Pet Food Trends — 2017 and Beyond
2016 ended with nearly $75 billion in global sales of pet food products and, according to the marketing firm Packaged Facts, expenditures on pet foods is expected to reach $96 billion by the end of 2020.
Pet ownership is growing, and since the vast majority of pet owners consider their pets to be four-legged members of their family, it should come as no surprise that the main drivers behind some of the strongest growth in the marketplace has to do with optimizing the health and well-being of our ‘fur babies’, in ways that reflect and follow established human food trends.
They’re much less impressed with labels touting ‘scientifically formulated’, seeing it as not-human-enough.
Nothing’s Too Good
People are becoming more and more aware that they should be feeding their pets foods that are species-appropriate, therefore products that can claim to be ‘Grain-Free’ have seen significant growth (20.02% in the last year alone), and products that carry other keywords consumers are already used to seeking out for themselves, such as ‘natural’, have seen increased sales as well. Pet owners are also attracted by the inclusion of nutrient-dense ‘superfoods’, (ingredients like pumpkin, kale, chia, kelp, etc.) and are impressed with products made with minimal processing, such as raw foods that have been freeze-dried or dehydrated for ease of handling and storage. They’re much less impressed with labels touting ‘scientifically formulated’, seeing it as not-human-enough. With increasing numbers of people interested in social-awareness, many pet owners prefer to seek those products produced using environmentally-friendly practices, local sources, etc.; badges like ‘Family-Owned and -Operated’, ‘Sustainability’, ‘Ethically Sourced’ etc. are seen as humane, and therefore more desirable.
While 60% of sales for both cat and dog foods includes protein derived from chicken, sales of novel sources of protein (salmon, duck, even kangaroo!) are also on the rise. Products listing unspecified protein as an ingredient show declining sales.
Private Label and Value Natural products have also experienced consistent growth that has outpaced the rest of the industry, mainly due to its significantly lower selling price.
You Lucky Dog!
Pet owners’ own focus on healthy eating and whole foods have begun to be extended into their pets’ diets, and transparency is very much a factor in their pet food choices. More than ever, they’re seeking out products geared toward pet health or specific health concerns. ‘Clean Labels’, meaning simple, easy-to-read ingredient lists, are seen as important for their four-legged ‘children’ as they are for their two-legged ones, and they’re proving it with their wallets.
As the population (and their pets) ages, pet food manufacturers have solid reasons
to offer products that address various aspects of pet health beyond puppy-to-senior life-stages and hairball-control, gearing more towards lifestyle nutrition, anti-inflammatory needs, cognitive functioning, etc. Limited Ingredient Diets (‘LID’, another growing category) for example, stemmed from pet-parents concerned about possible food allergies Fido or Fluffy may have had, but the more general preference to know exactly what we’re feeding our pets is what will drive this category’s growth.
Internet Movers and Shakers
Due to the popularity of pet-related forums, pet food review sites, and other pet information sites, pet-parents are comparing labels and discussing low- vs. high-quality products more and more easily, serving to pull smaller companies with quality products onto near-equal footing with multi-billion-dollar brands. Marketers in these companies have successfully used online platforms such as social media to innovatively promote their products directly to their potential customers.
The Total Package
Finally, innovative packaging has also seen a respectable rate of growth recently. While cans are still the mainstay for wet foods, items that are sold in trays and pouches are becoming more popular, for reasons of ease of storage, sanitation, and convenience. Products sold in smaller sizes, as might be preferred in single-pet homes, have also experienced increases.
Originally published at blog.watson-inc.com.
