The pet food market - United States (2023)

The global pet food market has experienced robust growth since 2020, with the U.S. leading as the largest market. The industry exhibits a high degree of consolidation, with top players like Mars, Nestlé, and JM Smucker holding substantial market shares. Premiumization drives the sector, with a noticeable shift towards healthier and high-quality alternatives due to increasing pet obesity. The U.S. pet population rose to 154.3 million by 2022, reflecting Americans' growing passion for pets. The average annual growth rate of the U.S. pet industry from 2018 to 2022 was 8.6%. Online shopping for pet food has surged, with 42% of consumers increasing their online purchases in 2022. Regulatory bodies like the FDA oversee the industry to ensure product safety and quality. Foreign trade has been dynamic, with U.S. imports of dog and cat food tripling from 2016 to 2022, resulting in a trade surplus despite a faster increase in imports than exports. Premium segments like 'health & wellness' are seeing the most growth, overshadowing volume sales with a notable rise in unit prices.

Rising Passion for Pets and Premium Products Fuel Market Trends in the U.S. Pet Food Industry

The U.S. pet food market has witnessed significant growth, catalyzed by an increasing affinity for pet ownership and a surge in premium product demand. From 2011 to 2022, the dog and cat population showed remarkable increases, with the number of dogs ascending by nearly 50% and cats by approximately 20%. In tandem with this growth, the percentage of American households owning a pet also soared, reaching roughly 70% in 2022 compared to about 56% in 1988. The figures suggest that pets are more than just animals; they are cherished companions, as indicated by a strong trend towards pet humanization.

Statistics reflect the immense love pet owners harbor for their furry friends, with a striking 40% of New Yorkers admitting to spending more on pampering their dogs than their partners. This lavish treatment isn't limited to New York, as the trend spreads across various states, with many Americans going to lengths to ensure their pets' comfort and happiness. This affection translates to financial terms as well. The average annual expenditure on pet care sits between $200 and almost $2000, with those earning over $200,000 per year allocating on average closer to $1500 towards their pets. Food remains the most significant expense, accounting for nearly half of total costs according to respondents. As pet parents prioritize the health and nutrition of their furry companions, the demand for premium, healthier food alternatives has intensified, partly due to the prevalence of pet obesity. This shift towards premiumization is evident in the pet food prices, which outpaced average U.S. inflation rates between December 2021 and May 2023. In response to this trend, industry giants are consolidating their positions by expanding assortments with health and well-being focused offerings.

The U.S. market itself is highly consolidated, with leading companies holding significant shares. The market reflects a powerful oligopoly where a handful of players exert substantial influence over trends and market dynamics. Regarding purchasing habits, there is a clear tilt towards online shopping, with nearly half of pet owners increasing their frequency of online purchases in 2022. This is complemented by a preference for in-store pickups, indicating an inclination to blend online convenience with in-store benefits. Notably, dry pet food claims the lion's share of the market, resonating with consumers for its convenience and perceived benefits to pet health. However, the rising prices have not deterred consumers, suggesting a relatively inelastic.

Leading Titans of the Pet Food Industry

In an industry teeming with competition and variety, a few giants stand tall, shaping the market dynamics with their expansive product offerings and marketing strategies. The pet food sector, already a robust and growing market, is dominated by companies that have become household names due to their longstanding reputations and extensive research in pet nutrition and health. Here we unveil the prominent players steering the global pet food market, shaping the trends, and setting the standards for quality and innovation.

• Mars Petcare Inc. A perennial powerhouse in the pet food industry, Mars Petcare Inc. doesn't rest on its laurels. With a plethora of brands under its umbrella, including well-known names such as Eukanuba and Iams, Mars has managed to secure a substantial portion of the market share. The company's approach to pet care revolves around comprehensive research and development, focusing on both nutritional value and taste to cater to the diverse needs of pets worldwide.
• Nestlé Purina Petcare Nestlé Purina Petcare is another major contender with a competitive edge in nutrition and science. Their brands, such as Purina One and Purina Pro Plan, are frequently found on the shelves of pet owners eager to provide their companions with meals that are not just satiating but also tailored to support overall health and well-being. Nestlé Purina's dedication to quality, backed by rigorous testing and quality control, assures customers of the safety and efficacy of their pet food products.
• Hill's Pet Nutrition A subsidiary of Colgate-Palmolive, Hill's Pet Nutrition is synonymous with clinically researched food products designed for pets with specific dietary needs. Their prescription diet and science diet lines are extensively recommended by veterinarians, emphasizing Hill's commitment to creating pet food that aids in managing health conditions and enhancing the lives of pets through nutrition.
• J.M. Smucker Best known for its human food products, J.M. Smucker has a significant presence in the pet food market as well. The company's acquisition of brands that cater to pets has allowed it to flourish in this niche, offering an assortment of food options that promise both quality and variety for pet owners.
• General Mills General Mills, another company with a legacy in the human food industry, has made a strong foray into pet food with the acquisition of Blue Buffalo. They have successfully leveraged their experience to establish a foothold in the premium pet food market, attracting pet owners who are willing to invest in higher-end nutrition for their furry family members.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 21/09/2023

Summary and extracts

List of charts presented in this market study

• World dog and cat populations in 2022
• How much does it cost to own a dog every year?
• What do you spend most on your dog?
• Evolution of the number of dogs and cats in the United States
• Growth in the number of pets in the United States
• Worldwide distribution of the number of dogs
• Share of current pet owners by generation
• Pet-related expenses in
• Average annual expenditure per pet, based on income
• Total spending in the U.S. pet industry
• Actual sales on the U.S. market in 2022
• Distribution of the number of pets in the United States in 2022
• Market share of major pet food sellers in the United States 2022
• Market share in terms of value sales of different product categories
• Utilization rate of dry dog and cat food consumers
• Trends in consumer use of wet food and pet treats for dogs and cats
• The monthly change in "Petflation" (base 100 in December 2019) compared with the US consumer index.
• "Where do people who order online get it delivered?"
• How have your pet food purchasing habits changed in 2022?
• Dog and cat food imports into the USA
• Trade balance, dog and cat food in the USA
• Domestic exports: dog and cat food to the USA