As pets are increasingly becoming full members of the family, consumer focus on premium pet food and pet food safety has increased.
Two major sources are helping these segments of the industry thrive:
1. The ever-increasing humanization of pets.
2. Rapid R&D, leading to an explosion of new products.
It all adds up to a lot of growth and a lot of fun for everyone in the industry. These in turn point to consumer interest, even frenzy, as the driver of growth.
What's fueling the growth in the pet food industry? Some experts point to various categories such as premium pet food and superpremium products, organic/natural petfoods, functional/healthy ingredients and treats.
Full family members
Pets are increasingly becoming full members of the family, as well cared for as any human child.
In maturing markets, this translates into higher spending on petfoods, especially premium pet food and products featuring organic or natural ingredients and ones designed to address specific health conditions. According to the US Bureau of Labor, average annual US household spending on petfood increased 45.5% from 1994 to 2004, from US$75.80 to US$110.31 a year.
In developing markets, such as China, the number of pet owners is growing quickly. As their purchasing power increases, these consumers are predicted to spend more on pet supplies, including food.
Feeding a fever
This rise in pet ownership and spending around the world creates a demand that savvy petfood manufacturers and marketers know how to supply. The first six months of this year saw 175 new cat and dog food products, including line extensions. That represented 844 SKUs, nearly matching the total for all of 2005, according to Datamonitor's Productscan Online.
The new product fever doesn't just involve retail goods; it also trickles down to, and is simultaneously fed by, new offerings from suppliers to the industry. To respond to consumer needs and wants, manufacturers turn to their suppliers to help them create specific product features or ingredients. At the same time, supplier innovations are fueling new product development. A current example is the rash of revolutionary new pet food packaging, often aided by groundbreaking production methods and materials.
Consumers only want the best for their pets, especially with the new 'pets as a member of the family' mantra many owners are happily living. This means high-quality ingredients, premium pet food and more focus on pets' quality of life.
