Pet Supplements Market to Soar—Packaged Facts

The U.S. pet supplements market is on the precipice of a revival. Between 2010-2014, the market fell from the double digit growth rates enjoyed during the first decade of the millennium to a more modest compound annual growth rate (CAGR) of 4% as a tepid economic environment waylaid the segment’s momentum.  But with America’s discretionary spending on the uptick, along with a myriad of other essential pet industry-specific factors, the next five years will mark a return to form for pet supplements. Sales are expected to increase from $541 million in 2014 to exceed $697 million in 2019. Packaged Facts identified several key pet industry-specific factors that will impact the future of the pet supplements market both now and for the foreseeable future. Three of the most essential factors include: ·         Premiumization marketing in relation to natural and organic pet supplements:  Market share of natural and organic pet supplement sales almost doubled between 2008 and 2014, going from 6% in 2008 to 11% market share in 2014.  The approach used by many pet supplement marketers is to create premium and super premium products. This “premiumization pressure” is a potent driver for increasing sales of natural and organic products, since these concepts increasingly also equate to “natural.” Pet owners are willing to spend more if they believe the products offer superior health and wellness benefits, and this connection will help increase sales growth of natural pet supplements. ·         Pet obesity/weight management: There is no question obesity in pets is a significant problem in the U.S. There is enormous potential for rapidly expanding this category of products over the next five years. The key for pet supplement marketers is to get pet owners to care about weight management for their pet at the same level as people care about their own weight gain and the rising level of obesity amongst people. ·         Senior pets: Elderly dogs and cats are a major pet demographic in the U.S., with a third of cats and dogs being seven years or older. Dealing with aging pets is invariably something on the mind of many pet owners. Almost half of all pet owners in Packaged Facts’ January 2015 survey were buying age-related food and nutrition products for their pet. Based on these survey results, there is clearly a market for elderly pet products that marketers can tap into.