u.s. pet food market update, 2011: marketing the benefits of pet ownership david lummis packaged...
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U.S. Pet Food Market Update, 2011:U.S. Pet Food Market Update, 2011:Marketing the Benefits of Pet OwnershipMarketing the Benefits of Pet Ownership
David Lummis
Packaged Facts Senior Pet Market Analyst
Today’s Agenda
U.S. pet food market update: State of the Market Summary
Trends in pet/human healthcorrelation research
Target demographics and action opportunities
Report Resources
U.S. Pet Market Outlook, 2011-2012(April 2011)
Pet Food in the U.S., 9th Edition(March 2011)
Pet Supplements and Nutraceutical Treats, 3rd Edition (February 2011)
Natural, Organic & Eco-Friendly Pet Products in the U.S., 3rd Edition (July 2010)
State of the Market: 2011State of the Market: 2011
U.S. Pet Market Retail Sales by Category:2010 vs. Year Ago
(in billions)
Source: Packaged Facts Pet Market Outlook 2010-2011
Classification 2010 $ Sales % Change Over 2009
Veterinary Services $19.69 7.0%
Pet Food $18.35 2.8%
Pet Supplies $10.92 2.0%
Other Pet Services $6.11 5.0%
Total $55.07 4.3%
% Change in U.S. Retail Sales of Pet Food, 2006-2015
Source: Packaged Facts
2010 Sales = $18.4 b
From Recession to New Normal
Shopper/Retailer Trends– coupons– loyalty cards– meal planning– shopping lists– delayed gratification– lowered standards– store switching– brand switching– channel switching– clarifying want versus need– reassessing convenience (larger
packages, smaller packages, etc.)
“I am spending less on pet products these daysbecause of the economy.”
Source: Packaged Facts national online survey, May/June 2010
Dog Whisperer
Market Exits
Pet Promise Goodlife Recipe Dog Food
Source: Packaged Facts online pet owner poll, February 2011
“I think many pet products are becoming too expensive.”
Private-Label Pet Food Introductions, 2000-2010
Source: Product Launch Analytics; Packaged Facts. This material is reprinted with permission.
Premium Private Label
Wegman’s Bruiser Complete Nutrition Dry Dog FoodTarget’s Boots & Barkley Multi-Flavored Dog Biscuits
$70K+ Household Share of U.S. Pet Food Expenditures
30.9%
28.1%
32.2%
32.8%
36.4%
43.6%
42.7%
45.8%
49.8%
49.4%
43.6%
69.1%
71.9%
67.8%
67.2%
63.6%
56.4%
57.3%
54.2%
50.2%
50.6%
56.4%
20% 80%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Under $70K+ % Share of Total Spending $70K+ % Share of Total Spending
Top Marketing Claims by Number ofNew Pet Food Product Reports, 2008-2010
Source: Product Launch Analytics; Packaged Facts. This material is reprinted with permission.
Dog or Cat Ownership Rates by Animal Type: 2007-2010(percent of U.S. households)
Note: Percentages are based on a total of 111.9 million households in 2007, 113.5 million households in 2008, 114.2 million households in 2009, and 114.6 million households in 2010.Source: Pet Food in the U.S., 9th Edition; compiled by Packaged Facts based on Experian Simmons National Consumer Studies
The U.S. pet industry cannot sustainhealthy growth without increasing rates
of household pet ownership.
The Holistic Human-Pet Health Connection
Trends in Pet/Human Health Trends in Pet/Human Health Correlation ResearchCorrelation Research
Mars’ Waltham Center for Pet Nutrition
• August 2009: Waltham Center for Pet Nutrition commits $2 million to the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD) for Human-Animal Interaction (HAI) research.
• The NICHD (division of National Institutes of Health) combines the donation with funding from the National Institute of Nursing Research to form the first formal program in HAI.
• Previous studies have been small scale, observational or anecdotal.• Mars’ donation will span four years and help fund NICHD studies in three
areas:• Impact of human-animal interaction on typical development and
health;• Clinical trials focusing on role animals play in physical and
psychological therapeutic treatments; and• Impact of animals on public health, including cost-effectiveness of
animals in reducing and preventing disease.
Mars’ Power of Pets Program
Launched in September 2010, in collaboration with YMCAs in five cities to promote benefits of pet ownership to human health.
New York City – The YMCA of Prospect Park, October 16Chicago – The Hastings Lake YMCA, October 23Washington, D.C. – The YMCA of Silver Spring, October 24Nashville, Tenn. – The Brentwood YMCA, November 6Portland, Ore. – Spring 2011
Mars study of 1,000 US pet owners: Improving overall well-being is main reason for having a pet
(66%) Companionship (61%) Positive emotions associated with pets: happiness (83%), love
(70%), calmness (65%), excitement (31%), invigoration (18%)
Human Animal Bond Research Initiative Foundation (HABRI)
Petailing 2010 Leadership Conference
Bob Vetere, President, APPA and President of HABRI Foundation.
Founding Sponsors—PETCO and APPA Support federal research to provide scientific evidence
of health benefits for humans from their relationships with their pets. Form broad-based coalition of organizations and entities that will create
central database of scientific research on the human health benefits of companion animals, under the leadership of Dr. Alan Beck at Purdue University.
Educate and inform Congress of the important role that our pets play in human health.
Lobby Congress to create a Human Animal Bond Research Center within the National Institutes of Health.
Delta Society
Pet Partners® (therapy animal program) Animal-Assisted Therapy Professionals Resources National Service Animal Resource Center Resource Center: Research and Articles relating to
the human-animal bond YouTube Video
Target DemographicsTarget Demographicsand Action Opportunitiesand Action Opportunities
Dog or Cat Ownership Rates by Generational Cohort: 2010(percent of U.S. households)
Note: Percentages are based on a total of 114.6 million households in 2010.Source: Pet Food in the U.S., 9th Edition; compiled by Packaged Facts based on Experian Simmons National Consumer Study
Dog or Cat Ownership Rates by Generational Cohort: 2010(index of U.S. households)
Source: Pet Food in the U.S., 9th Edition; compiled by Packaged Facts based on Experian Simmons National Consumer Study
Low Incidence Pet Ownership Population Segments
Source: Pet Food in the U.S., 9th Edition; compiled by Packaged Facts based on Experian Simmons National Consumer Study
Hispanics African
Americans Asians Children Seniors CHART
The Healing Power of Pets
Dr. Marty Becker, resident vet on ABC TV's Good Morning AmericaDescribes how pets can prevent, detect, treat, and in some cases cure a variety of maladies, from arthritis to asthma, and from Alzheimer's to depression.
• Decrease cardiovascular risk factors• Motivate sedentary owners to
exercise• Help people deal with chronic pain.
Delta Society
Pet Partners® (therapy animal program) Animal-Assisted Therapy Professionals Resources National Service Animal Resource Center Resource Center: Research and Articles relating to
the human-animal bond YouTube Video
Delta Society — Benefits to Kids
Delta Society — Benefits to Adults
Delta Society — Benefits to Seniors
APPA—Pets Add Life
APPA—Pets Add Life
Pet Care Trust
• Formed in 1990 by the American Pet Products Association (APPA), the Pet Industry Distributors Association (PIDA) and the World Pet Association (WPA) to:
• Sponsor and disseminate information on companion animal programs and role of companion animals in improving quality of life of pet owners.
• Collect and disseminate educational materials to teachers and schools, the media, and the pet industry on responsible ownership and pet care.
• Interact with associations, organizations, and societies to coordinate programs of mutual interest.
• Educate the public on benefits of the human animal bond and human companion animal bond.
• Be an information resource for the general public and pet industry.
Pet Care Trust—Pets in Classroom Program
• Program launched in September 2009• Expands on Fish in Classroom Program• Online program offers grants to
teachers who include pets in lesson plans• Instilling compassion and encouraging
responsible pet care
Celebrity PR
Social Media
Source: Packaged Facts online pet owner poll, February 2011
“My pet has a positive impact on my physical health.”
Dog or Cat Ownership Rates by Animal Type: 2007-2010(percent of U.S. households)
Note: Percentages are based on a total of 111.9 million households in 2007, 113.5 million households in 2008, 114.2 million households in 2009, and 114.6 million households in 2010.Source: Pet Food in the U.S., 9th Edition; compiled by Packaged Facts based on Experian Simmons National Consumer Studies
Thank You!
Tel:
Email:
David Lummis
504-931-6322
Packaged Facts
Senior Pet Market Analyst