Pet Supplies - US - 2021

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
Market context
Economic and other assumptions
COVID-19: US context
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Figure 1: Total US retail sales and forecast of pet supplies, at current prices, 2016-26
Impact of COVID-19 on pet supplies
Figure 2: Short, medium and long term impact of COVID-19 on pet supplies, June 2021
Opportunities and challenges
Pandemic pets boosted category growth, but for how long?
Figure 3: Timeline of recent pet acquisition, April 2021
Shift toward online isn’t for everyone, but physical retail needs to transform
Focus on functional benefits and preventative health
Younger generations trust their local economy and want to support it
THE MARKET – KEY TAKEAWAYS 
Category sales remain elevated 
Pet supplies shows resilience...up to a point
Pandemic pets may not be permanent fixture in the market 
MARKET SIZE AND FORECAST 
More than a pandemic blip
Figure 4: Total US retail sales and forecast of pet supplies, at current prices, 2016-26
Figure 5: Total US retail sales and forecast of pet supplies, at current prices, 2016-26
Impact of COVID-19 on pet supplies
MARKET FACTORS 
Pet supply purchases highest among higher-income households  
Figure 6: Disposable Personal Income change from previous period, January 2007-February 2021
Pet ownership sees uptick in 2020
Figure 7: Share of US households with pets, 2006-20
A new generation of pandemic pets 
Figure 8: Timeline of recent pet acquisition, April 2021
Future work perks could lower barriers to ownership
Figure 9: Barriers to pet ownership, April 2021
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Feline brands continue to lead the category
Chewy sees growth
Focus on wellness driving retailer and innovation trends 
From secondhand to DTC, new ways to shop will emerge 
Inside out: shift the conversation to external health 
MARKET SHARE 
Leading feline brands challenged by 2020 stock ups
Figure 10: Multi-outlet sales of litter & deodorant, rolling 52 weeks 2020 and 2021
Smaller players gaining steam
Private label sees strong growth
Sales of pet supplies by company
Figure 11: Multi-outlet sales of pet supplies, by leading companies, rolling 52 weeks 2020 and 2021
Chewy reports growth for the first time
COMPETITIVE STRATEGIES
Retailers become partners in pet health
Figure 12: Chewy, April 2021
Harness the clean label movement
Figure 13: US pet product launches with clean claims, 2017-21*
The key to engagement is through personalized experiences and products
MARKET OPPORTUNITIES 
Tap DTC to reach a wider audience
Work toward bettering pets and planet
Figure 14: Petco sustainability commitment, April 14, 2021
Keep your eyes on the circular economy
Figure 15: Poshmark, February 2021
Promote wellness from the outside in
Figure 16: Skout’s Honor probiotic itch relief spray and calming chews
Pet wearables have potential
Figure 17: Whistle fit social media promotion, April 2021
THE CONSUMER – KEY TAKEAWAYS  
Provide permissibility on both a physical and emotional level 
Deliver products that meet evolving lifestyle and health needs
Online and local shopping gain ground amid pandemic 
Pet owners shift their approach to shopping and seek flexibility
Pet tech could be an emerging market, albeit slowly 
PURCHASES OF HOUSE, TRAVEL AND APPAREL PET SUPPLIES
Pet owners spoiling pets amid pandemic, especially dog owners
Figure 18: Repertoire of house, travel and apparel pet supplies purchased, April 2020-21
Figure 19: House, travel and apparel pet supplies purchased, by type of pet, April 2021
Pets part of younger generations’ identity
Figure 20: Select house, travel and apparel pet supplies purchased, by generation, April 2021
Increasing importance of Hispanic pet owners
Figure 21: Any house, travel and apparel pet supplies purchased (net), by Hispanic origin, April 2021
PURCHASES OF HEALTH AND GROOMING PET SUPPLIES
2020 stock ups impact staples
Focus grooming NPD on changing lifestyle needs
Figure 22: Grooming pet products purchased, April 2020-21
Bring inclusivity into the pet grooming space
Figure 23: Rowan, February 2021
Grow preventative health categories
Figure 24: Pet health products purchased, April 2019-21
Deliver alternative approaches to managing health for younger pets
Figure 25: Pet health products purchased, by age of pet, April 2021
Figure 26: VetriScience Laboratories Probiotic Everyday Canine Supplement, November 2020
PET SUPPLY PURCHASE LOCATION
Pet specialty and mass still lead, but online growing fast
Figure 27: Pet supplies purchase location, April 2021
More Millennial pet owners move online; Gen Z looks for the local element
Figure 28: Select pet grooming purchase locations, by generation, April 2021
Figure 29: Select pet accessories purchase locations, by generation, April 2021
Figure 30: Select pet technology purchase locations, by generation, April 2021
Rise in virtual vet care impacts retailer choice for health purchases
Figure 31: Select pet health product purchase locations, by age of pet, April 2021
PET SUPPLY SHOPPING ATTITUDES AND BEHAVIORS 
Focus on experiences, safety to bring shoppers back into stores
Most pet owners see the benefit in loyalty programs
Figure 32: Zoetis petcare, February 2021
Pandemic strengthens appeal of local products and production
Figure 33: Pet supply shopping attitudes and behaviors, April 2021
Give younger generations alternative purchase options
Figure 34: Willingness to spend, by generation, April 2021
Leverage social media to supplement influence of in-store
Figure 35: Select shopping attitudes and behaviors, by age of pet, April 2021
Figure 36: Petco Shoppable content, May 2021
Target premium at the most engaged: dual owners
Figure 37: Select pet supply shopping attitudes and behaviors, by type of pet owned, April 2021
ATTITUDES TOWARD PET TECH AND WELLBEING 
Pet tech needs to prove value
Figure 38: Attitudes toward pet technology and wellbeing, April 2021
Pet tech brands need to focus on early adopters: young men
Figure 39: Attitudes toward pet technology and wellbeing, by gender and age, April 2021
: Figure 40: Link my pet, May 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Learnings from the Great Recession
Figure 41: Average household spending on pet supplies, 2016-21
Figure 42: Consumer confidence and unemployment, 2000-March 2021
Market size and forecast
Figure 43: Total US retail sales and forecast of pet supplies, at inflation-adjusted prices, 2016-26
Figure 44: Total retail sales of pet supplies, by channel, at current prices, 2016-21
Figure 45: Total retail sales of pet supplies, by channel, at current prices, 2019-21
APPENDIX – THE CONSUMER
Figure 46: Likelihood of getting pet, April 2021
Figure 47: Timeline of potentially acquiring pet, April 2021
Figure 48: Summary of bases for pet ownership, October 2009-December 2019
Figure 49: Pet ownership, by Hispanic origin, 2010-20