The pet food category only continues to grow in terms of dollar share, and increasingly the humanization of pets also continues to be a strong trend in U.S. households.
Pets are being treated like family now more than ever before — think pet daycares and pet spas — so it makes sense that they start eating like the closest of relatives.
According to recent research by Bloomberg Intelligence, the pet food industry continues to put on some serious weight in terms of total dollars. In the U.S. alone, the pet market is expected to rise from $128.6 billion to $195.6 billion by 2030. The nutrition sector is leading this charge, as pet owners continue to spend most of their pet budget on food. The Bloomberg survey also said 27.5% of respondents go to either Target or Walmart for their pet products.
The data from Bloomberg indicates that the U.S. currently holds a 47% share of the global pet food market — a number expected to grow to 55% over the next seven years. When it comes to the premium/fresh, those options currently only account for 1% of the total pet food sector, but it’s a sector on a much faster growth pace than any other pet food category shortly.
Market experts are predicting that fresh pet food will ultimately account for $6 billion in U.S. sales by 2030, ultimately accounting for 11% of the market.
We are no longer talking about just scraps under the table. Shoppers are
putting everything they have into the treatment of their pets, and health and wellness are of the utmost importance. Quality food, including the refrigerated variety, is at the top of the grocery list … and pet owners are buying, even despite inflation.
The rise of fresh
The growth of fresh pet food can be traced back to the emergence of organic human food about a decade ago, according to Diana Rosero-Pena, a senior analyst at Bloomberg Intelligence.
“There has been that movement of being more cognizant about the food that you consume,” she said. “And because there has been the humanization of pets in the past 10 years as well, and they are now considered family, then that care is going to their [pet] feeding demands as well.”
“We look at the total for the pet food category, but [fresh] is where we are seeing exponential growth,” said Sarah Marzano, director of retail strategy at Chicago-based market research firm Circana. “And that goes back to this notion of the consumer being hyper-aware of health and wellness.”
For the rest of 2023, retailers can expect to see steady numbers in the pet food category. After seeing double-digit growth in the early months of the year, Rosero-Pena said she believes the buying pace will slow slightly heading into the second half of the year. She said that pattern should hold going into 2024.
Highlighting value, along with health and wellness properties, will be important on the store floor, according to Marzano. But so far, pet food seems to remain inflation-proof, as shoppers continue to stick to quality, premium brands despite the continued rise in prices.
Circana data indicates a consistent demand for pet food and treats despite increasing prices. Shoppers remain loyal to national brands versus private-label brands.
Retailers like Walmart and Target have expanded their pet food selections recently and Rosero-Pena said the increased variety should be a major driver of sales as 2023 rolls to a close.
E-commerce and pet food
Ecommerce has been on the rise for pet food purchases since the COVID-19 pandemic, but there has also been an uptick in foot traffic at brick-and-mortar locations, according to Marzano. Along those same lines, overall purchase volume has been on the decline because shoppers are no longer in the stock-up mode brought on by the pandemic.
Again, the increase in more shoppers coming into the store is an opportunity for grocers to “coax those consumers into making some of those purchases that are less replenishable,” said Marzano.
U.S. e-commerce pet food sales are estimated to reach $57.7 billion by 2030, capturing nearly a third of the market (29.5%) compared to $27.9 billion in 2022, according to Bloomberg Intelligence research.
Still, annual growth in e-commerce sales dropped by more than 20% over the last few years and is closer to 10% as the pandemic fizzles out.
In early May, Instacart announced the expansion of its partnership with PetSmart to offer same-day delivery from the Instacart App and website from nearly 1,500 PetSmart stores across the U.S.
The expansion into the U.S. follows the successful launch of the partnership to power same-day delivery from over 150 PetSmart stores in Canada.
Eating well
Millennials and Gen Zers have been at the forefront of the health and wellness focus when it comes to eating, so it is no surprise that both groups are using the same approach when it comes to their pets. Research also indicates that both groups are the ones who are willing to pay a little more for quality.
“The younger generation has a higher incidence of pet ownership,” said Marzano.
Bloomberg’s Roser-Pena said younger generations are simply more adamant about feeding their pets better, and “as Gen Zs become of age and start getting jobs themselves, they also seem to be more prone to have pets or getting another pet in the next five years.”
And with pets come health concerns and maintenance. Roser-Pena said the penetration of pet insurance is less than 5% in the U.S., which means more shoppers are turning to healthy, premium pet food as a way to try to avoid unnecessary veterinary costs down the road.
Ask Dr. Aziza: Tips to Promote Your Dog’s Heart Health
Maintaining your dog’s heart health is crucial for their overall well-being and longevity.
The good news is that there are steps you can take to help ensure their heart stays strong and healthy. To help demystify this complex topic, we’ve asked Freshpet vet, Dr. Aziza, to share her top tips for pet parents who want to promote their dog’s heart health.
Why is heart health so important for my dog?
Good heart health is directly connected to important organs like the brain, kidneys, intestines, liver, lungs, and more. The heart is your pet’s mechanical pump that keeps blood flowing to all the important organs every second of every minute, each day of your dog’s life. Without this action, organs will shut down. This means when your dog’s heart health is poor, it significantly impacts the quality of their life.
What can I do to promote a healthy heart?
As pet parents, there are several things you can do to enhance your dog’s heart health:
Routine exams: Be consistent in your dog’s physical exams. Annual exams are a great way of monitoring your dog’s heart health, especially if heart disease has already been diagnosed.
Heartworm prevention: Heartworms are a parasite transmitted by mosquitoes. As their name suggests, these parasites reproduce and live in the heart and lungs. Once infected, this disease is fatal if untreated. Thankfully, it is much easier and cost-effective to prevent, so make sure you are consistent with heartworm prevention. If your dog already has heartworm disease, contact your primary care veterinarian to see what treatment options are available.
Great diet: Having a well-balanced, high-quality diet supports heart health. The heart is a muscle that needs proper nutrients, like protein and trace minerals found in Freshpet’s Multi-Protein Complete Meal to help its efficiency.
Healthy weight: Like humans, a healthy weight is also good at promoting a healthy heart. Overweight patients have a higher oxygen demand and therefore create more stress on the heart.
Monitor chronic disease: If your dog has already been diagnosed with a chronic disease like heart disease or hypothyroidism, you must continue to monitor the condition with recommended diagnostic tests. These tests will guide your veterinarian to make adjustments in medications if needed or alert them to more serious issues and concerns.
What are some signs of poor cardiovascular health and how do I address them?
Now that you have a better idea of how you can support your dog’s heart health, let’s discuss some of the signs of poor cardiovascular health and how they should be addressed:
Exercise intolerance: Dogs with poor cardiovascular health can quickly become tired after brief play. If you are concerned about this symptom in your dog, have them evaluated by your veterinarian to see if medications are needed. Otherwise, you can build your dog’s stamina by slowly increasing the amount of controlled exercise they receive on a daily or weekly basis.
Coughing: The heart and lungs are closely connected in function and anatomical location. Poor heart health can result in an enlarged heart leading to a cough. A cough can also indicate that the heart can not keep up with the body’s demands, causing a build-up of fluids in and/or around the lungs. This can be diagnosed with a physical exam and diagnostic tests, like radiographs.
Lethargy: A dog that naps all the time could be lazy…or it can indicate a serious underlying disease like poor heart health. If the heart can not adequately provide oxygen to important organs, the body can be weak and falsely present as sleepy or tired.
Pot-bellied appearance: This description is often related to a build-up of fluids in the abdomen due to poor heart health and performance. Your dog needs to be evaluated by a veterinarian to determine why your dog has this shape.
Can poor diet and nutrition contribute to heart problems?
A poor diet can contribute to heart problems in many ways. A diet that is not well-balanced will affect the heart’s performance – don’t forget the heart is a muscle that is pumping all the time. This means that for it to function properly it needs enough protein and the right minerals. Diets that are high in salt, sugar, and other less-healthy ingredients will also impact the heart and your dog’s blood pressure.
This is what makes Freshpet a great choice of diet for dogs. Every recipe is made with high-quality ingredients and crafted with the support of pet nutrition experts. This means you can rest aroused knowing that your dog is getting everything they need to support their heart health.
How much does exercise directly contribute to heart health?
Like with humans, all exercise directly contributes to heart health. The heart has to provide oxygen for your body when it is burning calories. The more fit or higher the stamina, the more efficient and less strained your dog’s heart will be.
What is the right amount of exercise for my dog?
Exercise will vary depending on the age, size, and any underlying conditions your dog may have. For example, a young, healthy Dalmatian will require a different level of exercise compared to a senior, overweight Yorkie. Consult with your primary care veterinarian to determine what is the appropriate level of exercise for your dog.
Promoting your dog’s heart health involves a combination of regular veterinary care, preventive measures, a nutritious diet, and appropriate exercise. By taking all of these factors into consideration, you can significantly enhance your pup’s quality of life and longevity.