- Contents
- *Overview
- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: market context
- Economic and other assumptions
What you need to know
After a short-term stock-up boost in the early weeks of the pandemic, the pet food category has returned to slow, steady growth driven by premiumization and increasing numbers of pet-owning households. The category is likely to prove mostly resilient to the economic downturn, although some pet owners express willingness to trade down to save money. Still, pet owners’ deep relationships with their pets create opportunities for brands that promise superior nutrition and quality.
Key issues covered in this Report
The impact of COVID-19 on consumer behavior and the pet food market
The pet food category’s relative resilience amid difficult economic conditions
Opportunities to expand the market with treats and toppers
The potential for functional health benefits in food and treats
Definition
Mintel defines the pet food market as food and treats for household pets, including cats, dogs, small animals (eg hamsters, rabbits), fish, reptiles and birds. Food for dogs and cats may be dry, wet/canned, semi-moist or in the form of treats. The following segments will be included in this Report:
Cat food
Dog food
Other pet food (eg hamsters, birds, guinea pigs, reptiles)
Pet treats
Excluded from this Report are:
Food for horses and animals usually considered livestock (pigs, goats, chickens, etc)
Dog chews and rawhides
Pet vitamins and supplements
COVID-19: market context
The first COVID-19 case was confirmed in the US in January 2020. On March 11, the World Health Organization declared COVID-19 a global health pandemic, and on March 13, President Trump declared a national emergency in the US.
Across the US, state-level stay-at-home orders rolled out throughout the months of March and April and remained in place through May and in some cases June. During this time, referred to as lockdown, nonessential businesses and school districts across the nation closed or shifted to remote operations.
During re-emergence, all 50 states have relaxed stay-at-home orders and allowed businesses to operate with varying levels of social distancing measures in place. The continued spread of COVID-19 infections has driven some states to slow down or reverse course on reopening plans. Mintel anticipates the US will remain in a state of flux through 2021 until a vaccine is available.
Economic and other assumptions
This forecast and subsequent Report assumes that:
Unemployment will remain at 10.6% in 2020 before incrementally improving over the next five years
US GDP will decline 5.8% in 2020 and increase 4% in 2021, followed by continuous increases until 2025
Consumer confidence stood at 78.1% as of June 2020. This is a 5.8% improvement from May of 2020 and a 6.3% improvement from April, indicating that consumer confidence is on an upswing and will continue improving throughout the rest of the year.
