The pet food category continues to grow in terms of dollar share, and increasingly the humanization of pets also continues to be a strong trend in American households.
Pets are being treated like family more than ever — think pet daycares and pet spas — so it only makes sense that they’re starting to eat like next of kin.
According to a recent study by Bloomberg Intelligence, the pet food industry continues to gain considerable weight in terms of total dollars. In the United States alone, the pet market is expected to grow from $128.6 billion to $195.6 billion by 2030. The nutrition sector leads this load as pet owners animals continue to spend most of their budget on food. The Bloomberg survey also indicated that 27.5% of respondents go to Target or Walmart for their pet products.
Data from Bloomberg indicates that the United States currently holds 47% of the global pet food market, a figure that is expected to rise to 55% over the next seven years. When it comes to premium/fresh, these options currently represent only 1% of the total pet food industry, but it’s an industry that will grow at a much faster rate than any other pet food category. pets in the near future.
Market experts predict that fresh pet food will eventually account for $6 billion in sales in the United States by 2030, or 11% of the market.
We’re not just talking leftovers under the table anymore. The buyers are
put everything they have into treating their pets, and health and well-being are of the utmost importance. Quality food, including the chilled variety, is at the top of the grocery list…and pet owners are buying, even in the face of inflation.
The rise of fresh
According to Diana Rosero-Pena, senior analyst at Bloomberg Intelligence, the growth of fresh pet food dates back to the emergence of organic human food about a decade ago.
“There’s been this movement to be more aware of the food you’re consuming,” she said. “And because there’s been the humanization of pets over the last 10 years as well, and they’re now seen as family, so that care goes to their [pet] dietary needs as well.
“We look at the total for the pet food category, but [fresh] This is where we see exponential growth,” said Sarah Marzano, director of retail strategy at Circana, a Chicago-based market research firm. “And it goes back to this notion that the consumer is really hyper conscious about health and wellness.”
For the remainder of 2023, retailers can expect to see flat numbers in the pet food category. After posting double-digit growth in the first few months of the year, Rosero-Pena said she expects the pace of buying to slow slightly heading into the second half. She said this pattern is expected to continue until 2024.
According to Marzano, emphasizing value, as well as health and wellness properties, will be important in the store. But so far, pet food appears to remain inflation-proof, as shoppers continue to stick to quality, premium brands despite continued price increases.
Data from Circana indicates steady demand for pet food and treats despite rising prices. Shoppers remain loyal to national brands over store brands.
Retailers like Walmart and Target have recently expanded their pet food selection, and Rosero-Pena said increased variety is expected to be a major sales driver in late 2023.
E-commerce and pet food
E-commerce has been on the rise for pet food purchases since the COVID-19 pandemic, but there has also been an increase in foot traffic in physical stores, according to Marzano. Along the same lines, the overall volume of purchases has declined as shoppers are no longer in pandemic-induced storage mode.
Again, the increased number of shoppers entering the store is an opportunity for grocers “to get those consumers to make some of those purchases that are less restockable,” Marzano said.
According to research by Bloomberg Intelligence, e-commerce pet food sales in the United States are expected to reach $57.7 billion by 2030, capturing nearly a third of the market (29.5%) compared to $27.9 billion in 2022.
Still, annual e-commerce sales growth will decline from 25% in recent years to 10% as the pandemic subsides, according to Marzano.
In early May, Instacart announced the expansion of its partnership with PetSmart to offer same-day delivery from the Instacart app and website to nearly 1,500 PetSmart stores across the United States.
The US expansion follows the successful launch of the partnership to provide same-day delivery from more than 150 PetSmart stores in Canada.
Eat well
Millennials and Gen Z have been at the forefront of health and wellness when it comes to food, so it’s no surprise that both groups use the same approach when it comes to their pets. of company. The research also indicates that both groups are those who are willing to pay a little more for quality.
“The younger generation has a higher incidence of pet ownership,” Marzano said.
Bloomberg’s Roser-Pena said younger generations are simply more adamant about feeding their pets better, and “as Gen Z come of age and start finding jobs themselves , she also seems more likely to have pets or have another one over the next five years.”
And with pets come health and maintenance issues. Roser-Pena said pet insurance penetration is less than 5% in the U.S., meaning more shoppers are turning to healthy, premium pet foods. company in an attempt to avoid unnecessary veterinary costs.