Americans love their pets. 70% of U.S. households own a pet according to the new 2021-2022 APPA National Pet Owners Survey—that’s roughly 90.3 million homes. The pandemic has only increased pet ownership as people adopted pets as a coping mechanism during the early lockdowns. According to the Washington Post, “more than 23 million American households — nearly 1 in 5 nationwide — adopted a pet during the pandemic.” The global pet care market is expected to be worth $350 billion USD by 2027 with a CAGR of 6.1%. Read about the top trends shaping the industry:

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PET HUMANIZATION

The humanization trend is expected to continue being a major driver of growth in the industry. Kate Jaffe, trend expert at Rover, says, “If you ask most parents, they'll say that their top priority is providing their children with happy, healthy and fulfilling lives — and they'll do just about everything in their power to make that happen. I really think we're approaching the point where the same can be said for pet parents.” 95% of American pet owners now consider pets to be members of the family. This has contributed to increased spending in the category. 35% of pet owners spent more on their pet – including food, wellness-related products and other pet care items – in the last 12 months.” As innovative pet brands bring new pet products and services to market, “previously niche areas, such as grooming and daycare,” will be brought into the mainstream. Pet humanisation is a trend set to continue to be a major source of growth for the pet care industry.

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PET PREMIUMIZATION

In many ways, premiumization is a by-product of the humanization trend. The rise of pet parents has created increased demand for premium pet care products. On a recent investor call, Ron Coughlin, CEO of Petco, stated, “Premiumization has been a multiyear trend. And even today, we're seeing its continuation.” The success of high-end brands like Reddy are a testament to this growing appetite for premium pet products. The premiumization trend is also impacting pet food. 41% of dog owners say they specifically choose to feed their dogs premium food, which is a 4% YoY increase. Jared Koerten, senior head of pet care research at Euromonitor International, says, “In the two largest global pet food markets — the U.S. and China — freeze-dried products continue to reach out and gain more and more share, as this interest in raw food and the very premium nature of those products continues to accelerate.”

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SUSTAINABILITY

According to a recent poll from Rover, almost 75% of pet owners said “they are interested in learning how to live more sustainably with their pets.” 81% said “that taking care of their pet in an environmentally-friendly way is important to them.” Environmental sustainability is very important to consumers, and pet brands need to recognize that. “The link between sustainability goals and a successful brand is directly related to what customers are coming to expect from the companies they choose to bring into their homes.” Sustainability is easily relevant in pet food. Researchers in 2017 “found that the carbon footprint of pet food is 64 million tons per year in the U.S. alone.” That is roughly the equivalent of operating 16 coal power stations for a full year. Globally, pets consume roughly 20% of the world’s total supply of meat and fish.  Pet brands will need to make smart decisions as they manage their supply chain and products to meet high consumer sustainability expectations. Successful pet brands are working to improve their environmental impact by reducing waste through recycled packaging, decreasing dependency on plastic in their product assortments, and leveraging natural by-products/eco-friendly materials.

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HEALTH + WELLNESS

Pet Insurance is a rapidly growing sector in the pet care industry. Growing consumer awareness, combined with a largely untapped US market are key drivers for growth. Currently, roughly  
“three-quarters of animal owners [in the United States] do not have pet insurance,” but analysts expect that number to dramatically shrink over the next decade. Globally, the pet insurance market size is “anticipated to reach USD 32.7 billion by 2030…[with] a CAGR of 16.7%.” According to market research, an unexpected veterinarian visit could cost pet owners between $800 and $1,500 USD. As pet healthcare costs continue to rise, consumers will look to protect themselves from unwanted financial risk.

Pet supplements have exploded in popularity over the past decade. The pet supplement industry was valued at $1.47 billion USD in 2020, and the industry is expected to grow at a CAGR of 5.9% over the next 6 years according to a report from Grand View Research. As pets become part of the family, pet supplements will become increasingly important because they can play an important role in preventive healthcare. Common supplement categories include dog vitamins, cat fish oil and dog probiotics, but “perhaps the fastest-growing pet supplement category is CBD.”  Searches like “cbd for dogs” have increased by 2400% over the last 10 years. CBD infused pet supplements could help treat canine osteoarthritis, which affects many older dogs. The pet supplements industry is predicted to see significant growth as companies craft new types of pet supplements “that are more effective, better tasting, more lasting, more exciting, and cure more health issues in order to satisfy the ever-demanding consumer.”

Highly engaged pet parents will continue to be a major driver of growth in the pet care industry. At CASTUS, we work with some of the largest pet brands in the world to drive sustainable long-term sales growth. We would love to learn more about your business development needs. Contact us today.