U.S. Pet Market Outlook, 2013-2014
While the country has not yet completely emerged from its economic funk, the pet industry continues to chug along. Pet product shoppers were not immune to the Recession’s effects, but the most recent Packaged Facts’ proprietary Pet Owners Survey shows that they are becoming less price sensitive than in years past. And this trend is borne out in the sales data. Sales in mass channels such as grocery stores have been relatively flat, but pet owners have continued to migrate to pet specialty channels, which focus more on the high-end market. Another trend continuing to gain steam has been the pet industry’s emphasis on natural products, as seen in M&A activity (e.g., Merrick acquiring Castor & Pollux and Del Monte acquiring Natural Balance) and the embrace by industry heavy hitters from Purina to Hill’s Science Diet to Walmart.
Pet health has proven to be a particularly attractive category. As the pet population has aged, the interest by big players such as Bayer and Perrigo has increased. One deal that received considerable investor attention was Pfizer’s spinoff of its animal health division, which it renamed Zoetis.
The industry has embarked on a number of initiatives to spur growth in pet ownership and some of those are beginning to pay dividends. These include programs such as the Human Animal Bond Research Initiative and the Pets in the Classroom initiative, which is introducing pet ownership to youth to encourage future ownership. Indeed, pet ownership among Gen Y jumped to its highest level in years in 2012.
The humanization of pets continues as a strong trend, with manufacturers and retailers introducing everything from human-style food to pet temporary tattoos. And the media is feeding the frenzy, giving pets their own TV channel and focusing on the outlandish things pet parents will do for them.
Pet health has proven to be a particularly attractive category. As the pet population has aged, the interest by big players such as Bayer and Perrigo has increased. One deal that received considerable investor attention was Pfizer’s spinoff of its animal health division, which it renamed Zoetis.
The industry has embarked on a number of initiatives to spur growth in pet ownership and some of those are beginning to pay dividends. These include programs such as the Human Animal Bond Research Initiative and the Pets in the Classroom initiative, which is introducing pet ownership to youth to encourage future ownership. Indeed, pet ownership among Gen Y jumped to its highest level in years in 2012.
The humanization of pets continues as a strong trend, with manufacturers and retailers introducing everything from human-style food to pet temporary tattoos. And the media is feeding the frenzy, giving pets their own TV channel and focusing on the outlandish things pet parents will do for them.
Chapter 1: Executive Summary
Introduction
Scope and Methodology
Report Methodology
Market Trends
Pet Industry Chugs Along
Table 1-1: U.S. Pet Market Retail Sales by Category: 2012-2014 (in billions of dollars and percent change over previous year)
Market Share by Category and Animal Type
Pet Owners Still Spending Less
Table 1-2: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2013 (percent)
Pet Ownership and Population Trends
The Aging Pet Population
Overweight and Obese Pets Keep Costs Up
Higher-Income Household Market Boost Moderates
Industry Trends
Market Structure
M&A and Investment Activity: Pet Health and Natural Products Star
Humanization
Globalization
Retail Trends
Pet Shoppers Say Let’s Make a Deal
Figure 1-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,”March 2012 vs. March 2013 (percent)
Industry Mainstay: The Premium Shopper
Channel Loyalty Establishes New Baseline
Table 1-3: Channel Loyalty in Pet Product Purchasing: All Channels, 2008-2012 (percent and number)
Pet Ownership Trends
Pet Ownership at 51% of U.S. Households
Table 1-4: Household Penetration Rates for Selected Pet-Owning Classifications, 2008-2012 (percent of and number of U.S. households in millions)
Dog and Cat Ownership Rates by Age
Trends in Multiple Pet Ownership
Baby Boomers Adding New Dimensions to Market
Gen Y Ownership Takes Off
Chapter 2: Highlights
Chapter 2: Market Trends
Market Performance
Pet Industry Chugs Along
Table 2-1: U.S. Pet Market Retail Sales by Category: 2012-2014 (in billions of dollars and percent change over previous year)
Table 2-2: Projected Total U.S. Retail Sales of Pet Products and Services, 2012-2017 (in millions of dollars)
Table 2-3: U.S. Pet Market Compound Annual Growth Rates by Category: 2007-2012 vs. 2012-2017 (percent)
Market Share by Category and Animal Type
Table 2-4: Percentage Share of U.S. Pet Market Retail Sales by Category: 2007, 2012, 2017
Table 2-5: Share of U.S. Pet Market Sales by Category and Animal Type: Dog, Cat, Other, 2012 (percent)
Share of Pet Product Sales by Channel
Figure 2-1: Share of U.S. Retail Sales of Pet Products Market by Channel Classification, 2011 (percent, 3 classifications)
Mass-Market Sales Caught in the Middle
Table 2-6: IRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2013 vs. 2012(in millions of dollars, units and pounds)
Natural Supermarket Sales Up Across All Pet Categories
Table 2-7: Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2012 vs. 2013 (in millions of dollars)
Table 2-8: Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2012 vs. 2013 (percent)
Specialty/Gourmet Supermarket Continues Upward Path
Table 2-9: Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2012 vs. 2013 (in millions of dollars)
Table 2-10: Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2012 vs. 2013 (percent)
Market Drivers
Consumers Appear Cautiously Optimistic
Table 2-11: Selected U.S. Economic Measures: 2008-2013 (percent and number in millions)
Table 2-12: Pet Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2009-2012 (U.S. pet-owning households)
Table 2-13: Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2009-2012 (U.S. pet-owning households)
Pet Owners Still Spending Less
Table 2-14: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2013 (percent)
Price Sensitivity May Be Letting Up Some
Table 2-15: Level of Agreement with Statement: “Many pet products are becoming too expensive,” 2011 vs. 2012 vs. 2013
Most Pet Owners Are Not Big Spenders
Table 2-16: Amount Spent on Pet Products in Last 30 Days, March 2013 (percent)
Table 2-17: Pet Product Purchasing by Price Level: Food vs. Nonfood, 2013 (percent)
Pet Ownership and Population Trends
Table 2-18: APPA’s Total Number of Dogs and Cats in the United States: By Type, 2000-2012
Table 2-19: Changes in the U.S. Population and Pet-Owning Population, 1996-2012 (number and percent)Table 2-20:
Table 2-20: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2007-2012 (percent of U.S. households)
Trends in Pet Acquisitions: Shelters Gain Favor
Table 2-21: Level of Agreement with Statement: “People should adopt pets from shelters and not purchase them from shops/breeders,” 2013 (percent)
PetSmart Charities Spurs Pet Adoption
Pethealth Inc. (TSX:PTZ) Releases Second Annual PetPoint Report
The Shift to Smaller Dogs
Table 2-22: Size of Dogs, 2012-2013 (percent of pet owners)
Figure 2-2: Most Common Breeds Cared for by Banfield Hospitals: 2000 vs. 2010 (percent)
Figure 2-3: Most Common Breeds Cared for by Banfield Hospitals: 2012 (percent)
The Aging P:et Population
Table 2-23: Age of Dogs and Cats, 2013 (percent of pet owners)
Overweight and Obese Pets Keep Costs Up
Table 2-24: Percentage and Number of Overweight and Obese Dogs and Cats, 2012
Figure 2-4: Level of Agreement with Statement: “I have an overweight pet,” 2013 (percent)
Higher-Income Household Market Boost Moderates
Table 2-25: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 2001-2011 (percent)
Table 2-26: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2006, 2010, 2011 (percent)
Baby Boomers Adding New Dimensions to Market
Time with Pets Contributes to Happiness Among Older Owners
Pets Are Family—The Kind You Pamper
Table 2-27: Pet Owner Attitudes and Behavior Characterizing Human/Animal Bond, 2013 (percent)
Pets as Family Trend Bolsters Pet Health/Wellness Spending
Table 2-28: Level of Veterinary Expenditures by Human-Animal Bond and Animal Type, 2011 (mean dollars per household)
Figure 2-5: Level of Agreement with Statement: “I buy pet supplements and/or functional treats to make doubly sure that my pet gets all the special nutrition it needs,” 2012 (percent)
Companion Animals as Family
Pet-Positive Media Exposure
Illustration 2-1: Spoiled Rotten Pets Website
Industry Emphasizes Pets’ Human Health Enhancement
Illustration 2-2: HABRI Central Home Page
Figure 2-6: Level of Agreement with Statement: “My pet has a positive
impact on my health”: Physical vs. Mental, 2013 (percent)
Pets in the Classroom Sets Lofty Five-Year Goal
Illustration 2-3: 5th Annual Pets Add Life Children’s Poetry Contest
Cause Marketing
Illustration 2-4: Rachael Ray Nutrish and Rachael’s Rescue (Website
Screenshot)
Cat Market Potential
Chapter 3: HighlightsChapter 3: Industry Trends
Chapter 3: Industry Trends
Introduction
Market Structure
M&A and Investment Activity: Pet Health and Natural Star
Merrick Acquires Castor & Pollux
For The Earth Acquires Prestige Pet Products
Bayer Acquires Teva Animal Health
Perrigo Acquires Sergeant’s, Then Velcera
Radio Systems Corporation Gets Into Pet Waste Management
Petmate Continues Acquisition Spree
Distributors Consolidate, Expand Territories
Illustration 3-1: Animal Supply’s Coverage and Locations
Pethealth Buys PurinaCare’s Pet Insurance Assets
Del Monte Foods and Natural Balance Pet Foods Merge
Investment Activity Targets Natural Pet Products
Digital Boarding/Sitting Services Attract Funding
Pfizer Spins Off Animal Health Division
Cross-Market Trends
Consolidation
Premiumization
Humanization
Illustration 3-2: Burt’s Bees New Line of Pet Care Products
Cross Pollination
Globalization
Pet Services
National Players Continue to Expand Into Services
VCA Antech and Banfield March On
Overall Veterinary Visits Up, But Percentages Down
Dog Visits Up, But Fewer Dog Owners Visiting
Cat Visits Drop Some More
Efforts to Reverse Trend
Table 3-1: Percentage of Dog and Cat Owners Who Have Visited Vet in Past Year: Routine Checkup vs. Sick/Emergency Care, September 2011 vs. March 2012
Morris Animal Foundation Advances Veterinary Research
Vets and Walmart at Odds Over Fairness to Pet Owners Act
Veterinary Channel Sales Opportunity: Therapeutic Foods
Table 3-2: Level of Agreement with Statement: “I believe that pet supplements are more effective than ‘functional’ pet food designed to treat specific health conditions,” 2012 (percent)
Table 3-3: Level of Agreement with Statement: “I believe “functional” pet food designed to treat specific health conditions is more effective than supplements in pill, tablet, liquid, or powder form,” 2012 (percent)
Table 3-4: Level of Agreement with Statement: “I do not use pet supplements because I believe my pet gets all the nutrients it needs from the pet food I buy,” 2012 (percent)
Illustration 3-3: Hill’s Everypeteverytime.com Vet-Targeted Website
Pet Insurance Expansion Benefits Veterinary Services
Non-Medical Pet Services: PetSmart and Petco Advance
Figure 3-1:
PetSmart Services Sales by Type and Cumulative Rate of Growth, 2005-2012 (percent and in millions of dollars)
Table 3-5:
PetSmart and Petco Sales of Pet Services, 2001-2012 (separately and cumulative, in millions of dollars)
PetsHotel Expansion Slows, PetSmart Renews Focus
Table 3-6:
Number of PetSmart PetsHotels in Operation, 2005-2012
PetSmart Joins Forces with Family Promise
Franchises Help Grow the Industry
Boarding Facilities Locating by Airports
Pet Airways Stops Flying
Pet Products
Continued Interest in Premium, Natural Products
Figure 3-2: Level of Agreement with Statement: “Natural/organic brand pet products are often better than standard national brand products,” 2012 vs. 2013 (percent)
Table 3-7: Level of Agreement with Statement: “If natural/organic pet products were more available where I shop, I would buy them more often,” 2012 vs. 2013 (percent)
Table 3-8: Level of Agreement with Statement: “If natural/organic pet products were more affordable where I shop, I would buy them more often,” 2012 vs. 2013 (percent)
Hill’s Science Diet Goes Natural
Illustration 3-4: Hill’s Science Diet Ideal Balance (early name and packaging)
Illustration 3-5: Hill’s Science Diet Ideal Balance (revamped name and packaging)
Illustration 3-6: Science Diet’s Better Life Product Groupings
Illustration 3-7: Science Diet’s Better Life Package Design
Pet Health on Everybody’s Agenda
Product Safety
Figure 3-4: Level of Agreement with Statement: “I am very concerned about the safety of the pet products I buy,” 2013 (percent)
Figure 3-5: Level of Agreement with Statement: “I prefer to purchase pet products made by smaller companies I trust,” 2012 (percent)
Cross-Channel Migration Puts Squeeze on Pet Specialty
Human-Style and Human-Grade Pet Food
Illustration 3-8: Wexford Farms Pet Food’s Warm Ups!
Natura Forced to Retract Human-Grade Claims, Pay Settlement
Grain-Free Gains Ground
Illustration 3-9: Nutram’s Grain Free Mini Turkey, Chicken & Duck
Illustration 3-10: Nature’s Recipe Grain Free Indoor with Hairball Control cat food
Illustration 3-11: Trade Ad for Against the Grain Pet Food (Pet Business, September 2012)
Recession-Buster Dog and Cat Treats Slow Down
Table 3-9:
Projected U.S. Retail Sales of Small Animal (Dog, Cat, Other) Pet Supplements and Nutraceutical Treats: Total, Supplements, Treats, 2012–2017 (in millions of dollars)
Table 3-10:
Percent Purchasing Dog or Cat Treats, 2005-2012 (number and
percent of dog- or cat-owning households)
Led by Freshpet, Refrigerated Pet Food Propels Forward
Illustration 3-12: Freshpet Pet Food and Treats Brand Lines(Website Screenshot)
Specialized Diets Continue to Proliferate
Illustration 3-13: Hill’s Prescription Diet Metabolic Pet Food Line
Illustration 3-14: Wellness Small Breed Senior Recipe and Petite Treats for Small Dogs
Pet Medications: Sales to Top $9 Billion in 2015
Figure 3-6:
Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Generic Pet Medications on the Rise
Nonfood Pet Supplies
Nonfood/Food Cross-Over
Illustration 3-15: Better Than’s Gnawin’ Forever Treat/Toy
That Pet Has Style
Illustration 3-16: Catswall’s Multi-Cat Raised Feeder
Illustration 3-17: Bow Wow Couture’s Mod Dog in Navy Collar/Bow Tie
Illustration 3-18: MiniPacer Treadmill by Dog Pacer
Travel Products
Illustration 3-19: Kurgo’s Auto Grass Keeps Fido Off Center Console
Illustration 3-20: H2Fido’s Portable Pooch Hydrator— Super Weiner Style
Licensed Brands and Celebrity Appeal
Illustration 3-21: KLN Family Brands’ Larry the Cable Guy Good Ole Boy Dawg Treats
Illustration 3-22: Fetch…for Pets and Marvel Aquarium Bridge Ornament
Convenience/Automation
Chapter 4: Highlights
Chapter 4: Retail Trends
Pet Shoppers Say Let’s Make a Deal
Figure 4-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,”March 2012 vs. March 2013 (percent)
Figure 4-2: Level of Agreement with Statement: “I shop for pet products at a variety of stores,” March 2012 vs. March 2013 (percent)
Table 4-1: 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,” 2010 vs. 2011 (percent of pet owners)
Industry Mainstay: The Premium Shopper
Figure 4-3: Level of Agreement with Statement: “I am willing to spend extra to ensure the wellness of my pet,” 2013 (percent)
Channel Loyalty Establishes New Baseline
Table 4-2: Channel Loyalty in Pet Product Purchasing: All Channels, 2008-2012 (percent and number)
Table 4-3: Share of Customer Base Who Are Channel-Loyal by Leading Retail Channels or Pet Superstore Chains, 2008-2012 (percent)
Table 4-4: Channel-Loyal Customer Base for Pet Products by Leading Retail Channel or Pet Superstore Chain, 2008-2012 (number in thousands)
Coupon Use Rises Again
Figure 4-4: “Coupons draw me to stores I don’t shop,” 2012 (index by retail channel)
Figure 4-5: Percent Who Use Pet Food Coupons: Dog Owners vs. Cat Owners, 2007- 2012 (percent)
Pet Product Purchasing Rates by Channel
Table 4-5: Household Purchasing Overview for Pet Products by Retail Classification: U.S. Households Overall vs. Dog or Cat Owners, Fall 2012 (number and percent)
Pet Superstores Gaining Ground
Table 4-6a: Purchasing Rates for Pet Products by Selected Retail Channels and Pet Superstore Chains: 2008-2012 (percent of dog or cat owners)
Table 4-6b: Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains: 2008-2012 (U.S. dog or cat owners in thousands)
Pet Owners Choose Walmart
Table 4-7: Channel Choices for Pet Product Shopping in Last Three Months: Pet Food, Pet Medications, Other Pet Supplies,2012 (percent of pet product buyers)
Private Label Shows Strength and Weakness
Figure 4-6: Level of Agreement with Statement: “I am buying more store-brand pet products these days,” 2012 vs. 2013 (percent)
Figure 4-7: Level of Agreement with Statement: “Store-brand pet products are often as good as national brand-name products,” March 2012 vs. February/March 2013 (percent)
Table 4-8: Purchasing Patterns for Selected Types of Store-Brand Dog and Cat Food: By Retail Channel Shopped, Fall 2008 vs. Fall 2012 (percent)
Table 4-9: IRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2012 vs. 2013 (in millions of dollars)
Table 4-10: Private-Label Share of IRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2012 vs. 2013 (percent)
Formerly Vet-Only Flea/Tick Spot-Ons Expand Reach
Illustration 4-1: Bayer’s Seresto Flea and Tick Collars
Mass-Market Trends
The Middle Market Crunch
Walmart Gaining Share
Illustration 4-2: Walmart’s Pure Balance Infographic
Drugstores Beef Up Pet Departments
Illustration 4-3: Walgreens’ Pet Shoppe Store Brand Pet Laser Toy
Illustration 4-4: Walgreens’ Pet Shoppe Store Brand Pet Collars and Leashes
Mass Channels Tapping into Pet Med Potential
lllustration 4-5: Banner for PetTrust Heartworm Preventive (HeartGard Generic) on Walmart.com
PetSmart and Petco’s Sales Top $10 Billion
Table 4-11: PetSmart and Petco Sales and Number of Stores: 2001-2012 (cumulative, in units and millions of dollars)
Illustration 4-6: Petco’s Whole Pets (Website Screenshot)
PetSmart Emphasizes Exclusive Brands
Another PetSmart Exclusive: The Disney Pet Line
Illustration 4-7: PetSmart-Exclusive Top Paw Muppet Bandana
Petco Continues Growing Unleashed Concept
Illustration 4-8: Natural Brands Carried by Unleashed by Petco(Website Screenshot)
Online Shopping
Shoppers Buying More Pet Products Online
Figure 4-8: Level of Agreement with Statement: “I am buying pet products online more than I used to,” March 2012 vs. March 2013 (percent)
Figure 4-9: Time Frame for Most Recent Online Purchase of Pet Products, March 2013 (percent of pet owners)
Heightened Competition
Table 4-12: Top Websites for Purchasing Pet Products Online in Last 12 Months, 2011 (percent of dog/cat owners—9 websites)
Table 4-13: PetMed Express Sales, 2009-2013 (in millions of dollars)
Looking Ahead
Figure 4-10: Projected U.S. Online Sales of Pet Products, 2011-2015 (in billions of dollars)
Illustration 4-9: PetFlow.com Home Page
Up and Comers
Veterinarians
Natural Supermarkets
Dollar Stores
Agricultural/Feed-Seed Stores
Home Improvement Stores
Home Stores
Chapter 5: Highlights
Chapter 5: Pet Ownership Trends Pet Ownership at 51% of U.S. Households
Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2007-2012 (percent of U.S. households)
Table 5-2: Household Populations for Selected Dog- or Cat-Owning Classifications: 2007-2012 (thousands of U.S. households)
Table 5-3: Household Penetration Rates for Selected Pet-Owning Classifications, 2008-2012 (percent and number of U.S. households in millions)
More $100K+ Pet Households
Table 5-4: Change in Pet Market Consumer Base: Households Earning $100,000 or More vs. Households Earning Under $100,000: 2007 vs. 2012 (number of U.S. dog- or cat-owning households)
Dog and Cat Ownership Rates by Age
Table 5-5: Dog or Cat Ownership Rates by Age Bracket: 2007-2012 (percent of U.S. households)
Trends in Multiple Pet Ownership 34% of Pet Households Keep Multiple Types
Table 5-6: Multiple Pet Ownership in the United States by Animal Type, 2007 vs. 2012 (percent of pet-owning households)
Table 5-7: Ownership of Multiple Pets of a Single Type, 2007 vs. 2011 (percent of U.S. households who own a given type of pet)
Impact of Boomers and Graying Population
Role of Gen Xers and Gen Ys
Table 5-8: Household Penetration Rates for Selected Pet-Owning Classifications: By Generational Cohort, 2012 (percent of U.S. households)
Table 5-9: Household Populations for Selected Pet-Owning Classifications: By Generational Cohort, 2012 (number of U.S. households in thousands)
Table 5-10: Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2012 (U.S. households)
Table 5-11: Indexes for Dog or Cat Ownership: By Age Cohort, 2007 vs. 2012 (U.S. households)
Table 5-12: Indexes for Dog or Cat Ownership: Younger vs. Older Boomers, 2007 vs. 2012 (U.S. households)
Table 5-13: Number and Share of Total U.S. Population Growth for Selected Age Brackets: 2010, 2015 and 2020 (in thousands of number and percent)
Households With Kids
Table 5-14: Dog/Cat Ownership Rates by Household Composition, 2007-2012 (percent)
Table 5-15: Share of Total Dog/Cat Owners by Household Composition, 2007-2012 (percent)
Table 5-16: Dog Ownership Rates by Household Composition, 2007-2012 (percent)
Table 5-17: Share of Total Dog Owners by Household Composition, 2007-2012 (percent)
Table 5-18: Cat Ownership Rates by Household Composition, 2007-2012 (percent)
Table 5-19: Share of Total Cat Owners by Household Composition, 2007-2012 (percent)
Pet Ownership Grows in All Ethnic Groups
Table 5-20: Change in Pet Market Consumer Base: White Non-Hispanics vs. Minorities, 2007 vs. 2012 (number and percent of U.S. dog- or cat-owning households)
Table 5-21: Dog and Cat Ownership Trends by Race/Ethnicity, 2007-2012 (percent and number of U.S. dog- or cat-owning households)
Table 5-22: Dog vs. Cat Ownership Trends by Race/Ethnicity, 2007 vs. 2012 (percent and number of U.S. dog- or cat-owning households)
Table 5-23: Demographic Snapshot of the U.S. Population, 2011
Table 5-24: Projected Population Growth, Hispanics vs.Other Population Segments, 2010-2050 (in thousands)
Pet Owner Psychographics
Health and Medical Related Sentiments and Practices
Table 5-25: Selected Health & Medical Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2012 (percent and index)
Table 5-26: Selected Health & Medical Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2012 (percent and index)
“Green” Sentiments and Practices
Table 5-27: Selected Sustainability Related Psychographics:Dog Owners vs. Cat Owners vs. Other Pet Owners, 2012 (percent and index)
Table 5-28: Selected Sustainability Related Psychographics:Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2012 (percent and index) Media, Marketing and Channel Related Sentiments and Practices
Table 5-29: Selected Media and Marketing Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2012 (percent and index)
Table 5-30: Selected Media and Marketing Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2012 (percent and index)
Introduction
Scope and Methodology
Report Methodology
Market Trends
Pet Industry Chugs Along
Table 1-1: U.S. Pet Market Retail Sales by Category: 2012-2014 (in billions of dollars and percent change over previous year)
Market Share by Category and Animal Type
Pet Owners Still Spending Less
Table 1-2: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2013 (percent)
Pet Ownership and Population Trends
The Aging Pet Population
Overweight and Obese Pets Keep Costs Up
Higher-Income Household Market Boost Moderates
Industry Trends
Market Structure
M&A and Investment Activity: Pet Health and Natural Products Star
Humanization
Globalization
Retail Trends
Pet Shoppers Say Let’s Make a Deal
Figure 1-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,”March 2012 vs. March 2013 (percent)
Industry Mainstay: The Premium Shopper
Channel Loyalty Establishes New Baseline
Table 1-3: Channel Loyalty in Pet Product Purchasing: All Channels, 2008-2012 (percent and number)
Pet Ownership Trends
Pet Ownership at 51% of U.S. Households
Table 1-4: Household Penetration Rates for Selected Pet-Owning Classifications, 2008-2012 (percent of and number of U.S. households in millions)
Dog and Cat Ownership Rates by Age
Trends in Multiple Pet Ownership
Baby Boomers Adding New Dimensions to Market
Gen Y Ownership Takes Off
Chapter 2: Highlights
Chapter 2: Market Trends
Market Performance
Pet Industry Chugs Along
Table 2-1: U.S. Pet Market Retail Sales by Category: 2012-2014 (in billions of dollars and percent change over previous year)
Table 2-2: Projected Total U.S. Retail Sales of Pet Products and Services, 2012-2017 (in millions of dollars)
Table 2-3: U.S. Pet Market Compound Annual Growth Rates by Category: 2007-2012 vs. 2012-2017 (percent)
Market Share by Category and Animal Type
Table 2-4: Percentage Share of U.S. Pet Market Retail Sales by Category: 2007, 2012, 2017
Table 2-5: Share of U.S. Pet Market Sales by Category and Animal Type: Dog, Cat, Other, 2012 (percent)
Share of Pet Product Sales by Channel
Figure 2-1: Share of U.S. Retail Sales of Pet Products Market by Channel Classification, 2011 (percent, 3 classifications)
Mass-Market Sales Caught in the Middle
Table 2-6: IRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2013 vs. 2012(in millions of dollars, units and pounds)
Natural Supermarket Sales Up Across All Pet Categories
Table 2-7: Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2012 vs. 2013 (in millions of dollars)
Table 2-8: Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2012 vs. 2013 (percent)
Specialty/Gourmet Supermarket Continues Upward Path
Table 2-9: Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2012 vs. 2013 (in millions of dollars)
Table 2-10: Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2012 vs. 2013 (percent)
Market Drivers
Consumers Appear Cautiously Optimistic
Table 2-11: Selected U.S. Economic Measures: 2008-2013 (percent and number in millions)
Table 2-12: Pet Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2009-2012 (U.S. pet-owning households)
Table 2-13: Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2009-2012 (U.S. pet-owning households)
Pet Owners Still Spending Less
Table 2-14: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2013 (percent)
Price Sensitivity May Be Letting Up Some
Table 2-15: Level of Agreement with Statement: “Many pet products are becoming too expensive,” 2011 vs. 2012 vs. 2013
Most Pet Owners Are Not Big Spenders
Table 2-16: Amount Spent on Pet Products in Last 30 Days, March 2013 (percent)
Table 2-17: Pet Product Purchasing by Price Level: Food vs. Nonfood, 2013 (percent)
Pet Ownership and Population Trends
Table 2-18: APPA’s Total Number of Dogs and Cats in the United States: By Type, 2000-2012
Table 2-19: Changes in the U.S. Population and Pet-Owning Population, 1996-2012 (number and percent)Table 2-20:
Table 2-20: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2007-2012 (percent of U.S. households)
Trends in Pet Acquisitions: Shelters Gain Favor
Table 2-21: Level of Agreement with Statement: “People should adopt pets from shelters and not purchase them from shops/breeders,” 2013 (percent)
PetSmart Charities Spurs Pet Adoption
Pethealth Inc. (TSX:PTZ) Releases Second Annual PetPoint Report
The Shift to Smaller Dogs
Table 2-22: Size of Dogs, 2012-2013 (percent of pet owners)
Figure 2-2: Most Common Breeds Cared for by Banfield Hospitals: 2000 vs. 2010 (percent)
Figure 2-3: Most Common Breeds Cared for by Banfield Hospitals: 2012 (percent)
The Aging P:et Population
Table 2-23: Age of Dogs and Cats, 2013 (percent of pet owners)
Overweight and Obese Pets Keep Costs Up
Table 2-24: Percentage and Number of Overweight and Obese Dogs and Cats, 2012
Figure 2-4: Level of Agreement with Statement: “I have an overweight pet,” 2013 (percent)
Higher-Income Household Market Boost Moderates
Table 2-25: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 2001-2011 (percent)
Table 2-26: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2006, 2010, 2011 (percent)
Baby Boomers Adding New Dimensions to Market
Time with Pets Contributes to Happiness Among Older Owners
Pets Are Family—The Kind You Pamper
Table 2-27: Pet Owner Attitudes and Behavior Characterizing Human/Animal Bond, 2013 (percent)
Pets as Family Trend Bolsters Pet Health/Wellness Spending
Table 2-28: Level of Veterinary Expenditures by Human-Animal Bond and Animal Type, 2011 (mean dollars per household)
Figure 2-5: Level of Agreement with Statement: “I buy pet supplements and/or functional treats to make doubly sure that my pet gets all the special nutrition it needs,” 2012 (percent)
Companion Animals as Family
Pet-Positive Media Exposure
Illustration 2-1: Spoiled Rotten Pets Website
Industry Emphasizes Pets’ Human Health Enhancement
Illustration 2-2: HABRI Central Home Page
Figure 2-6: Level of Agreement with Statement: “My pet has a positive
impact on my health”: Physical vs. Mental, 2013 (percent)
Pets in the Classroom Sets Lofty Five-Year Goal
Illustration 2-3: 5th Annual Pets Add Life Children’s Poetry Contest
Cause Marketing
Illustration 2-4: Rachael Ray Nutrish and Rachael’s Rescue (Website
Screenshot)
Cat Market Potential
Chapter 3: HighlightsChapter 3: Industry Trends
Chapter 3: Industry Trends
Introduction
Market Structure
M&A and Investment Activity: Pet Health and Natural Star
Merrick Acquires Castor & Pollux
For The Earth Acquires Prestige Pet Products
Bayer Acquires Teva Animal Health
Perrigo Acquires Sergeant’s, Then Velcera
Radio Systems Corporation Gets Into Pet Waste Management
Petmate Continues Acquisition Spree
Distributors Consolidate, Expand Territories
Illustration 3-1: Animal Supply’s Coverage and Locations
Pethealth Buys PurinaCare’s Pet Insurance Assets
Del Monte Foods and Natural Balance Pet Foods Merge
Investment Activity Targets Natural Pet Products
Digital Boarding/Sitting Services Attract Funding
Pfizer Spins Off Animal Health Division
Cross-Market Trends
Consolidation
Premiumization
Humanization
Illustration 3-2: Burt’s Bees New Line of Pet Care Products
Cross Pollination
Globalization
Pet Services
National Players Continue to Expand Into Services
VCA Antech and Banfield March On
Overall Veterinary Visits Up, But Percentages Down
Dog Visits Up, But Fewer Dog Owners Visiting
Cat Visits Drop Some More
Efforts to Reverse Trend
Table 3-1: Percentage of Dog and Cat Owners Who Have Visited Vet in Past Year: Routine Checkup vs. Sick/Emergency Care, September 2011 vs. March 2012
Morris Animal Foundation Advances Veterinary Research
Vets and Walmart at Odds Over Fairness to Pet Owners Act
Veterinary Channel Sales Opportunity: Therapeutic Foods
Table 3-2: Level of Agreement with Statement: “I believe that pet supplements are more effective than ‘functional’ pet food designed to treat specific health conditions,” 2012 (percent)
Table 3-3: Level of Agreement with Statement: “I believe “functional” pet food designed to treat specific health conditions is more effective than supplements in pill, tablet, liquid, or powder form,” 2012 (percent)
Table 3-4: Level of Agreement with Statement: “I do not use pet supplements because I believe my pet gets all the nutrients it needs from the pet food I buy,” 2012 (percent)
Illustration 3-3: Hill’s Everypeteverytime.com Vet-Targeted Website
Pet Insurance Expansion Benefits Veterinary Services
Non-Medical Pet Services: PetSmart and Petco Advance
Figure 3-1:
PetSmart Services Sales by Type and Cumulative Rate of Growth, 2005-2012 (percent and in millions of dollars)
Table 3-5:
PetSmart and Petco Sales of Pet Services, 2001-2012 (separately and cumulative, in millions of dollars)
PetsHotel Expansion Slows, PetSmart Renews Focus
Table 3-6:
Number of PetSmart PetsHotels in Operation, 2005-2012
PetSmart Joins Forces with Family Promise
Franchises Help Grow the Industry
Boarding Facilities Locating by Airports
Pet Airways Stops Flying
Pet Products
Continued Interest in Premium, Natural Products
Figure 3-2: Level of Agreement with Statement: “Natural/organic brand pet products are often better than standard national brand products,” 2012 vs. 2013 (percent)
Table 3-7: Level of Agreement with Statement: “If natural/organic pet products were more available where I shop, I would buy them more often,” 2012 vs. 2013 (percent)
Table 3-8: Level of Agreement with Statement: “If natural/organic pet products were more affordable where I shop, I would buy them more often,” 2012 vs. 2013 (percent)
Hill’s Science Diet Goes Natural
Illustration 3-4: Hill’s Science Diet Ideal Balance (early name and packaging)
Illustration 3-5: Hill’s Science Diet Ideal Balance (revamped name and packaging)
Illustration 3-6: Science Diet’s Better Life Product Groupings
Illustration 3-7: Science Diet’s Better Life Package Design
Pet Health on Everybody’s Agenda
Product Safety
Figure 3-4: Level of Agreement with Statement: “I am very concerned about the safety of the pet products I buy,” 2013 (percent)
Figure 3-5: Level of Agreement with Statement: “I prefer to purchase pet products made by smaller companies I trust,” 2012 (percent)
Cross-Channel Migration Puts Squeeze on Pet Specialty
Human-Style and Human-Grade Pet Food
Illustration 3-8: Wexford Farms Pet Food’s Warm Ups!
Natura Forced to Retract Human-Grade Claims, Pay Settlement
Grain-Free Gains Ground
Illustration 3-9: Nutram’s Grain Free Mini Turkey, Chicken & Duck
Illustration 3-10: Nature’s Recipe Grain Free Indoor with Hairball Control cat food
Illustration 3-11: Trade Ad for Against the Grain Pet Food (Pet Business, September 2012)
Recession-Buster Dog and Cat Treats Slow Down
Table 3-9:
Projected U.S. Retail Sales of Small Animal (Dog, Cat, Other) Pet Supplements and Nutraceutical Treats: Total, Supplements, Treats, 2012–2017 (in millions of dollars)
Table 3-10:
Percent Purchasing Dog or Cat Treats, 2005-2012 (number and
percent of dog- or cat-owning households)
Led by Freshpet, Refrigerated Pet Food Propels Forward
Illustration 3-12: Freshpet Pet Food and Treats Brand Lines(Website Screenshot)
Specialized Diets Continue to Proliferate
Illustration 3-13: Hill’s Prescription Diet Metabolic Pet Food Line
Illustration 3-14: Wellness Small Breed Senior Recipe and Petite Treats for Small Dogs
Pet Medications: Sales to Top $9 Billion in 2015
Figure 3-6:
Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Generic Pet Medications on the Rise
Nonfood Pet Supplies
Nonfood/Food Cross-Over
Illustration 3-15: Better Than’s Gnawin’ Forever Treat/Toy
That Pet Has Style
Illustration 3-16: Catswall’s Multi-Cat Raised Feeder
Illustration 3-17: Bow Wow Couture’s Mod Dog in Navy Collar/Bow Tie
Illustration 3-18: MiniPacer Treadmill by Dog Pacer
Travel Products
Illustration 3-19: Kurgo’s Auto Grass Keeps Fido Off Center Console
Illustration 3-20: H2Fido’s Portable Pooch Hydrator— Super Weiner Style
Licensed Brands and Celebrity Appeal
Illustration 3-21: KLN Family Brands’ Larry the Cable Guy Good Ole Boy Dawg Treats
Illustration 3-22: Fetch…for Pets and Marvel Aquarium Bridge Ornament
Convenience/Automation
Chapter 4: Highlights
Chapter 4: Retail Trends
Pet Shoppers Say Let’s Make a Deal
Figure 4-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,”March 2012 vs. March 2013 (percent)
Figure 4-2: Level of Agreement with Statement: “I shop for pet products at a variety of stores,” March 2012 vs. March 2013 (percent)
Table 4-1: 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,” 2010 vs. 2011 (percent of pet owners)
Industry Mainstay: The Premium Shopper
Figure 4-3: Level of Agreement with Statement: “I am willing to spend extra to ensure the wellness of my pet,” 2013 (percent)
Channel Loyalty Establishes New Baseline
Table 4-2: Channel Loyalty in Pet Product Purchasing: All Channels, 2008-2012 (percent and number)
Table 4-3: Share of Customer Base Who Are Channel-Loyal by Leading Retail Channels or Pet Superstore Chains, 2008-2012 (percent)
Table 4-4: Channel-Loyal Customer Base for Pet Products by Leading Retail Channel or Pet Superstore Chain, 2008-2012 (number in thousands)
Coupon Use Rises Again
Figure 4-4: “Coupons draw me to stores I don’t shop,” 2012 (index by retail channel)
Figure 4-5: Percent Who Use Pet Food Coupons: Dog Owners vs. Cat Owners, 2007- 2012 (percent)
Pet Product Purchasing Rates by Channel
Table 4-5: Household Purchasing Overview for Pet Products by Retail Classification: U.S. Households Overall vs. Dog or Cat Owners, Fall 2012 (number and percent)
Pet Superstores Gaining Ground
Table 4-6a: Purchasing Rates for Pet Products by Selected Retail Channels and Pet Superstore Chains: 2008-2012 (percent of dog or cat owners)
Table 4-6b: Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains: 2008-2012 (U.S. dog or cat owners in thousands)
Pet Owners Choose Walmart
Table 4-7: Channel Choices for Pet Product Shopping in Last Three Months: Pet Food, Pet Medications, Other Pet Supplies,2012 (percent of pet product buyers)
Private Label Shows Strength and Weakness
Figure 4-6: Level of Agreement with Statement: “I am buying more store-brand pet products these days,” 2012 vs. 2013 (percent)
Figure 4-7: Level of Agreement with Statement: “Store-brand pet products are often as good as national brand-name products,” March 2012 vs. February/March 2013 (percent)
Table 4-8: Purchasing Patterns for Selected Types of Store-Brand Dog and Cat Food: By Retail Channel Shopped, Fall 2008 vs. Fall 2012 (percent)
Table 4-9: IRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2012 vs. 2013 (in millions of dollars)
Table 4-10: Private-Label Share of IRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2012 vs. 2013 (percent)
Formerly Vet-Only Flea/Tick Spot-Ons Expand Reach
Illustration 4-1: Bayer’s Seresto Flea and Tick Collars
Mass-Market Trends
The Middle Market Crunch
Walmart Gaining Share
Illustration 4-2: Walmart’s Pure Balance Infographic
Drugstores Beef Up Pet Departments
Illustration 4-3: Walgreens’ Pet Shoppe Store Brand Pet Laser Toy
Illustration 4-4: Walgreens’ Pet Shoppe Store Brand Pet Collars and Leashes
Mass Channels Tapping into Pet Med Potential
lllustration 4-5: Banner for PetTrust Heartworm Preventive (HeartGard Generic) on Walmart.com
PetSmart and Petco’s Sales Top $10 Billion
Table 4-11: PetSmart and Petco Sales and Number of Stores: 2001-2012 (cumulative, in units and millions of dollars)
Illustration 4-6: Petco’s Whole Pets (Website Screenshot)
PetSmart Emphasizes Exclusive Brands
Another PetSmart Exclusive: The Disney Pet Line
Illustration 4-7: PetSmart-Exclusive Top Paw Muppet Bandana
Petco Continues Growing Unleashed Concept
Illustration 4-8: Natural Brands Carried by Unleashed by Petco(Website Screenshot)
Online Shopping
Shoppers Buying More Pet Products Online
Figure 4-8: Level of Agreement with Statement: “I am buying pet products online more than I used to,” March 2012 vs. March 2013 (percent)
Figure 4-9: Time Frame for Most Recent Online Purchase of Pet Products, March 2013 (percent of pet owners)
Heightened Competition
Table 4-12: Top Websites for Purchasing Pet Products Online in Last 12 Months, 2011 (percent of dog/cat owners—9 websites)
Table 4-13: PetMed Express Sales, 2009-2013 (in millions of dollars)
Looking Ahead
Figure 4-10: Projected U.S. Online Sales of Pet Products, 2011-2015 (in billions of dollars)
Illustration 4-9: PetFlow.com Home Page
Up and Comers
Veterinarians
Natural Supermarkets
Dollar Stores
Agricultural/Feed-Seed Stores
Home Improvement Stores
Home Stores
Chapter 5: Highlights
Chapter 5: Pet Ownership Trends Pet Ownership at 51% of U.S. Households
Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2007-2012 (percent of U.S. households)
Table 5-2: Household Populations for Selected Dog- or Cat-Owning Classifications: 2007-2012 (thousands of U.S. households)
Table 5-3: Household Penetration Rates for Selected Pet-Owning Classifications, 2008-2012 (percent and number of U.S. households in millions)
More $100K+ Pet Households
Table 5-4: Change in Pet Market Consumer Base: Households Earning $100,000 or More vs. Households Earning Under $100,000: 2007 vs. 2012 (number of U.S. dog- or cat-owning households)
Dog and Cat Ownership Rates by Age
Table 5-5: Dog or Cat Ownership Rates by Age Bracket: 2007-2012 (percent of U.S. households)
Trends in Multiple Pet Ownership 34% of Pet Households Keep Multiple Types
Table 5-6: Multiple Pet Ownership in the United States by Animal Type, 2007 vs. 2012 (percent of pet-owning households)
Table 5-7: Ownership of Multiple Pets of a Single Type, 2007 vs. 2011 (percent of U.S. households who own a given type of pet)
Impact of Boomers and Graying Population
Role of Gen Xers and Gen Ys
Table 5-8: Household Penetration Rates for Selected Pet-Owning Classifications: By Generational Cohort, 2012 (percent of U.S. households)
Table 5-9: Household Populations for Selected Pet-Owning Classifications: By Generational Cohort, 2012 (number of U.S. households in thousands)
Table 5-10: Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2012 (U.S. households)
Table 5-11: Indexes for Dog or Cat Ownership: By Age Cohort, 2007 vs. 2012 (U.S. households)
Table 5-12: Indexes for Dog or Cat Ownership: Younger vs. Older Boomers, 2007 vs. 2012 (U.S. households)
Table 5-13: Number and Share of Total U.S. Population Growth for Selected Age Brackets: 2010, 2015 and 2020 (in thousands of number and percent)
Households With Kids
Table 5-14: Dog/Cat Ownership Rates by Household Composition, 2007-2012 (percent)
Table 5-15: Share of Total Dog/Cat Owners by Household Composition, 2007-2012 (percent)
Table 5-16: Dog Ownership Rates by Household Composition, 2007-2012 (percent)
Table 5-17: Share of Total Dog Owners by Household Composition, 2007-2012 (percent)
Table 5-18: Cat Ownership Rates by Household Composition, 2007-2012 (percent)
Table 5-19: Share of Total Cat Owners by Household Composition, 2007-2012 (percent)
Pet Ownership Grows in All Ethnic Groups
Table 5-20: Change in Pet Market Consumer Base: White Non-Hispanics vs. Minorities, 2007 vs. 2012 (number and percent of U.S. dog- or cat-owning households)
Table 5-21: Dog and Cat Ownership Trends by Race/Ethnicity, 2007-2012 (percent and number of U.S. dog- or cat-owning households)
Table 5-22: Dog vs. Cat Ownership Trends by Race/Ethnicity, 2007 vs. 2012 (percent and number of U.S. dog- or cat-owning households)
Table 5-23: Demographic Snapshot of the U.S. Population, 2011
Table 5-24: Projected Population Growth, Hispanics vs.Other Population Segments, 2010-2050 (in thousands)
Pet Owner Psychographics
Health and Medical Related Sentiments and Practices
Table 5-25: Selected Health & Medical Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2012 (percent and index)
Table 5-26: Selected Health & Medical Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2012 (percent and index)
“Green” Sentiments and Practices
Table 5-27: Selected Sustainability Related Psychographics:Dog Owners vs. Cat Owners vs. Other Pet Owners, 2012 (percent and index)
Table 5-28: Selected Sustainability Related Psychographics:Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2012 (percent and index) Media, Marketing and Channel Related Sentiments and Practices
Table 5-29: Selected Media and Marketing Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2012 (percent and index)
Table 5-30: Selected Media and Marketing Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2012 (percent and index)
In September 2012, the company committed completely to natural with the announcementthat Hill’s is reformulating its entire Science Diet line with natural ingredients. The newBetter Life dog food formulas debuted in December 2012, followed soon after by thereformulated cat food line. As the name relays, in the past, Science Diet has primarilyemphasized the science behind its products, backed by the pitch of being “Veterinarians’ #1choice to feed their own pets.” But with the new natural line, the focus will be more on theconsumer and the all-important human/animal bond. Commenting on the strategy, Hill’s U.S.president Kostas Kontopanos said, “...it’s not only about the science. It’s dedication to ourmission to enrich and lengthen the special relationships between people and their pets thatdrives the development and continuous improvement of our pet foods. ... We took a food thatalready delivered precisely balanced nutrition, industry leading quality and great taste andwill make it even better by adding the natural ingredients that pet parents want” (companypress release, September 2012).
The new Science Diet dog and cat food formulas feature:
- Quality protein as the first ingredient
- Natural ingredients
- No chicken byproducts
- No artificial colors or flavors
