‘Pet Parents’ Treat Cats and Dogs to Upscale, Specialty Fare

With U.S. pet ownership at an all-time high—78 million dogs and 86 million cats—things are just about “purrfect” for the pet food industry. According to the American Pet Products Assoc.’s (APPA) 2015 National Pet Owners Survey, 65% of U.S. households have a pet. That is 80 million households—nearly double the number of households with kids. In 2014 APPA reported that there were 8 million new pet owners. The number of minority households owning a cat or dog has reached an all-time high of 33%.

Packaged Facts’ 2014 Pet Food in the U.S. report projects that domestic pet food sales will jump 16% from 2015 to 2018 to reach $33 billion. Frozen/refrigerated cat and dog food—up 25% and 24%, respectively, followed by cat treats, up 10%—led volume sales gains in 2014, according to a 2015 Packaged Facts “Form and Function Trends in Pet Treats” presentation. Globally, the pet care products market was $90 billion in 2014, according to Euromonitor. 

In the United States in 2014, 95% of dog-owning households bought dry food, 37%, wet; 34%, both wet and dry; and 78%, biscuits/treats. For households with cats, 95% bought dry food; 51%, wet; 47%, both wet and dry; and 44%, treats. Many pet owners have adopted a “nothing but the best” approach to feeding their canines and felines. According to Packaged Facts, premium products accounted for 42% of pet food sales.

And according to IRI’s 2014 New Product Pacesetters, two-thirds of pet owners want new pet foods such as gravies, juices, cheese, and bacon that add excitement to the pet’s diet. Two-thirds of the best-selling new pet foods last year carried an improved/unique flavor claim. Antioxidants, high protein, probiotics, and breed- or size-specific were other important drivers, per IRI.

Clear Conscience Pet added a white Arfredo recipe and red Barkinara to its line of Au Jus SuperGravy pet food enhancers. Mediterranean-style, French/Tuscan sauces (e.g., Purina’s Elegant Medley Tuscan Collection for cats) ancient grains, greens/vegetables, and unique varieties of rice are other tasty culinary directions.

Pet foods are also touting more exotic meats (e.g., wild game, boar, rabbit, venison, duck, lamb, pheasant) and filets of fish. Merrick’s Backcountry offers a Game Bird Recipe. After the success of Fancy Feast’s Appetizers and Purina’s Friskies Rise and Shine morning cat foods, can pet sandwiches, soups, trail mixes, desserts, and warm meals be far behind? After all, Omega Paw already offers Meow Merlot Cat Treats and a company markets wine “exclusively for cats” in Japan. Cheetos Mix-Up treats bring a popular brand name to the pet aisle.

What are “pet parents” looking for in the products they purchase? Fifty-two percent said no by-products, 50% mentioned all natural, and 47% sought real meat as the No. 1 ingredient, according to Packaged Facts.

Eliminating grains, gluten, hormones/antibiotics, and artificial colors are other significant trends along with locally/ethically sourced and “human grade.” Hill’s Ideal Balance Crafted Cat Food is “made one batch at a time.” One in five pet owners buy organic treats, according to Packaged Facts.

Pet food formulations for aging pets are another fast-emerging priority. According to APPA, adoption of older pets is becoming the norm; 39% of dogs and 43% of cats are now age seven or older. Hill’s Science Diet Senior is formulated for cats aged 11-plus.

Doting pet parents are carefully monitoring their pets’ diet and health issues; 44% of cat owners and 51% of dog owners bought specialty pet nutrition products last year, per Packaged Facts. With 55 million cats and 44 million dogs overweight or obese, according to the Assoc. for Pet Obesity Prevention, weight loss, reduced calorie, and “indoor” formulations are fast-growing market niches. Pet products that capitalize on interest in human performance foods are other good prospects.

Savvy marketers are even going so far as creating a new generation of nutraceutical pet foods focused on maintaining gut health/enhanced digestibility, bone/joint mobility, thyroid care, and immunity. Prescription diet pet foods continue to aid pets with serious medical conditions, including diabetes/blood sugar and kidney/urinary tract issues, and formulations for mental cognition/aging have arrived on the market. Sales of pet foods sold by prescription topped $1.6 billion in 2014, per Packaged Facts. Formulations to address the needs of pets with allergies and to help with tartar control, teeth cleaning, and fresher breath as well as coat shine and skin care are other specialty pet food niches.

Online customization is another up-and-coming pet food trend. Petbrosia customers answer questions about their pet (breed, age, weight, energy level, and allergies) online and then receive a custom pet food blend delivered to their homes.

 

A. Elizabeth Sloan, PhD,
Contributing Editor
President, Sloan Trends Inc.,
Escondido, Calif.
[email protected]