table Dog/Cat Ownership Rates by Household Composition, 2005-2010 (percent)
        • Table Share of Total Dog/Cat Owners by Household Composition, 2005-2010 (percent)
        • Table Dog Ownership Rates by Household Composition, 2005-2010 (percent)
        • Table Share of Total Dog Owners by Household Composition, 2005-2010 (percent)
        • Table Cat Ownership Rates by Household Composition, 2005-2010 (percent)
        • Table Share of Total Cat Owners by Household Composition, 2005-2010 (percent)
    • Pet Ownership Trends by Minority Group
      • Table Dog and Cat Ownership Trends by Race/Ethnicity, 2005-2010 (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. 2010 (number and percent of U.S. dog- or cat-owning households)
      • Table Projected Population Growth, Hispanics vs. Other Population Segments, 2010-2015 (in thousands)
      • Table Projected Population Growth, Hispanics vs. Other Population Segments, 2010-2050 (in thousands)
    • Pet Owner Psychographics
      • Health and Medical Related Sentiments and Practices
        • Table Selected Health & Medical Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2010 (percent and index)
    • "Green" Sentiments and Practices
      • Table Selected "Green" Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index)
      • Table Selected "Green" Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2010 (percent and index)
      • Media and Marketing Related Sentiments and Practices
        • Table Selected Media & Marketing Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2010 (percent and index)
        • Table Selected Media & Marketing Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2010 (percent and index)
      • Internet Related Sentiments and Practices
        • Table Selected Internet-Related Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2010 (percent and index)
        • Table Selected Internet-Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2010 (percent and index)

Abstract

In what ways is the lingering impact of the Great Recession still shaping pet owner attitudes and spending patterns? Which market segments are faring the best during this post-recession period of more cautious spending and aggressively price-based retailing? Have premium product and service trade-ups reached a relative ceiling? Which consumer segments hold the most promise? What does the surge of M&A and investment activity represent, and will it continue in 2011 and beyond? Which retail channels are advancing or retracting, and how will the cross-over of formerly “vet-only” flea/tick products like Bayer’s Advantage affect pet market retailing, including online? Perhaps most important, what will be the next “big bang” in the U.S. pet market, and what can marketers and retailers do now to help expedite this all-important future sales driver?

These questions are answered in U.S. Pet Market Outlook 2011-2012, which features exclusive late-breaking national pet owner survey data collected by Packaged Facts to gauge current and future consumer attitudes on numerous topics. Now in its 3rd edition, the report is the go-to source for an overview of U.S. pet industry trends and forecasts across all of the four core categories: veterinary services, pet food, non-food pet supplies, and non-medical pet services (grooming, boarding, training, etc.). Although 2010 was even tougher than 2009 due to the lingering impact of the down economy, the market is regaining traction, with advertising spending and new product activity achieving historic highs in 2009 and 2010. As a result, U.S. pet industry sales will reach $58 billion in 2011, with steady growth bringing the market to more than $74 billion in 2015.

Building on the market tracking, forecasting and feedback of previous editions, U.S. Pet Market Outlook 2011-2012 projects sales, market drivers, and competitive and marketing opportunities based on myriad sources including consultations with leading industry participants and other Packaged Facts pet market reports. In separate focus discussions, the report forecasts market size and growth for each category; marketing, new product and media trends; retail channel trends including cross-channel shopping vs. shopper loyalty; and pet owner population, demographic, and mindset trends representing changes, challenges and calls to action in meeting the needs of today’s highly value-focused pet parent population. The report contains dozens of numerical tables and charts, and numerous illustrations of new products and advertising campaigns. As a new feature, this year’s edition also includes an up-to-the-minute first-hand Special Report from the American Pet Products Association’s 2011 Global Pet Expo.


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