A 20-Year Explosion in Pet Products Spending Since 1994, total US pet industry spending has increased more than four-fold, from $17 billion to an estimated $72.13 billion for 2018, which would be a 3.8% increase over 2017’s actual total of $69.51 billion. In the table on page 1 of the Profiler, all categories increased less from 2017 to 2018, except for veterinary care. The decrease in live animal purchases may indicate a slowing of acquiring additional pets, which may negatively affect some of these categories. Health and wellness products in the pet-care sector increased their share of retail store space by 23.1% from 2016 to 2017, compared to 15.4% for personal care and 6.5% for baby care products, and is a primary driver behind the pet industry’s growth.

Unconditional Pet Love Drives the Market Few statistics exemplify the love of one’s pet more than when The Daily Wag Website surveyed 2,000 dog parents prior to National Dog Appreciation Day (August 26) and found 38% of them said they show more love for their dogs than their kids, at 31%. Although the percentage of US household owning pets, or 54.6%, hasn’t changed much recently, there is increasing ownership among Latinx American households, at 69%, compared to 70% for Caucasian American households, as of December 2017. Interestingly, a larger percentage of men, 48%, own cats than women, 35%. Millennials now represent the largest percentage of pet owners, by age group, at 35%, compared to 32% for Baby Boomers and 33% for all other generations.

Top Pet-Product Retailers Remain on Top According to data from Packaged Facts, Walmart was the 2017 market-share leader in brick-and- mortar pet product sales, at 19%, and accounted for 86% of pet product sales in the mass merchandiser/supercenter channel. Target was a distant second to Walmart in the mass merchandiser/supercenter channel, with a 12% share, and PetSmart continued to be the top pet specialty chain, grabbing an 11% share of all brick- and-mortar pet product sales. Packaged Facts’ Q1 2018 survey of pet owners mirrored these stats, with 44% saying they buy their pet food at Walmart, compared to 32% at PetSmart.

Pet Products Available Everywhere, But Is the Marketing Softening? cPackaged Facts’ forecast of $27 billion for the 2018 pet food market is a bit less than American Pet Products Association’s $29.88 billion, but Packaged Facts estimates pet food sales will increase 4.4%. Given the significant pet ownership across most demographics, it’s not surprising that 67 of the top 100 US retail chains sell pet products, including 142,000 stores among the top 100, and an additional 200,000 stores of those not in the top 100. Neighborhood or independent pet stores have also benefited from widespread pet ownership, as pet food brands that market their products through these stores have realized a 75% increase in sales since 2014.

Understanding Pet Food Buyers The December 2017 Packaged Facts survey also found more cat owners buy cat food at supermarkets, or 34%, than dog owners buying dog food, or 25%, and purchases at Walmart followed the same trend, or 42% and 37%, respectively.   Packaged Facts also revealed 65% of consumers said they neither agreed or disagreed about their trust of the quality of pet food, whether from smaller/regional companies, natural/organic companies or mass-market leaders. Despite this somewhat indifferent opinion on trust of pet food quality, 57% somewhat or strongly agreed they “place a priority on buying pet food based on natural ingredients.”

Advertising Strategies Unsurprisingly, adults 50+ who own a dog or cat, according to The Media Audit data on page 4 of the Profiler, are heavily exposed to TV, which is where local and chain pet stores can build brand awareness, but also generate sales through coupons/deals in direct mail. Pet stores in markets with a higher-than- average Latinx population should definitely consider advertising on Spanish-language media to reach the increasing number of Latinx who are pet owners. Show pet and grocery stores the statistic on page 1 of more men than women as cat owners and recommend a promotion, “Men Are Cat Lovers, Too,” and offer men who are first-time customers a coupon/discount.

New Media Strategies Equally unsurprisingly, adults 18–49 who own a dog or cat are most heavily exposed to the Internet and with Millennials now the largest generation of pet owners, stores of all sizes must have a Website, including a mobile-friendly one, on which Millennials can buy. Of course, a store’s e-commerce site must be more than a buying site. It and a store’s social media pages must also provide plenty of customer reviews of food and products, people’s pet stories and tips and aids from a local veterinarian, if possible. According to many pet industry experts, there is a small, but critical segment of the population that is constantly online and not necessarily just young adults. Social media may be the only channel to reach them, which means content must be fresh and appealing.