Premium Pet Demographics and Product Purchasing Preferences

 
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Published Aug 1, 2007 | 154 Pages | Pub ID: LA1219010

Over 17 million U.S. households qualify as premium pet product demographics, accounting for approximately one-third of all pet-owning households and 16% of U.S. households overall. This all-new report profiles key consumer demographics driving the upper end of the pet market across five distinct cohorts: Affluents (household income of $150K or more), Specialty Shoppers (those purchasing pet supplies through pet stores or Internet only), Married with Children (household income of $100K or more), Empty Nesters (household income of $75K or more), Dual-Income/No-Kids (DINKs—household income of $75K or more), and Singles (household income of $50K or more). Level of dog and cat ownership, product and brand purchasing preferences, and favored purchasing venues are just a few of the ways in which Simmons Market Research Bureau data and myriad other resources are custom-tailored to develop a better understanding of today’s premium pet product consumer.

Also underscoring and helping to steer the premium direction the market is taking is the surge in new pet products specifically designated as “upscale.” As of 2006, over half of all new pet food products were tagged “upscale” and almost one-third of non-food supplies were so designated, making it clear that pet product developers and marketers on both sides of the aisle are fully behind the market’s premium shift. So, too, are retailers, especially in the pet specialty channel, where 94% of retailers indicate that they are planning to add or increase their selection of pet health and pampering products in the coming year.

Report Methodology
The information contained in this report was obtained from both primary and secondary research. Primary research entailed attendance at the 2007 Global Pet Expo and Petfood Forum trade events; interviews with pet product marketers, service providers and expert members of the trade; and an on-site examination of retail venues. Our analysis of consumer trends and demographics primarily derives from exclusive customized cross-tabulations of consumer data collected by Simmons Market Research Bureau in its Fall 2006 full-year adult consumer survey, which is based on 24,467 respondents age 18 or over. Data on new product introductions are provided by Datamonitor’s Productscan Online service and Packaged Facts. Secondary research includes extensive Internet canvassing; research- and data-gathering from relevant consumer business and trade publications including PET AGE, Pet Product News International, Pet Business and Petfood Industry; the American Pet Products Manufacturers Association (APPMA) 2007-2008 National Pet Owners Survey; and other pet market reports by Packaged Facts, which has been tracking pet-related markets for over 25 years.

How You Will Benefit from this Report
For companies participating in the U.S. market for pet products and services, the premium writing is on the wall as several interrelated trends continue to drive more of this $47 billion market into the hands and the pocketbooks of premium pet demographics. These trends include heavy marketing encouraging pet “humanization,” product upscaling, the entry into the market of entrepreneurs with new brands and innovative products, the growth of pet boutiques and upscale specialty shops, and strong interest in pet products among non-traditional retailers. Trumpeting the premium demographic shift, households earning $70K or more annually increased their share of the aggregate pet market expenditure from 28% in 1995 to 49% in 2005, representing more than a tripling in $70K+ household expenditures from $5.2 billion to $18.6 billion.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans.
  • Research and development professionals stay on top of competitor initiatives and explore demand for premium pet products.
  • Advertising agencies to develop messages and images that compel consumers to purchase premium pet products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1: Introduction
  • Scope and Methodology
  • Scope of Report
  • Report Methodology
  • The Pet Market Environment
  • Upper Income Pet Households on the Ups
  • Figure 1-1: Share of Total U.S Pet Market Expenditures by Under-$70K vs. $70K+ Income Brackets: 1995, 2000 and 2005 (percent)
  • Figure 1-2: $70K+ Income Household Share of U.S Pet Market Expenditures by Segment: 1995 vs. 2005 (percent)
  • Kids Lessening as Pet Market Driver
  • Figure 1-3: Two-Adult Households/No Kids as Pet Owners: 2003 vs. 2006 (percent)
  • Upscale Product Surge
  • Figure 1-4: Upscale Product Share of Total Pet Product Introductions: Food and Non-Food, 2002 vs. 2006
  • Advertising Positioning Reflects Upscale Thrust, Trends in New Product Development
  • Humanization Trend Supports Product Upscaling
  • The Aging Pet Population
  • Interest in Health-Related Products, Services Supports Product Premiumization
  • Natural/Organic Surge Another Premium Market Driver
  • Figure 1-5: Number of New Natural and Organic Pet Products: Food and Non-Food, 2002-2006
  • Growth of Upscale Pet Specialty Shops and Boutiques
  • Growth of Non-Traditional Retail Outlets
  • Internet Out Front
  • Figure 1-6: Percent of U.S. Households Who Are “Doing More Internet Shopping Than Before”: Dog and Cat Owners vs. All U.S. Adults, 2006 (percent)
  • Trade Shows Pick Up on Fashion, Boutique Angle
  • Magazines and Other Media Also Support the Trend
  • The Boomer Factor
  • Figure 1-7: Share of U.S. Population Growth for Selected Age Brackets: 2005-2015 (percent)
  • Asians and Hispanics a Growing Force
  • Figure 1-8: Share of U.S. Population Growth for Selected Racial/Ethnic Populations: 2005-2010 (percent)
  • Table 1-1: $70K+ Household Expenditures on Pet Products and Services: Average, Aggregate and Share of Total, 1995-2005
  • Table 1-2: $70K+ Household Expenditures on Pet Food: Average, Aggregate and Share of Total, 1995-2005
  • Table 1-3: $70K+ Household Expenditures on Veterinary Services: Average, Aggregate and Share of Total, 1995-2005
  • Table 1-4: $70K+ Household Expenditures on Pet Supplies: Average, Aggregate and Share of Total, 1995-2005
  • Table 1-5: $70K+ Household Expenditures on Pet Services: Average, Aggregate and Share of Total, 1995-2005
  • Table 1-6: Upscale Products: Number and Share of Total Pet Product Introductions: Food and Non-Food, 2002-2006
  • Table 1-7: Number of New Natural and Organic Pet Products: Food and Non-Food, 2002-2006
  • Table 1-8: Use/Influence of Internet: Dog- and Cat-Owning Adults vs. All U.S. Adults, 2006 (percent)
  • Table 1-9: Pet Food and Supply Purchasing Indices by Retail Channel: By Household Size, 2006 (U.S. pet-owning households)
  • Table 1-10: Pet Ownership Indices: By Adult Age Bracket, 2006 (U.S. households)
  • Table 1-11: Projected Population of the United States by Age and Race/Ethnicity, 2000-2010 (in thousands)

Chapter 2: Premium Pet Demographics

  • Market Overview
  • Premium Pet Households Number Over 17 Million
  • Affluents Are Largest Premium Pet Cohort
  • An Affluent Bunch
  • The Baby Boomer Bulge
  • Figure 2-1: Demographic Comparison by Index: Premium Pet Households vs. Total Pet-Owning Households, 2006 (U.S. dog- or cat-owning households)
  • Gender, Race and Region: Not the Pet-Owning Norm
  • The Urban Angle
  • The Kid Story
  • Figure 2-2: Household Composition Comparison by Index: Premium Pet Households vs. Total Pet-Owning Households, 2006 (U.S. dog- or cat-owning households)
  • Demographic Comparisons by Type of Pet
  • Affluent Cohort Comprises Larger Households
  • Figure 2-3: Demographic Comparison by Index: Affluent Cohort Households vs. Premium Pet Households Overall, 2006 (U.S. dog- or cat-owning households)
  • Specialty Shopper Cohort Skews Younger
  • Figure 2-4: Age Comparison by Index: Specialty Shopper Cohort Households vs. Premium Pet Households Overall, 2006 (U.S. dog- or cat-owning households)
  • Married with Children Cohort Defined by Kids
  • Figure 2-5: Selected High-Index Demographic Groups: Married with Children Cohort Premium Pet Households, 2006 (U.S. dog- or cat-owning households)
  • Empty Nester Cohort Strong at Age 55-64
  • Figure 2-6: Demographic Comparison by Index: Empty Nester Cohort Households vs. Premium Pet Households Overall, 2006 (U.S. dog- or cat-owning households)
  • DINK Cohort Shines at Age 25-34
  • Figure 2-7: Age Comparison by Index: DINK Cohort Households vs. Premium Pet Households Overall, 2006 (U.S. dog- or cat-owning households)
  • Singles Cohort a More Modest Group
  • Figure 2-8: Selected Top-Index Demographic Segments: Singles Cohort Premium Pet Households, 2006 (U.S. dog- or cat-owning households)
  • Table 2-1: Premium Pet Demographics: Percent of Total Households and Pet-Owning Households, 2006 (U.S. households)
  • Table 2-2: Number of Pet-Owning Households and Premium Pet Households by Cohort, 2006 (U.S. households)
  • Table 2-3: Premium Pet Demographics, 2006 (U.S. dog- or cat-owning households)
  • Table 2-4: Demographic Comparison: Premium Pet Households vs. Total Pet-Owning Households, 2006 (U.S. dog- and cat-owning households)
  • Table 2-5: Premium Pet Demographics: Dog Owners 2006 (U.S. dog-owning households)
  • Table 2-6: Premium Pet Demographics: Cat Owners, 2006 (U.S. cat-owning households)
  • Table 2-7: Premium Pet Demographics: Owners of Both Dogs and Cats, 2006 (U.S. dog- and cat-owning households)
  • Table 2-8: Premium Pet Demographic Indexes: Dog, Cat, Dog & Cat Owners 2006 (U.S. dog-, cat-, and dog & cat-owning households)
  • Table 2-9: Premium Pet Demographics: Affluents, 2006 (U.S. dog- or cat-owning households)
  • Table 2-10: Premium Pet Demographics: Specialty Shoppers, 2006 (U.S. dog- or cat-owning households)
  • Table 2-11: Premium Pet Demographics: Married with Children, 2006 (U.S. dog- or cat-owning households)
  • Table 2-12: Premium Pet Demographics: Empty Nesters, 2006 (U.S. dog- or cat-owning households)
  • Table 2-13: Premium Pet Demographics: DINKs, 2006 (U.S. dog- or cat-owning households)
  • Table 2-14: Premium Pet Demographics: Singles, 2006 (U.S. dog- or cat-owning households)
  • Pet Product and Brand Preferences
  • Premium Dog-Owning Households Focused on Health and Pampering
  • Figure 2-9: Top 10 High-Index Dog Products Among Premium Pet Households, 2006 (U.S. dog-owning households)
  • Premium Cat-Owning Households Also Health Focused
  • Figure 2-10: Top 10 High-Index Cat Products Among Premium Pet Households, 2006 (U.S. cat-owning households)
  • Focus on Flea/Tick Controls, Pet Supplements
  • Product Preferences by Premium Pet Cohort
  • Table 2-15: Percent of Households Purchasing Dog Food/Supplies by Type and Brand: Dog Owners Overall vs. Premium Pet Dog Owners, 2006 (U.S. dog-owning households)
  • Table 2-16: Percent of Households Purchasing Cat Food/Supplies by Type and Brand: Cat Owners Overall vs. Premium Pet Cat Owners, 2006 (U.S. cat-owning households)
  • Table 2-17: Percent of Households Purchasing Flea/Tick Care Products by Type and Brand or Purchasing Pet Food Supplements: Dog or Cat Owners Overall vs. Premium Pet Dog or Cat Owners, 2006 (U.S. dog- or cat-owning households)
  • Table 2-18a: Percent of Households Purchasing Pet Supplies by Type: Dog or Cat Owners Overall vs. Premium Pet Cohorts, 2006 (U.S. pet-owning households)
  • Table 2-18b: Total Number of Households Purchasing Pet Supplies by Type: Dog or Cat Owners Overall vs. Premium Pet Cohorts, 2006 (U.S. pet-owning households in millions)
  • Table 2-18c: Household Purchasing Indices for Pet Supplies by Type: Premium Pet Demographics Overall vs. Premium Pet Cohorts, 2006 (U.S. pet-owning households)
  • Retail Channel Preferences
  • A Marked Skew Toward Specialty Stores, Internet
  • Figure 2-11: Pet Owners Overall vs. Premium Pet Demographics: Purchasing Rates for Pet Stores and Online, 2006 (U.S. pet-owning households)
  • Figure 2-12: Premium Pet Demographic Indexes for Purchasing Pet Food/Supplies in Pet Stores: By Cohort, 2006 (U.S. premium pet households)
  • Above-Average Shoppers in Non-Traditional Venues
  • Figure 2-13: Top 10 High-Index Chain Retailers Among Premium Pet Demographics: By Shopping or Making Purchase in Last 4 Weeks, 2006 (U.S. households)
  • Table 2-19: Pet Owners Overall vs. Premium Pet Demographics: Purchasing Rates for Pet Food/Supplies by Retail Channel, 2006 (U.S. dog- or cat-owning households)
  • Table 2-20a: Premium Pet Demographic Breakouts by Cohort: Purchasing Rates for Pet Food/Supplies by Retail Channel, 2006 (U.S. premium pet households)
  • Table 2-20b: Premium Pet Demographic Breakouts by Cohort: Total Number of Households Purchasing Pet Food/Supplies by Retail Channel, 2006 (U.S. premium pet households in millions)
  • Table 2-20c: Premium Pet Demographic Breakouts by Cohort: Indices for Purchasing Pet Food/Supplies by Retail Channel, 2006 (U.S. premium pet households)
  • Table 2-21: Selected Chain Retail Shopping Patterns for Premium Pet Demographics: By Shopping or Making Purchase in Last 4 Weeks, 2006 (U.S. households)

Appendix: Examples of Advertising