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U.S. Pet Market Outlook, 2018-2019
The U.S. pet industry continued along a healthy growth trajectory in 2017, with overall sales of pet products and services rising 5%. Burgeoning online sales and strong numbers in veterinary services and pet food contributed to the advancement of the market.
Continuing the trend of channel migration, the pet food and pet supply retail channels are experiencing much of their growth outside of the core mass-market and pet specialty channels, namely online, where annual percentage sales gains have been in the mid double digits. Both channels are feeling the e-commerce heat, with big-box pet specialty especially hard hit even as mass appears poised to gain from the transfer of the premiumization trend, driven in large part by Blue Buffalo’s cross-over and acquisition by General Mills. Also seeing a great deal of activity is the veterinary category,including ongoing consolidation and the increasing involvement of major marketers (Mars buys VCA) and pet specialty big boxes (Petco launches Thrive complete veterinary services). Non-medical pet services also continue to expand, benefiting both from the increased involvement of pet specialty big boxes looking to fortify against online incursion and from the rapid advancement of Uber-like pet sitting services.
Scope
U.S. Pet Market Outlook, 2018-2019 analyzes current and projects future retail sales and trends across the entire U.S. pet market.It examines collectively and separately four categories of pet products and services—pet food, non-food pet supplies, veterinary services, and non-medical pet services—and details share of market and strategic activity in all of the major retail channels, paying particular attention to the market impact of e-commerce and to technology-driven and other emerging products and services.
- Executive Summary
- Scope & Methodology
- Scope of Report
- Report Methodology
- Market Trends
- Market Performance
- Market Drivers
- Industry Trends
- Industry Overview
- Pet Food
- Non-food Pet Supplies
- Veterinary Services
- Non-Medical Petcare Services
- Retail Trends
- Internet/E-commerce Upending Longstanding Retail Dynamics
- Pet Product Customer Base by Retail Channel
- Mass/Pet Specialty Divide Dissolving, Mass Premiumization Accelerating
- Private Label and Exclusive Brands Taking on New Importance
- E-commerce Going Gangbusters
- Pet Specialty Big Boxes and Walmart Playing Catch-Up
- Amazon Juggernaut Continues to Advance
- Pet Specialty Emphasis on Services
- Pet Ownership Trends
- Cats (and "Other" Pets) May Be Having Their Day
- Two-Fifths of Households Have Dogs, One-Fourth Have Cats
- Pet Ownership Rates by Age Bracket
- A Third of Pet Households Keep Different Types
- Good News on the Boomer Front
- Millennials: A Market Alerting Force of Their Own
- Two-Adult Households with Kids Account for One-Third of Pet Owners
- Pet Ownership Grows Among Minorities
- Sales Growth Opportunities
- E-commerce (Of Course)
- Omnichannel Initiatives
- Mass Premiumization
- Cause Marketing and Animal Welfare
- Smaller Stores
- Retailers and Marketers Banking on Petcare Services
- Smartphone-Based Petcare Services
- Subscription-Based Products and Services
- The Internet of Things and the New "Pet Parent"
- Products as Petcare Providers
- Pet Health as Key to Next-Level Premiumization
- Digital Veterinary and Pet Wearables
- Wooing Lower Income Households
- Tapping into Millennials
- Pets-as-Family Trend as Gifting Driver
- Organic Pet Food
- Customized Pet Food and Meal Kits for Home Delivery
- Fresh Pet Food Made on Site
- Private Label and Exclusive Brands
- Franchising Still a Thing
- Scope & Methodology
- Market Trends
- Chapter Highlights
- Market Performance
- U.S. Pet Industry Sees Growth Amid Change
- Table U.S. Pet Market Retail Sales by Category, 2013-2017 (in billions of dollars)
- Table U.S. Pet Market Retail Sales Annual Change by Category, 2013-2017 (percent change over previous year)
- Table Dollar Sales Per Pet-Owning Household by Category, 2013-2017 (dollars)
- Table Projected Total U.S. Retail Sales of Pet Products and Services, 2017-2022 (in billions of dollars)
- Table Projected U.S. Pet Market Retail Sales of Pet Products and Services by Category, 2017-2022 (in billions of dollars)
- Table Projected U.S. Pet Market Retail Sales Annual Change by Category, 2017-2022 (percent change over previous year)
- Table U.S. Pet Market Compound Annual Growth Rates by Category: 2012-2017 vs. 2017-2022 (percent)
- Market Share by Category and Animal Type
- Table Category Share of U.S. Pet Market Retail Sales: 2012, 2017, 2022 (percent)
- Table Category Share of U.S. Pet Market Retail Sales by Animal Type: Dog, Cat, Other, 2017 (percent)
- Share of Pet Product Sales by Channel
- Table Share of U.S. Retail Channel Sales of Pet Products by Channel Classification: Pet Food & Treats, Non-Food Pet Supplies, Total, 2017 (percent)
- Projected Channel Share Shifts
- Table Modeling of Projected Shifts in Retail Channel Shares of U.S. Pet Product Sales, 2017-2022 (percent)
- Boarding and Grooming Account for Over Two-Thirds of U.S. Petcare Services Sales
- U.S. Pet Industry Sees Growth Amid Change
- Market Drivers
- E-Commerce/Internet Spurs Top-to-Bottom Market Innovation
- Internet Brings Pet Parenting (and Sales) to the Next Level
- Beyond Humanization and Premiumization
- Table Level of Agreement with Statement: "I am willing to pay more for pet food products that are healthier for my pets," 2017 vs. 2018 (percent of pet product buyers)
- Pets as Family Getting a Millennial Boost
- Table Level of Agreement with Statement: "I consider my dogs/cats to be part of the family," 2018 (percent of pet owners)
- Table Travel Activities of Dog and Cat Owners in Last 12 Months, 2017-2018 (percent of dog owners vs. cat owners)
- Table Level of Agreement with Statement: "I enjoy buying pet products that pamper my dogs/cat," 2018 (percent of pet product buyers)
- Table Agreement with Statement: "Over the recent Christmas/ Winter Holiday season, my dog(s)/cat(s) got special gifts or treats," 2015-2018 (percent of dog owners vs. cat owners)
- Table Agreement with Statement: "My dog or cat has a positive impact on my mental health," 2017 vs. 2018 (percent of dog or cat owners)
- Table Agreement with Statement: "My dog or cat has a positive impact on my physical health," 2017 vs. 2018 (percent of dog or cat owners)
- Superpremium/Natural Clout Shifting into Mass Channels
- Economic Improvement Reflected in Pet Owner Outlook
- Table Pet Owners: Overview by Change in Financial Situation Compared with 12 Months Ago, 2013-2017 (percent and index for U.S. pet-owning adults)
- Table Pet Owners: Overview by Expectations for Personal Financial Situation Over the Next 12 Months, 2013-2017 (percent and index for U.S. pet-owning households)
- Spending Belts Loosening, Deal-Seeking Continues
- Table Level of Agreement with Statement: "I am spending less on pet products because of the economy," 2011-2018 (percent of pet product buyers)
- Table Level of Agreement with Statement: "Many pet products are becoming too expensive," 2011-2018 (percent of pet product buyers)
- Table Level of Agreement with Statement: "I look out for lower prices, special offers, and sales on pet products," 2013-2018 (percent of pet product buyers)
- Table Amount Spent on Pet Products in Last 30 Days, Q1 2017 vs. 2018 (percent of pet product buyers by spending bracket)
- Pet Ownership Trends
- Table Household Penetration Rates for Selected Pet-Owning Classifications, 2008-2017 (percent of U.S. households)
- Table Household Base for Selected Pet-Owning Classifications, 2008-2017 (in millions of U.S. households)
- Purchased Pets Out, Adopted Pets In
- Smaller Dogs Are Big
- Table Size of Pet Dogs: Owned and Recently Acquired, 2018 (percent of dog owners)
- Aging Pet Population
- Table Age of Dogs and Cats, 2018 (percent of pet owners)
- Pet Overweight/Obesity
- Higher-Income Households Achieve New Pet Expenditure Milestone
- Table Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 2001-2016 (percent)
- Table $70K+ Household Share of U.S. Pet Market Expenditures: By Category, 2010-2016 (percent)
- Table $70K+ Household Share of U.S. Pet Market Expenditures: By Category and Income Level, 2016 (percent)
- Dog and Cat Ownership Down Among Lower Income Households
- Table Pet Ownership Base by Household Income Bracket, 2008-2018 (in millions of U.S. households)
- Non Dog/Cat Resurgence?
- FDA Warning About Possible Link Between Canine Dilated Cardiomyopathy (CDM) and Grain-Free Pet Foods May Spell Trouble
- Industry Trends
- Chapter Highlights
- Industry Overview
- Market Structure
- Fast-Growing Franchises
- M&A and Investment Activity
- Cause Marketing and Animal Welfare
- Looking Ahead: Top of the Heap Product and Service Types
- Pet Food
- Mass Premiumization Is Changing the Channel Dynamic
- Natural Pet Food Spin-Offs and Cousins
- Table Dog and Cat Owners Currently Using Pet Food: By Free-Of Claim, 2018 (percent)
- Grain-free Pet Food
- Organic Pet Food
- Human-Grade and Human-Style
- Sustainable, Ethically Sourced, Locally Grown
- Frozen/Raw Pet Food
- "Preserved Dry" (Freeze-dried and Dehydrated) Pet Food
- Product Safety and Made in the USA
- Table Level of Agreement with Statement: "Fear of pet food contamination/product safety is a key consideration in the dog foods/cat foods I buy," 2018 (percent of dog owners vs. cat owners)
- Table Level of Agreement with Statement: "I am concerned about the safety of the dog food, dog treat, and dog chew products (or cat food and treat products) that I buy," 2018 (percent of dog owners vs. cat owners)
- Table Top Draws for Selected Product Claims Among Dog and Cat Food Purchasers, 2017 (percent)
- Clean Food Trend Carries Over From Humans to Pets
- Novel and Exotic Proteins
- Table Agreement with Statement: "My dog/cat needs a high-quality protein diet," 2017 vs. 2018 (percent of dog owners vs. cat owners)
- Trendy Superfood Ingredients Getting a Millennial Boost
- Functional Foods: Veterinarians to the Fore
- Table Level of Agreement with Statement: "High-quality dog foods/cat foods are effective for preventive healthcare," 2018 (percent)
- Customized Pet Food and Meal Kits for Home Delivery
- Pet Food Marketers Meeting Smaller Dog Trend Head On
- Mixers & Toppers
- Treats Trends: The Good, The Bad, and The Future
- Non-Food Pet Supplies
- Market Overview
- Focus on Pet-Tech and Innovation
- Pet Wearables: Tracking, Monitoring, and More
- Camera Monitors and Treat Dispensers
- Feeding & Watering
- Toys
- Other Smart Products
- Calming Products Meeting a Quantified Need
- Table Level of Agreement with Statement: "My pet sometimes has behavioral problems," 2018 (percent of dog owners vs. cat owners)
- Table Level of Agreement with Statement: "My pet sometimes has anxiety/stress issues," 2018 (percent of dog owners vs. cat owners)
- Non-Dog/Cat Pet Products
- Veterinary Services
- Market Landscape
- Table Percentage of Dog and Cat Owners Who Have Visited Vet in Last 12 Months: Routine vs. Sick/Emergency Vet Visits, 2018 (percent of pet owners)
- Veterinary Industry Consolidation
- Veterinary Services Inside Pet Superstores
- PetIQ Opening Veterinary Clinics in Walmart Stores
- Veterinarians Countering E-tailers with Online Pharmacies of Their Own
- Fairness to Pet Owners Act
- Digital Veterinary & Pet Health
- Market Landscape
- Non-Medical Petcare Services
- Market Landscape
- Table Top Pet Service Types: Last 12 Months vs. Last 30 Days, 2017 (percent of dog owners vs. cat owners)
- PetSmart and Petco
- Table PetSmart and Petco Sales of Pet Services, 2001-2017 (separately and combined, in millions of dollars)
- Forging Further into Petcare: Petco Adds Thrive Veterinary Services and PetCoach Stores, PetSmart Launches Groomery
- PetSmart/Petco Boarding Initiatives Are a Mixed Bag
- Petco + PetInsuranceQuotes.com
- The Upshot: Pet Specialty Increasingly Reliant on Petcare Services, Smaller Stores
- Franchise Operations
- Best Friends Pet Care
- Industry Disrupters: Rover and Wag! Taking Pet Walking and Sitting Market by Storm
- Rover's Growth Aspirations + Petco Investment
- Petcare Apps Keep on Coming: Fetch My Pet and Barkly Pets
- Pet Sitting Not Just for Dogs: Felines Surpass Canines in Industry Survey
- Market Landscape
- Retail Trends
- Chapter Highlights
- Internet/E-commerce Upending Longstanding Retail Dynamics
- Pet Product Customer Base by Retail Channel
- Table Household Customer Base for Pet Products by Retail Classification, 2013 vs. 2017 (thousands of households and percent)
- Table Draw Among Pet Product Purchasers by Selected Retail Channels and Pet Superstore Chains, 2010-2017 (percent of dog- or cat-owning households)
- Table Purchasing Base for Pet Products by Selected Retail Channels or Pet Superstore Chains, 2010-2017 (U.S. dog- or cat-owning households in thousands)
- Walmart Tops Among Pet Product Shoppers
- Table Channel Choices for Pet Product Shopping, Last Three Months: Pet Food vs. Other Pet Supplies, 2016-2018 (percent of pet product buyers)
- Channel Loyalty Lower for Owners of Different Pet Types
- Table Channel Loyalty in Dog or Cat Product Purchasing: All Channels, 2008-2017 (percent and number of dog- or cat-owning households)
- Table Channel Loyalty in Pet Product Purchasing: By Selected Pet-Owning Classifications, 2008 vs. 2017 (percent and number of dog- or cat-owning households)
- Table Share of Customer Base Who Are Channel-Loyal: By Leading Retail Channels or Pet Superstore Chains, 2013-2017 (percent of dog- or cat-owning shoppers)
- Table Size of Channel-Loyal Customer Base: By Leading Retail Channels or Pet Superstore Chains, 2013-2017 (in millions of dog- or cat-owning shoppers)
- Table Cross-Shopping for Pet Products by Retail Channel, 2017 (index for dog/cat owners)
- Mass/Pet Specialty Divide Dissolving, Mass Premiumization Accelerating
- Private Label and Exclusive Brands Taking on New Importance
- E-commerce Going Gangbusters
- Pet Specialty Big Boxes and Walmart Ramping Up Online
- Amazon Out Front Among Online Pet Product Buyers
- Amazon Juggernaut Continues to Advance
- Table Amazon vs. Petco and PetSmart: Pet Product Purchasers and Pet Products Purchasers Shopping at Amazon, 2014 vs. 2017 (percent)
- Chewy.com Sets Sites on Pet Medications
- Subscriptions and Auto-Replenishment
- Brick-and-Mortar-Based Retailer Initiatives Centered on Omnichannel
- Click-and-Collect (Online Ordering Coupled + In-Store Pickup)
- Pet Specialty Emphasis on Services
- Walmart Placing PetIQ Veterinary Clinics in Stores
- Ollie Teams Up with Walmart's Jet.com
- CG&P and CASCO Creating "Retail Theater"
- Smaller Stores Afford Big Boxes Entry into New Markets
- Mass Premiumization Good for Mass Retailers
- Pet Specialty Independents and Small Chains, Including Bentley's, Finding Strength in Numbers
- Natural and Specialty/Gourmet Supermarkets Feeling the Natural Mainstreaming Heat
- Table U.S. Natural Supermarket and Gourmet/Specialty Supermarket Channels: Dollar Sales of Pet Products, 2016 vs. 2017 (in millions of dollars)
- Amazon Plus Brick-and-Mortar Pet Specialty?
- Chapter Highlights
- Pet Ownership Trends
- Chapter Highlights
- Cats (and "Other" Pets) May Be Having Their Day
- Table Household Penetration Rates for Selected Dog- or Cat-Owning Classifications, 2008-2017 (percent of U.S. households)
- Table Household Populations for Selected Dog- or Cat-Owning Classifications, 2008-2017 (thousands of U.S. households)
- Table Household Ownership Rates for Selected Types of Pets, 2008-2017 (percent of U.S. households)
- Table Household Base for Ownership of Selected Types of Pets, 2010-2017 (thousands of U.S. households)
- Pet Ownership Rates by Age Bracket
- Table Dog or Cat Ownership Rates by Age Bracket, 2008-2017 (percent of U.S. households)
- Table Dog or Cat Ownership Base by Age Bracket, 2008-2017 (thousands of U.S. households)
- A Third of Pet Households Keep Different Types
- Table Multiple Pet Ownership by Selected Animal Type: 2009, 2013, and 2017 (percent of pet-owning households)
- Table Ownership of Multiple Pets of a Single Type, 2013 vs. 2017 (percent of U.S. households who own a given type of pet)
- Good News on the Boomer Front
- Table Household Ownership Rates for Selected Pet-Owning Classifications: By Age Bracket and Generational Cohort, 2008 vs. 2017 (percent of U.S. households)
- Table Household Base for Selected Pet-Owning Classifications: By Age Bracket and Generational Cohort, 2008 vs. 2017 (thousands of U.S. households)
- Table Household Ownership Index for Selected Pet-Owning Classifications: By Age Bracket and Generational Cohort, 2008 vs. 2017
- Table Size of U.S. Population by Selected Age Brackets, 2015-2060 (in thousands)
- Table Share of U.S. Population by Selected Age Brackets, 2015-2060 (in percent)
- Millennials: A Market Altering Force of Their Own
- Table Pet Services Used in Last 12 Months: Affluent Millennial vs. All Pet Owners, 2017
- Two-Adult Households with Kids Account for One-Third of Pet Owners
- Table Share of Total Pet Owners by Household Composition, 2008 through 2017 (percent)
- Table Share of Total Dog Owners by Household Composition, 2008 through 2017 (percent)
- Table Share of Total Cat Owners by Household Composition, 2008 through 2017 (percent)
- Table Share of Total Owners of Pets Other Than Dogs or Cats by Household Composition, 2008 through 2017 (percent)
- Table Pet Ownership Rates by Household Composition, 2008-2017 (percent)
- Table Pet Ownership Base by Household Composition, 2008-2017 (thousands of households)
- Pet Ownership Grows Among Minorities
- Table Share of Pet-Owning Households by Race/Ethnicity, 2008 vs. 2017
- Table Change in Pet Market Consumer Base by Selected Pet Ownership Classifications: White Non-Hispanics vs. Minorities, 2008 vs. 2017 (number and percent of U.S. pet-owning households)
- Table Pet Ownership Rates by Race/Ethnicity: Pets Overall, Dogs, Cats, and Other Pets, 2008-2017 (percent of U.S. households)
- Table Pet Ownership Base by Race/Ethnicity: Pets Overall, Dogs, Cats, and Other Pets, 2008-2017 (thousands of U.S. households)
- Table Projected Population Growth of Hispanics, 2015-2060 (in thousands)
- Cats (and "Other" Pets) May Be Having Their Day
- Chapter Highlights
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