Over 17 million U.S. households qualify as premium pet product demographics,
accounting for approximately one-third of all pet-owning households and 16% of
U.S. households overall. This all-new report profiles key consumer
demographics driving the upper end of the pet market across five distinct
cohorts: Affluents (household income of $150K or more), Specialty Shoppers
(those purchasing pet supplies through pet stores or Internet only), Married
with Children (household income of $100K or more), Empty Nesters (household
income of $75K or more), Dual-Income/No-Kids (DINKs-household income of $75K
or more), and Singles (household income of $50K or more). Level of dog and cat
ownership, product and brand purchasing preferences, and favored purchasing
venues are just a few of the ways in which Simmons Market Research Bureau data
and myriad other resources are custom-tailored to develop a better
understanding of today' s premium pet product consumer. Also underscoring and
helping to steer the premium direction the market is taking is the surge in
new pet products specifically designated as “upscale.” As of 2006,
over half of all new pet food products were tagged “upscale” and
almost one-third of non-food supplies were so designated, making it clear that
pet product developers and marketers on both sides of the aisle are fully
behind the market' s premium shift. So, too, are retailers, especially in the
pet specialty channel, where 94% of retailers indicate that they are planning
to add or increase their selection of pet health and pampering products in the
coming year.
Report Methodology
The information contained in this report was obtained from both primary and
secondary research. Primary research entailed attendance at the 2007 Global
Pet Expo and Petfood Forum trade events; interviews with pet product
marketers, service providers and expert members of the trade; and an on-site
examination of retail venues. Our analysis of consumer trends and demographics
primarily derives from exclusive customized cross-tabulations of consumer data
collected by Simmons Market Research Bureau in its Fall 2006 full-year adult
consumer survey, which is based on 24,467 respondents age 18 or over. Data on
new product introductions are provided by Datamonitor' s Productscan Online
service and Packaged Facts. Secondary research includes extensive Internet
canvassing; research- and data-gathering from relevant consumer business and
trade publications including PET AGE, Pet Product News International, Pet
Business and Petfood Industry; the American Pet Products Manufacturers
Association (APPMA) 2007-2008 National Pet Owners Survey; and other pet market
reports by Packaged Facts, which has been tracking pet-related markets for
over 25 years.
How You Will Benefit from this Report
For companies participating in the U.S. market for pet products and services,
the premium writing is on the wall as several interrelated trends continue to
drive more of this $47 billion market into the hands and the pocketbooks of
premium pet demographics. These trends include heavy marketing encouraging pet
“humanization,” product upscaling, the entry into the market of
entrepreneurs with new brands and innovative products, the growth of pet
boutiques and upscale specialty shops, and strong interest in pet products
among non-traditional retailers. Trumpeting the premium demographic shift,
households earning $70K or more annually increased their share of the
aggregate pet market expenditure from 28% in 1995 to 49% in 2005, representing
more than a tripling in $70K+ household expenditures from $5.2 billion to
$18.6 billion.
This report will help:
Marketing Managers identify market opportunities and develop targeted
promotion plans.
Research and development professionals stay on top of competitor
initiatives and explore demand for on-the-go products.
Advertising agencies to develop messages and images that compel consumers
to purchase on-the-go products.
Business development executives understand the dynamics of the market and
identify possible partnerships.
Information and research center librarians provide market researchers,
brand and product managers and other colleagues with the vital information
they need to do their jobs more effectively.
Table of Contents
Table of Contents
Chapter 1: Introduction
Scope and Methodology
Scope of Report
Report Methodology
The Pet Market Environment
Upper Income Pet Households on the Ups
Figure 1-1: Share of Total U.S Pet Market Expenditures by Under-$70K vs.
$70K+ Income Brackets: 1995, 2000 and 2005 (percent)
Figure 1-2: $70K+ Income Household Share of U.S Pet Market Expenditures by
Segment: 1995 vs. 2005 (percent)
Kids Lessening as Pet Market Driver
Figure 1-3: Two-Adult Households/No Kids as Pet Owners: 2003 vs. 2006
(percent)
Upscale Product Surge
Figure 1-4: Upscale Product Share of Total Pet Product Introductions: Food
and Non-Food, 2002 vs. 2006
Advertising Positioning Reflects Upscale Thrust, Trends in New Product
Development
Humanization Trend Supports Product Upscaling
The Aging Pet Population
Interest in Health-Related Products, Services Supports Product
Premiumization
Natural/Organic Surge Another Premium Market Driver
Figure 1-5: Number of New Natural and Organic Pet Products: Food and
Non-Food, 2002-2006
Growth of Upscale Pet Specialty Shops and Boutiques
Growth of Non-Traditional Retail Outlets
Internet Out Front
Figure 1-6: Percent of U.S. Households Who Are “Doing More Internet
Shopping Than Before”: Dog and Cat Owners vs. All U.S. Adults, 2006
(percent)
Trade Shows Pick Up on Fashion, Boutique Angle
Magazines and Other Media Also Support the Trend
The Boomer Factor
Figure 1-7: Share of U.S. Population Growth for Selected Age Brackets:
2005-2015 (percent)
Asians and Hispanics a Growing Force
Figure 1-8: Share of U.S. Population Growth for Selected Racial/Ethnic
Populations: 2005-2010 (percent)
Table 1-1: $70K+ Household Expenditures on Pet Products and Services:
Average, Aggregate and Share of Total, 1995-2005
Table 1-2: $70K+ Household Expenditures on Pet Food: Average, Aggregate
and Share of Total, 1995-2005
Table 1-3: $70K+ Household Expenditures on Veterinary Services: Average,
Aggregate and Share of Total, 1995-2005
Table 1-4: $70K+ Household Expenditures on Pet Supplies: Average,
Aggregate and Share of Total, 1995-2005
Table 1-5: $70K+ Household Expenditures on Pet Services: Average,
Aggregate and Share of Total, 1995-2005
Table 1-6: Upscale Products: Number and Share of Total Pet Product
Introductions: Food and Non-Food, 2002-2006
Table 1-7: Number of New Natural and Organic Pet Products: Food and
Non-Food, 2002-2006
Table 1-8: Use/Influence of Internet: Dog- and Cat-Owning Adults vs. All
U.S. Adults, 2006 (percent)
Table 1-9: Pet Food and Supply Purchasing Indices by Retail Channel: By
Household Size, 2006 (U.S. pet-owning households)
Table 1-10: Pet Ownership Indices: By Adult Age Bracket, 2006 (U.S.
households)
Table 1-11: Projected Population of the United States by Age and
Race/Ethnicity, 2000-2010 (in thousands)
Chapter 2: Premium Pet Demographics
Market Overview
Premium Pet Households Number Over 17 Million
Affluents Are Largest Premium Pet Cohort
An Affluent Bunch
The Baby Boomer Bulge
Figure 2-1: Demographic Comparison by Index: Premium Pet Households vs.
Total Pet-Owning Households, 2006 (U.S. dog- or cat-owning households)
Gender, Race and Region: Not the Pet-Owning Norm
The Urban Angle
The Kid Story
Figure 2-2: Household Composition Comparison by Index: Premium Pet
Households vs. Total Pet-Owning Households, 2006 (U.S. dog- or cat-owning
households)
Demographic Comparisons by Type of Pet
Affluent Cohort Comprises Larger Households
Figure 2-3: Demographic Comparison by Index: Affluent Cohort Households
vs. Premium Pet Households Overall, 2006 (U.S. dog- or cat-owning households)
Specialty Shopper Cohort Skews Younger
Figure 2-4: Age Comparison by Index: Specialty Shopper Cohort Households
vs. Premium Pet Households Overall, 2006 (U.S. dog- or cat-owning households)
Married with Children Cohort Defined by Kids
Figure 2-5: Selected High-Index Demographic Groups: Married with Children
Cohort Premium Pet Households, 2006 (U.S. dog- or cat-owning households)
Empty Nester Cohort Strong at Age 55-64
Figure 2-6: Demographic Comparison by Index: Empty Nester Cohort
Households vs. Premium Pet Households Overall, 2006 (U.S. dog- or cat-owning
households)
DINK Cohort Shines at Age 25-34
Figure 2-7: Age Comparison by Index: DINK Cohort Households vs. Premium
Pet Households Overall, 2006 (U.S. dog- or cat-owning households)
Singles Cohort a More Modest Group
Figure 2-8: Selected Top-Index Demographic Segments: Singles Cohort
Premium Pet Households, 2006 (U.S. dog- or cat-owning households)
Table 2-1: Premium Pet Demographics: Percent of Total Households and
Pet-Owning Households, 2006 (U.S. households)
Table 2-2: Number of Pet-Owning Households and Premium Pet Households by
Cohort, 2006 (U.S. households)
Table 2-3: Premium Pet Demographics, 2006 (U.S. dog- or cat-owning
households)
Table 2-4: Demographic Comparison: Premium Pet Households vs. Total
Pet-Owning Households, 2006 (U.S. dog- and cat-owning households)
Table 2-5: Premium Pet Demographics: Dog Owners 2006 (U.S. dog-owning
households)
Table 2-7: Premium Pet Demographics: Owners of Both Dogs and Cats, 2006
(U.S. dog- and cat-owning households)
Table 2-8: Premium Pet Demographic Indexes: Dog, Cat, Dog & Cat Owners
2006 (U.S. dog-, cat-, and dog & cat-owning households)
Table 2-9: Premium Pet Demographics: Affluents, 2006 (U.S. dog- or
cat-owning households)
Table 2-10: Premium Pet Demographics: Specialty Shoppers, 2006 (U.S. dog-
or cat-owning households)
Table 2-11: Premium Pet Demographics: Married with Children, 2006 (U.S.
dog- or cat-owning households)
Table 2-12: Premium Pet Demographics: Empty Nesters, 2006 (U.S. dog- or
cat-owning households)
Table 2-13: Premium Pet Demographics: DINKs, 2006 (U.S. dog- or cat-owning
households)
Table 2-14: Premium Pet Demographics: Singles, 2006 (U.S. dog- or
cat-owning households)
Pet Product and Brand Preferences
Premium Dog-Owning Households Focused on Health and Pampering
Figure 2-9: Top 10 High-Index Dog Products Among Premium Pet Households,
2006 (U.S. dog-owning households)
Premium Cat-Owning Households Also Health Focused
Figure 2-10: Top 10 High-Index Cat Products Among Premium Pet Households,
2006 (U.S. cat-owning households)
Focus on Flea/Tick Controls, Pet Supplements
Product Preferences by Premium Pet Cohort
Table 2-15: Percent of Households Purchasing Dog Food/Supplies by Type and
Brand: Dog Owners Overall vs. Premium Pet Dog Owners, 2006 (U.S. dog-owning
households)
Table 2-16: Percent of Households Purchasing Cat Food/Supplies by Type and
Brand: Cat Owners Overall vs. Premium Pet Cat Owners, 2006 (U.S. cat-owning
households)
Table 2-17: Percent of Households Purchasing Flea/Tick Care Products by
Type and Brand or Purchasing Pet Food Supplements: Dog or Cat Owners Overall
vs. Premium Pet Dog or Cat Owners, 2006 (U.S. dog- or cat-owning households)
Table 2-18a: Percent of Households Purchasing Pet Supplies by Type: Dog or
Cat Owners Overall vs. Premium Pet Cohorts, 2006 (U.S. pet-owning households)
Table 2-18b: Total Number of Households Purchasing Pet Supplies by Type:
Dog or Cat Owners Overall vs. Premium Pet Cohorts, 2006 (U.S. pet-owning
households in millions)
Table 2-18c: Household Purchasing Indices for Pet Supplies by Type:
Premium Pet Demographics Overall vs. Premium Pet Cohorts, 2006 (U.S.
pet-owning households)
Retail Channel Preferences
A Marked Skew Toward Specialty Stores, Internet
Figure 2-11: Pet Owners Overall vs. Premium Pet Demographics: Purchasing
Rates for Pet Stores and Online, 2006 (U.S. pet-owning households)
Figure 2-12: Premium Pet Demographic Indexes for Purchasing Pet
Food/Supplies in Pet Stores: By Cohort, 2006 (U.S. premium pet households)
Above-Average Shoppers in Non-Traditional Venues
Figure 2-13: Top 10 High-Index Chain Retailers Among Premium Pet
Demographics: By Shopping or Making Purchase in Last 4 Weeks, 2006 (U.S.
households)
Table 2-19: Pet Owners Overall vs. Premium Pet Demographics: Purchasing
Rates for Pet Food/Supplies by Retail Channel, 2006 (U.S. dog- or cat-owning
households)
Table 2-20a: Premium Pet Demographic Breakouts by Cohort: Purchasing Rates
for Pet Food/Supplies by Retail Channel, 2006 (U.S. premium pet households)
Table 2-20b: Premium Pet Demographic Breakouts by Cohort: Total Number of
Households Purchasing Pet Food/Supplies by Retail Channel, 2006 (U.S. premium
pet households in millions)
Table 2-20c: Premium Pet Demographic Breakouts by Cohort: Indices for
Purchasing Pet Food/Supplies by Retail Channel, 2006 (U.S. premium pet
households)
Table 2-21: Selected Chain Retail Shopping Patterns for Premium Pet
Demographics: By Shopping or Making Purchase in Last 4 Weeks, 2006 (U.S.
households)
Appendix: Examples of Advertising
Market Trends: Premium Pet Demographics and Product Purchasing Preferences published by Packaged Facts in August 1, 2007. This report consists of 154 pages and the price starts from US $ 2500.
