Premium to drive pet category sales

Pet owners will spend more money on food for their critters in the next 3 years and the increased sales will post mainly in premium and healthy pet food segments, according to a recent study.

Sales are expected to rise 16% between 2015 and 2018 to reach $33 billion, projected Packaged Facts, the market research publisher in Pet Food in the U.S., 11th Edition. The anticipated increase in the market is driven by increased focus on pet health and the powerful role of the human-animal bond.

The pet food sales were estimated at $28 billion in 2013. The pet food category experienced much of its growth outside of the core mass market, particularly in channels like farm/feed, Internet, and pet specialty. Through the rest of 2014 sales are expected to remain relatively flat, though opportunities exist in the premium food sector as pet owners purchase these products to protect the health of their four-legged, feathered, finned, and furry family members.

"Looking ahead, the trick will be to find ways to grow this mature market, since at its current pace pet population growth is not sufficient to drive higher levels of market growth," comments Packaged Facts research director David Sprinkle. "For several years much of the dollar growth in the pet food market has come from converting pet owners to higher priced foods as part of the humanization trend."

Premium pet foods will account for 42% of pet food sales in 2014, followed by regular pet food at 30% and value pet food at 12%, with treats comprising the remaining share of sales. On both the dog and cat sides of the market, the premium share of sales has expanded, mostly as a result of growth in the superpremium segment, although dog owners are more willing to spend money on their furry friends than those who prefer feline companionship.

Treats have also grown their share of the market, primarily due to the robust interest in treats among dog owners, many of whom have turned to functional treats as a way to ameliorate pet health conditions and promote overall wellness.

More information on the report can be found at: http://www.packagedfacts.com/redirect.asp?progid=86778&productid=8384332.