Pet Food in the US, 17th Edition

Table of Content

CHAPTER 1: EXECUTIVE SUMMARY

MARKET TRENDS

Market Overview

Scope of Report: Dogs and Cats

Exclusions

Research Methodology

Illustration 1-1. US Census Regional Divisions and Sub-Divisions

Market Size and Growth

Market Drivers

Looking Ahead

COMPETITIVE TRENDS

Marketer Trends

Retail Channel Trends

Figure 1-1. Level of Agreement with the Statement, "Private label (store brand) pet foods provide the same or better quality compared to national brand pet foods", 2023 (percent of pet owners)

MARKETING AND NEW PRODUCT TRENDS

Pet Owners Trust Themselves for Pet Food Decisions

Focus on Value

Fresh Pet Foods Continue to Make Inroads

Interest Grows in Freeze-Dried (and Air-Dried) Foods

Alternative and Sustainable Ingredients and Recipes

Figure 1-2. Agreement with Selected Statements Related to Pet Food Sustainability and Eco-Consciousness, 2023 (percent of pet owners)

Science-Based Diets on a Roll

Natural Positioning Takes Backseat to Other Product Claims

Advancements in Human-Grade Pet Food

Locally Sourced and Made in the USA

Just for Cats

Meal Enhancements and Toppers

CONSUMER TRENDS

Introduction

Two Consumer Survey Sources

Buying Patterns by Pet Food Type

Topline Usage Rates for Dry/Wet Pet Food and Pet Treats

November 20 ii 23 © Packaged Facts

Buying Patterns by Pet Food Formulation Types

Regular vs. Specialty

Formulations Targeting Specific Health Conditions

Meat-First Leads in Ingredient-Based Formulations

Ingredient Sourcing as Marketing Claims

"Natural" Claims and Progressive Positionings

Buying Patterns in Pet Food Packaging

Dry Pet Food Usage by Weight

Wet Pet Food Packaging Type

Pet Food Marketers and Brands by Consumer Draw

Top Dog/Cat Food Marketers

Top Dry Dog Food Marketers and Brands

Top Wet Dog Food Marketers and Brands

Top Dry Cat Food Marketers and Brands

Top Wet Cat Food Marketers and Brands

Demographic Indices for Purchasing of Selected Brand Lines

OPPORTUNITIES

Value Positioning

Figure 1-3. Reduction in Spending on "Extras", 2023 (percent of pet owners)

Private Label

Health and Wellness/Functional Products

Alternative Form Pet Food

Fresh Pet Food

Freeze-Dried (and Air-Dried) Products

Cat-Specific Foods

Direct-to-Consumer (DTC) Marketing

CHAPTER 2: MARKET TRENDS

CHAPTER HIGHLIGHTS

MARKET OVERVIEW

Scope of Report: Dogs and Cats

Exclusions

Other Marketing Classifications

MARKET SIZE AND GROWTH

Pet Food Sales to Top $50 Billion

Table 2-1. US Retail Sales of Dog and Cat Food, 2018 - 2023P (in billions of dollars and percent change)

Dog Food Dominates Pet Food Sales

Figure 2-1. Share of US Retail Dollar Sales of Pet Food by Animal Type: Dog vs. Cat, 2023P (percent and billions of dollars)

Table 2-2. US Retail Sales of Dog Food vs. Cat Food, 2018 - 2023P (in billions of dollars and percent)

Dry Pet Food Tops in Sales

November 2023 © Packaged Facts iii

Figure 2-2. Share of US Retail Dollar Sales of Pet Food by Form: Dry, Wet, Frozen/Refrigerated, Semi-Moist, 2023P (percent and billions of dollars)

Fresh Pet Food Sales

Figure 2-3. US Retail Sales of Fresh Pet Food, 2021, 2022, 2023P and 2027P (billions of dollars and percent growth)

Freeze-Dried and Air-Dried Pet Food Sales

Figure 2-4. US Retail Sales of Freeze-Dried and Air-Dried Pet Food, 2021, 2022, 2023P, and 2027P (billions of dollars)

Dry Dog Food Nearly 50% of the Market

Table 2-3. Share of US Retail Sales of Pet Food by Form and Animal Type, 2023P (billions of dollars and percent)

Households Spend the Most on Dry Food

Table 2-4. Annual US Household Expenditures on Pet Food by Product Form, 2023P (in billions of aggregate dollars and per-household dollars)

Households Spend More on Dog Food

Table 2-5. Annual US Household Expenditures on Pet Food by Animal Type, 2023P (in billions of aggregate dollars and per-household dollars)

Annual Household Expenditures on Dog Food

Table 2-6. Annual Household Expenditures on Dog Food by Product Type, 2023P (in billions of aggregate dollars and per-household dollars)

Annual Household Expenditures on Cat Food

Table 2-7. Annual Household Expenditures on Cat Food by Product Type, 2023P (in billions of aggregate dollars and per-household dollars)

Most Pet Owners Spend Under $75 Per Month on Pet Food

Figure 2-5. Average Monthly Expenditure on Pet Food, 2023 (percent of dog-only and cat-only owners)

Sales by Channel: E-commerce in the Lead

Figure 2-6. Share of Dollar Sales of Pet Food by Channel, 2023P (percent and billions of dollars)

Projected Channel Share Shifts

Table 2-8. Modeling of Projected Shifts in Retail Channel Shares of US Pet Food Sales, 2023P vs. 2027P (percent)

MARKET DRIVERS

Price Inflation Top-of-Mind Concern

Pet Owners Squeezed on All Sides

Figure 2-7. Level of Concern About Rising Prices in Consumer Categories, 2023 (percent of pet owners)

Impact on Pet Food Spending

Figure 2-8. Consumer Price Index for All Urban Consumers: Pet Food, 2013 - September 2023 (index)

Figure 2-9. Reduction in Spending on "Extras", 2023 (percent of pet owners)

Table 2-9. Changes in Levels of Pet Food Spending in Last 12 Months, February 2021, January 2022, February 2023, and September/October 2023 (percent of pet food purchasers)

Pet Food's No. 1 Pet Health Role

Figure 2-10. Pet Health Products Considered Most Important: Dog vs. Cat Owners, 2023 (percent)

November 20 iv 23 © Packaged Facts

Table 2-10. Level of Agreement with Selected Statements Related to Pet Food and Pet Health: Pet Owners Overall, Dog Owners, and Cat Owners, 2023 (percent of dog and cat owners)

Overall Focus on Health and Wellness

Table 2-11. Level of Agreement with Statement: "My pets are important to my mental/physical health", 2023 (percent of dog, cat, and other pet owners)

Pet Obesity and Aging Pets Contribute to Health Concerns

Table 2-12. Share of Dog/Cat Owners Who Report Having Special Needs Pets, 2023 (percent)

Table 2-13. Percent of Dog- and Cat-Owning Households with Puppies/Kittens under Age 1 or Senior Dogs/Cats Age 7+, 2013/14 - 2022/23 (percent)

Trend Away From Smallest Dogs

Figure 2-11. Size/Weight of Dogs Acquired in Last 12 Months, February 2023 (percent)

Table 2-14. Distribution of Dog-Owning Households by Size of Dogs, 2013/14 - 2022/23 (percent of dog owners)

Declining Dog Population

Table 2-15. Dog-Owning Household Population by Generational Cohort, 2017-2023 (number in thousands)

• Higher-Income Household Share of Pet Food Spending Drops in

Table 2-16. $70K+ Household Share of Pet Market Expenditures: By Classification, 2012 - 2022 (percent)

Pets Central to Home Life

Figure 2-12. Level of Agreement with Statement: "I consider my pets to be part of the family", 2023 (percent of pet owners)

Figure 2-13. Level of Agreement with Statement: "My pets are central to my home life", 2022 (percent of pet owners)

Pets and Owners Physically Closer than Ever

Table 2-17. Where Pets Are Typically Kept: Dogs vs. Cats, 2023 (percent of pet owners)

Table 2-18. Where Pet Owners Feed Their Pets: Dogs vs. Cats, 2023 (percent of pet owners)

Sustainability Initiatives Cross Several Trend Lines

Opportunities in Cat Market Remain

Figure 2-14. Agreement with the Statement, "Cats are sometimes treated as second-class citizens by…", 2019, 2022, and 2023 (percent of cat owners)

Studies Find No Link Between DCM and Grain-Free Pet Food

AAFCO Approves New Label Guidelines for Pet Food

LOOKING AHEAD

Sales Growth Moderates But Remains Strong

Table 2-19. Projected US Retail Sales of Pet Food: Dog vs. Cat, 2022 - 2027 (in billions of dollars and percent)

CHAPTER 3: COMPETITIVE TRENDS

CHAPTER HIGHLIGHTS

MARKETER TRENDS

A Highly Consolidated Market

November 2023 © Packaged Facts v

Dry and Wet Dog and Cat Food Usage Rates

Table 3-1. Top Dry Dog Food Brands by Customer Base, 2022/2023 (percent and number of dog-owning households)

Table 3-2. Top Dry Cat Food Brands by Customer Base, 2022/2023 (percent and number of cat-owning households)

Table 3-3. Top Wet Dog Food Brands by Customer Base, 2022/2023 (percent and number of dog-owning households)

Table 3-4. Top Wet Cat Food Brands by Customer Base, 2022/2023 (percent and number of cat-owning households)

Brand Loyalty Strained in Current Economy

Figure 3-1. Types of Pet Food Changes Made, 2023 (percent of pet owners who changed pet foods in past 12 months)

Recent Mergers, Acquisitions, and Investments

Private Equity Firm Acquires Assisi Pet Care

Sunshine Mills Expands Treats Capacity

Private Equity Firm Acquires Alphia

Natural Balance and Canidae Merge to Form Ethos Pet Brands

BrightPet Nutrition Group Acquires Raw Advantage

Alphia Invests in Better Choice Company

Smalls Receives Capital Investment

Post Acquires Pet Brands from Smucker

Beach Point Capital Acquires Controlling Stake in Wet Noses

Mars Petcare Acquires Champion Petfood

BrightPet Nutrition Group Acquires Bravo! Pet Foods

Premium Pet Food Brand Ziwi Acquires New Zealand-Based Freeze-Dried Foods

Pet Industry Leaders Back Pet Food Startups with Venture Funds

Mars Launches Companion Fund II

Mars' Leap Venture Studio and Academy

Nestle Purina's PetCare Innovation Prize

Illustration 3-1. Purina's Pet Care Innovation Prize Members

Smucker Downsizes Pet Food Portfolio

Post Jumps Into Pet Food Feet First

General Mills/Blue Buffalo Exploring New Growth Avenues

New Directions: Fresh Pet Food, Cat Food, Treats

Illustration 3-2. BLUE Fresh Pet Food

Mars Bulks Up Superpremium Portfolio

Purina Contributes Most to Nestle Growth Despite Challenges

Hill's Invests in Science-Based Success

Illustration 3-3. Hill's Science Diet Landing Page

The Fight for "Best Dog Food"

Alternative Formats' Continued Appeal

Table 3-5. Pet Food Usage by Alternative Type, 2023 (percent of pet owners)

• Freshpet Continues Forward Momentum in

November 20 vi 23 © Packaged Facts

Figure 3-2. Freshpet 2022 - 2023 Volume Growth

• Figure 3-3. Freshpet Projected Sales Through

Retailers Also Ramping Up in Fresh

Freeze-Dried Segment Retains Appeal

Sustainable Pet Food Formulas and Industry Initiatives

Table 3-6. Level of Agreement with Selected Statements Related to Pet Food Sustainability and Eco-Consciousness: By Generational Cohort, 2023 (percent of pet food purchasers)

Table 3-7. Level of Agreement with Selected Statements Related to Pet Food Sustainability and Eco-Consciousness: By Generational Cohort, 2023 (percent of pet food purchasers)

Illustration 3-4. Canidae Sustain Line of Sustainable Pet Foods

Illustration 3-5. Purina ONE DualNature Sustainable Cat Food

Sustainable Packaging a Key Challenge

Animal Welfare Remains a Concern

Figure 3-4. Level of Agreement with the Statement, "I'm concerned about the ethical/humane treatment of the animals raised to use in pet food/treats/chews", 2023 (percent of dog and cat owners)

RETAIL CHANNEL TRENDS

In-Store Shopping Leads in Pet Food Purchasing

Figure 3-5. Where Purchased Pet Food in Past 12 Months, 2023 (percent of pet food purchasers)

Figure 3-6. Where Purchased Pet Food in Past 12 Months, In a Physical Store, 2023 (percent of in-store pet food purchasers)

Figure 3-7. Where Purchased Pet Food in Past 12 Months, Online, 2023 (percent of online pet food purchasers)

MRI-Simmons Data Provides Additional Insight

Table 3-8. Where Purchased Pet Food in Last 6 Months, Dog vs. Cat Food, 2023 (percent of pet food purchasers)

Cross-Shopping Patterns for Pet Food Across Top Retailers

Table 3-9. Pet Food Cross-Shopping Indices: Selected Retailers, 2023 (percent of pet food shoppers)

Autoship Programs Promote Retailer Loyalty

Table 3-10. Share of Dog/Cat Product Shoppers With Current Pet-Related Subscriptions for Products or Services by Type: Overall and by Dog vs. Cat Owners, 2023 (percent)

Table 3-11. Share of Pet Product Shoppers With Current Pet-Related Subscriptions for Products or Services by Type: Overall and by Generational Cohort, 2023 (percent)

PETCO Balances Premium and Value Products

PetSmart Partners with Uber for Pet Food Delivery

Amazon Continues Pet Market March

Figure 3-8. Amazon Prime Membership, 2018/19, 2020/21, and 2022/23 (percent of overall and of dog- and cat-owning households)

Illustration 3-6. Amazon Wag Brand Dog Food and Treats

Private Label Foods a Big Draw

Figure 3-9. Level of Agreement with the Statement, "Private label (store brand) pet foods provide the same or better quality compared to national brand pet foods", 2023 (percent of pet owners)

November 2023 © Packaged Facts vii

Table 3-12. Private Label Pet Food Usage, 2022/2023 (percent and number of dog- and cat-owning households)

Figure 3-10. Private Label Pet Food Usage, Spring 2020 through Summer 2023 (share of pet food purchasers)

Illustration 3-7. Spot & Tango's "Affordable Fresh" Pet Food

CHAPTER 4: MARKETING AND NEW PRODUCT TRENDS

CHAPTER HIGHLIGHTS

MARKETING AND NEW PRODUCT TRENDS

Pet Owners Trust Themselves for Pet Food Decisions

Table 4-1. Most Important Sources of Information About Pet Food, 2023 (percent of pet food purchasers)

Table 4-2. Strongest Influences on Most Recent Pet Food Purchase, 2023 (percent of pet food purchasers)

Focus on Value

Illustration 4-1. MudBay Email Focus on Pet Food Value

Fresh Pet Foods Continue to Make Inroads

Illustration 4-2. Primal Pet Foods Gently Cooked Balanced Base Pet Foods

Illustration 4-3. The Pets Table from HelloFresh

Illustration 4-4. Freshly Crafted Pet Food by Full Moon

Illustration 4-5. i and love and you Irresist-a-Bowls

Illustration 4-6. Nulo Gently-Cooked Meals

Illustration 4-7. HappyBond Power Food Selection

Interest Grows in Freeze-Dried (and Air-Dried) Foods

Illustration 4-8. Artie Gently Cooked Pet Food System

Illustration 4-9. Earth Animal Wisdom Air-Dried Dog Foods

Illustration 4-10. NutriSource Element Series Freeze-Dried Raw Bites

Illustration 4-11. Yummers Freeze-Dried Dog Food Recipes

Alternative and Sustainable Ingredients and Recipes

Figure 4-1. Top Flavors for Chewy.com Dry Dog Food Offerings, 2023 (percent of dry dog food products)

Limited Ingredient Diets Feature Alternative Proteins, Simple Ingredients

Sustainable Ingredients and Alternative Protein Sources

Figure 4-2. Agreement with Selected Statements Related to Pet Food Sustainability and Eco-Consciousness, 2023 (percent of pet owners)

Table 4-3. Agreement with Selected Statements Related to Pet Food Sustainability and Eco-Consciousness, By Generation, 2023 (percent)

Plant-Based Diets

Illustration 4-12. The Pack Vegan Dog Food

Illustration 4-13. Omni Plant-Based Dog Food

Insect-Based Diets

Illustration 4-14. Jiminy's Good Grub Wet Entree

Illustration 4-15. Tuggs Pork Power Insect Protein Recipe

November 20 viii 23 © Packaged Facts

Science-Based Diets on a Roll

Illustration 4-16. Hill's New Prescription ONC

Illustration 4-17. Sunshine Mills Veterinary Select

Spotlight on Microbiome

Illustration 4-18. Hill's Microbiome Focus

Focus on Postbiotics

Illustration 4-19. Nutrena's Loyall Life Postbiotic Pet Food

Natural Positioning Takes Backseat to Other Product Claims

Figure 4-3. Pet Owner Attitudes Toward Natural Pet Food and Nutrition, 2023 (percent of pet owners)

Figure 4-4. Pet Owner Attitudes on Pet Food Safety, 2023 (percent of pet owners)

Advancements in Human-Grade Pet Food

Figure 4-5. Pet Owner Attitudes Toward Human Foods and Human-Grade Pet Foods, 2023 (percent of pet owners)

Illustration 4-20. Full Moon Pet's New Freshly Crafted Dog Food

Pet Pampering Taken to the Next Level

Figure 4-6. Level of Agreement with the Statement, "I like to buy pet foods that pamper my pet", 2023 (percent of pet owners)

Illustration 4-21. REAL MESA Mediterranean Chicken & Rice Entree

Locally Sourced and Made in the USA

Figure 4-7. Level of Agreement with the Statement, "I actively seek out pet foods made in the USA", 2023 (percent of pet owners)

Just for Cats

Illustration 4-22. Hill's Prescription Diet Landing Page

Illustration 4-23. Temptations Dry Cat Foods

Illustration 4-24. ORIJEN Amazing Pates Wet Cat Food

Illustration 4-25. NutriSource Element Series Cat Diets

Meal Enhancements and Toppers

Illustration 4-26. Bocce's Bakery Food Toppers

Illustration 4-27. Tiki Cat Functions Meal Toppers

CHAPTER 5: CONSUMER TRENDS

CHAPTER HIGHLIGHTS

INTRODUCTION

Two Consumer Survey Sources

Packaged Facts Data

MRI-Simmons Data

Illustration 5-1. US Census Regional Divisions and Sub-Divisions

BUYING PATTERNS BY PET FOOD TYPE

Topline Usage Rates for Dry/Wet Pet Food and Pet Treats

Figure 5-1. Dry Food and Wet Food Usage Rates: Dog vs. Cat Categories, 2007/08 - 2022/23 (percent of dog/cat-owning households)

Table 5-1. Dog Food and Cat Food Customer Base: Dry vs. Wet, 2007/08 - 2022/23 (in thousands of households)

November 2023 © Packaged Facts ix

Table 5-2. Pet Food Usage by Type, 2023 (percent of pet owners)

Usage Rates for Pet Food Toppers

BUYING PATTERNS BY PET FOOD FORMULATION TYPES

Regular vs. Specialty

Figure 5-2. Use of General Pet Food Formulation Types, 2023 (percent of dog/cat owners)

Formulations Targeting Specific Health Conditions

Figure 5-3. Use of Pet Food Formulations Based on Health Condition Claims, 2023 (percent of dog/cat owners)

Meat-First Leads in Ingredient-Based Formulations

Table 5-3. Use of Pet Food Formulations Based on Ingredient Claims, 2023 (percent of dog/cat owners)

Ingredient Sourcing as Marketing Claims

Figure 5-4. Use of Pet Food Formulations Based on Geographic Sourcing Claims, 2023 (percent of dog/cat owners)

"Natural" Claims and Progressive Positionings

Figure 5-5. Use of Pet Food Formulations Based on Natural/Sustainability Related Claims, 2023 (percent of dog/cat owners)

BUYING PATTERNS IN PET FOOD PACKAGING

Dry Pet Food Usage by Weight

Table 5-4. Dry Dog Food Purchasing Trends by Weight, 2017/18 - 2022/23 (percent of dog-owning households)

Wet Pet Food Packaging Type

Table 5-5. Wet Pet Food Purchasing Shares by Packaging Type: Dog Food vs. Cat Food, 2018/19 - 2022/23 (percent of dog/cat-owner purchasing)

PET FOOD MARKETERS AND BRANDS BY CONSUMER DRAW

Top Dog/Cat Food Marketers

Figure 5-6. Leading Marketers by Purchase Rate: Dog/Cat Food, 2022/23 (percent of dog- and cat-owning households)

Top Dry Dog Food Marketers and Brands

Figure 5-7. Leading Marketers by Purchase Rate: Dry Dog Food, 2022/23 (percent of households purchasing dry dog food)

Table 5-6. Select Dry Dog Food Brands by Usage Rate, 2022/23 (percent and number of households)

Top Wet Dog Food Marketers and Brands

Figure 5-8. Leading Marketers by Purchase Rate: Wet Dog Food, 2022/23 (percent of households purchasing wet dog food)

Table 5-7. Select Wet Dog Food Brands by Usage Rate, 2022/23 (percent and number of households)

Top Dry Cat Food Marketers and Brands

Figure 5-9. Leading Marketers by Customer Base: Dry Cat Food, 2022/23 (percent of households purchasing dry cat food)

Table 5-8. Leading Dry Cat Food Brands by Usage Rate, 2022/23 (percent and number of households)

Top Wet Cat Food Marketers and Brands

November 20 x 23 © Packaged Facts

Figure 5-10. Leading Marketers by Customer Base: Wet Cat Food, 2022/23 (percent of households purchasing wet cat food)

Table 5-9. Leading Wet Cat Food Brands by Usage Rate, 2022/23 (percent and number of households)

Demographic Indices for Purchasing of Selected Brand Lines

Table 5-10. Demographic Indices for Selected Leading Brands of Dry Dog Food, 2022/23 (base index among dog owners overall = 100)

Table 5-11. Demographic Indices for Selected Leading Brands of Wet/Canned Dog Food, 2022/23 (base index among dog owners overall = 100)

Table 5-12. Demographic Indices for Selected Leading Brands of Dry Cat Food, 2022/23 (base index among dog owners overall = 100)

Table 5-13. Demographic Indices for Selected Leading Brands of Wet/Canned Cat Food, 2022/23 (base index among dog owners overall = 100)

Table 5-14. Demographic Indices for Store Brand Dog and Cat Food, 2022/23 (base index among dog owners overall = 100)