Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition
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.
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.
Contents
CHAPTER 1: EXECUTIVE SUMMARYScope and Methodology
Product Definitions
Specialty Foods are the Foundation of Food Gifting
Gift Baskets
The Art of Corporate Gift-giving
The Market for Gift-giving
The Market for Food Gifting
Self-Gifting Declines Overall, but Self-Gifting of Food Increases
Gift Card Sales Slip in 2009 but Remain the Ticket for Many Shoppers
Online Gift Card Sales Boom During the 2009 Winter Holiday Season
Trends in Gift-Giving
Influences on Buying Specialty Food Gifts
Gift-boxed and Seasonal Chocolates Remain a Major Sector of the Food Gifting Market
Venues for Food Gift Purchases
The Ex-patriot Food Gift Market
Brick-and-Mortar Retailers
Mainstream Retailers
Online and Direct Marketers
Average Gift Basket Prices Decline
Most Popular Items for Gift Baskets
Independent Gift Basket Companies Differentiate Through Customization
Trends in Consumers Purchasing Food/Perishables via Mail/Phone/Internet/Catalog
Favorite Specialty Food Gifts for Self-gifting
Specialty Food Gifts Purchased for Others
Types of Food Gifts Received by Consumers
Occasions for Buying Specialty Food Gifts
Recipients of Specialty Food Gifts
Consumer Spending Trends on Food Gifts
Influences on Consumer Choices of Food Gifts
Attributes Consumers Look for in Specialty Food Gifts
Sources of Specialty Food Gift Purchases
Reasons Consumers Do Not Buy Specialty Food Gifts
Ethnic Food Gifts a Hot Trend in 2010
Customized Food Gifts Are Offered by Most Online Food Gift Manufacturers
Organic/Wellness Food Gifts Continue to Gain Popularity
Food Gifting Opportunities Exist All Year Round
Industry Consolidation Reshuffles Market Leaders in Food Gifting
Food Gift Market Forecast for 2014
Brick-and-Mortar Retailers
Online and Direct Marketers
Independents and Franchises/Distributorships
Consumer vs. Corporate Markets
CHAPTER 2: THE SPECIALTY FOOD GIFT AND OVERALL GIFT MARKET
Scope and Methodology
Key Points
Product Definitions
Types of Food Gifts
Specialty Foods are the Foundation of Food Gifting
Gift Baskets
Trends and Innovations in Food Gift Baskets
The Art of Corporate Gift-giving
The Market for Gift-giving
The Market for Food Gifting
Table 2-1: The U.S. Market for All Gifts and Food Gifts, 2007 and 2009 (in $Billions)
Consumer Gift-giving Down 8% from 2004 to 2006, but Increases from 2007 to 2009
Average Annual Per-Person Expenditures on Gifts Steadily Increase from 2007 to 2009
Table 2-2: Average Annual Per Person Expenditures on All Gifts Overall, 2006-2010 (U.S. Adults)
Average Annual Per-Person Expenditures on Food Gifts Increase More Rapidly than Per-Person Expenditures on All Gifts from 2007 to 2009
Table 2-3: Average Annual Per Person Expenditures on Food Gift Purchases, 2006-2010 (U.S. Adults)
Table 2-4: Per Person Annual Food Gift Purchases as Percentage of Total Annual Per Person Gift Purchases, 2006-2010
Food Gifting Trends--2008, 2009 and 2010
In 2008, Half of All Christmas Gifters Gave Food Gifts
Overall Gift-Giving Was Down During Winter Holiday Season in 2009, but Food Gifting Was Up
Easter Spending Up 1.8% in 2010
Self-Gifting Declines Overall, but Self-Gifting of Food Increases
Gift Card Sales Slip in 2009 but Remain the Ticket for Many Shoppers
Private-label Gift Card Sales Fall in 2009
Online Gift Card Sales Boom During the 2009 Winter Holiday Season
Online Store Gift Card Sales Remain Strong
General-purpose Gift Card Purchase Increase Slightly
Most Popular Gift Cards
Gift Card Purchasing Changing in Value, Type and Venue
Innovation Drives Gift Card Sales
Gift Cards and the Credit Card Accountability, Responsibility and Disclosure (CARD) Act
Trends in Gift-Giving
Gourmet and Organic Foods Fuel Growth in Food Gifting
Influences on Buying Specialty Food Gifts
Corporate Gift Market Mature and Difficult to Measure
Gift-boxed and Seasonal Chocolates Remain a Major Sector of the Food Gifting Market
Table 2-5: Gift-boxed and Seasonal Chocolate Sales, 2008 and 2009 (in millions of dollars)
New Gift-boxed Chocolate Products Surged in 2006 and 2007, Declined Annually from 2007 to 2009
Table 2-6: Number of Gift-boxed Chocolate Products Introduced to the U.S. Market, 2005-2009
Russell Stover Continues to Lead the Gift-boxed Chocolates Sector
Table 2-7: Leading Gift-boxed Chocolate Sales by Company, 2008 and 2009 (in millions of dollars)
Table 2-8: Unit Sales and Average Price of Gift-boxed Chocolates, 2007-2009
Table 2-9: Share of Total Gift-boxed Chocolate Market by Company, 2008-2009
Easter Chocolate Candy Sales Surpass Valentine's Day Candy Sales in 2008 and 2009
Table 2-10: Easter Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Boxed Chocolates Remain Most-purchased Chocolate Gift for Valentine's Day
Table 2-11: Valentine’s Day Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Lindt & Sprungli Outpaces Russell Stover's in Gift-Boxed Chocolate Sales at Christmas
Table 2-12: Christmas Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Halloween Chocolate Candy Sales Flat From 2008 and 2009, While Other Holiday Chocolate Candy Sales Leap 23%
Table 2-13: Halloween Chocolate Candy Sales by Company, 2008 and 2009 (in thousands of dollars)
Table 2-14 :Other Seasonal Chocolate Sales by Company, 2008 and 2009 (in thousands of dollars)
Independents and Franchises Cater to Local Professionals
Table 2-15: Independent Companies’ Average Retail Price, Corporate vs. Consumer Gift Baskets, 2007-2009
CHAPTER 3: FOOD GIFT MARKET CHANNELS
Key Points
Venues for Food Gift Purchases
Table 3-1: Percent of Food Gift Sales by Channel, 2007-2009
Brick-and-Mortar Retailers
Online and Direct Marketers
Independents and Franchises/Distributorships
Sales at Brick-and-Mortar Retailers Increase 11% from 2007 to 2009
Table 3-2: U.S. Food Gift Sales by Brick-and-Mortar Retailers, 2007-2009 (In $Millions)
Mainstream Retailers
Target Features Tailgate Party Packs with School Colors and Logos
Walmart Offers Many Online Food Gifts
Grocery Retailers Favor Gift Cards, Even Though Grocery Stores are a Prime Destination for Food Gift Shoppers
Sales of Gift-boxed Chocolates—the Original Food Gift—Shift from Traditional Retailers to Online
Will Department Stores Recover from Competition as Food Gift Purveyors?
Costco Food Gifts
The Ex-patriot Food Gift Market
LEADING COMPETITORS IN THE GIFT-BOXED CHOCOLATES MARKET
Profiles of Selected Gift-boxed Chocolate Companies
The Hershey Company
Company Overview
Financial Information
Products
Lindt & Sprungli AG
Company Overview
Lindor Products
Seasonal Confectioneries
Other Chocolate Products
Russell Stover
Company Overview
Products
Corporate Best-sellers
Gift Baskets
NATURAL/ORGANIC AND SPECIALTY FOODS RETAILERS
Williams-Sonoma
PROFILES OF SELECTED NATURAL/ORGANIC AND SPECIALTY FOODS RETAILERS
Cost Plus, Inc.
Business Overview
Financial Information
Products
Company Strategy
Online and Direct Marketers
Table 3-3: Percent of Consumers Purchasing Food and Perishables from Direct Marketers’ Catalogs, 2007-2009
Table 3-4: Percent of Consumers Purchasing Food and Perishables via Phone, Mail and Internet, 2007-2009
Table 3-5: Leading Demographics of Consumers Purchasing Food and Perishables via Phone, Mail and Internet by Index Rating, 2007-2009
Table 3-6: Regional Comparison of Consumers Purchasing Food and Perishables via Phone, Mail and Internet by Index, 2007-2009
Table 3-7: Employment Characteristics of Consumers Purchasing Food and Perishables via Phone, Mail and Internet, 2007-2009
Online Shopping Increases 53% from 2006 to 2009
PROFILES OF SELECTED SPECIALTY FOOD DIRECT MARKETERS
Dean & DeLuca
Company Overview
Food Gifts and Other Products
Harry and David Holdings, Inc.
Company Overview
Financial Information
Food Gift Products
Company Strategy
Houston Harvest Gift Products LLC
Company Overview
The Wisconsin Cheeseman
Company Overview
The Wisconsin Food Gift Company
Company Overview
Zabar's and Company, Inc
Company Overview
Food Gift Baskets, Boxes and Crates
ONLINE GIFT AND FLORAL COMPANIES
1-800-FLOWERS.COM
Company Overview
Financial Information
Best-selling Food Gifts
Company Strategy
OTHER ONLINE AND DIRECT MARKETING COMPANIES—MANY SMALL REGIONAL COMPETITORS
Amazon.com
Table 3-8: Amazon.com’s “Most Gifted” Gourmet Food Gift Products, Prices, Manufacturer and Customer Rating, May 2010
INDEPENDENT AND FRANCHISE/DISTRIBUTORSHIP GIFT BASKET COMPANIES
Independent Gift Basket Companies
Average Gift Basket Prices Decline
Table 3-9: U.S. Independent Gift Basket Companies’ Average Retail Price, Corporate vs. Consumer Gift Baskets, 2006-2009
Most Popular Items for Gift Baskets
Independent Gift Basket Companies Differentiate Through Customization
Profile of Gift Basket Business Owners
Franchise and Distributorship Food Gift Companies
SELECTED FRANCHISE GIFT BASKET COMPANY PROFILES
Candy Bouquet
Company Strategy
Edible Arrangements
CHAPTER 4: THE FOOD-GIFTING CONSUMER
Key Points
Note on Experian Simmons and Packaged Facts Data
Trends in Consumers Purchasing Food/Perishables via Mail/Phone/Internet/Catalog
Table 4-1: Leading Demographic Indexes for U.S. Adult Consumers Purchasing Food/Perishables via Mail/Phone/Internet/Catalog During Period February 2009 to March 2010
The Effect of the Economy on Consumer Spending
Table 4-2: Consumers’ Response to Question About Overall Spending in Today’s Economy: To What Extent Do You Agree or Disagree with the Statement “I am Spending Less These Days Because of the Economy”
Favorite Specialty Food Gifts for Self-gifting
Table 4-3: Favorite Specialty Food Gifts for Self-Gifting, 2007 and 2010
Specialty Food Gifts Purchased for Others
Table 4-4: Favorite Specialty Food Gifts for Others, 2007 and 2010
Types of Food Gifts Received by Consumers
Table 4-5: Specialty Food Gifts Received, by Type 2007 and 2010
Occasions for Buying Specialty Food Gifts
Table 4-6: Percent of Consumers Purchasing Food Gifts, by Occasion, 2007
Table 4-7: Consumers’ Response to Question: “For Which Occasion(s) Did You Purchase a Food Gift in the Last 12 Months?” - 2010
Recipients of Specialty Food Gifts
Table 4-8: Recipients of Specialty Food Gifts, 2007
Table 4-9: Consumers’ Response to Question: “For Which Recipient(s) Did You Purchase a Food Gift in the Last 12 Months?” - 2010
Consumer Spending Trends on Food Gifts
Table 4-10: Percentage Purchasing Specialty Food Gifts, by Number of Recipients, 2007
Table 4-11: Consumers’ Response to Question: “In the last 12 months, to how many people, excluding yourself, have you given specialty food gifts?” - 2010
Table 4-12: Consumers’ Response to Question: “If you purchased a specialty food gift in the last 12 months, to how many people, excluding yourself, have you given specialty food gifts?” - 2010
Table 4-13: Consumers’ Response to Question: “How much do you typically spend on a specialty food gift?” - 2010
Table 4-14: Consumers’ Response to Question: “In the last 12 months, how much did you spend overall specialty food gifts?” - 2007 and 2010
Table 4-15: Consumers’ Response to Question: “In the past 12 months, about what percentage of your total food gift spending was for the winter holidays (Christmas, Hanukkah, Kwanzaa) food gifts?” - 2010
Table 4-16: Consumers’ Response to Question: “How would you compare your spending on specialty food gifts in the last 12 months to what you spent a few years ago?” - 2007 and 2010
Influences on Consumer Choices of Food Gifts
Table 4-17: Influences on the Purchase of Favorite Specialty Food Gifts, 2007
Table 4-18: Consumers’ Response to Question, “If you purchased a specialty food gift in the last 12 months, What Factor(s) Influenced the Purchase of the Food Gift?” - 2010
Attributes Consumers Look for in Specialty Food Gifts
Table 4-19: Attributes Looked for in Specialty Food Gifts, 2007
Table 4-20: Consumers’ Response to Question: “If you purchased a specialty food gift in the last 12 months, which attribute(s) did you consider in purchasing a specialty food gift?” - 2010
Sources of Specialty Food Gift Purchases
Table 4-21: Sources of Specialty Food Gift Purchases, 2007
Table 4-22: Consumers’ Response to Question: “If you purchased a specialty food gift in the last 12 months, from which source(s) did you purchase the specialty food gift?” - 2010
Reasons Consumers Do Not Buy Specialty Food Gifts
Table 4-23: Reasons Given By Consumers for Not Buying Specialty Food Gifts, 2007 and 2010
CHAPTER 5: FUTURE TRENDS AND MARKET FORECAST
Key Points
Most Popular Food Gifts in 2010
Ethnic Food Gifts a Hot Trend in 2010
Customized Food Gifts Are Offered by Most Online Food Gift Manufacturers
Organic/Wellness Food Gifts Continue to Gain Popularity
Food Gifting Opportunities Exist All Year Round
Industry Consolidation Reshuffles Market Leaders in Food Gifting
Food Gift Market Forecast for 2014
Table 5-1: U.S. Food Gift Sales Forecast by Channel, 2007-2014 (in $millions)
Brick-and-Mortar Retailers
Online and Direct Marketers
Independents and Franchises/Distributorships
Consumer vs. Corporate Markets
Table 5-2: U.S. Food Gift Sales Forecast by for the Consumer, Corporate and Total Markets, 2007-2014 (in $millions)
How to Build a Successful Online Food Gifting Business
Keys to Successfully Launching a Gift Basket Business
First Steps
Create a Gift Basket Workspace
Stock Up on Gift Basket Ingredients
Building a Customer List
Managing the Business Side of a Gift Basket Operation
Gift Basket Industry Statistics
Risks In the Age of Recession--The Travails of igourmet
APPENDIX: COMPANY NAMES AND ADDRESSES Skip to top