Table of Contents
Executive Summary
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- The issues
- Pet owners struggle to balance spoiling and disciplining their pets
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- Figure 1: Attitudes toward pet ownership – Discipline and rewards, June 2016
- Owners believe emotional health is important, but struggle to understand pet’s needs
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- Figure 2: Attitudes toward pet ownership – Emotional needs, June 2016
- Cat owners less willing to spend on products and services
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- Figure 3: Willingness to spend, by type of pet owned, June 2016
- The opportunities
- Owners looking for pet health and longevity
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- Figure 4: Wishes for your pet – Health and longevity, June 2016
- Vets are a key resource, particularly for pet owners who adopt
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- Figure 5: Seeking advice – Pet health from a vet, by source of pet acquisition, June 2016
- Owners show interest in obtaining insurance
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- Figure 6: Willingness to spend – Pet health resources, June 2016
- What it means
The Market – What You Need to Know
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- Pet market estimated at $67.5 billion
- Improving economic conditions will push the pet market forward
- Decline in homeownership may be a challenge
- Solo residents may find pets to be good companions
Market Size and Forecast
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- Pet market forecast to grow by 15% over the next five years
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- Figure 7: Total US retail sales and fan chart forecast of pet products and services, at current prices, 2011-21
- Figure 8: Total US retail sales and forecast of pet products and services, at current prices, 2011-21
Market Breakdown
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- Veterinary services, food are the largest components of the pet market
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- Figure 9: Total US retail share of sales of pet products and services, by segment, 2016
- Market growth to come from pet services
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- Figure 10: US retail sales and forecast of pet products and services, by segment, at current prices, 2016-21
- Human trends drive pet food category
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- Figure 11: Sales of pet food, by segment, 2011-16
- Pet supplies market buoyed by cat-centric innovations
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- Figure 12: Total US retail sales and forecast of pet products and services, by segment, at current prices, 2011-21
Market Factors
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- Millennials may favor pets as they delay marriage and kids
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- Figure 13: Pet ownership, by generation, June 2016
- Income growth and improved DPI are a boon for pet ownership
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- Figure 14: Disposable Personal Income change from previous period, January 2007-May 2016
- Financial situations “healthy”
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- Figure 15: Perceptions of financial health, 2013-16
- Increase in renting vs owning may hamper pet ownership
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- Figure 16: Quarterly Rental Vacancy Rates, Q1 1996 – Q1 2016
- Aging Americans may find companionship with pets
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- Figure 17: Single-person households as a percentage of total households by generation, 2015
Key Trends – What You Need to Know
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- Offerings developed for those traveling with, or without, their pets
- Pets take center stage in animated films
- Rescue organizations focus on owners
- Pet tech monitors and tracks animal movements
- Pets show symptoms of human ailments from obesity to elevated stress
- Robotic pets can be good, low commitment, companions
- Employers create pet-specific benefits
- Funeral services for pets provide owners with comfort
- Dogs and cats are foodies too, with new, niche pet food offerings
What’s Working?
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- Social sites match pets with people
- Social media goes to the dogs
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- Figure 18: Grumpy Cat’s Worst Touchdown Dance Ever, February 2016
- Travel brands open up new options for pet owners
- Pet brands craft campaigns to ride the tails of The Secret Life of Pets
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- Figure 19: PetSmart email: Join us at The Secret Life of Pets store event!, July 20, 2016
- Adoption agencies focus on pet owners, over pets, in their new ads
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- Figure 20: Mutual Rescue: Eric & Peety – Short Film, February 2016
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- Figure 21: Battersea – Who Needs Who? , October 2015
- Figure 22: Pedigree – First Days Out, April 2015
- Pet monitors offer insight into pet behavior
What’s Struggling?
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- Homeless shelters struggle to find a place for companion animals
- Obesity is a continued concern
- Showing affection might alleviate human stress but elevate pet stress
- Animated animals can drive demand for exotic (and illegal) pets
What’s Next?
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- Companion pets face new competition from AI
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- Figure 23: A Companion for the Holidays – Hasbro’s Joy for All, December 2015
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- Figure 24: Meet CHiP: The World’s First Lovable Robot Dog, January 2016
- “Paw-ternity leave” grants employees time to bond with new pets
- Services to ease a pet’s passing abound
- Pet-friendly food and beverages offer the ultimate in treats
- Pet wearables provide owners piece of mind
- Finicky pets get made-to-order food
- Bark & Co. lets your pet shop ’til he drops
The Consumer – What You Need to Know
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- Pet ownership on the rise
- Pet adoption is the most common source of acquisition
- Non-pet owners are deterred by the work and the expense
- Owners willing to spend to keep pets healthy
- Veterinarians are a primary source of advice
- Owners want to keep their pet healthy, to keep them happy
- Owners believe in discipline, but also rewards
Pet Ownership and Acquisition
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- Pet ownership grows slightly in popularity
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- Figure 25: Household pet ownership, July 2007- March 2016
- Growth in pet ownership comes largely from households with dogs
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- Figure 26: Household pet ownership, by pet type, July 2007- March 2016
- Multiple cats more likely than multiple dogs
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- Figure 27: Number of pets owned, June 2016
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- Figure 28: Type of other pets owned, by frequency of write-in entry, June 2016
- Cat owners and dog owners have similar demographic profiles
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- Figure 29: Profile of pet owners, by dog and cat owners, June 2016
- Demand remains for pure-bred dogs
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- Figure 30: Sources of pet acquisition, by cat and dog, June 2016
Barriers to Pet Ownership
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- The commitment of ownership deters some from bringing home a pet
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- Figure 31: Barriers to pet ownership, June 2016
- Young adults are less available for pet care
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- Figure 32: Barriers to pet ownership – Availability, by age and by race, June 2016
- Low income Americans have more time (but less money) for pets
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- Figure 33: Barriers to pet ownership – Availability and expense, by household income, June 2016
- Harsh climates don’t seem to exacerbate the work of pet ownership
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- Figure 34: Barriers to pet ownership – Care, by region, June 2016
- The loss of a pet can discourage future ownership
Willingness to Spend on Pets
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- Pet health is a top concern for owners
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- Figure 35: Willingness to spend – Pet health resources, June 2016
- Pet owners aged 35-44 are a favorable target for insurance
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- Figure 36: Willingness to spend – Pet health resources, by age, June 2016
- Men want to keep their pets active
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- Figure 37: Willingness to spend – Pet training and behavior, by gender, June 2016
- Pet tech shows promise with both cat and dog owners
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- Figure 38: Willingness to spend – Pet technology, by type of pet owned, June 2016
- Racial groups show similar willingness to spend across pet services
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- Figure 39: Willingness to spend – Select items, by race, June 2016
- Cat owners less willing to spend on pet expenses
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- Figure 40: Willingness to spend, by type of pet owned, June 2016
- Pets from pet stores get the royal treatment
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- Figure 41: Willingness to spend – Select items, by pet acquisition source, June 2016
- Pet owners may spend on products that solve pet problems
Seeking Advice on Pet Ownership
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- Vets are the best resource for pet health questions
- Google is the go-to for pet services
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- Figure 42: Seeking advice – Correspondence map, June 2016
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- Figure 43: Seeking advice – Frequency table, June 2016
- Young pet owners less likely to seek advice from a vet
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- Figure 44: Seeking advice – Pet health, by age, June 2016
- Dog owners more likely to seek advice for pet issues
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- Figure 45: Would seek advice – Pet services, by type of pet owned, June 2016
- Pet owners who adopt are more likely to seek vet advice
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- Figure 46: Seeking advice – Pet health from a vet, by source of pet acquisition, June 2016
What Owners Want Most for Their Pets
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- Above all, owners hope for health and longevity
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- Figure 47: Wishes for your pet, June 2016
- Women prioritize emotional and physical health of pets
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- Figure 48: Wishes for your pet – Health and longevity, by gender, June 2016
- Cat owners want to keep their animals active
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- Figure 49: Wishes for your pet – Health and longevity, by type of pet owned, June 2016
- Hispanic pet owners interested in advanced training for pets
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- Figure 50: Wishes for your pet – Select items, by Hispanic origin, June 2016
Attitudes toward Pet Ownership
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- Owners agree pets’ emotional wellbeing is paramount to overall health
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- Figure 51: Attitudes toward pet ownership, June 2016
- Cats face less discipline, but may miss out on rewards
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- Figure 52: Attitudes toward pet discipline, by type of pet owned, June 2016
- Millennials believe in discipline, but also in the power of treats
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- Figure 53: Attitudes toward pet discipline, by generation, June 2016
- Pets from a pet store share owner’s personality traits
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- Figure 54: Attitudes toward pet personalities, by pet acquisition source, June 2016
- Black pet owners consider the functional role of animals
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- Figure 55: Attitudes toward pet discipline, by race, June 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Figure 56: Total US retail sales and forecast of pet care products and services, at current prices, 2011-21
- Figure 57: Total US retail sales and forecast of pet products and services, at inflation-adjusted prices, 2011-21
- Figure 58: Total US retail sales and forecast of pet care products and services, by segment, at current prices, 2011-21
- Figure 59: Total US retail sales of pet care products and services, by segment, at current prices, 2014 and 2016
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- Figure 60: Total US retail sales and forecast of pet food, at current prices, 2011-21
- Figure 61: Total US retail sales and forecast of pet food, at inflation-adjusted prices, 2011-21
- Figure 62: Total US retail sales and forecast of pet supplies, at current prices, 2011-21
- Figure 63: Total US retail sales and forecast of pet supplies, at inflation-adjusted prices, 2011-21
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- Figure 64: Total US retail sales and forecast of veterinary services, at current prices, 2011-21
- Figure 65: Total US retail sales and forecast of veterinary services, at inflation-adjusted prices, 2011-21
- Figure 66: Total US retail sales and forecast of pet services, at current prices, 2011-21
- Figure 67: Total US retail sales and forecast of pet services, at inflation-adjusted prices, 2011-21
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Appendix – Consumer
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- Figure 68: Household pet ownership, July 2007- March 2016
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