Pet Food - US - March 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Pet food sales continue slow growth
Figure 1: Total U.S. retail sales of pet food, at current prices, 2007-12
Dog food accounts for largest share of market sales
Figure 2: Total share of U.S. retail sales of pet food, by segment, 2012
Forecast
Figure 3: Total U.S. sales and fan chart forecast of pet food, at current prices, 2007-17
Market factors
Age is a key factor in pet ownership
Figure 4: Share of U.S. adult population by age, 2013
Shrinking share of households with children undermines category growth
Figure 5: Number of U.S. households, by presence of children, 2007-12
Positive market factors
The suppliers
Figure 6: Total share of MULO sales of pet food in the U.S., by company, 2012
The consumer
Where pet food shoppers buy pet food
Figure 7: Outlets for pet food purchases, December 2012
Pet food purchase drivers
Figure 8: Pet food purchase influencers, by any likely, December 2012
Shopping behaviors of the pet food buyer
Figure 9: Purchase behavior of the pet food buyer, by any agree, December 2012
Attitudes toward quality, convenience, and guidance
Figure 10: Attitudes of the pet food buyer, by any agree, December 2012
What we think
ISSUES IN THE MARKET
How can pet food marketers encourage trial of new pet food products?
What threat does the rise in the older consumer population pose to pet food sales?
How can the category grow participation among Hispanic pet owners?
INSIGHTS AND OPPORTUNITIES
Highlighting health and nutrition
Encouraging activity alongside nutrition
TREND APPLICATION
Trend: Mood to Order
Trend: Guiding Choice
2015 trend: Old Gold
Old Gold
MARKET SIZE AND FORECAST
Key points
Steady growth in pet food
Sales and forecast of pet food
Figure 11: Total U.S. retail sales and forecast of pet food, at current prices, 2007-17
Figure 12: Total U.S. retail sales of pet food, at inflation-adjusted prices, 2007-17
Fan chart forecast
Figure 13: Total U.S. sales and fan chart forecast of pet food, at current prices, 2007-17
MARKET DRIVERS
Total population growth will drive long-term sales
Figure 14: Population, by age, 2008-18
Families are vital to market growth
Figure 15: Number of households, by presence of own children, 2002-12
Hispanic pet owners important to future market development
Figure 16: Population, by Hispanic origin, 2008-18
Trends toward healthy eating are positive for pet food industry
Pet industry not fully recession-proof
Figure 17: Consumer Sentiment Index, January 2007-December 2012
Figure 18: Real personal disposable income, January 2007-November 2012
Figure 19: Unemployment and underemployment rates, January 2007-December 2012
COMPETITIVE CONTEXT
Key points
DIY pet food
Rising pet food prices leave pet owners looking for the best deal
Figure 20: PETCO Repeat Delivery service, January 2013
SEGMENT PERFORMANCE
Key points
Dog food accounts for majority of pet food sales
Sales of pet food, by segment
Figure 21: Total U.S. retail sales of pet food, by segment, 2010-12
SEGMENT PERFORMANCE—DOG FOOD
Key points
Demand for “human-grade” dog food drives segment sales
Sales and forecast of dog food
Figure 22: Total U.S. retail sales of dog food, at current prices, 2007-17
SEGMENT PERFORMANCE—CAT FOOD
Key points
Cat food sales challenged by declining pet population
Sales and forecast of cat food
Figure 23: Total U.S. retail sales of cat food, at current prices, 2007-17
SEGMENT PERFORMANCE—OTHER PET FOOD
Key points
Sales of other pet food fluctuate annually
Sales and forecast of other pet food
Figure 24: Total U.S. retail sales of other pet food, at current prices, 2007-17
RETAIL CHANNELS
Key points
Collectively, “other” retail channels comprise the majority of market sales
Sales of pet food, by channel
Figure 25: Total U.S. retail sales of pet food, by channel, 2010-12
RETAIL CHANNELS—SUPERMARKETS
Key points
Little change in pet food sales in the supermarket channel
Supermarket sales of pet food
Figure 26: U.S. supermarket sales of pet food, at current prices, 2007-12
RETAIL CHANNELS—OTHER CHANNELS
Key points
Broad range of retailers cater to diverse preferences of pet owners
Other channel sales of pet food
Figure 27: U.S. sales of pet food through other channels, at current prices, 2007-12
LEADING COMPANIES
Key points
Del Monte Foods boasts strongest growth through solid innovation
Manufacturer sales of pet food
Figure 28: MULO sales of pet food in the U.S. by leading manufacturers, rolling 52 weeks 2011 and 2012
BRAND SHARE—DOG FOOD
Key points
Purina dog food brands position Nestlé as leading supplier
Manufacturer and brand sales of dog food
Figure 29: MULO sales of dog food, by leading company, rolling 52 weeks 2011 and 2012
BRAND SHARE—CAT FOOD
Key points
Nestlé Purina Fancy Feast remains top cat food brand
Manufacturer and brand sales of cat food
Figure 30: MULO sales of cat food, by leading company, rolling 52 weeks 2011 and 2012
BRAND SHARE—OTHER PET FOOD
Key points
Central Garden & Pet’s Pennington bird pet food brand leads segment
Manufacturer and brand sales of other pet food
Figure 31: MULO sales of other pet food, by leading company, rolling 52 weeks 2011 and 2012
INNOVATION AND INNOVATORS
Rebound in product development in 2012
Humanization of treats and snacks
Figure 32: Trends in pet food product launches, by subcategory, 2008-12
Trend toward specialized pet food
Figure 33: Trends in pet food product launches, by top 10 claims, 2008-12
Shift toward more unique flavors
Figure 34: Trends in pet food product launches, by top flavors, 2008-12
Nestlé Purina leads new product launches, Blue Buffalo gaining presence
Figure 35: Trends in pet food product launches by company, 2008-12
Downshift in private label innovation in 2012
Figure 36: Trends in pet food product launches by private label share, 2008-12
MARKETING STRATEGIES
Overview
Humanization of pet foods
PetSmart: Appealing to the “pet parent”
Figure 37: PetSmart TV ad, Dinner Time, September – October 2012
PETCO: Healthy pet foods
Figure 38: PETCO certified nutrition checklist, January 2013
Figure 39: PETCO TV ad, Not on My Shelf, September 2012
Purina: Pets as family members
Figure 40: Purina TV ad, Say Hi, July-September 2012
Figure 41: Purina.com nutrition information, January 2013
Blue Buffalo: Pure ingredients
Figure 42: Blue Buffalo TV ad, Wholesome (Treats), September – December 2012
Figure 43: Blue Buffalo True Blue Test, January 2013
Freshpet: Fresh ingredients
Figure 44: Freshpet TV ad, Hunt Down, July 2012 – January 2013
Holistic Select: Specialized pet food
Figure 45: Holistic Select TV ad, Hollywood Holistics, September 2012
Halo Pets
Figure 46: Halo Pets, January 2013
SOCIAL MEDIA
Key points
Key social media metrics
Figure 47: Key brand metrics, pet food brands, February 2013
Market overview
Brand usage and awareness
Figure 48: Usage and awareness of selected pet food brands, December 2012
Interaction with brands
Figure 49: Interaction with selected pet food brands, December 2012
Online conversations
Figure 50: Selected Pedigree Tweets, January 22, 2013
Figure 51: Percentage of consumer conversation by selected pet food brands, Jan. 4, 2013-Feb. 3, 2013
Figure 52: Online mentions, selected pet food brands, percentage of total daily mentions, by day, Jan. 4, 2013-Feb. 3, 2013
Where are people talking about pet food brands?
Figure 53: Selected Twitter mentions surrounding pet food brands, Jan. 12, 2013
Figure 54: Mentions by page type, selected pet food brands, Jan. 4, 2013-Feb. 3, 2013
What are people talking about?
Figure 55: Mentions by type of conversation, selected pet food brands, Jan. 4, 2013-Feb. 3, 2013
Figure 56: Major areas of discussion surrounding pet food brands, percentage of daily mentions, by day, Jan. 4, 2013-Feb. 3, 2013
Figure 57: Major areas of discussion surrounding pet food brands, by page type, Jan. 4, 2013-Feb. 3, 2013
 BRAND ANALYSIS
Pedigree
Figure 58: Pedigree key social media metrics, February 2013
Key online campaigns
What we think
Fancy Feast
Figure 59: Fancy Feast key social media metrics, February 2013
Key online campaigns
What we think
Friskies
Figure 60: Friskies key social media metrics, February 2013
Key online campaigns
What we think
Iams
Figure 61: Iams key social media metrics, February 2013
Key online campaigns
What we think
Kibbles ’n Bits
Figure 62: Kibbles ’n Bits key social media metrics, February 2013
Key online campaigns
What we think
Natural Balance
Figure 63: Natural Balance key social media metrics, February 2013
Key online campaigns
What we think
Halo Pets
Figure 64: Halo Pets key social media metrics, February 2013
Key online campaigns
What we think
PET OWNERSHIP
Key points
Widespread incidence of pet ownership; majority own a cat or dog
Figure 65: Pet ownership summary, December 2012
Pet ownership generally declines with age
Figure 66: Pet ownership, by age, December 2012
More affluent households are more likely pet owners
Figure 67: Pet ownership, by household income, December 2012
Households with children significantly more likely to own pets
Figure 68: Pet ownership, by presence of children in household, December 2012
Highest frequency pet food shoppers own dogs
Figure 69: Pet ownership, by frequency of pet food purchases, December 2012
NUMBER OF PETS OWNED
Key points
Americans typically own more than one pet
Figure 70: Pet ownership average, December 2012
Households with children are multiple pet owners
Figure 71: Pet ownership average, by presence of children in household, December 2012
Pet parents are slightly more likely to own more pets
Figure 72: Pet ownership average, by pet parent, December 2012
THE PET FOOD BUYER
Key points
One person typically in charge of pet food purchases
Figure 73: Pet food buyer, December 2012
Women take the lead in pet food purchases
Figure 74: Pet food buyer, by gender, December 2012
Younger pet owners more likely to share pet food purchase responsibility
Figure 75: Pet food buyer, by age, December 2012
Pet parents are more likely to take responsibility for pet food purchases
Figure 76: Pet food buyer, by pet parent, December 2012
FREQUENCY OF PET FOOD PURCHASES
Key points
Pet food shopping is a frequent affair
Figure 77: Frequency of pet food purchases, December 2012
Older pet food shoppers buy less frequently
Figure 78: User groups of pet food purchases, by age, December 2012
Families buy pet food more often
Figure 79: User groups of pet food purchases, by presence of children in household, December 2012
Pet parents buy pet food with greater frequency
Figure 80: User groups of pet food purchases, by pet parent, December 2012
TYPES OF PET FOOD PURCHASED
Key points
Organic pet food
Figure 81: Organic pet food use, by household income, August 2011-August 2012
Figure 82: Organic pet food use, by household size, August 2011-August 2012
Figure 83: Organic pet food use, by food lifestyle segmentation, August 2011-August 2012
Dog food and treat usage
Figure 84: Dog food and treat usage, August 2011-August 2012
Amount of dog food and treats used
Figure 85: Amount of dog food and treats used, August 2011-August 2012
Brands of dog food and treats used
Figure 86: Brands of dog food used, by age, August 2011-August 2012
Figure 87: Brands of dog biscuits/treats used, August 2011-August 2012
Types of dry dog food used
Figure 88: Types of dry dog food used, by age, August 2011-August 2012
Cat food usage
Figure 89: Cat food and treat usage, August 2011-August 2012
Amount of cat food used
Figure 90: Amount of cat food used, August 2011-August 2012
Brands of cat food and treats used
Figure 91: Brands of cat food and treats used, by age, August 2011-August 2012
Types of dry cat food used
Figure 92: Types of dry cat food used, by age, August 2011-August 2012
WHERE PET FOOD IS PURCHASED
Key points
Walmart tops list of outlets for pet food purchases
Figure 93: Outlets for pet food purchases, December 2012
Younger shoppers over index in buying from a range of retailers
Figure 94: Outlets for pet food purchases, by age, December 2012
Shopping pet specialist retailers more common among affluent pet owners
Figure 95: Outlets for pet food purchases, by household income, December 2012
Families are more likely to shop a range of retailers for pet food needs
Figure 96: Outlets for pet food purchases, by presence of children in household, December 2012
Walmart and supermarkets are most popular among high-frequency shoppers
Figure 97: Outlets for pet food purchases, by frequency of pet food purchases, December 2012
Pet parents far more likely to shop pet specialty retailers for pet food
Figure 98: Outlets for pet food purchases, by pet parent, December 2012
PURCHASE INFLUENCERS
Key points
Brand name drives pet food purchase decision
Figure 99: Pet food purchase influencers, December 2012
Young pet owners are more likely to be influenced by vet recommendations
Figure 100: Any likely pet food purchase influencers, by age, December 2012
Premium brands and celebrity endorsements more influential over affluent consumers
Figure 101: Any likely pet food purchase influencers, by household income, December 2012
Frequent pet food shoppers influenced by added health benefit and premium brands
Figure 102: Any likely pet food purchase influencers, by frequency of pet food purchases, December 2012
Product features play an integral role in pet parents’ purchases
Figure 103: Any likely pet food purchase influencers, by pet parent, December 2012
PURCHASE BEHAVIOR
Key points
Pet owners like to give a variety of treats to their pets
Figure 104: Purchase behavior of pet food buyer, December 2012
Young pet owners more likely to be buying all-natural pet foods
Figure 105: Purchase behavior of pet food buyer, by age, December 2012
Lower-income households exhibit money-saving strategies in pet food purchases
Figure 106: Purchase behavior of pet food buyer, by household income, December 2012
Frequent pet food shoppers like to give pets a variety of treats
Figure 107: Purchase behavior of pet food buyer, by frequency of pet food purchases, December 2012
Pet parents more apt to give their pet a variety of treats
Figure 108: Purchase behavior of pet food buyer, by pet parent, December 2012
ATTITUDES OF THE PET FOOD BUYER
Key points
Pet buyers weigh in on the value of quality, convenience, and guidance
Figure 109: Attitudes of pet food buyer—agree summary, December 2012
Pet owners aged 18-24 ideal target for subscription service
Figure 110: Attitudes of pet food buyer—agree summary, by age, December 2012
Less affluent pet food buyers overwhelmed by choices, but least likely to seek help
Figure 111: Attitudes of pet food buyer—agree summary, by household income, December 2012
High-frequency shoppers more likely to seek guidance in pet food purchases
Figure 112: Attitudes of pet food buyer—agree summary, by frequency of pet food purchases, December 2012
Pet parents more likely to agree quality of pet food is as important as in their own food
Figure 113: Attitudes of pet food buyer—agree summary, by pet parent, December 2012
IMPACT OF RACE/HISPANIC ORIGIN
Overview
Pet ownership elevated among Hispanics
Figure 114: Pet ownership, by race/Hispanic origin, December 2012
Hispanics are less likely to share pet food purchase responsibility
Figure 115: Pet food buyer, by Hispanic origin, December 2012
Hispanics tend to be more frequent pet food shoppers
Figure 116: User groups of pet food purchases, by Hispanic origin, December 2012
Walmart popular among Hispanics for pet food purchases
Figure 117: Outlets for pet food purchases, by Hispanic origin, December 2012
Hispanics highly influenced by personal recommendations
Figure 118: Any likely pet food purchase influencers, by Hispanic origin, December 2012
Hispanics are significantly more likely to try new pet foods
Figure 119: Purchase behavior of pet food buyer, by Hispanic origin, December 2012
Convenience is important to Hispanic pet food shoppers
Figure 120: Attitudes of pet food buyer—agree summary, by Hispanic origin, December 2012
SYMPHONYIRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES
 OVERVIEW OF DOG FOOD
 DRY DOG FOOD
Consumer insights on key purchase measures
Brand map
Figure 121: Brand map, selected brands of dry dog food buying rate, by household penetration, 52 weeks ending June 24, 2012
Brand leader characteristics
Key purchase measures
Figure 122: Key purchase measures for the top brands of dry dog food, by household penetration, 52 weeks ending June 24, 2012
 WET DOG FOOD
Consumer insights on key purchase measures
Brand map
Figure 123: Brand map, selected brands of wet dog food buying rate, by household penetration, 52 weeks ending June 24, 2012
Brand leader characteristics
Key purchase measures
Figure 124: Key purchase measures for the top brands of wet dog food, by household penetration, 52 weeks ending June 24, 2012
 OVERVIEW OF CAT FOOD
 DRY CAT FOOD
Consumer insights on key purchase measures
Brand map
Figure 125: Brand map, selected brands of dry cat food buying rate, by household penetration, 52 weeks ending June 24, 2012
Brand leader characteristics
Key purchase measures
Figure 126: Key purchase measures for the top brands of dry cat food, by household penetration, 52 weeks ending June 24, 2012
 WET CAT FOOD
Consumer insights on key purchase measures
Brand map
Figure 127: Brand map, selected brands of wet cat food buying rate, by household penetration, 52 weeks ending June 24, 2012
Brand leader characteristics
Key purchase measures
Figure 128: Key purchase measures for the top brands of wet cat food, by household penetration, 52 weeks ending June 24, 2012
APPENDIX: CONSUMER TABLES
The pet food buyer
Figure 129: Pet food buyer, by frequency of pet food purchases, December 2012
Frequency of pet food purchases
Figure 130: User groups of pet food purchases, by gender, December 2012
Figure 131: User groups of pet food purchases, by household income, December 2012
Types of pet food purchased
Figure 132: Amount of dry dog food used, August 2011-August 2012
Figure 133: Amount of moist dog food used, August 2011-August 2012
Figure 134: Amount of dog biscuits/treats used, August 2011-August 2012
Figure 135: Amount of dry cat food used, August 2011-August 2012
Figure 136: Amount of moist cat food used, August 2011-August 2012
Outlets for pet food purchases
Figure 137: Outlets for pet food purchases, by gender, December 2012
Purchase influencers
Figure 138: Any likely pet food purchase influencers, by presence of children in household, December 2012
Purchase behavior
Figure 139: Purchase behavior of pet food buyer, by presence of children in household, December 2012
Attitudes of pet food buyer
Figure 140: Attitudes of pet food buyer, December 2012
Figure 141: Attitudes of pet food buyer—agree summary, by gender, December 2012
Figure 142: Attitudes of pet food buyer—agree summary, by presence of children in household, December 2012
APPENDIX: SOCIAL MEDIA
Online conversations
Figure 143: Percentage of consumer conversation, by selected pet food brands, Jan. 4, 2013-Feb. 3, 2013
Figure 144: Online mentions, selected pet food brands, percentage of total daily mentions, by day, Jan. 4, 2013-Feb. 3, 2013
Figure 145: Mentions by page type, selected pet food brands, Jan. 4, 2013-Feb. 3, 2013
Figure 146: Mentions by type of conversation, selected pet food brands, Jan. 4, 2013-Feb. 3, 2013
Figure 147: Major areas of discussion surrounding pet food brands, percentage of daily mentions, by day, Jan. 4, 2013-Feb. 3, 2013
Figure 148: Major areas of discussion surrounding pet food brands, by page type, Jan. 4, 2013-Feb. 3, 2013
Brand usage or awareness
Figure 149: Brand usage or awareness, by select pet food brand, December 2012
Figure 150: Pedigree usage or awareness, by demographics, December 2012
Figure 151: Iams usage or awareness, by demographics, December 2012
Figure 152: Kibbles ‘n Bits usage or awareness, by demographics, December 2012
Figure 153: Friskies usage or awareness, by demographics, December 2012
Figure 154: Fancy feast usage or awareness, by demographics, December 2012
Figure 155: Halo Pets usage or awareness, by demographics, December 2012
Activities done
Figure 156: Activities done, by select pet food brand, December 2012
Figure 157: Pedigree—activities done, by demographics, December 2012
Figure 158: Iams—activities done, by demographics, December 2012
Figure 159: Kibbles ‘n Bits—activities done, by demographics, December 2012
Figure 160: Friskies—activities done, by demographics, December 2012
Figure 161: Fancy Feast—activities done, by demographics, December 2012
Figure 162: Natural Balance—activities done, by demographics, December 2012
APPENDIX: SYMPHONYIRI BUILDERS PANEL DATA DEFINITIONS
SymphonyIRI Consumer Network Metrics
APPENDIX: TRADE ASSOCIATIONS