In the New Normal of economic moderation, pet industry players must walk a line between promotional pricing and product premiumization. While shoppers remain intently focused on value, numerous indicators suggest that the U.S. pet market has yet to come fully into its own. Notwithstanding the great recession, the pet product shopper base has continued to migrate into the higher-priced pet specialty channel, while supermarkets and discount stores have seen their pet product shopper base decline. Store brands are more important than ever, but pet food remains private-label resistant, an outpost of shopper loyalty to national brands. Natural, organic, and eco-friendly products continue to advance, as do pet health products and services including medications, supplements, and insurance. And 2011 was nothing less than a banner year for mid-level acquisitions.
During Super Bowl XLVI, dogs featured prominently in commercials that were not even pet related--ads selling cars, beer, and chips. This was a sign-of-the-times: Packaged Facts sees pet parenting and the ensconcement of pets as members of the family not just as a trend, but as a long-term societal shift favoring even greater spending on the pet market in the years to come.
Factor in industry efforts embodied in the Human Animal Bond Research Initiative Foundation (HABRI) to advance the understanding of the positive impact of pet ownership on human health, and the U.S. pet industry appears to be positioning for a boom.
At the same time, many Americans remain budget-strapped, and it’s essential that pet marketers and retailers respond to this mindset as well as to the expectations of less cost-conscious pet owners. In this market environment, it’s no accident that, along with pet specialty retailers, price-focused dollar stores and wholesale clubs have been growing their pet business.
Rolling up Packaged Facts’ ongoing pulse-taking of the pet market, extensive pet market research coverage, and exclusive Pet Owner Survey data—including hot-off-the-press findings from our March 2012 consumer survey—U.S. Pet Market Outlook 2012-2013 is the go-to source for a complete understanding of U.S. pet industry. In its 4th edition, the report evaluates current trends and future directions for marketing and retailing , along with consumer patterns across the full spectrum of the market, including veterinary services, pet food, nonfood pet supplies, and non-medical pet services (grooming, boarding, training, etc.). Building on the market tracking, forecasting, and position-taking of previous editions, the report forecasts market size and growth for each category; examines new product activity; surveys retail channel trends including cross-channel shopping vs. shopper loyalty; and analyzes trends and shifts in the needs of today’s pet parents. The report tabulates pet product sales channel by channel, using data from sources including SymphonyIRI Group, whose InfoScan Review data tracks sales in supermarkets, drugstores, and mass merchandisers other than Walmart; GfK Retail & Technology, which tracks sales in pet shops, farm & feed stores, and veterinary clinics across the U.S.; and SPINS, Inc., whose SPINSscan service tracks sales in the natural supermarket channel and in the specialty gourmet supermarket channel.
During Super Bowl XLVI, dogs featured prominently in commercials that were not even pet related--ads selling cars, beer, and chips. This was a sign-of-the-times: Packaged Facts sees pet parenting and the ensconcement of pets as members of the family not just as a trend, but as a long-term societal shift favoring even greater spending on the pet market in the years to come.
Factor in industry efforts embodied in the Human Animal Bond Research Initiative Foundation (HABRI) to advance the understanding of the positive impact of pet ownership on human health, and the U.S. pet industry appears to be positioning for a boom.
At the same time, many Americans remain budget-strapped, and it’s essential that pet marketers and retailers respond to this mindset as well as to the expectations of less cost-conscious pet owners. In this market environment, it’s no accident that, along with pet specialty retailers, price-focused dollar stores and wholesale clubs have been growing their pet business.
Rolling up Packaged Facts’ ongoing pulse-taking of the pet market, extensive pet market research coverage, and exclusive Pet Owner Survey data—including hot-off-the-press findings from our March 2012 consumer survey—U.S. Pet Market Outlook 2012-2013 is the go-to source for a complete understanding of U.S. pet industry. In its 4th edition, the report evaluates current trends and future directions for marketing and retailing , along with consumer patterns across the full spectrum of the market, including veterinary services, pet food, nonfood pet supplies, and non-medical pet services (grooming, boarding, training, etc.). Building on the market tracking, forecasting, and position-taking of previous editions, the report forecasts market size and growth for each category; examines new product activity; surveys retail channel trends including cross-channel shopping vs. shopper loyalty; and analyzes trends and shifts in the needs of today’s pet parents. The report tabulates pet product sales channel by channel, using data from sources including SymphonyIRI Group, whose InfoScan Review data tracks sales in supermarkets, drugstores, and mass merchandisers other than Walmart; GfK Retail & Technology, which tracks sales in pet shops, farm & feed stores, and veterinary clinics across the U.S.; and SPINS, Inc., whose SPINSscan service tracks sales in the natural supermarket channel and in the specialty gourmet supermarket channel.
CHAPTER 1: EXECUTIVE SUMMARY
Introduction
Scope and Methodology
Report Methodology
Market Trends
Slow Economy Continues to Dampen Growth
Table 1-1: U.S. Pet Market Retail Sales by Category: 2011-2013 (in billions of dollars and percent change over previous year)
Market Share by Category and Animal Type
Pet Owners Spending Less
Table 1-2: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2012 (percent)
Pet Population Trends
The Aging Pet Population
Pet Overweight and Obesity
Higher-Income Household Market Boost Moderates
Industry Trends
Market Structure
M&A and Investment Activity: 2011 A Good Year
Cross-Market Trends
Consolidation
Premiumization
Humanization
Cross Pollination
Globalization
Retail Trends
Pet Shoppers Looking for Deals at Retail
Figure 1-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” September 2011 vs. March 2012 (percent)
Premium Shopper Survives
Channel Loyalty on the Decline
Table 1-3: Channel Loyalty in Pet Product Purchasing: All Channels, 2007-2011 (percent and number)
Pet Ownership Trends
Growth in Pet Ownership Recovers with Economy
Table 1-4: Household Penetration Rates for Selected Pet-Owning Classifications, 2007-2011 (percent of and number of U.S. households in millions)
Dog and Cat Ownership Rates by Age
Trends in Multiple Pet Ownership
Impact of Boomers and Graying Population
Role of Gen Xers and Gen Ys
CHAPTER 2: MARKET TRENDS
Market Performance
Slow Economy Continues to Dampen Growth
Table 2-1: U.S. Pet Market Retail Sales by Category: 2011-2013 (in billions of dollars and percent change over previous year)
Table 2-2: Projected Total U.S. Retail Sales of Pet Products and Services, 2011-2016 (in millions of dollars)
Table 2-3: U.S. Pet Market Compound Annual Growth Rates by Category: 2006-2011 vs. 2011-2016 (percent)
Market Share by Category and Animal Type
Table 2-4: Percentage Share of U.S. Pet Market Retail Sales by Category: 2006, 2011, 2016
Table 2-5: Share of U.S. Pet Market Sales by Category and Animal Type: Dog, Cat, Other, 2011 (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, 4 classifications)
Mass-Market Sales of Pet Products: The Mid-Range Squeeze
Table 2-6: SymphonyIRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2010 vs. 2011 (in millions of dollars, units and pounds)
Pet Specialty Sales of Pet Food Chart Healthy Growth
Table 2-7a: Total U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels: 2008- 2011 (dollar, unit, and volume sales in millions)
Table 2-7b: U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels: Pet Shops/Pet Retail, 2008-2011 (dollar, unit, and volume sales in millions)
Table 2-7c: U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels: Veterinary Clinics, 2008-2011 (dollar, unit, and volume sales in millions)
Table 2-7d: U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels Farm & Feed Stores, 2008-2011 (dollar, unit, and volume sales in millions)
Figure 2-2: Share of U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels by Channel: Pet Shops/Pet Retail, Veterinary Clinics, Farm & Feed, 2008 vs. 2011 (percent)
Natural Supermarket Sales Continue Upward Path
Table 2-8: Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)
Table 2-9: Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)
Specialty/Gourmet Supermarket Sales Up 10%
Table 2-10: Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)
Table 2-11: Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)
Market Drivers
Slow Economy Continues to Dampen Consumer Confidence
Table 2-12: Selected U.S. Economic Measures: 2008-2012 (percent and number in millions)
Table 2-13: Pet Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2008-2011 (U.S. pet-owning households)
Table 2-14: Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2008-2011 (U.S. pet-owning households)
Pet Owners Spending Less
Table 2-15: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2012 (percent)
Price Resistance
Table 2-16: Level of Agreement with Statement: “Many pet products are becoming too expensive,” 2011 vs. 2012
“Average” Spending Suggests Room to Grow
Table 2-17: Amount Spent on Pet Products in Last 30 Days, March 2012 (percent)
Table 2-18: Pet Product Purchasing by Price Level: Food vs. Nonfood, 2012 (percent)
Pet Ownership and Population Trends
Table 2-19: Total Number of Pets in the United States: By Type, 2000-2010
Table 2-20: Changes in the U.S. Population and Pet-Owning Population, 1996-2010 (number and percent)
Table 2-21: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2006-2011 (percent of U.S. households)
Trends in Pet Acquisitions: Shelters Outperforming Shops, Breeders
Table 2-22: Level of Agreement with Statement: “People should adopt pets from shelters and not purchase them from shops/breeders,” 2012 (percent)
Table 2-23: Where Dogs Are Obtained, 2000-2010 (percent)
Table 2-24: Where Cats Are Obtained, 2000-2010 (percent)
PetSmart Charities Opening Adoption Centers in PetSmart Stores Nationwide
Illustration 2-1: YouTube Video of PetSmart Charities On-Site Adoption Center in PetSmart Store in Fort Worth, TX (screenshot)
Pethealth Inc. (TSX:PTZ) Releases First Full-Year PetPoint Report
Canine Population Shifting Toward Smaller Dogs
Figure 2-3: Size of Dog Owned: Small, Medium or Large, 2000 vs. 2010 (percent of U.S. dog-owning households)
Figure 2-4: Most Common Breeds Cared for by Banfield Hospitals: 2000 vs. 2010 (percent)
The Aging Pet Population
Table 2-25: Age of Dogs and Cats, 2012 (percent of pet owners)
Table 2-26: Average Age of First, Second, and Third Dog in Household, 2010 vs. 2000
Table 2-27: Average Age of First, Second, and Third Cat in Household, 2010 vs. 2000
Pet Overweight and Obesity
Table 2-28: Percentage and Number of Overweight and Obese Dogs and Cats, 2011
Higher-Income Household Market Boost Moderates
Table 2-29: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 2000-2010 (percent)
Table 2-30: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2005, 2009, 2010 (percent)
Baby Boomers Adding New Dimensions to Market
Pets as Family
Table 2-31: Pet Owner Attitudes and Behavior Characterizing Human/Animal Bond, 2012 (percent)
A Societal Shift
Illustration 2-2: Subaru “Dog tested. Dog approved.” Commercial
Human-Pet Interaction as Human Health Enhancer
Illustration 2-3: HABRI Central Home Page
Figure 2-5: Level of Agreement with Statement:
“My pet has a positive impact on my health”: Physical vs. Mental, 2012 (percent)
Pets in the Classroom Program Laying Foundation for Future Pet Ownership
Illustration 2-4: Pets in the Classroom Website Home Page
APPA’s National Pet Market Opportunity Study
Table 2-32: Reasons for Not Currently Owning a Pet: Previous Pet Owners vs. Non Pet Owners, 2010 (percent)
Feline Potential
Pet Food Price Fixing
CHAPTER 3: INDUSTRY TRENDS
Introduction
Market Structure
M&A and Investment Activity: 2011 A Good Year
Petmate Acquires Bamboo Pet Products and Kennel-Aire
Contech Acquires G&B Marketing
Quaker Pet Group Acquires Watson’s Senior Pet Supplies, Sherpa
Cargill Acquires Provimi
United Pet Group (Spectrum Brands) Buys Furminator
Unicharm Takes Stake in Hartz (Sumitomo)
Kemin Acquires Genesis
Investment Activity
MidOcean Invests in Freshpet
Merrick Pet Care Acquired by Swander Pace Capitol
Worldwise Acquired by Mistral Equity
Nutri-Vet Acquired by Imperial Capital/Petra Pet
The Honest Kitchen Receives Capital Investments
Cybeck Capital PartnersTakes Stake in Fetch! Pet Care
Retailer Maneuvers
Petco Acquires Complete Petmart
Canadian Pet Retailer Global Pet Foods Crosses U.S. Border
VCA Antech Acquires BrightHeart Veterinary Centers and Vetstreet, Expands Canadian Market Presence
Pfizer Animal Health Spinoff Likely
Cross-Market Trends
Consolidation
Premiumization
Humanization
Cross Pollination
Globalization
Pet Services
Ongoing Corporatization
VCA Antech and Banfield Continue to Advance
Recession Takes a Toll
A Longer-Term Concern: Decline in Frequency of Veterinary Visits
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
The Bayer Veterinary Care Usage Study
AVMA, AAHA Launch Partnership for Preventive Pet Healthcare
Morris Animal Foundation Funding Extensive Veterinary Research
Vets Unhappy with Pet Med Migration to Retail
Walmart Backs/AVMA Opposes Fairness to Pet Owners Act
Veterinary Channel Sales Opportunity: Therapeutic Foods
Illustration 3-1: Hill’s Everypeteverytime.com Vet-Targeted Website
Illustration 3-2: Trade Ad for Hill’s Prescription Diet c/d Multicare Feline Bladder Health
Pet Insurance Expansion Good for Veterinary Services
Figure 3-1: North American Pet Insurance Market Revenues: United States, Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars)
Non-Medical Pet Services: PetSmart and Petco Advance
Figure 3-2: PetSmart Services Sales by Type and Cumulative Rate of Growth, 2005-2011 (percent and in millions of dollars)
Table 3-2: PetSmart and Petco Sales of Pet Services, 2001-2011 (separately and cumulative, in millions of dollars)
PetSmart Slows PetsHotels Expansion, Reallocates Space to On-Site Shelter Adoption Program
Table 3-3: Number of PetSmart PetsHotels in Operation, 2005-2011
Petco Pulls Back on Service Offerings
Illustration 3-3: Unleashed by Petco Services Menu
Independent Pet Specialty Retailers’ Interest in Services Picking up Post Recession
Table 3-4: Percentage of Pet Specialty Retailers Offering Pet Care Services: By Type of Service, 2009-2010
Figure 3-3: Percentage of Pet Specialty Retailers Planning to Add Pet Care Services in Next Year: By Type of Service, 2003-2010
Franchising Ongoing
Boarding Facilities Locating by Airports
Pet Airways Changes Name, Cites Expansion Plans
Pet Products
Ongoing Interest in Premium, Natural Products
Figure 3-4: Level of Agreement with Statement: “Natural/organic brand pet products are often better than standard national brand products,” 2011 vs. 2012 (percent)
Table 3-5: Level of Agreement with Statement: “If natural/organic pet products were more available where I shop, I would buy them more often,” 2011 vs. 2012 (percent)
Table 3-6: Level of Agreement with Statement: “If natural/organic pet products were more affordable where I shop, I would buy them more often,” 2011 vs. 2012 (percent)
Illustration 3-4: Hill’s Science Diet Ideal Balance
Focus on Pet Health
Product Safety
Figure 3-5: Level of Agreement with Statement: “I am very concerned about the safety of the pet products I buy,” 2012 (percent)
Figure 3-6: Level of Agreement with Statement: “I prefer to purchase pet products made by smaller companies I trust,” 2012 (percent)
Developments in Flea/Tick Products
Cross-Channel Migration Increases Market Pressures
Pet Food: Human-Style and Human-Grade
Natura Forced to Retract Human-Grade Claims, Pay Settlement
Grain-Free Pet Foods
Illustration 3-5: Hill’s Science Diet Ideal Balance Grain Free Dog Food
Illustration 3-6: Blue Buffalo’s Freedom Grain-Free Dog and Cat Food
Illustration 3-7: 2012 Global Pet Expo Display of Precise Pet Product’s Grain Free Precise Holistic Complete
Illustration 3-8: ZuPreem Grain-Free Ferret Diet
Dog and Cat Treats Beat the Recession
Figure 3-7: Projected U.S. Retail Sales of Nutraceutical Treats for Dogs and Cats, 2011-2015 (in millions of dollars)
Table 3-7: Percent Purchasing Dog or Cat Treats, 2004-2011 (number and percent of dog- or cat-owning households)
Freshpet Continues to Advance Refrigerated Pet Food
Figure 3-8: SymphonyIRI-Tracked Sales of Freshpet Refrigerated Dog and Cat Food, 2010-2011 (percent and in dollars)
Illustration 3-9: Freshpet Double-Door Refrigerated Case in Walmart
Illustration 3-10: PetSmart Web Page Featuring Freshpet’s New Vital Grain-free Refrigerated Pet Food
Specialized Diets: Extra Small and Senior Plus
Illustration 3-11: Royal Canin’s New X-Small Dog Pet Food Line
Illustration 3-12: Iams’ New Senior Plus (Age 11+) Pet Foods
Pet Medications: Sales to Top $9 Billion in 2015
Figure 3-9: Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Generic Pet Medications on the Rise
Nonfood Pet Supplies
Brand Stables
Illustration 3-13 : Petmate Pavilion at Global Pet Expo 2012
Illustration 3-14 : Petmate Website Page: “Other” Brand Collections
Nonfood/Food Cross-Over
Illustration 3-15 : Kong Premium Treats
High-Style and “Child-Like”
Illustration 3-16: Pet Gear Pet Strollers at Global Pet Expo 2012
Illustration 3-17 : Carlson Pet Containment “Cribs” at Global Pet Expo 2012
Illustration 3-18 : Simply Fido’s Organic Pet Toy Collection
Travel Products
Illustration 3-19: Kurgo Pet Travel Products
Illustration 3-20: Solvit’s HoundAbout Bicycle Trailer at Global Pet Expo 2012
Licensed Brands and Celebrity Appeal
Illustration 3-21: Lassie Pet Beds at Global Pet Expo 2012
Convenience/Automation
Illustration 3-22: Omega Paws’ Roll’ N Clean Litter Box
Illustration 3-23 : K&H Products’ Heated Pet Beds and Housing
CHAPTER 4: RETAIL TRENDS
Pet Shoppers Looking for Deals at Retail
Figure 4-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” September 2011 vs. March 2012 (percent)
Figure 4-2: Level of Agreement with Statement: “I shop for pet products at a variety of stores,” September 2011 vs. March 2012 (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)
Premium Shopper Survives
Figure 4-3: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer the best products available, even if they are more expensive,” 2011 (percent)
Figure 4-4: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer natural/organic and other specialty brand products,” 2011 (percent)
Channel Loyalty on the Decline
Table 4-2: Channel Loyalty in Pet Product Purchasing: All Channels, 2007-2011 (percent and number)
Table 4-3: Share of Customer Base Who Are Channel-Loyal by Leading Retail Channels or Pet Superstore Chains, 2007-2011 (percent)
Table 4-4: Channel-Loyal Customer Base for Pet Products by Leading Retail Channel or Pet Superstore Chain, 2007-2011 (number in thousands)
Coupon Use on the Rise
Figure 4-5: “Coupons draw me to stores I don’t shop,” 2011 (index by retail channel)
Figure 4-6: Percent Who Use Pet Food Coupons: Dog Owners vs. Cat Owners, 2006- 2011 (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, Summer 2011 (number and percent)
Pet Superstores Gaining Ground
Table 4-6a: Purchasing Rates for Pet Products by Selected Retail Channels and Pet Superstore Chains: 2007-2011 (percent of dog or cat owners)
Table 4-6b: Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains: 2007-2011 (U.S. dog or cat owners in thousands)
Walmart Tops Recent Shopper List
Table 4-7: Percentage of Pet Owners Who Purchased Any Pet Product in Last 30 Days and Amount Spent, by Channel, 2011
Private Label a Mixed Bag
Figure 4-7: Level of Agreement with Statement: “I am buying more store-brand pet products these days,” 2011 vs. 2012 (percent)
Figure 4-8: Level of Agreement with Statement: “Store-brand pet products are often as good as national brand-name products,” September 2011 vs. March 2012 (percent)
Table 4-8: Purchasing Patterns for Selected Types of Store- Brand Dog and Cat Food: By Retail Channel Shopped, Spring 2007 vs. Summer 2011 (percent)
Table 4-9: SymphonyIRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2010 vs. 2011 (in millions of dollars)
Table 4-10: Private-Label Share of SymphonyIRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2010 vs. 2011 (percent)
Expanding Distribution of Formerly Vet-Only Flea/Tick Spot-Ons
Illustration 4-1: Pet Armor Plus On-Shelf Display in Walmart Store
Table 4-11: Level of Agreement with Statement: “With spot-on (topical) flea/tick products, I would trust generic or storebrand products if they contained the same active ingredients”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 4-12: Level of Agreement with Statement: “Veterinariandispensed spot-on (topical) flea/tick products are too expensive”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 4-13: Level of Agreement with Statement: “With Spot-On (Topical) Flea/Tick Products, the Products Available in Stores Are Just as Effective as Those Available Through Veterinarians”: Dog Owners vs. Cat Owners, 2011 (percent)
Mass-Market Trends
Market Polarization Not Good for Mass
Walmart Bucking the Trend
Illustration 4-2: Mars Pedigree/”Pets Love Walmart” Promotion
Another Bright Spot: Drugstores
Pet Medication Sales Up Across Mass Channels
lllustration 4-3: Walmart Floor Talker for PetTrust Heartworm Preventive (HeartGard Generic): “Save on Pet Medications”
Illustration 4-4: Pet Department Endcap in Walgreens—“Pet Meds Covered”
Pet Specialty Trends
Independents View Economy as Top Challenge Over Next Two Years
Table 4-14: Top Challenges Pet Specialty Retailers Face in Next Two Years: 2008-2009, 2009-2010, 2010-2011, 2011-2012 (percent)
Table 4-15: Level of Agreement with Statement: “I usually shop for pet products in pet superstores or pet stores because they carry the specialty brands I like,” 2011 (percent)
Table 4-16: Level of Agreement with Statement: “I usually shop for pet products in pet superstores or pet stores because of the customer service they provide,” 2011 (percent)
PetSmart and Petco Advance Their Lead
Table 4-17: PetSmart and Petco Sales and Number of Stores: 2001-2011 (cumulative, in units and millions of dollars)
PetSmart Banking on Promotions, Exclusive Brands
Coming in 2012: PetSmart-Exclusive Toys “R” Us and Bret Michaels Lines
Illustration 4-5: PetSmart-Exclusive Bret Michaels Pets Rock Collection
Petco Advances Unleashed, Tests Online Repeat Pet Food Delivery Service
Illustration 4-6: Petco’s Online Repeat Delivery Service
Moochie & Co. and Mini Moochies Top 40 Units
Illustration 4-7: Exterior of Moochie & Company Mall-Based Pet Specialty Shop, Columbus, OH
The Natural Thrust
“Whole Pet”?
Online Shopping
Shopper Base Up, Buying More
Figure 4-9: Level of Agreement with Statement: “I am buying pet products online more than I used to,” September 2011 vs. March 2012 (percent)
Figure 4-10: Time Frame for Most Recent Online Purchase of Pet Products, March 2012 (percent of pet owners)
Heightened Competition
Table 4-18: Top Websites for Purchasing Pet Products Online in Last 12 Months, 2011 (percent of dog/cat owners—9 websites)
Table 4-19: PetMed Express Sales, 2007-2011 (in millions of dollars)
VIPPS Certification May Give Internet a Boost
Looking Ahead
Figure 4-11: Projected U.S. Online Sales of Pet Products, 2011-2015 (in billions of dollars)
Illustration 4-8: PetFlow.com Home Page
M&A in the Cards?
Up and Comers
Veterinarians
Natural Supermarkets
Dollar Stores
Agricultural/Feed-Seed Stores
Home Improvement Stores
Illustration 4-9: Pet Department in Lowe’s
Home Stores
Illustration 4-10: Bed Bath & Beyond’s Online Pet Product Selection
CHAPTER 5: PET OWNERSHIP TRENDS
Growth in Pet Ownership Recovers with Economy
Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2006-2011 (percent of U.S. households)
Table 5-2: Household Populations for Selected Dog- or Cat- Owning Classifications: 2006-2011 (thousands of U.S. households)
Table 5-3: Household Penetration Rates for Selected Pet-Owning Classifications, 2007-2011 (percent of 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, 2006 vs. 2011 (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: 2006-2011 (percent of U.S. households)
Trends in Multiple Pet Ownership
34% of Pet Households Keep Multiple Types
61% of Pet Households Keep More Than One Pet
Table 5-6: Multiple Pet Ownership in the United States by Animal Type, 2006 vs. 2011 (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, 2011 (percent of U.S. households)
Table 5-9: Household Populations for Selected Pet-Owning Classifications: By Generational Cohort, 2011 (number of U.S. households in thousands)
Table 5-10: Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2011 (U.S. households)
Table 5-11: Indexes for Dog or Cat Ownership: By Age Cohort, 2006 vs. 2011 (U.S. households)
Table 5-12: Indexes for Dog or Cat Ownership: Younger vs. Older Boomers, 2006 vs. 2011 (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 Without Kids vs. Those With Kids
Households Without Kids
Figure 5-1: Share of Dog/Cat Ownership by Household Composition: No-Kids Households vs. Kids Households, 2006-2011 (percent)
Households With Kids
Table 5-14: Dog/Cat Ownership Rates by Household Composition, 2006-2011 (percent)
Table 5-15: Share of Total Dog/Cat Owners by Household Composition, 2006-2011 (percent)
Dog vs. Cat Households
Table 5-16: Dog Ownership Rates by Household Composition, 2006-2011 (percent)
Table 5-17: Share of Total Dog Owners by Household Composition, 2006-2011 (percent)
Table 5-18: Cat Ownership Rates by Household Composition, 2006-2011 (percent)
Table 5-19: Share of Total Cat Owners by Household Composition, 2006-2011 (percent)
Pet Ownership Grows in All Ethnic Groups
Table 5-20: Change in Pet Market Consumer Base: White Non-Hispanics vs. Minorities, 2006 vs. 2011 (number and percent of U.S. dog- or cat-owning households)
Table 5-21: Dog and Cat Ownership Trends by Race/Ethnicity, 2006-2011 (percent and number of U.S. dog- or cat-owning households)
Table 5-22: Dog vs. Cat Ownership Trends by Race/Ethnicity, 2006 and 2011 (percent and number of U.S. dog- or catowning households)
Table 5-23: Projected Population Growth, Hispanics vs. Other Population Segments, 2010-2015 (in thousands)
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, 2011 (percent and index)
Table 5-26: Selected Health & Medical Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2011 (percent and index)
“Green” Sentiments and Practices
Table 5-27: Selected Sustainability Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2011 (percent and index)
Table 5-28: Selected Sustainability Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2011 (percent and index)
Media and Marketing Related Sentiments and Practices
Table 5-29: Selected Media and Marketing Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2011 (percent and index)
Table 5-30: Selected Media and Marketing Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2011 (percent and index)
Introduction
Scope and Methodology
Report Methodology
Market Trends
Slow Economy Continues to Dampen Growth
Table 1-1: U.S. Pet Market Retail Sales by Category: 2011-2013 (in billions of dollars and percent change over previous year)
Market Share by Category and Animal Type
Pet Owners Spending Less
Table 1-2: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2012 (percent)
Pet Population Trends
The Aging Pet Population
Pet Overweight and Obesity
Higher-Income Household Market Boost Moderates
Industry Trends
Market Structure
M&A and Investment Activity: 2011 A Good Year
Cross-Market Trends
Consolidation
Premiumization
Humanization
Cross Pollination
Globalization
Retail Trends
Pet Shoppers Looking for Deals at Retail
Figure 1-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” September 2011 vs. March 2012 (percent)
Premium Shopper Survives
Channel Loyalty on the Decline
Table 1-3: Channel Loyalty in Pet Product Purchasing: All Channels, 2007-2011 (percent and number)
Pet Ownership Trends
Growth in Pet Ownership Recovers with Economy
Table 1-4: Household Penetration Rates for Selected Pet-Owning Classifications, 2007-2011 (percent of and number of U.S. households in millions)
Dog and Cat Ownership Rates by Age
Trends in Multiple Pet Ownership
Impact of Boomers and Graying Population
Role of Gen Xers and Gen Ys
CHAPTER 2: MARKET TRENDS
Market Performance
Slow Economy Continues to Dampen Growth
Table 2-1: U.S. Pet Market Retail Sales by Category: 2011-2013 (in billions of dollars and percent change over previous year)
Table 2-2: Projected Total U.S. Retail Sales of Pet Products and Services, 2011-2016 (in millions of dollars)
Table 2-3: U.S. Pet Market Compound Annual Growth Rates by Category: 2006-2011 vs. 2011-2016 (percent)
Market Share by Category and Animal Type
Table 2-4: Percentage Share of U.S. Pet Market Retail Sales by Category: 2006, 2011, 2016
Table 2-5: Share of U.S. Pet Market Sales by Category and Animal Type: Dog, Cat, Other, 2011 (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, 4 classifications)
Mass-Market Sales of Pet Products: The Mid-Range Squeeze
Table 2-6: SymphonyIRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2010 vs. 2011 (in millions of dollars, units and pounds)
Pet Specialty Sales of Pet Food Chart Healthy Growth
Table 2-7a: Total U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels: 2008- 2011 (dollar, unit, and volume sales in millions)
Table 2-7b: U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels: Pet Shops/Pet Retail, 2008-2011 (dollar, unit, and volume sales in millions)
Table 2-7c: U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels: Veterinary Clinics, 2008-2011 (dollar, unit, and volume sales in millions)
Table 2-7d: U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels Farm & Feed Stores, 2008-2011 (dollar, unit, and volume sales in millions)
Figure 2-2: Share of U.S. Retail Sales of Pet Food Sold in Pet Specialty Channels by Channel: Pet Shops/Pet Retail, Veterinary Clinics, Farm & Feed, 2008 vs. 2011 (percent)
Natural Supermarket Sales Continue Upward Path
Table 2-8: Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)
Table 2-9: Share of Retail Dollar Sales of Pet Products in the Natural Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)
Specialty/Gourmet Supermarket Sales Up 10%
Table 2-10: Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (in millions of dollars)
Table 2-11: Share of Retail Dollar Sales of Pet Products in the Specialty/Gourmet Supermarket Channel by Category and Segment, 2010 vs. 2011 (percent)
Market Drivers
Slow Economy Continues to Dampen Consumer Confidence
Table 2-12: Selected U.S. Economic Measures: 2008-2012 (percent and number in millions)
Table 2-13: Pet Owners: Overview by Change in Financial Situation Compared With 12 Months Ago, 2008-2011 (U.S. pet-owning households)
Table 2-14: Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2008-2011 (U.S. pet-owning households)
Pet Owners Spending Less
Table 2-15: Level of Agreement with Statement: “I am spending less on pet products because of the economy,” 2010-2012 (percent)
Price Resistance
Table 2-16: Level of Agreement with Statement: “Many pet products are becoming too expensive,” 2011 vs. 2012
“Average” Spending Suggests Room to Grow
Table 2-17: Amount Spent on Pet Products in Last 30 Days, March 2012 (percent)
Table 2-18: Pet Product Purchasing by Price Level: Food vs. Nonfood, 2012 (percent)
Pet Ownership and Population Trends
Table 2-19: Total Number of Pets in the United States: By Type, 2000-2010
Table 2-20: Changes in the U.S. Population and Pet-Owning Population, 1996-2010 (number and percent)
Table 2-21: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2006-2011 (percent of U.S. households)
Trends in Pet Acquisitions: Shelters Outperforming Shops, Breeders
Table 2-22: Level of Agreement with Statement: “People should adopt pets from shelters and not purchase them from shops/breeders,” 2012 (percent)
Table 2-23: Where Dogs Are Obtained, 2000-2010 (percent)
Table 2-24: Where Cats Are Obtained, 2000-2010 (percent)
PetSmart Charities Opening Adoption Centers in PetSmart Stores Nationwide
Illustration 2-1: YouTube Video of PetSmart Charities On-Site Adoption Center in PetSmart Store in Fort Worth, TX (screenshot)
Pethealth Inc. (TSX:PTZ) Releases First Full-Year PetPoint Report
Canine Population Shifting Toward Smaller Dogs
Figure 2-3: Size of Dog Owned: Small, Medium or Large, 2000 vs. 2010 (percent of U.S. dog-owning households)
Figure 2-4: Most Common Breeds Cared for by Banfield Hospitals: 2000 vs. 2010 (percent)
The Aging Pet Population
Table 2-25: Age of Dogs and Cats, 2012 (percent of pet owners)
Table 2-26: Average Age of First, Second, and Third Dog in Household, 2010 vs. 2000
Table 2-27: Average Age of First, Second, and Third Cat in Household, 2010 vs. 2000
Pet Overweight and Obesity
Table 2-28: Percentage and Number of Overweight and Obese Dogs and Cats, 2011
Higher-Income Household Market Boost Moderates
Table 2-29: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 2000-2010 (percent)
Table 2-30: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2005, 2009, 2010 (percent)
Baby Boomers Adding New Dimensions to Market
Pets as Family
Table 2-31: Pet Owner Attitudes and Behavior Characterizing Human/Animal Bond, 2012 (percent)
A Societal Shift
Illustration 2-2: Subaru “Dog tested. Dog approved.” Commercial
Human-Pet Interaction as Human Health Enhancer
Illustration 2-3: HABRI Central Home Page
Figure 2-5: Level of Agreement with Statement:
“My pet has a positive impact on my health”: Physical vs. Mental, 2012 (percent)
Pets in the Classroom Program Laying Foundation for Future Pet Ownership
Illustration 2-4: Pets in the Classroom Website Home Page
APPA’s National Pet Market Opportunity Study
Table 2-32: Reasons for Not Currently Owning a Pet: Previous Pet Owners vs. Non Pet Owners, 2010 (percent)
Feline Potential
Pet Food Price Fixing
CHAPTER 3: INDUSTRY TRENDS
Introduction
Market Structure
M&A and Investment Activity: 2011 A Good Year
Petmate Acquires Bamboo Pet Products and Kennel-Aire
Contech Acquires G&B Marketing
Quaker Pet Group Acquires Watson’s Senior Pet Supplies, Sherpa
Cargill Acquires Provimi
United Pet Group (Spectrum Brands) Buys Furminator
Unicharm Takes Stake in Hartz (Sumitomo)
Kemin Acquires Genesis
Investment Activity
MidOcean Invests in Freshpet
Merrick Pet Care Acquired by Swander Pace Capitol
Worldwise Acquired by Mistral Equity
Nutri-Vet Acquired by Imperial Capital/Petra Pet
The Honest Kitchen Receives Capital Investments
Cybeck Capital PartnersTakes Stake in Fetch! Pet Care
Retailer Maneuvers
Petco Acquires Complete Petmart
Canadian Pet Retailer Global Pet Foods Crosses U.S. Border
VCA Antech Acquires BrightHeart Veterinary Centers and Vetstreet, Expands Canadian Market Presence
Pfizer Animal Health Spinoff Likely
Cross-Market Trends
Consolidation
Premiumization
Humanization
Cross Pollination
Globalization
Pet Services
Ongoing Corporatization
VCA Antech and Banfield Continue to Advance
Recession Takes a Toll
A Longer-Term Concern: Decline in Frequency of Veterinary Visits
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
The Bayer Veterinary Care Usage Study
AVMA, AAHA Launch Partnership for Preventive Pet Healthcare
Morris Animal Foundation Funding Extensive Veterinary Research
Vets Unhappy with Pet Med Migration to Retail
Walmart Backs/AVMA Opposes Fairness to Pet Owners Act
Veterinary Channel Sales Opportunity: Therapeutic Foods
Illustration 3-1: Hill’s Everypeteverytime.com Vet-Targeted Website
Illustration 3-2: Trade Ad for Hill’s Prescription Diet c/d Multicare Feline Bladder Health
Pet Insurance Expansion Good for Veterinary Services
Figure 3-1: North American Pet Insurance Market Revenues: United States, Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars)
Non-Medical Pet Services: PetSmart and Petco Advance
Figure 3-2: PetSmart Services Sales by Type and Cumulative Rate of Growth, 2005-2011 (percent and in millions of dollars)
Table 3-2: PetSmart and Petco Sales of Pet Services, 2001-2011 (separately and cumulative, in millions of dollars)
PetSmart Slows PetsHotels Expansion, Reallocates Space to On-Site Shelter Adoption Program
Table 3-3: Number of PetSmart PetsHotels in Operation, 2005-2011
Petco Pulls Back on Service Offerings
Illustration 3-3: Unleashed by Petco Services Menu
Independent Pet Specialty Retailers’ Interest in Services Picking up Post Recession
Table 3-4: Percentage of Pet Specialty Retailers Offering Pet Care Services: By Type of Service, 2009-2010
Figure 3-3: Percentage of Pet Specialty Retailers Planning to Add Pet Care Services in Next Year: By Type of Service, 2003-2010
Franchising Ongoing
Boarding Facilities Locating by Airports
Pet Airways Changes Name, Cites Expansion Plans
Pet Products
Ongoing Interest in Premium, Natural Products
Figure 3-4: Level of Agreement with Statement: “Natural/organic brand pet products are often better than standard national brand products,” 2011 vs. 2012 (percent)
Table 3-5: Level of Agreement with Statement: “If natural/organic pet products were more available where I shop, I would buy them more often,” 2011 vs. 2012 (percent)
Table 3-6: Level of Agreement with Statement: “If natural/organic pet products were more affordable where I shop, I would buy them more often,” 2011 vs. 2012 (percent)
Illustration 3-4: Hill’s Science Diet Ideal Balance
Focus on Pet Health
Product Safety
Figure 3-5: Level of Agreement with Statement: “I am very concerned about the safety of the pet products I buy,” 2012 (percent)
Figure 3-6: Level of Agreement with Statement: “I prefer to purchase pet products made by smaller companies I trust,” 2012 (percent)
Developments in Flea/Tick Products
Cross-Channel Migration Increases Market Pressures
Pet Food: Human-Style and Human-Grade
Natura Forced to Retract Human-Grade Claims, Pay Settlement
Grain-Free Pet Foods
Illustration 3-5: Hill’s Science Diet Ideal Balance Grain Free Dog Food
Illustration 3-6: Blue Buffalo’s Freedom Grain-Free Dog and Cat Food
Illustration 3-7: 2012 Global Pet Expo Display of Precise Pet Product’s Grain Free Precise Holistic Complete
Illustration 3-8: ZuPreem Grain-Free Ferret Diet
Dog and Cat Treats Beat the Recession
Figure 3-7: Projected U.S. Retail Sales of Nutraceutical Treats for Dogs and Cats, 2011-2015 (in millions of dollars)
Table 3-7: Percent Purchasing Dog or Cat Treats, 2004-2011 (number and percent of dog- or cat-owning households)
Freshpet Continues to Advance Refrigerated Pet Food
Figure 3-8: SymphonyIRI-Tracked Sales of Freshpet Refrigerated Dog and Cat Food, 2010-2011 (percent and in dollars)
Illustration 3-9: Freshpet Double-Door Refrigerated Case in Walmart
Illustration 3-10: PetSmart Web Page Featuring Freshpet’s New Vital Grain-free Refrigerated Pet Food
Specialized Diets: Extra Small and Senior Plus
Illustration 3-11: Royal Canin’s New X-Small Dog Pet Food Line
Illustration 3-12: Iams’ New Senior Plus (Age 11+) Pet Foods
Pet Medications: Sales to Top $9 Billion in 2015
Figure 3-9: Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Generic Pet Medications on the Rise
Nonfood Pet Supplies
Brand Stables
Illustration 3-13 : Petmate Pavilion at Global Pet Expo 2012
Illustration 3-14 : Petmate Website Page: “Other” Brand Collections
Nonfood/Food Cross-Over
Illustration 3-15 : Kong Premium Treats
High-Style and “Child-Like”
Illustration 3-16: Pet Gear Pet Strollers at Global Pet Expo 2012
Illustration 3-17 : Carlson Pet Containment “Cribs” at Global Pet Expo 2012
Illustration 3-18 : Simply Fido’s Organic Pet Toy Collection
Travel Products
Illustration 3-19: Kurgo Pet Travel Products
Illustration 3-20: Solvit’s HoundAbout Bicycle Trailer at Global Pet Expo 2012
Licensed Brands and Celebrity Appeal
Illustration 3-21: Lassie Pet Beds at Global Pet Expo 2012
Convenience/Automation
Illustration 3-22: Omega Paws’ Roll’ N Clean Litter Box
Illustration 3-23 : K&H Products’ Heated Pet Beds and Housing
CHAPTER 4: RETAIL TRENDS
Pet Shoppers Looking for Deals at Retail
Figure 4-1: Level of Agreement with Statement: “I look out for lower prices, special offers, and sales on pet products,” September 2011 vs. March 2012 (percent)
Figure 4-2: Level of Agreement with Statement: “I shop for pet products at a variety of stores,” September 2011 vs. March 2012 (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)
Premium Shopper Survives
Figure 4-3: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer the best products available, even if they are more expensive,” 2011 (percent)
Figure 4-4: Level of Agreement with Statement: “I prefer to shop at pet product retailers that offer natural/organic and other specialty brand products,” 2011 (percent)
Channel Loyalty on the Decline
Table 4-2: Channel Loyalty in Pet Product Purchasing: All Channels, 2007-2011 (percent and number)
Table 4-3: Share of Customer Base Who Are Channel-Loyal by Leading Retail Channels or Pet Superstore Chains, 2007-2011 (percent)
Table 4-4: Channel-Loyal Customer Base for Pet Products by Leading Retail Channel or Pet Superstore Chain, 2007-2011 (number in thousands)
Coupon Use on the Rise
Figure 4-5: “Coupons draw me to stores I don’t shop,” 2011 (index by retail channel)
Figure 4-6: Percent Who Use Pet Food Coupons: Dog Owners vs. Cat Owners, 2006- 2011 (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, Summer 2011 (number and percent)
Pet Superstores Gaining Ground
Table 4-6a: Purchasing Rates for Pet Products by Selected Retail Channels and Pet Superstore Chains: 2007-2011 (percent of dog or cat owners)
Table 4-6b: Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains: 2007-2011 (U.S. dog or cat owners in thousands)
Walmart Tops Recent Shopper List
Table 4-7: Percentage of Pet Owners Who Purchased Any Pet Product in Last 30 Days and Amount Spent, by Channel, 2011
Private Label a Mixed Bag
Figure 4-7: Level of Agreement with Statement: “I am buying more store-brand pet products these days,” 2011 vs. 2012 (percent)
Figure 4-8: Level of Agreement with Statement: “Store-brand pet products are often as good as national brand-name products,” September 2011 vs. March 2012 (percent)
Table 4-8: Purchasing Patterns for Selected Types of Store- Brand Dog and Cat Food: By Retail Channel Shopped, Spring 2007 vs. Summer 2011 (percent)
Table 4-9: SymphonyIRI-Tracked Private-Label Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2010 vs. 2011 (in millions of dollars)
Table 4-10: Private-Label Share of SymphonyIRI-Tracked Sales of Pet Products: Total and by Food and Nonfood Category and Segment, 2010 vs. 2011 (percent)
Expanding Distribution of Formerly Vet-Only Flea/Tick Spot-Ons
Illustration 4-1: Pet Armor Plus On-Shelf Display in Walmart Store
Table 4-11: Level of Agreement with Statement: “With spot-on (topical) flea/tick products, I would trust generic or storebrand products if they contained the same active ingredients”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 4-12: Level of Agreement with Statement: “Veterinariandispensed spot-on (topical) flea/tick products are too expensive”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 4-13: Level of Agreement with Statement: “With Spot-On (Topical) Flea/Tick Products, the Products Available in Stores Are Just as Effective as Those Available Through Veterinarians”: Dog Owners vs. Cat Owners, 2011 (percent)
Mass-Market Trends
Market Polarization Not Good for Mass
Walmart Bucking the Trend
Illustration 4-2: Mars Pedigree/”Pets Love Walmart” Promotion
Another Bright Spot: Drugstores
Pet Medication Sales Up Across Mass Channels
lllustration 4-3: Walmart Floor Talker for PetTrust Heartworm Preventive (HeartGard Generic): “Save on Pet Medications”
Illustration 4-4: Pet Department Endcap in Walgreens—“Pet Meds Covered”
Pet Specialty Trends
Independents View Economy as Top Challenge Over Next Two Years
Table 4-14: Top Challenges Pet Specialty Retailers Face in Next Two Years: 2008-2009, 2009-2010, 2010-2011, 2011-2012 (percent)
Table 4-15: Level of Agreement with Statement: “I usually shop for pet products in pet superstores or pet stores because they carry the specialty brands I like,” 2011 (percent)
Table 4-16: Level of Agreement with Statement: “I usually shop for pet products in pet superstores or pet stores because of the customer service they provide,” 2011 (percent)
PetSmart and Petco Advance Their Lead
Table 4-17: PetSmart and Petco Sales and Number of Stores: 2001-2011 (cumulative, in units and millions of dollars)
PetSmart Banking on Promotions, Exclusive Brands
Coming in 2012: PetSmart-Exclusive Toys “R” Us and Bret Michaels Lines
Illustration 4-5: PetSmart-Exclusive Bret Michaels Pets Rock Collection
Petco Advances Unleashed, Tests Online Repeat Pet Food Delivery Service
Illustration 4-6: Petco’s Online Repeat Delivery Service
Moochie & Co. and Mini Moochies Top 40 Units
Illustration 4-7: Exterior of Moochie & Company Mall-Based Pet Specialty Shop, Columbus, OH
The Natural Thrust
“Whole Pet”?
Online Shopping
Shopper Base Up, Buying More
Figure 4-9: Level of Agreement with Statement: “I am buying pet products online more than I used to,” September 2011 vs. March 2012 (percent)
Figure 4-10: Time Frame for Most Recent Online Purchase of Pet Products, March 2012 (percent of pet owners)
Heightened Competition
Table 4-18: Top Websites for Purchasing Pet Products Online in Last 12 Months, 2011 (percent of dog/cat owners—9 websites)
Table 4-19: PetMed Express Sales, 2007-2011 (in millions of dollars)
VIPPS Certification May Give Internet a Boost
Looking Ahead
Figure 4-11: Projected U.S. Online Sales of Pet Products, 2011-2015 (in billions of dollars)
Illustration 4-8: PetFlow.com Home Page
M&A in the Cards?
Up and Comers
Veterinarians
Natural Supermarkets
Dollar Stores
Agricultural/Feed-Seed Stores
Home Improvement Stores
Illustration 4-9: Pet Department in Lowe’s
Home Stores
Illustration 4-10: Bed Bath & Beyond’s Online Pet Product Selection
CHAPTER 5: PET OWNERSHIP TRENDS
Growth in Pet Ownership Recovers with Economy
Table 5-1: Household Penetration Rates for Selected Dog- or Cat-Owning Classifications: 2006-2011 (percent of U.S. households)
Table 5-2: Household Populations for Selected Dog- or Cat- Owning Classifications: 2006-2011 (thousands of U.S. households)
Table 5-3: Household Penetration Rates for Selected Pet-Owning Classifications, 2007-2011 (percent of 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, 2006 vs. 2011 (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: 2006-2011 (percent of U.S. households)
Trends in Multiple Pet Ownership
34% of Pet Households Keep Multiple Types
61% of Pet Households Keep More Than One Pet
Table 5-6: Multiple Pet Ownership in the United States by Animal Type, 2006 vs. 2011 (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, 2011 (percent of U.S. households)
Table 5-9: Household Populations for Selected Pet-Owning Classifications: By Generational Cohort, 2011 (number of U.S. households in thousands)
Table 5-10: Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2011 (U.S. households)
Table 5-11: Indexes for Dog or Cat Ownership: By Age Cohort, 2006 vs. 2011 (U.S. households)
Table 5-12: Indexes for Dog or Cat Ownership: Younger vs. Older Boomers, 2006 vs. 2011 (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 Without Kids vs. Those With Kids
Households Without Kids
Figure 5-1: Share of Dog/Cat Ownership by Household Composition: No-Kids Households vs. Kids Households, 2006-2011 (percent)
Households With Kids
Table 5-14: Dog/Cat Ownership Rates by Household Composition, 2006-2011 (percent)
Table 5-15: Share of Total Dog/Cat Owners by Household Composition, 2006-2011 (percent)
Dog vs. Cat Households
Table 5-16: Dog Ownership Rates by Household Composition, 2006-2011 (percent)
Table 5-17: Share of Total Dog Owners by Household Composition, 2006-2011 (percent)
Table 5-18: Cat Ownership Rates by Household Composition, 2006-2011 (percent)
Table 5-19: Share of Total Cat Owners by Household Composition, 2006-2011 (percent)
Pet Ownership Grows in All Ethnic Groups
Table 5-20: Change in Pet Market Consumer Base: White Non-Hispanics vs. Minorities, 2006 vs. 2011 (number and percent of U.S. dog- or cat-owning households)
Table 5-21: Dog and Cat Ownership Trends by Race/Ethnicity, 2006-2011 (percent and number of U.S. dog- or cat-owning households)
Table 5-22: Dog vs. Cat Ownership Trends by Race/Ethnicity, 2006 and 2011 (percent and number of U.S. dog- or catowning households)
Table 5-23: Projected Population Growth, Hispanics vs. Other Population Segments, 2010-2015 (in thousands)
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, 2011 (percent and index)
Table 5-26: Selected Health & Medical Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2011 (percent and index)
“Green” Sentiments and Practices
Table 5-27: Selected Sustainability Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2011 (percent and index)
Table 5-28: Selected Sustainability Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2011 (percent and index)
Media and Marketing Related Sentiments and Practices
Table 5-29: Selected Media and Marketing Related Psychographics: Dog Owners vs. Cat Owners vs. Other Pet Owners, 2011 (percent and index)
Table 5-30: Selected Media and Marketing Related Psychographics: Dog or Cat Owners Overall vs. Purchasers of Selected Superpremium Pet Brands, 2011 (percent and index)
