Pet Medications in the U.S.: Prescription and Over-the-Counter Remedies as Consumer Products, 2nd Edition
Seismic shifts are underway in the U.S. market for pet medications as the top veterinary brands of flea/tick spot-ons enter broader distribution; Bayer is leading the way with Advantage and K9 Advantix. At the same time, generic versions of fipronil (the active ingredient in Merial’s Frontline) are coming onto the scene, in some cases resulting in court battles and product withdrawals. Also upping the ante, major retailers including Walmart and Target are moving into the pet medications space both in store and online, representing new competition to veterinarians and third-party Internet retailers such as PetMed Express. The upshot is increased price pressure, but also potential for an expanded base of purchasers as pet specialty and mass-market retailers create stronger pet health departments centered around formerly vet-only products. Also bolstering market prospects, all of the world’s largest pharmaceutical companies continue to invest in medications for companion animals, often mirroring trends in human medications while targeting the needs of the growing populations of aging and overweight pets.
Bringing in broad perspective from other reports in Packaged Facts’ extensive Pet Market Collection, this report analyzes the market for prescription, over-the-counter, and “ethical” (nonprescription medications whose distribution is restricted by the manufacturer to veterinarians) medications for dogs and cats, with a particular focus on brand-name products used by consumers and on antiparasitics. Retail sales are quantified and projected forward through 2015, and broken out by product type, animal type and retail channel. Despite the lingering impact of the recession, the market outlook remains strong, with U.S. retail sales projected to grow 38% from 2010 to 2015 to reach $9.3 billion. The report provides in-depth coverage of competitive trends and new product trends, and features exclusive consumer data from Packaged Facts’ May-June 2011 Pet Owner Survey. Uniquely cross-tabulated consumer survey results from Experian Simmons provide additional insight into pet medication consumer usage rates, demographics and psychographics.
Bringing in broad perspective from other reports in Packaged Facts’ extensive Pet Market Collection, this report analyzes the market for prescription, over-the-counter, and “ethical” (nonprescription medications whose distribution is restricted by the manufacturer to veterinarians) medications for dogs and cats, with a particular focus on brand-name products used by consumers and on antiparasitics. Retail sales are quantified and projected forward through 2015, and broken out by product type, animal type and retail channel. Despite the lingering impact of the recession, the market outlook remains strong, with U.S. retail sales projected to grow 38% from 2010 to 2015 to reach $9.3 billion. The report provides in-depth coverage of competitive trends and new product trends, and features exclusive consumer data from Packaged Facts’ May-June 2011 Pet Owner Survey. Uniquely cross-tabulated consumer survey results from Experian Simmons provide additional insight into pet medication consumer usage rates, demographics and psychographics.
CHAPTER 1: EXECUTIVE SUMMARY
Scope and Methodology
Market Definition
Product Regulation
Report Methodology
Market Trends
Market Size & Composition
U.S. Retail Sales of Pet Medications at $6.7 Billion in 2011
Share of Sales by Distribution Channel
Figure 1-1: Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2011 (percent)
Market Outlook
Figure 1-2: Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Competitive Overview
Two Groups of Marketers
Pharmaceutical/Veterinary Channel Marketers
Table 1-1: Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2009-2010 (in millions of dollars)
Mergers & Acquisitions
Pfizer Animal Health on the Block?
New Entrants
Pet Product/Retail Marketers
Retail Trends
Channel Expansion
Internet Competition
The Value Edge
Illustration 1-1: Consumer Advertising for Drs. Foster & Smith (AKC Family Dog, May/June 2011)
Target and Walmart Testing Pet Prescriptions
Consumer Trends
73% of Dog or Cat Owners Use Flea/Tick Products
80%-86% Choose Spot-On Flea/Tick Medications
69% of Dog Owners Use Heartworm Meds
Figure 1-3: Purchasing of Heartworm Medications by Channel, 2011 (percent of U.S. dog or cat owners)
Antibiotics Top List of Other Pet Medications
Attitudes on Veterinarian/Professional vs. Store Products
Table 1-2: Levels of Agreement/Disagreement with Statement, “I Trust the Medications My Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2011 (percent)
CHAPTER 2: MARKET TRENDS
Market Size & Composition
U.S. Retail Sales of Pet Medications at $6.7 Billion in 2011
Figure 2-1: U.S. Retail Sales of Pet Medications: 2007-2011 (in billions of dollars)
Share of Sales by Animal Type
Figure 2-2: Share of U.S. Retail Sales of Pet Medications by Animal Type: Dog vs. Cat, 2011 (percent)
Share of Sales by Product Type
Table 2-1: Share of U.S. Retail Sales of Pet Medications by Type: 2011 (percent)
Share of Sales by Distribution Channel
Figure 2-3: Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2011 (percent)
Pet Health/Supplement Share of Pet Specialty Store Sales by Animal Type
Table 2-2: Health Product/Supplement Share of Independent Pet Store Sales: Dog vs. Cat: 2007-2010 (percent)
Market Outlook
Many Positive Indicators
Human Animal Bond
Table 2-3: Mean Number of Veterinary Visits by Human-Animal Bond Among Dog and Cat Households, 2006
Table 2-4: Mean Veterinary Expenditures by Human-Animal Bond Among Dog and Cat Households, 2006 (in dollars)
Premium Demographics
Figure 2-4: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 1999 vs. 2009 (percent)
Aging Pet Population
Figure 2-5: Percentage of Dog and Cat Owners by Age of Oldest Pet, May-June 2011
Pet Overweight, Obesity
Table 2-5: Percentage and Number of Overweight and Obese Dogs and Cats, 2010
Major Investors Include Global Pharmas
Morris Animal Foundation Funding Extensive Veterinary Research
High-Level Activity in Flea/Tick Segment
Flea/Tick Cross-Overs Driving More Robust Pet Health Departments
Pet Insurance Growth Good for Pet Medications
Figure 2-6: North American Pet Insurance Market Revenues: United States, Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars)
Impact of Economic Downturn Lingers
Table 2-6: Level of Pet Owner Agreement with Statement: “I am spending less on pet products because of the economy,” February 2010 vs. May/June 2011 (percent)
Decline in Frequency of Veterinary Visits
Generics and Channel Competition
Product Safety, New EPA Guidelines for Flea/Tick Spot-Ons
Holistic Competition
Figure 2-7: U.S. Retail Sales of Pet Supplements and Nutraceutical Treats: Total, Small Animal (Dog, Cat, Other), Equine, 2006, 2010, 2015 (in millions of dollars)
Table 2-7: Use of Special-Purpose Nutritional Formula Pet Food and Treats vs. Pet Supplements: Dog Owners vs. Cat Owners , 2010 (percent)
Illustration 2-1: Trade Ad for Hill’s Prescription Diet c/d Multicare Feline Bladder Health
Table 2-8: Level of Agreement with Statements “If Natural/Organic Pet Products Were More Affordable / More Available Where I Shop, I Would Buy Them More Often,” 2011 (percent of U.S. pet owners)
Competition from Human Medications
Pet Pharmaceutical Risk and Criticism
Looking Ahead
Projected Market Growth: Sales to Top $9 Billion in 2015
Figure 2-8: Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Table 2-9: Level of Agreement with Statements, “I Anticipate Spending More on Pet Products Over the Next 12 Months,” 2011 (percent of U.S. pet owners)
Table 2-10: Economic Outlook of U.S. Pet Owners: Now vs. Next 12 Months (percent)
CHAPTER 3: MARKETING TRENDS
Competitive Overview
Two Groups of Marketers
Pharmaceutical/Veterinary Channel Marketers
Table 3-1: Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2009-2010 (in millions of dollars)
Table 3-2: Global Pharmaceutical Marketers by Dollar and Percentage Change in Global Sales: Total vs. Animal Health, 2009-2010 (in millions of dollars)
Figure 3-1: Cumulative Global Sales of Leading Animal Health Companies, 2009 vs. 2010 (in millions of dollars)
Mergers & Acquisitions
Pfizer Animal Health on the Block?
New Entrants
Brand Building
Illustration 3-1: Bayer’s PetParents.com
Illustration 3-2: Novartis’ PetWellness.com
Pharmaceutical Companies Market to/Through Vets
Cross-Over of Human Drug Makers, Product Types
Generics on the Rise
Generic Versions of Fipronil Hit the Scene
Putney Launches Generic Carprofen and Ketamine
Illustration 3-3: Putney, Inc.’s Generic Carprofen Caplets
Economic Benefits to Pet Owners and Veterinarians
Illustration 3-4: Screen Shot of VetSource Pharmaceutical Home Delivery Service
Additional Competition, and Benefits
Pet Product/Retail Marketers
Focus on Antiparasitics
Merial/Frontline Accounts for Half of Spot-on Flea/Tick Sales
Table 3-3: Marketer and Brand Shares of U.S. Retail Sales of Flea & Tick Spot-Ons, 2011 (percent)
Central Garden & Pet Leads in Pet Specialty Channel
Table 3-4: Top Marketers of Flea/Tick Products in Pet Specialty Retailers, 2006-2009 (percent)
Hartz Dominates in Mass-Market Channels
Table 3-5: SymphonyIRI-tracked Sales of Pet Medications, 2010 vs. 2011 (in millions of dollars)
Increased Competition in Flea/Tick Spot-Ons
Bayer Expands Distribution of Advantage and K9 Advantix
New Generation Advantage II and K9 Advantix II Contain IGR
The Fipronil Wars
Sergeant’s Withdraws Fipronil Combos
Illustration 3-5: Pet Product News International May 2011 Cover Announcement of FiproGuard Plus Introduction
Velcera and FidoPharm Vow to Fight
Novartis Launches new Fipronil Products in Vet Channel
Merial Vows to Defend Frontline Plus Patents
Novartis and Pfizer Sticking to Veterinary Channel
Elanco Launches New Vet-Exclusive Spot-ons
Elanco v. Bayer, and Vice Versa
Pfizer/Fort Dodge Discontinuing ProMeris
Focus on Retail Flea/Tick Brands
New Competition from Veterinary Cross-Overs
Illustration 3-6: Screen Shot from Zodiac Website Showing Brand Comparison Chart
Channel Branding
Sergeant’s Continues to Build on Long History in Flea/Tick
Central Life Sciences Fields Key Proprietary Molecule, (S)-Methoprene
Trends in Advertising and Promotion
Figure 3-2: Combined National Consumer Advertising Spending for Frontline and K9 Advantix, 2006-2009 (in millions of dollars)
Illustration 3-7: Screen Shot from Frontline’s Completekiller.com Website
Illustration 3-8: Printable Website Coupons for Merial’s Heartgard and Merck’s Tri-Heart Plus
Illustration 3-9: Examples of Pet Medications Brochures Distributed in Veterinarian Waiting Rooms
Information, Anti-Theft Are Key Concerns in Retail Merchandising
Illustration 3-10: Interactive Instructional Pet Specialty Channel Display Unit for Bayer’s Advantage and K9 Advantix (2011 Global Pet Expo)
Focus on Heartworm Medications
Figure 3-3: Marketer and Brand Shares of U.S. Retail Sales of Heartworm Medications, 2011 (percent)
Bayer Study, Fears of Heartworm Resistance Making Waves
Reminder Services
Broad Spectrum Wormers
Trends in Developing Market Segments
Cancer
Canine Cognitive Dysfunction
Illustration 3-11: Screen Shot of Pfizer’s CDSinDogs.com Website Targeting Pet Owners
Heart Health
Illustration 3-12: Screen Shot of Boehringer Ingelheim Vetmedica’s Consumer-Focused YourDogsHearts.com Website
Mood Disorders
Novartis and Clomicalm
Illustration 3-13: Screen Shot of Novartis’ Clomicalm Web Page
Eli Lilly and Reconcile
Illustration 3-14: Screen Shot from Elanco’s Reconcile Website
Pain Management and NSAIDs
Merial’s Previcox
Pfizer’s Rimadyl
Illustration 3-15: Trade Ad for Pfizer’s Rimadyl NSAID
Building Consumer Awareness, Brands
Illustration 3-16: Screen Shot from Merial’s Previcox NSAID Web Page
Illustration 3-17: Screen Shot from Novartis’ Deramaxx Website
Illustration 3-18: Screen Shot from Pfizer’s Rimadyl Website
Pet Obesity and Diabetes
Pfizer and Slentrol
Illustration 3-19: Screen Shot from Pfizer’s StopCanineObesity.com
Illustration 3-20: Screen Shot from Pfizer’s Slentrol.com
Diabetes Support
Illustration 3-21: Screen Shot from Merck’s Vetsulin Website
Trends in Retail/OTC Pet Medications
Going Natural
Homeopathic Remedies
Illustration 3-22: Natural Pet Pharmaceuticals Homeopathic Remedies/Counter Display
Ear Cleansing Products
Veterinary Flair
Table 3-6a: Selected Leading Pharmaceutical Marketers and Brands of Pet Medications: Product Type and Generic Drug Name, 2011
Table 3-6b: Selected Leading Pharmaceutical Marketers and Brands of Pet Medications: Status, Form, Animal Type and Description, 2011
Table 3-7: Selected Leading Retail Marketers and Brands of Pet Medications, 2011
CHAPTER 4: RETAIL TRENDS
Channel Expansion
Internet Competition
The Value Edge
Illustration 4-1: Consumer Advertising for Dog.com (AKC Family Dog, May/June 2011)
PetMed Express Feels the Heat
Table 4-1: PetMed Express Sales, 2007-2011 (in millions of dollars)
Table 4-2: Share of PetMed Express Sales by Category: 2007, 2009, 2011 (percent)
Illustration 4-2: Amazon.com Screen Shot: Dog Health Supplies
Target Testing Animal-Only Prescriptions
Illustration 4-3: Target.com Screen Shot: “Dog Health & Safety” Products
Walmart Weighing In
Illustration 4-4: PetArmor Plus On-Shelf Display in Walmart Store
Illustration 4-5: PetArmor Banner Ad on Walmart.com
Illustration 4-6: Walmart.com Screen Shot: Humulin Pet Insulin Featured in Online Pharmacy
Pet Specialty Channel Embracing Bayer
Illustration 4-7: Locked Display Case of Canine Flea/Tick Spotons in Petco
Illustration 4-8: Open Display of Feline Flea/Tick Spot-ons in Petco
Illustration 4-9: Screen Shot: Canine Flea/Tick Spot-ons on PetSmart.com
Illustration 4-10: Screen Shot: Canine Flea/Tick Spot-ons on Petco.com
Illustration 4-11: Natural Flea/Tick Product Display in Petco Store
PetSmart and GNC
Illustration 4-12: GNC Dog Aspirin (via PetSmart.com)
Illustration 4-13: Screen Shot: Banner Ad for GNC Pets Products Line on PetSmart.com
Table 4-3: Selected Leading Third-Party E-tailers of Pet Medications, 2011
CHAPTER 5: CONSUMER TRENDS
Pet Medication Purchasing Patterns
73% of Dog or Cat Owners Use Flea/Tick Products
Table 5-1: Percent of Dog or Cat Owners Who Purchase Flea & Tick Care Medications or Medicated Products, 2008-2011 (U.S. dog- or cat-owning households in millions)
Trend Toward Professional Products
Table 5-2: Percent of Dog or Cat Owners Who Purchase Flea & Tick Care Products by Brand Grouping, 2007/08 vs. 2010/11 (U.S. dog- or cat-owning households)
66% of Dog Owners and 44% of Cat Owners Use Flea/Tick Meds
Figure 5-1: Percent of Dog or Cat Owners Who Purchase Flea & Tick Care Medications, 2011 (U.S. dog or cat owners, numbers in millions)
80%-86% Choose Spot-On Flea/Tick Medications
Figure 5-2: Purchasing of Flea & Tick Care Medications: Share by Product Type, 2011 (percent of U.S. dog or cat owners)
Figure 5-3: Use of Spot-On Flea & Tick Care Medications by Nature of Treatment, 2011 (U.S. dog or cat owners)
Figure 5-4: Purchasing of Spot-On Flea & Tick Care Medications by Channel, 2011 (U.S. dog or cat owners)
Frontline Draws Nearly Half of Spot-On Purchasers
Table 5-3: Share of Spot-On Flea & Tick Care Medication Purchasers by Brand, 2011 (U.S. dog or cat owners)
Natural Flea & Tick Product Usage
Demographics for Frontline, Advantage, and Hartz
Table 5-4: Index for Use of Flea/Tick Products by Brand, 2010/11 (U.S. dog- or cat-owning households)
Sentinel Draws 37% of Oral Flea/Tick Medication Purchasers
Figure 5-5: Share of Oral Flea & Tick Care Medication Purchasers by Brand, 2011 (percent of U.S. dog or cat owners)
Effectiveness Is No. 1 Factor in Flea & Tick Product Selection
Table 5-5: Most Important Factor for Selecting a Flea & Tick Product: Dog Owners vs. Cat Owners, 2010 (percent)
69% of Dog Owners Use Heartworm Meds
Table 5-6: Index for Use of Heartworm Control Medications for Dogs, 2010/11 (U.S. dog- or cat-owning households)
Figure 5-6: Use of Heartworm Medications by Nature of Treatment, 2011 (percent of U.S. dog or cat owners)
Figure 5-7: Purchasing of Heartworm Medications by Channel, 2011 (percent of U.S. dog or cat owners)
Heartgard Draws Half of Heartworm Medication Purchasers
Figure 5-8: Share of Heartworm Control Medication Purchasers by Brand, 2011 (percent of U.S. dog or cat owners)
Antibiotics Top List of Other Pet Medications
Table 5-7: Use by Type of Selected Other Pet Medications for Dogs, 2011 (percent)
Table 5-8: Use by Type of Selected Other Pet Medications for Cats, 2011 (percent)
Table 5-9: Purchasing by Channel of Selected Other Pet Medications for Dogs, 2011 (percent)
Table 5-10: Purchasing by Channel of Selected Other Pet Medications for Cats, 2011 (percent)
Walmart, Supercenters Have Highest Draws for Purchasing of Spot-On Flea/Tick Meds
Table 5-11: Purchasing of Spot-on Flea/Tick Care Medications by Retail Store or Channel: Dog Owners vs. Cat Owners, 2011 (percent)
1800PetMeds Shows Highest Online Draw
Table 5-12: Purchasing of Dog and Cat Medications by Online Source, 2011 (percent)
Benadryl Is Human OTC Med Most Commonly Used for Pets
Pet Med Psychographics
No General Trend Toward Increased Use of Pet Meds
Table 5-13: Levels of Agreement/Disagreement with Statement, “I Am Buying More Pet Medications Than I Used To”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-14: Levels of Agreement/Disagreement with Statement, “The Current Range of Pet Medications Is Not Adequate”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-15: Levels of Agreement/Disagreement with Statement, “I Am Interested in New Types of Pet Medications”: Dog Owners vs. Cat Owners, 2011 (percent)
Age- and Weight-Related Triggers for Pet Meds
Table 5-16: Levels of Agreement/Disagreement with Statement, “Age-Related Conditions Are the Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-17: Levels of Agreement/Disagreement with Statement, “Weight/Obesity-Related Conditions Are the Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2011 (percent)
Attitudes on Veterinarian/Professional vs. Store Products
Table 5-18: Levels of Agreement/Disagreement with Statement, “I Trust the Medications My Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-19: Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications Available at the Stores Where I Buy Pet Products”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-20: Levels of Agreement/Disagreement 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)
Table 5-21: Levels of Agreement/Disagreement with Statement, “With Spot-On (Topical) Flea/Tick Products, I Would Trust Generic or Store-Brand Products if They Contained the Same Active Ingredients”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-22: Levels of Agreement/Disagreement with Statement, “Veterinarian-Dispensed Spot-On (Topical) Flea/Tick Products Are Too Expensive”: Dog Owners vs. Cat Owners, 2011 (percent)
Resistance and Alternatives to Pet Meds
Table 5-23: Levels of Agreement/Disagreement with Statement, “I Avoid Using Pet Medications as Much as Possible”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-24: Levels of Agreement/Disagreement with Statement, “I Prefer to Try Holistic/Natural Pet Treatments Including Nutritional Supplements Before Resorting to Pet Medications”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-25: Levels of Agreement/Disagreement with Statement, “High-Quality Pet Foods Are Effective as a Preventive Pet Health Treatment”: Dog Owners vs. Cat Owners, 2011 (percent)
Appendix: Examples of Consumer Advertising
Scope and Methodology
Market Definition
Product Regulation
Report Methodology
Market Trends
Market Size & Composition
U.S. Retail Sales of Pet Medications at $6.7 Billion in 2011
Share of Sales by Distribution Channel
Figure 1-1: Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2011 (percent)
Market Outlook
Figure 1-2: Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Competitive Overview
Two Groups of Marketers
Pharmaceutical/Veterinary Channel Marketers
Table 1-1: Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2009-2010 (in millions of dollars)
Mergers & Acquisitions
Pfizer Animal Health on the Block?
New Entrants
Pet Product/Retail Marketers
Retail Trends
Channel Expansion
Internet Competition
The Value Edge
Illustration 1-1: Consumer Advertising for Drs. Foster & Smith (AKC Family Dog, May/June 2011)
Target and Walmart Testing Pet Prescriptions
Consumer Trends
73% of Dog or Cat Owners Use Flea/Tick Products
80%-86% Choose Spot-On Flea/Tick Medications
69% of Dog Owners Use Heartworm Meds
Figure 1-3: Purchasing of Heartworm Medications by Channel, 2011 (percent of U.S. dog or cat owners)
Antibiotics Top List of Other Pet Medications
Attitudes on Veterinarian/Professional vs. Store Products
Table 1-2: Levels of Agreement/Disagreement with Statement, “I Trust the Medications My Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2011 (percent)
CHAPTER 2: MARKET TRENDS
Market Size & Composition
U.S. Retail Sales of Pet Medications at $6.7 Billion in 2011
Figure 2-1: U.S. Retail Sales of Pet Medications: 2007-2011 (in billions of dollars)
Share of Sales by Animal Type
Figure 2-2: Share of U.S. Retail Sales of Pet Medications by Animal Type: Dog vs. Cat, 2011 (percent)
Share of Sales by Product Type
Table 2-1: Share of U.S. Retail Sales of Pet Medications by Type: 2011 (percent)
Share of Sales by Distribution Channel
Figure 2-3: Share of U.S. Retail Sales of Pet Medications by Distribution Channel, 2011 (percent)
Pet Health/Supplement Share of Pet Specialty Store Sales by Animal Type
Table 2-2: Health Product/Supplement Share of Independent Pet Store Sales: Dog vs. Cat: 2007-2010 (percent)
Market Outlook
Many Positive Indicators
Human Animal Bond
Table 2-3: Mean Number of Veterinary Visits by Human-Animal Bond Among Dog and Cat Households, 2006
Table 2-4: Mean Veterinary Expenditures by Human-Animal Bond Among Dog and Cat Households, 2006 (in dollars)
Premium Demographics
Figure 2-4: $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 1999 vs. 2009 (percent)
Aging Pet Population
Figure 2-5: Percentage of Dog and Cat Owners by Age of Oldest Pet, May-June 2011
Pet Overweight, Obesity
Table 2-5: Percentage and Number of Overweight and Obese Dogs and Cats, 2010
Major Investors Include Global Pharmas
Morris Animal Foundation Funding Extensive Veterinary Research
High-Level Activity in Flea/Tick Segment
Flea/Tick Cross-Overs Driving More Robust Pet Health Departments
Pet Insurance Growth Good for Pet Medications
Figure 2-6: North American Pet Insurance Market Revenues: United States, Canada, Total, 2005, 2009, 2014 (in millions of U.S. dollars)
Impact of Economic Downturn Lingers
Table 2-6: Level of Pet Owner Agreement with Statement: “I am spending less on pet products because of the economy,” February 2010 vs. May/June 2011 (percent)
Decline in Frequency of Veterinary Visits
Generics and Channel Competition
Product Safety, New EPA Guidelines for Flea/Tick Spot-Ons
Holistic Competition
Figure 2-7: U.S. Retail Sales of Pet Supplements and Nutraceutical Treats: Total, Small Animal (Dog, Cat, Other), Equine, 2006, 2010, 2015 (in millions of dollars)
Table 2-7: Use of Special-Purpose Nutritional Formula Pet Food and Treats vs. Pet Supplements: Dog Owners vs. Cat Owners , 2010 (percent)
Illustration 2-1: Trade Ad for Hill’s Prescription Diet c/d Multicare Feline Bladder Health
Table 2-8: Level of Agreement with Statements “If Natural/Organic Pet Products Were More Affordable / More Available Where I Shop, I Would Buy Them More Often,” 2011 (percent of U.S. pet owners)
Competition from Human Medications
Pet Pharmaceutical Risk and Criticism
Looking Ahead
Projected Market Growth: Sales to Top $9 Billion in 2015
Figure 2-8: Projected U.S. Retail Sales of Pet Medications: 2011-2015 (in billions of dollars)
Table 2-9: Level of Agreement with Statements, “I Anticipate Spending More on Pet Products Over the Next 12 Months,” 2011 (percent of U.S. pet owners)
Table 2-10: Economic Outlook of U.S. Pet Owners: Now vs. Next 12 Months (percent)
CHAPTER 3: MARKETING TRENDS
Competitive Overview
Two Groups of Marketers
Pharmaceutical/Veterinary Channel Marketers
Table 3-1: Global Pharmaceutical Marketers: Total Sales vs. Animal Health Sales, 2009-2010 (in millions of dollars)
Table 3-2: Global Pharmaceutical Marketers by Dollar and Percentage Change in Global Sales: Total vs. Animal Health, 2009-2010 (in millions of dollars)
Figure 3-1: Cumulative Global Sales of Leading Animal Health Companies, 2009 vs. 2010 (in millions of dollars)
Mergers & Acquisitions
Pfizer Animal Health on the Block?
New Entrants
Brand Building
Illustration 3-1: Bayer’s PetParents.com
Illustration 3-2: Novartis’ PetWellness.com
Pharmaceutical Companies Market to/Through Vets
Cross-Over of Human Drug Makers, Product Types
Generics on the Rise
Generic Versions of Fipronil Hit the Scene
Putney Launches Generic Carprofen and Ketamine
Illustration 3-3: Putney, Inc.’s Generic Carprofen Caplets
Economic Benefits to Pet Owners and Veterinarians
Illustration 3-4: Screen Shot of VetSource Pharmaceutical Home Delivery Service
Additional Competition, and Benefits
Pet Product/Retail Marketers
Focus on Antiparasitics
Merial/Frontline Accounts for Half of Spot-on Flea/Tick Sales
Table 3-3: Marketer and Brand Shares of U.S. Retail Sales of Flea & Tick Spot-Ons, 2011 (percent)
Central Garden & Pet Leads in Pet Specialty Channel
Table 3-4: Top Marketers of Flea/Tick Products in Pet Specialty Retailers, 2006-2009 (percent)
Hartz Dominates in Mass-Market Channels
Table 3-5: SymphonyIRI-tracked Sales of Pet Medications, 2010 vs. 2011 (in millions of dollars)
Increased Competition in Flea/Tick Spot-Ons
Bayer Expands Distribution of Advantage and K9 Advantix
New Generation Advantage II and K9 Advantix II Contain IGR
The Fipronil Wars
Sergeant’s Withdraws Fipronil Combos
Illustration 3-5: Pet Product News International May 2011 Cover Announcement of FiproGuard Plus Introduction
Velcera and FidoPharm Vow to Fight
Novartis Launches new Fipronil Products in Vet Channel
Merial Vows to Defend Frontline Plus Patents
Novartis and Pfizer Sticking to Veterinary Channel
Elanco Launches New Vet-Exclusive Spot-ons
Elanco v. Bayer, and Vice Versa
Pfizer/Fort Dodge Discontinuing ProMeris
Focus on Retail Flea/Tick Brands
New Competition from Veterinary Cross-Overs
Illustration 3-6: Screen Shot from Zodiac Website Showing Brand Comparison Chart
Channel Branding
Sergeant’s Continues to Build on Long History in Flea/Tick
Central Life Sciences Fields Key Proprietary Molecule, (S)-Methoprene
Trends in Advertising and Promotion
Figure 3-2: Combined National Consumer Advertising Spending for Frontline and K9 Advantix, 2006-2009 (in millions of dollars)
Illustration 3-7: Screen Shot from Frontline’s Completekiller.com Website
Illustration 3-8: Printable Website Coupons for Merial’s Heartgard and Merck’s Tri-Heart Plus
Illustration 3-9: Examples of Pet Medications Brochures Distributed in Veterinarian Waiting Rooms
Information, Anti-Theft Are Key Concerns in Retail Merchandising
Illustration 3-10: Interactive Instructional Pet Specialty Channel Display Unit for Bayer’s Advantage and K9 Advantix (2011 Global Pet Expo)
Focus on Heartworm Medications
Figure 3-3: Marketer and Brand Shares of U.S. Retail Sales of Heartworm Medications, 2011 (percent)
Bayer Study, Fears of Heartworm Resistance Making Waves
Reminder Services
Broad Spectrum Wormers
Trends in Developing Market Segments
Cancer
Canine Cognitive Dysfunction
Illustration 3-11: Screen Shot of Pfizer’s CDSinDogs.com Website Targeting Pet Owners
Heart Health
Illustration 3-12: Screen Shot of Boehringer Ingelheim Vetmedica’s Consumer-Focused YourDogsHearts.com Website
Mood Disorders
Novartis and Clomicalm
Illustration 3-13: Screen Shot of Novartis’ Clomicalm Web Page
Eli Lilly and Reconcile
Illustration 3-14: Screen Shot from Elanco’s Reconcile Website
Pain Management and NSAIDs
Merial’s Previcox
Pfizer’s Rimadyl
Illustration 3-15: Trade Ad for Pfizer’s Rimadyl NSAID
Building Consumer Awareness, Brands
Illustration 3-16: Screen Shot from Merial’s Previcox NSAID Web Page
Illustration 3-17: Screen Shot from Novartis’ Deramaxx Website
Illustration 3-18: Screen Shot from Pfizer’s Rimadyl Website
Pet Obesity and Diabetes
Pfizer and Slentrol
Illustration 3-19: Screen Shot from Pfizer’s StopCanineObesity.com
Illustration 3-20: Screen Shot from Pfizer’s Slentrol.com
Diabetes Support
Illustration 3-21: Screen Shot from Merck’s Vetsulin Website
Trends in Retail/OTC Pet Medications
Going Natural
Homeopathic Remedies
Illustration 3-22: Natural Pet Pharmaceuticals Homeopathic Remedies/Counter Display
Ear Cleansing Products
Veterinary Flair
Table 3-6a: Selected Leading Pharmaceutical Marketers and Brands of Pet Medications: Product Type and Generic Drug Name, 2011
Table 3-6b: Selected Leading Pharmaceutical Marketers and Brands of Pet Medications: Status, Form, Animal Type and Description, 2011
Table 3-7: Selected Leading Retail Marketers and Brands of Pet Medications, 2011
CHAPTER 4: RETAIL TRENDS
Channel Expansion
Internet Competition
The Value Edge
Illustration 4-1: Consumer Advertising for Dog.com (AKC Family Dog, May/June 2011)
PetMed Express Feels the Heat
Table 4-1: PetMed Express Sales, 2007-2011 (in millions of dollars)
Table 4-2: Share of PetMed Express Sales by Category: 2007, 2009, 2011 (percent)
Illustration 4-2: Amazon.com Screen Shot: Dog Health Supplies
Target Testing Animal-Only Prescriptions
Illustration 4-3: Target.com Screen Shot: “Dog Health & Safety” Products
Walmart Weighing In
Illustration 4-4: PetArmor Plus On-Shelf Display in Walmart Store
Illustration 4-5: PetArmor Banner Ad on Walmart.com
Illustration 4-6: Walmart.com Screen Shot: Humulin Pet Insulin Featured in Online Pharmacy
Pet Specialty Channel Embracing Bayer
Illustration 4-7: Locked Display Case of Canine Flea/Tick Spotons in Petco
Illustration 4-8: Open Display of Feline Flea/Tick Spot-ons in Petco
Illustration 4-9: Screen Shot: Canine Flea/Tick Spot-ons on PetSmart.com
Illustration 4-10: Screen Shot: Canine Flea/Tick Spot-ons on Petco.com
Illustration 4-11: Natural Flea/Tick Product Display in Petco Store
PetSmart and GNC
Illustration 4-12: GNC Dog Aspirin (via PetSmart.com)
Illustration 4-13: Screen Shot: Banner Ad for GNC Pets Products Line on PetSmart.com
Table 4-3: Selected Leading Third-Party E-tailers of Pet Medications, 2011
CHAPTER 5: CONSUMER TRENDS
Pet Medication Purchasing Patterns
73% of Dog or Cat Owners Use Flea/Tick Products
Table 5-1: Percent of Dog or Cat Owners Who Purchase Flea & Tick Care Medications or Medicated Products, 2008-2011 (U.S. dog- or cat-owning households in millions)
Trend Toward Professional Products
Table 5-2: Percent of Dog or Cat Owners Who Purchase Flea & Tick Care Products by Brand Grouping, 2007/08 vs. 2010/11 (U.S. dog- or cat-owning households)
66% of Dog Owners and 44% of Cat Owners Use Flea/Tick Meds
Figure 5-1: Percent of Dog or Cat Owners Who Purchase Flea & Tick Care Medications, 2011 (U.S. dog or cat owners, numbers in millions)
80%-86% Choose Spot-On Flea/Tick Medications
Figure 5-2: Purchasing of Flea & Tick Care Medications: Share by Product Type, 2011 (percent of U.S. dog or cat owners)
Figure 5-3: Use of Spot-On Flea & Tick Care Medications by Nature of Treatment, 2011 (U.S. dog or cat owners)
Figure 5-4: Purchasing of Spot-On Flea & Tick Care Medications by Channel, 2011 (U.S. dog or cat owners)
Frontline Draws Nearly Half of Spot-On Purchasers
Table 5-3: Share of Spot-On Flea & Tick Care Medication Purchasers by Brand, 2011 (U.S. dog or cat owners)
Natural Flea & Tick Product Usage
Demographics for Frontline, Advantage, and Hartz
Table 5-4: Index for Use of Flea/Tick Products by Brand, 2010/11 (U.S. dog- or cat-owning households)
Sentinel Draws 37% of Oral Flea/Tick Medication Purchasers
Figure 5-5: Share of Oral Flea & Tick Care Medication Purchasers by Brand, 2011 (percent of U.S. dog or cat owners)
Effectiveness Is No. 1 Factor in Flea & Tick Product Selection
Table 5-5: Most Important Factor for Selecting a Flea & Tick Product: Dog Owners vs. Cat Owners, 2010 (percent)
69% of Dog Owners Use Heartworm Meds
Table 5-6: Index for Use of Heartworm Control Medications for Dogs, 2010/11 (U.S. dog- or cat-owning households)
Figure 5-6: Use of Heartworm Medications by Nature of Treatment, 2011 (percent of U.S. dog or cat owners)
Figure 5-7: Purchasing of Heartworm Medications by Channel, 2011 (percent of U.S. dog or cat owners)
Heartgard Draws Half of Heartworm Medication Purchasers
Figure 5-8: Share of Heartworm Control Medication Purchasers by Brand, 2011 (percent of U.S. dog or cat owners)
Antibiotics Top List of Other Pet Medications
Table 5-7: Use by Type of Selected Other Pet Medications for Dogs, 2011 (percent)
Table 5-8: Use by Type of Selected Other Pet Medications for Cats, 2011 (percent)
Table 5-9: Purchasing by Channel of Selected Other Pet Medications for Dogs, 2011 (percent)
Table 5-10: Purchasing by Channel of Selected Other Pet Medications for Cats, 2011 (percent)
Walmart, Supercenters Have Highest Draws for Purchasing of Spot-On Flea/Tick Meds
Table 5-11: Purchasing of Spot-on Flea/Tick Care Medications by Retail Store or Channel: Dog Owners vs. Cat Owners, 2011 (percent)
1800PetMeds Shows Highest Online Draw
Table 5-12: Purchasing of Dog and Cat Medications by Online Source, 2011 (percent)
Benadryl Is Human OTC Med Most Commonly Used for Pets
Pet Med Psychographics
No General Trend Toward Increased Use of Pet Meds
Table 5-13: Levels of Agreement/Disagreement with Statement, “I Am Buying More Pet Medications Than I Used To”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-14: Levels of Agreement/Disagreement with Statement, “The Current Range of Pet Medications Is Not Adequate”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-15: Levels of Agreement/Disagreement with Statement, “I Am Interested in New Types of Pet Medications”: Dog Owners vs. Cat Owners, 2011 (percent)
Age- and Weight-Related Triggers for Pet Meds
Table 5-16: Levels of Agreement/Disagreement with Statement, “Age-Related Conditions Are the Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-17: Levels of Agreement/Disagreement with Statement, “Weight/Obesity-Related Conditions Are the Cause of Some of the Pet Medications That I Buy”: Dog Owners vs. Cat Owners, 2011 (percent)
Attitudes on Veterinarian/Professional vs. Store Products
Table 5-18: Levels of Agreement/Disagreement with Statement, “I Trust the Medications My Veterinarian Recommends”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-19: Levels of Agreement/Disagreement with Statement, “I Trust the Pet Medications Available at the Stores Where I Buy Pet Products”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-20: Levels of Agreement/Disagreement 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)
Table 5-21: Levels of Agreement/Disagreement with Statement, “With Spot-On (Topical) Flea/Tick Products, I Would Trust Generic or Store-Brand Products if They Contained the Same Active Ingredients”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-22: Levels of Agreement/Disagreement with Statement, “Veterinarian-Dispensed Spot-On (Topical) Flea/Tick Products Are Too Expensive”: Dog Owners vs. Cat Owners, 2011 (percent)
Resistance and Alternatives to Pet Meds
Table 5-23: Levels of Agreement/Disagreement with Statement, “I Avoid Using Pet Medications as Much as Possible”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-24: Levels of Agreement/Disagreement with Statement, “I Prefer to Try Holistic/Natural Pet Treatments Including Nutritional Supplements Before Resorting to Pet Medications”: Dog Owners vs. Cat Owners, 2011 (percent)
Table 5-25: Levels of Agreement/Disagreement with Statement, “High-Quality Pet Foods Are Effective as a Preventive Pet Health Treatment”: Dog Owners vs. Cat Owners, 2011 (percent)
Appendix: Examples of Consumer Advertising
