Since the late 1990s virtually all of the dollar sales growth in the North
American pet food market has been coming from the conversion of pet owners to
higher priced fare, and the single most important factor behind their
willingness to pay more is the belief that better quality products offer
tangible health benefits. Fresh pet foods fit the bill perfectly, appealing to
pet owners not just on the basis of freshness-which is also one of the hottest
button issues in human food marketing today-but on the basis of the products'
being able to improve pet health holistically. Because they are not subject to
high heat, fresh pet foods retain more of their natural nutritional elements,
and proponents of raw diets claim that these products can offer a variety of
benefits beyond general well being, such as the amelioration of allergies and
longstanding gastrointestinal ailments. As a result, consumer demand for fresh
pet food is on the rise, helped along by innovative new products based on
technological advances and convenience features, frequent overlap into the
high-growth natural/organic segment, heightened food safety concerns stemming
from the sweeping pet food recalls of spring 2007, and the mobilization of the
raw/frozen pet food market via the formation of two industry groups: The North
American Raw Petfood Association and the Canadian Association of Raw Pet Food
Manufacturers.
This groundbreaking report from Packaged Facts-the first market report to
quantify this dynamic segment of the North American pet food market-is
grounded in primary interviews with top industry experts supported by
extensive canvassing on the Internet, where the "word-of-mouth" raw foods
movement has long been based and continues to spread. The report defines the
North American pet food market as consisting mainly of raw diets sold in
frozen form to consumers in the United States and Canada-but the definition
also includes refrigerated or frozen pet foods that have been lightly cooked
(i.e., pasteurized) and uncooked products made shelf-stable via freeze-drying
or other processes of dehydration. This report also examines the growing trend
toward homemade pet foods, especially within the context of overlap with raw
pet foods and commercial pet food mixes, and the market trend toward the usage
of fresh ingredients in traditional shelf-stable dry and wet pet foods.
Key features of the report include:
Detailed explanation of the two raw/frozen product segments: BARF (Bones
and Raw Food) and Raw Meaty Bones (aka, "prey model").
Market size and composition figures including historical and projected
market size and market composition (by country, product type, retail outlet,
consumer demographic).
Comprehensive "Market Outlook" chapter covering factors including pet
health, industry initiatives, effects of 2007 recalls, impact of 2008
recession, Internet trends, product safety issues and regulatory trends.
Identification of all major players and many "minors," with close-up look
at market leaders including raw/frozen leader Nature' s Variety and
refrigerated leader Freshpet.
Close-up look at refrigerated pet food, which the report predicts will
soon "be commonly available in supermarket chains nationwide."
Competitive trends and forecasted market entry of mainstream major pet
food players.
Current and emerging product trends including "complete and balanced,"
organic, no-allergy/grain-free, convenience, homemade, treats, functional
foods, and produce mixes and supplements.
Table of Contents
Table of Contents
Chapter 1: Market Trends
Introduction
Scope of Report
Natural Diets vs. Natural Pet Food
Raw/Frozen Foods
Dr. Billinghurst' s BARF Diet
The Raw Meaty Bones (Prey Model) Approach
Raw Food Processing
Pasteurization
Freeze-Drying
Product Packaging
Product Regulation
Related Terms
Report Methodology
Market Size and Composition
Double-Digit Sales Growth
Figure 1-1: North American Retail Sales of Fresh Pet Food: 2003-2012 (in
millions of dollars) IRI-Tracked Sales of Frozen and Refrigerated Pet Food
Table 1-1: IRI-Tracked U.S. Sales of Frozen/Refrigerated Pet Food,
2003-2008 (in millions of dollars) Market Composition
Figure 1-2: Share of North American Sales of Fresh Pet Food by Product
Type: 2007 (percent)
Figure 1-3: Share of North American Retail Sales of Fresh Pet Food by
Retail Channel: 2007 (percent) Market in Context
Table 1-2: Alternative Pet Food Segment Performance Relative to Total
North American Pet Food Market (percent, growth rate) Consumer Trends Number
of Frozen Pet Food and Human Food Feeders
Table 1-3: Percentage of Dog and Cat Owners Purchasing Frozen Pet Food
in Past 12 Months: 2002, 2004 and 2006
Table 1-4: Percentage of Dog and Cat Owners Purchasing Human Food for
Use as Pet Food: 2002, 2004 and 2006
Fresh Pet Food Purchaser Demographics
Market Outlook
The Core Market Driver: Health
The Holistic Vet Connection
Raw Pet Food Industry Beginning to Organize
The North American Raw Petfood Association
The Canadian Association of Raw Pet Food Manufacturers
FDA Issues Final Guidance on Raw Meat for Animals
Pet Food Recall Drives Pet Owners to Alternative Foods
Figure 1-4: Effect of Pet Food Recall on Pet Food Sales in Pet Specialty
Stores, May 2007 (percent)
Figure 1-5: Effect of Pet Food Recall on Pet Specialty Retailer Pet Food
Selection, January 2008 (percent) Ongoing Effects
Effects of 2008 Recession
Pet Food Prices at Record Highs and Still on the Ups
Figure 1-6: Consumer Price Index for Pet Food, 1998-2008
Figure 1-7: Producer Price Index for Pet Food, 1998-2008 Growth of
Internet as Pet Product Marketing Venue
Figure 1-8: Percentage Rates for Use/Influence of Internet: Overall
Households vs. Dog- or Cat-Owning Households, 2007
Safety Concerns Over Raw/Frozen Foods
FDA Targets Raw Food Makers
Competitive Trends
Leading North American Marketers
Table 2-1: North American Marketers and Brands of Raw/Frozen and
Refrigerated Pet Food, 2008 Crossing Category Lines
Company Snapshot: Nature' s Variety
The Mass-Market Players: Freshpet and Bil-Jac
Table 2-2: IRI-Tracked U.S. Sales of Frozen and Refrigerated Pet Food by
Marketer, 2003-2008 (in millions of dollars)
Freshpet Makes a Refrigerated Splash
Bil-Jac Well Positioned for Fresh Market Growth
The Freezer Factor
Frozen Novelties, Cooked Gourmet Foods Also Driving Freezer Push in
Mass-Market Channel
Distribution Trends
Phillips a Leading Raw Pet Food Distributor
Paw Naturaw Launches Wholesale Direct
Marketing Tools
Focus on Safety
New Processing Techniques to Ensure Product Safety
Positioning on Ethical
Internet Marketing
Competition from Traditional Pet Food Makers
Figure 2-1: Top Pet Department Brands in Natural Food Supermarkets:
March 2007 vs. March 2008 (% growth in dollar sales)
Product Trends
Complete and Balanced
Organic
No-Allergy/Grain-Free
Focus on Convenience
Back to Homemade?
New Zealand Appeal
Training Treats
Targeted Functional Foods
Produce Mixes and Supplements
Fresh Pet Food in North America: The Raw/Frozen, Refrigerated and Homemade Wave published by Packaged Facts in July 1, 2008. This report consists of 82 pages and the price starts from US $ 2500.
