SlideShare uma empresa Scribd logo
1 de 19
Baixar para ler offline
Get more info on this report!

Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd
Edition

July 1, 2010


Although the 2008-2009 recession took a notable toll, natural and organic pet products
continue as a top-growth market segment on their way to becoming the standard for
premium pet products in the pet specialty channel and other upscale venues. Doing
their part, all of the major mass-market and cross-channel marketers are tapping into
the trend as well, keeping pressure on smaller marketers to scale up their product
offerings even further. Most recently, in mid 2010 Procter & Gamble rocked the pet food
industry by acquiring Natura Pet Products, whose natural and organic pet food brands
include Innova, Evo, California Natural and Karma—a move that suggests that the
natural pet food party is just getting started on the mass-market side.

Also underpinning steady market advancement is consumer demand for products
perceived to be safer, an appeal that got a big boost from the Spring 2007 recalls and
one that continues to define the way marketers formulate and position products.
According to pet owner surveys conducted by Packaged Facts, 40% of dog owners and
38% of cat owners purchase natural/organic pet products; nearly half of pet owners
would buy more natural/organic pet products if they were more affordable; and almost
two-fifths would do so if they were more available. Featuring exclusive consumer data
such as these, the report homes in on food and nonfood purchasing trends across
multiple categories, as well as attitudes and demographic characteristics of natural and
organic pet product purchasers.

Building on the analysis presented in the previous two editions of this report, Natural,
Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition divides the market
into two classifications—pet food and pet care—with the latter defined as encompassing
all nonfood pet supplies (cat litter, grooming products, flea/tick care products,
supplements, clean-up products, etc.). For each classification, coverage includes
historical and projected retail sales estimates from 2005 through 2014, competitive
strategies of key players, and trends in new product development such as human-grade
pet food, raw/frozen pet food, fresh (refrigerated) pet food, eco-friendly nonfood pet
products, corporate sustainability initiatives, and cause marketing. Additional data
sources include SymphonyIRI marketer/brand sales data for mass-market channels,
SPINSscan data for the natural supermarket channel, Datamonitor Product Launch
Analytics data tracking new product introductions, and Experian Simmons data profiling
trends in pet ownership and product purchasing.

About the Author

David Lummis is the senior pet market analyst for Packaged Facts. He is also author of
the monthly "Market Outlook" column in Pet Product News International, and a regular
contributor of articles and market insight to other pet industry magazines as well as
major business media including The New York Times and CNNMoney. Mr. Lummis also
is President of New Orleans-based Marigny Research Group, Inc., a producer of
custom market research reports for Packaged Facts. Since 1986, MRG has prepared
more than 175 studies on consumer packaged goods markets and developed full report
lines covering pet, demographic, retail and financial markets. Mr. Lummis, who
graduated from Yale University, has also written approximately 75 other published B2B
reports and is the author of the book, "Value Retailing in the 1990s."



Additional Information

Market Insights: A Selection From The Report



Availability and Affordability as Impediment to Natural Product Purchasing

According to Packaged Facts survey data, 39% of pet owners agree that they would
buy natural/organic pet products more often if these products were more available
where they shop, compared with 29% who disagree. Among those agreeing with this
statement, the larger share “somewhat agree” rather than “strongly agree” (at 26% vs.
12%, respectively). Not surprisingly, particularly in a price-conscious era of economic
doldrums, affordability is an even bigger issue than availability. Among pet owners
overall, half (52%) agree that they would buy natural/organic pet products more often if
these products were more affordable, compared with only 22% who disagree.
Moreover, 19% strongly agree that they would do so, compared with only 10% who
strongly disagree.

Locally Sourced Ingredients

The 2007 recalls also spurred interest in products made from ingredients that are locally
grown, a trend that dovetails with such “green” initiatives as fostering smaller carbon
footprints and reducing “food miles” (the distance a food must travel from point of origin
to end user). Following the recalls, human-grade organic pet food producer Evanger’s
trumpeted that it buys all of its ingredients locally, purchasing most of them within 40
miles of its plant. Similarly, Freshpet told the press that all of the ingredients in its
refrigerated pet foods “are fresh, never frozen or preprocessed prior to cooking and all
are locally sourced from the United States using stringent quality standards.”

Packaged Facts believes “locally grown” retains strong potential as a pet food sales
proposition during 2010 and beyond. Trends in the pet food market don’t just follow
human trends, they often do so at accelerated rates, and the trend toward locally grown
is already in full swing on the human side. In our May 2007 report, Fresh and Local
Foods in the U.S., Packaged Facts conservatively estimates that locally grown food
could be a $7 billion business by 2011, almost double the 2002 level. This forecast is
based on trends including the rapid growth of farmers’ markets, consumer perceptions
that locally grown products are tastier and healthier, consumers’ growing desire to
support their local economy, and corporate support for sustainable agriculture. [Figure
5-2] In the News


Table of Contents

Chapter 1: Executive Summary
      Introduction
      Scope of Report: Pet Food and Pet Care
      Report Methodology
      Market Trends
      U.S. Retail Sales, 2005-2014
      Table 1-1: U.S. Retail Sales of Natural Pet Products, 2005-2014 (in millions of
      dollars)
      Pet Food vs. Pet Care
      Organic Pet Food Sales
      Litter Dominates Pet Care Classification
      Mass-Market Sales Trends
      Natural Supermarket Sales Trends
      Market Share by Retail Channel
      Figure 1-1: Share of U.S. Retail Sales of Natural Pet Products by Distribution
      Channel: 2005 vs. 2009 (percent)
      Competitive Trends
      Natural Pet Market Tracking Human Path
Procter & Gamble Plus Natura
     New Brands and Line Extensions
     Raw Pet Food Market Leaders
     Freshpet and Tyson Join Forces in Refrigerated Pet Food
     Natural Product Leaders in the Pet Specialty Channel
     Dog Food
     Cat Food
     Cat Litter
     Natural Product Leaders in Tracked Mass-Market Channels
     Dog Food
     Cat Food
     Cat Litter
     Dog/Cat Needs
     Top Ten Brands in the Natural Supermarket Channel
     New Product Trends
     “Natural” Leads New Product Surge
     “Natural-Related” Claims
     “Green” Claims
     Consumer Trends
     Purchasing Patterns for Natural/Organic Dog Products
     Purchasing Patterns for Natural/Organic Cat Products
     Independent Pet Stores Are Highest-Indexing Channel for Natural Product
     Purchasers
     Figure 1-2: Retail Channel Indexes: Purchasers of Natural/Organic Pet Products,
     July 2009-March 2010 (U.S. pet-owning households)
     Availability and Affordability as Impediment to Natural Product Purchasing

Chapter 2: Introduction
     Scope & Methodology
Scope of Report: Pet Food and Pet Care
Report Methodology
Market Definitions and Terminology
Natural Pet Food
Defining Natural
What “Natural” Isn’t
Defining Organic
Pet Food Task Force Formed to Clarify Standards
April 2010 NOP Recommendation Muddies Organic Pet Food Waters
Organic Standards as of May 2010
Sustainability and Other Ethical Issues
Third-Party Accreditation
Natural vs. Organic
Raw Pet Food Product Definition
Dr. Billinghurst’s BARF Diet
The Raw Meaty Bones (Prey Model) Approach
Raw Food Processing
Freeze-Drying
Pasteurization
Raw Food Regulation
Terms Often Associated with Natural and Organic
“Healthy” Ingredients
“Unhealthy” Ingredients
Natural Pet Care Products
Natural and Alternative Litter
Natural Pet Health Products
Natural Pet Grooming Products
Natural Pest-Control Products
     Natural Pet Supplements
     Other Natural Pet Care Products
     “Ethical” and Environmental Issues
     Key Ethical Issues
     Eco-Friendly (“Green”)
     Locally Grown and “Food Miles”
     Humane Treatment of Animals
     No Animal Testing/Cruelty-Free
     No Genetic Modification or Cloned Animals
     Fair Trade/Ethically Sourced
     Sustainable Agriculture and Development
     Corporate Responsibility
     The Global Reporting Initiative
     Governmental and Non-Governmental Criteria and Certification
     Consumers Union Lists 150 Different “Eco-Labels”

Chapter 3: Market Trends
     Market Size & Growth
     U.S. Retail Sales, 2005-2014
     Table 3-1: U.S. Retail Sales of Natural Pet Products, 2005-2014 (in millions of
     dollars)
     Pet Food vs. Pet Care
     Table 3-2: U.S. Retail Sales of Natural Pet Products by Classification and
     Category: 2005, 2009 and 2014 (in millions of dollars)
     Table 3-3: Share of U.S. Retail Sales of Natural Pet Products: 2005, 2009 and
     2014 (percent)
     Food Sales by Type
     Table 3-4: Share of U.S. Retail Dollar Sales of Natural Dog and Cat Food by
     Form, 2009 (in millions of dollars)
Organic Pet Food Sales
Table 3-5: U.S. Retail Sales of Organic Pet Food, 2003-2009 (in millions of
dollars)
Raw Pet Food Sales
Figure 3-1: U.S. Retail Sales of Commercially Prepared Raw Pet Food: 2005,
2009 and 2014 (in millions of dollars)
Litter Dominates Pet Care Classification
Figure 3-2: Share of U.S. Retail Sales of Natural Pet Care Product Classification
by Category: 2005, 2009 and 2014 (percent)
Mass-Market Sales Trends
Table 3-6: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Pet Food,
Litter, and Dog/Cat Needs vs. Total Pet Food, Litter, and Dog/Cat Needs: 52
Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars)
Dog and Cat Food
Table 3-7: Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Total Pet
Food and Natural Pet Food by Animal Type: 52 Weeks Ending April 18, 2010 vs.
Year-Ago Period (percent)
Table 3-8: Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural
Dog Food and Total Dog Food by Product Type: 52 Weeks Ending April 18, 2010
vs. Year-Ago Period (percent)
Table 3-9: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog and Cat
Food vs. Total Dog Food by Category: 52 Weeks Ending April 18, 2010 vs. Year-
Ago Period (in millions of dollars)
Table 3-10: Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural
Cat Food and Total Cat Food by Product Type: 52 Weeks Ending April 18, 2010
vs. Year-Ago Period (percent)
Cat Litter
Table 3-11: U.S. SymphonyIRI-Tracked Dollar, Unit, and, Volume Sales of
Natural Cat Litter vs. Total Cat Litter: 52 Weeks Ending April 18, 2010 vs. Year-
Ago Period (in millions of dollars, units and pounds)
Figure 3-3: Natural/Alternative Cat Litter Share of Tracked Mass-Market Cat
Litter Sales, 2003-2009 (percent)
Natural Supermarket Sales Trends
Table 3-12: Dollar Sales of Pet Products in the Natural Supermarket Channel by
Category, 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (in millions of
dollars)
Figure 3-4: Share of Sales of Pet Products in the Natural Supermarket Channel
by Category, 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (percent)
Figure 3-5: Estimated Percentage Growth Rate of Pet Product Sales in Natural
Supermarkets, 2006-2010 (percent)
Market Share by Retail Channel
Figure 3-6: Share of U.S. Retail Sales of Natural Pet Products by Distribution
Channel: 2005 vs. 2009 (percent)
Market Outlook
Recession Takes a Toll
Table 3-13: Symphony/IRI-Tracked Sales of Pet Products: Total and by Food
and Non-Food Category and Segment, 2009 vs. 2008 (in millions of dollars, units
and pounds)
Slow But (Apparently) Steady Recovery Underway
Pet Market Consumers a Bullish Bunch
Figure 3-7: Level of Agreement with Statement “I Am Spending Less on Pet
Products These Days Because of the Economy,” 2010 (percent of U.S. pet
owners)
Table 3-14: Level of Agreement with Statement “I Am Spending Less on Pet
Products These Days Because of the Economy”: Dog Owners and Cat Owners
Overall vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply
Purchasers, 2010 (percent of U.S. pet owners)
Table 3-15: Level of Agreement with Statement “I Am Spending Less These
Days Because of the Economy”: Dog Owners and Cat Owners Overall vs.
Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply Purchasers,
2010 (percent of U.S. pet owners)
Figure 3-8: Level of Agreement with Statement “I Anticipate Spending More on
Pet Products Over the Next 12 Months,” 2010 (percent of U.S. pet owners)
Table 3-16: Level of Agreement with Statement “I Anticipate Spending More on
Pet Products Over The Next 12 Months”: Dog Owners and Cat Owners Overall
vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply
Purchasers, 2010 (percent of U.S. pet owners)
Heightened Consumer and Governmental Focus on Product Safety
New Regulations for Flea/Tick “Spot-ons”
Heightened Focus on the Environment
Focus on Organic and Sustainable
New NOP Recommendation Threatens Organic Pet Food
Recession Takes a Toll
Organic Ingredient Surplus and Higher Costs to Producers
Is Organic Really Better?
Confusion over Natural vs. Organic, “Green”
A “Greenwashing” Backlash?
OTA Bullish on Organic Growth
Government Steps Up Support of Organic Industry
Strong Consumer Interest
Favorable Trends in Multiple Retail Channels
Independent Pet Specialty Continues to Shift Toward Natural
Table 3-17: Level of Change in Sales Volume Among Independent Pet Specialty
Retailers, 2007-2010 (percent)
Table 3-18: Natural Product Share of Independent Pet Specialty Store Sales by
Animal Category, 2009 (percent)
Table 3-19: Share of Independent Pet Specialty Store Sales Derived from
Natural Products: By Animal Category and Percentage Level, 2009 (percent)
Table 3-20: Change in Amount of Natural/Holistic Products Sold: “Has the
Amount of Natural/Holistic Products Your Store Sells Increased, Remained the
Same, or Decreased In the Last 12 Months?” (percent)
Petco Programs
PetSmart and Martha Stewart
Room to Grow at Whole Foods
A Boom in Mass Channels?
Figure 3-9: Level of Agreement with Statements “If Natural/Organic Pet Products
Were More Affordable / More Available Where I Shop, I Would Buy Them More
Often,” 2010 (percent of U.S. pet owners)
Internet a Big Plus for Natural Pet Products
     Table 3-21: Level of Pet Owner Agreement with Statement: “I Use the Internet to
     Help Find and Choose Pet Products,” February 2010 (percent)
     Table 3-22: Level of Pet Owner Agreement with Statement: “I Buy Pet Products
     Online,” February 2010 (percent)
     Table 3-23: Selected Internet-Related Psychographics: Adults Overall vs. Pet
     Owners by Type of Pet, 2009 (percent and index)
     The Human/Animal Bond
     Figure 3-10: “Consider My Pet(s) Part of the Family,” 2009 (percent of pet,
     dog/cat, dog and cat owners)
     Premium Demographics
     Table 3-24: Change in Pet Market Consumer Base: Household Income $60K or
     More vs. Household Income Under $60K, 2005 vs. 2009 (U.S. dog- or cat-
     owning households)
     Figure 3-11: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under
     $70K Income Households, 1998-2008 (percent)
     Impact of Aging Pet Population
     Impact of Pet Overweight, Obesity

Chapter 4: Competitive Trends
     Introduction
     Natural Pet Market Tracking Human Path
     Key Acquisitions
     Procter & Gamble Buys Natura
     Possible Future Acquisitions Targets
     New Brands and Line Extensions
     Illustration 4-1: Milk-Bone Natural Snacks
     No Guarantee of Success
     Mainstreaming Backlash
     Organic vs. Natural
     HSUS Debuts Humane Choice Organic Pet Food
Illustration 4-2: Humane Society’s Humane Choice Organic Pet Food
Focus on Raw Pet Food
Raw Pet Food Market Leaders
Focus on Product Safety
Paw Naturaw Committed to “Wholesale Direct”
The Freezer Case Hurdle
Illustration 4-3: Freezer Case of Country Pet’s CANZ Raw Pet Food in Whole
Foods
Raw Foods Mainstreaming
Illustration 4-4: Bravo’s Balance Raw Pet Food
Freshpet and Tyson Join Forces in Refrigerated Pet Food
Illustration 4-5: Trade Ad Featuring Freshpet Food and Refrigerator Case
The Next Big Thing: Jarred Pet Food?
Illustration 4-6: Miss Autumn’s Barkery Jarred Organic Pet Food
Marketer and Brand Rankings
Pet Specialty Still the Locus
Natural Pet Food Leaders in the Pet Specialty Channel
Table 4-1: Pet Specialty Channel Marketer and Brand Leaders in Dog Food and
Cat Food: 2004-2008 (percent)
Natural Pet Care Leaders in the Pet Specialty Channel
Natural Cat Litter Marketers
Figure 4-1: Pet Specialty Channel Marketer and Brand Leaders in Cat Litter
2004-2008 (percent)
Multi-Category Natural Pet Care Marketers
Category Specialists
Mass-Market Marketer and Brand Rankings
Dog Food
Cat Food
Cat Litter
Dog/Cat Needs
Top Ten Brands in the Natural Supermarket Channel
Figure 4-2: Top Brands of Pet Products in the Natural Supermarket Channel:
Share of Dollar Sales - 52 Weeks Ending May 15, 2010 vs. Year-Ago Period
(percent)
Table 4-2: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog Food
by Marketer, Brand, and Category: 52 Weeks Ending April 18, 2010 vs. Year-Ago
Period (in millions of dollars)
Table 4-3: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Cat Food by
Marketer, Brand, and Category: 52 Weeks Ending April 18, 2010 vs. Year-Ago
Period (in millions of dollars)
Table 4-4: Share of U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter
by Marketer and Brand: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period
(percent)
Table 4-5: U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter by
Marketer and Brand: 52 Weeks Ending April 2010 vs. Year-Ago Period (in
millions of dollars)
Table 4-6: U.S. SymphonyIRI-Tracked Dollar Sales of Natural Dog/Cat Needs by
Marketer and Brand: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in
millions of dollars)
Table 4-7: Top Brands of Pet Products in the Natural Supermarket Channel:
Dollar Sales - 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (in millions of
dollars)
Marketing Trends
Celebrity Kick
Cause-Related Marketing
Pet Food Producers Position on Safety
Illustration 4-7: Consumer Ad for Natural Balance’s “Buy with Confidence”
Program
Direct Selling via Internet
Advertising and Promotion
Illustration 4-8: Humane Choice Organic Pet Food Retail Display
Focus on Sustainability
      Pet Industry Embracing Sustainable Initiatives
      Figure 4-3: Are “Green” Positioning and Claims Becoming More or Less
      Important to Your Company vs. a Few Years Ago? (percent)
      Table 4-8: What Are The Reasons Your Operation Is Adopting Green and
      Sustainable Practices? (percent)
      Figure 4-4: How Important Do You Think It Is for Your Organization to Be a
      Leader in Adopting Sustainable Practices? (percent)
      Figure 4-5: What Do You Think Is the Likelihood That Increased Sustainability
      Will Lead to Increasing Long-Term Profits for Your Company? (percent)
      Table 4-9: Sustainability Practice Areas That Have Already Delivered or Have
      Significant Potential to Deliver a Strong Return on Investment (ROI) for Your
      Operation (percent)
      Sustainable Initiatives in Factory Conversion and Construction
      Sustainability and Ethical as Company Positioning
      Sustainability in Product Design
      Illustration 4-9: Bramton’s Eco-Care Training Pads
      Eco-Friendly Cat Litter at the Fore
      Sustainability in Packaging
      Retailers Also Going Green
      Table 4-10: Marketers and Brands of Natural, Organic and Eco-friendly Pet Food,
      2010
      Table 4-11: Marketers and Brands of Natural, Organic and Eco-friendly Products,
      2010

Chapter 5: New Product Trends
     “Natural” Leads New Product Surge
      Table 5-1: Number of New Natural and Organic Dog Food, Cat Food, and Pet
      Healthcare Products and Share of Total Category Launches, 2005-2010 (number
      and percent)
      “Natural-Related” Claims
      “Green” Claims
      Smaller Marketers Continue to Lead Natural Charge
Table 5-2: Number of Natural and Organic Pet Food Launches by Company,
2007-2009
Natural/Upscale Overlap
Figure 5-1: Percentage of Natural or Organic Pet Product Launches Also Tagged
Upscale or Gourmet: 2006-2009
Natural Plus Gourmet
Merrick Pet Care a Gourmet/Natural Pioneer
Illustration 5-1: Merrick’s Elements Pet Food Supplement Mix
Natural/Gourmet Treat Combos
Illustration 5-2: Oliver Bentleys LLC Barking Bakery Organic Dog Treats
Three Dog Bakery Introduces Bake to Nature Packaged Line
Rachael Ray Extends Nutrish Line with Just 6 Treats
Senior, Weight Management, and “Special Needs” Products
The Holistic Buzz
Illustration 5-3: New Packaging for WellPet’s Holistic Select
Table 5-3: Number of Dog Food and Treat Launches and Percentage Share of
All Dog Food and Treat Launches by Marketing Claim/Package Tag, 2006-2009
Table 5-4: Number of Cat Food and Treat Launches and Percentage Share of All
Cat Food and Treat Launches by Marketing Claim/Package Tag, 2006-2009
Table 5-5: Number of Pet Healthcare Product Launches and Percentage Share
of All Pet Healthcare Launches by Marketing Claim/Package Tag, 2006-2009
Pet Food
All About Ingredients
Petco Launches Nutrition Education Campaign
Illustration 5-4: Petco Pet Food Label Evaluation Tips
Human-Grade Ingredients
Honest Kitchen Makes Honest Claim Out of “Human Grade”
Country-Coded and U.S.-Sourced Ingredients
Locally Sourced Ingredients
Figure 5-2: U.S. Retail Sales of Locally Grown Foods: 2002, 2007, and 2011 (in
billions of dollars)
Functional Ingredients and Condition-Specific Claims
Trend Profile: Dogswell, LLC
Illustration 5-5: Dogswell Natural Nutraceutical Dog Treats
Grain-Free Foods and Treats
Illustration 5-6: Blue Wilderness Grain-Free Pet Food
Ancestral Diets
Hypoallergenic
No Wheat Gluten
Focus on Raw and Refrigerated Foods
Going Organic and Playing Up “Natural”
Raw and Human-Grade
Raw and Hypoallergenic/Grain-Free
New Zealand Appeal
Freeze-Dried and Dehydrated
Focus on Convenience
Focus on Felines
Pet Food Mixes and Homemade Foods
Company Snapshot: Honest Kitchen
Illustration 5-7: Lucy Postins’ Made Out of Love Pet Food Recipe Book
Company Snapshot: Nature’s Variety
Pet Care Products
Cat Litter
Illustration 5-8: Advertising for World’s Best Cat Litter’s “New Look”
Scoopable and Multi-Cat Formulations
Figure 5-3: Purchasing Patterns for Cat Filler/Litter Products by Type, 2005-2009
(percent of U.S. cat-owning households)
Illustration 5-9: Swheat Scoop Multi-Cat Natural Wheat Litter
     New Clay Litters Co-Opting “Natural”
     Illustration 5-10: Oil-Dri Corp’s Cat’s Pride Natural Scoop
     Eco-Friendliness
     Product Safety
     Litter Boxes and Accessories
     Pest Controls
     Illustration 5-11: Advertising for Liquid Net’s Ultimate Insect Repellant for Pets
     Grooming Products
     Illustration 5-12: TropiClean “Green” Shampoo and Conditioner
     Spa/Gift/Travel Appeals
     Clean-Up Products
     Supplements and Health Remedies
     Illustration 5-13: TropiClean’s New Fresh Breath Clean Teeth Gel
     Pet Beds
     Toys
     Collars and Leads
     Illustration 5-14: Premier Pet’s Eco Gentle Leader Harness
     Illustration 5-15: Website Banner for Coastal Pet’s Earth Soy Collars and Leads
     Carriers, Housing, and Bowls
     Illustration 5-16: Eco Concepts Dog Houses
     Non-Dog/Cat Supplies
     Illustration 5-17: Kaytee’s Nature’s Benefits Food for Birds and Small Animals
     Illustration 5-18: Kaytee’s All-Natural Timothy Hay Plus

Chapter 6: Consumer Trends
     Note on Data Sources
     Cat-Owning Households Have Slightly Higher Propensity to Buy General-Market
     “Green” Products
Table 6-1: Purchasing of General-Market Natural, Organic, or Eco-Friendly
Products, July 2009-March 2010 (percent of U.S. households)
Overall Purchasing Patterns for Natural/Organic Dog Products
Table 6-2a: Overview of Dog-Owner Purchasing Patterns for Natural/Organic Pet
Supplies: Any, 2009/2010 (percent and number among U.S. dog-owning
households)
Table 6-2b: Overview of Dog-Owner Purchasing Patterns for Natural/Organic Pet
Supplies: Natural Dog Food Brand and Organic Pet Food, 2009/2010 (percent
and number among U.S. dog-owning households)
Urban, Upper-Middle Class, and Gen Y Base for Natural Dog Products
Older Boomers Twice as Likely to Buy Natural Dog Foods
Spanish TV Is Prime Time for Natural Dog Food Brands
Table 6-3: Key Demographic Indicators for Purchasing Natural Products for
Dogs: Overall, Pet Food/Treats, and Non-Food Supplies, May/June 2010 (index
among U.S. dog owners)
Table 6-4: Selected Demographics for Purchasing Natural Brand Dog Foods,
July 2009-March 2010 (percent and index among U.S. dog-owning households)
Table 6-5: Selected Lifestyle Indicators for Purchasing Natural Brand Dog Foods,
July 2009-March 2010 (index among U.S. dog-owning households)
Table 6-6: Selected Psychographic Indicators for Purchasing Natural Brand Dog
Foods, July 2009-March 2010 (index among U.S. dog-owning households)
Demographics for Organic vs. Natural Dog Food Brands
Table 6-7: Selected Demographics for Purchasing Organic Dog Food, July 2009-
March 2010 (percent and index among U.S. dog-owning households)
The Consumer Mindset for Organic Dog Food
Table 6-8: Selected Psychographic Indicators for Purchasing Organic Dog Food,
July 2009-March 2010 (index among U.S. dog-owning households)
Overall Purchasing Patterns for Natural/Organic Cat Products
Table 6-9a: Overview of Cat-Owner Purchasing Patterns for Natural/Organic Pet
Supplies: Any Natural/Organic Pet Food or Supplies, Natural/Organic Pet
Food/Treats, Natural/Organic Pet Supplies Other Than Pet Food/Treats,
Natural/Organic Cat Litter and Natural/Organic Flea & Tick Care 2009/2010
(percent and index among U.S. cat-owning households)
Table 6-9b: Overview of Cat-Owner Purchasing Patterns for Natural/Organic Pet
Supplies: Organic Pet Food, Natural/Alternative Brand Cat Litter, 2009/2010
(percent and index among U.S. cat-owning households)
Hispanics Index at 158 for Purchasing Natural Cat Products
Metropolitan Skew for Organic Cat Food
Psychographic Indicators for Purchasing Organic Cat Food
Table 6-10: Key Demographic Indicators for Purchasing Natural Products for
Cats: Overall, Pet Food/Treats, and Non-Food Supplies, May/June 2010 (index
among U.S. cat owners)
Table 6-11: Selected Psychographic Indicators for Purchasing Organic Cat Food,
July 2009-March 2010 (index among U.S. cat-owning households)
The Natural/Alternative Cat Litter Consumer
Independent Pet Stores Are Highest-Indexing Channel for Natural Product
Purchasers
Table 6-12: Retail Channel Patterns: Purchasers vs. Non-Purchasers of
Natural/Organic Pet Products, July 2009-March 2010 (percent and index among
U.S. pet-owning households)
Figure 6-1: Retail Channel Indexes: Purchasers of Natural/Organic Pet Products,
July 2009-March 2010 (U.S. pet-owning households)
Retail Draws: PetSmart vs. Petco
Table 6-13: Patterns for Shopping at PetSmart vs. Petco: Purchasers vs. Non-
Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (percent and
index among U.S. pet-owning households)
Availability as Impediment to Natural Product Purchasing
Table 6-14: Level of Agreement with Statement, “If Natural/Organic Pet Products
Were More Available Where I Shop, I Would Buy Them More Often,” 2010
(percent of U.S. pet owners)
Table 6-15: Level of Agreement with Statement Among Dog Owners Who
Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were
More Available Where I Shop, I Would Buy Them More Often,” 2010 (percent of
U.S. dog owners)
Table 6-16: Level of Agreement with Statement Among Cat Owners Who
Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were
More Available Where I Shop, I Would Buy Them More Often,” 2010 (percent of
U.S. dog owners)
Affordability as Impediment to Natural Product Purchasing
       Table 6-17: Level of Agreement with Statement, “If Natural/Organic Pet Products
       Were More Affordable Where I Shop, I Would Buy Them More Often,” 2010
       (percent of U.S. pet owners)
       Table 6-18: Level of Agreement with Statement Among Dog Owners Who
       Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were
       More Affordable Where I Shop, I Would Buy Them More Often,” 2010 (percent of
       U.S. cat owners)
       Table 6-19: Level of Agreement with Statement Among Cat Owners Who
       Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were
       More Affordable Where I Shop, I Would Buy Them More Often,” 2010 (percent of
       U.S. cat owners)
       Table 6-20: Percent Who Strongly Consider Availability or Affordability as
       Impediments to Further Purchasing of Natural/Organic Pet Products: By Pet
       Owner Classification, 2010 (percent)



Available immediately for Online Download at
http://www.marketresearch.com/product/display.asp?productid=2161071




US: 800.298.5699

UK +44.207.256.3920

Int'l: +1.240.747.3093

Fax: 240.747.3004

Mais conteúdo relacionado

Mais de MarketResearch.com

Lottery Market in the US 2016-2020
Lottery Market in the US 2016-2020Lottery Market in the US 2016-2020
Lottery Market in the US 2016-2020MarketResearch.com
 
Domestic Bedroom Furniture Market Report – UK 2016-2020 Analysis
Domestic Bedroom Furniture Market Report – UK 2016-2020 AnalysisDomestic Bedroom Furniture Market Report – UK 2016-2020 Analysis
Domestic Bedroom Furniture Market Report – UK 2016-2020 AnalysisMarketResearch.com
 
Fleet Management in the Americas – 6th Edition
Fleet Management in the Americas – 6th EditionFleet Management in the Americas – 6th Edition
Fleet Management in the Americas – 6th EditionMarketResearch.com
 
Cuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses
Cuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and AnalysesCuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses
Cuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and AnalysesMarketResearch.com
 
Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...
Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...
Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...MarketResearch.com
 
Global Connected Car Market (2016 - 2022)
Global Connected Car Market (2016 - 2022)Global Connected Car Market (2016 - 2022)
Global Connected Car Market (2016 - 2022)MarketResearch.com
 
Global In-flight Wifi Market Outlook 2021
Global In-flight Wifi Market Outlook 2021Global In-flight Wifi Market Outlook 2021
Global In-flight Wifi Market Outlook 2021MarketResearch.com
 
Global Internet of Nano Things Market 2016-2020
Global Internet of Nano Things Market 2016-2020Global Internet of Nano Things Market 2016-2020
Global Internet of Nano Things Market 2016-2020MarketResearch.com
 
Customer Experience (CX) in Physician and HCP Engagement
Customer Experience (CX) in Physician and HCP EngagementCustomer Experience (CX) in Physician and HCP Engagement
Customer Experience (CX) in Physician and HCP EngagementMarketResearch.com
 
Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...
Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...
Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...MarketResearch.com
 
Smart Clothing and Body Sensors
Smart Clothing and Body SensorsSmart Clothing and Body Sensors
Smart Clothing and Body SensorsMarketResearch.com
 
Global Telecoms - The Big Picture 2016 and Key Industry Statistics
Global Telecoms - The Big Picture 2016 and Key Industry StatisticsGlobal Telecoms - The Big Picture 2016 and Key Industry Statistics
Global Telecoms - The Big Picture 2016 and Key Industry StatisticsMarketResearch.com
 
Investigator Initiated Trial Management Expedite Approval Timelines and Estab...
Investigator Initiated Trial Management Expedite Approval Timelines and Estab...Investigator Initiated Trial Management Expedite Approval Timelines and Estab...
Investigator Initiated Trial Management Expedite Approval Timelines and Estab...MarketResearch.com
 
Green Household Cleaning and Laundry Products
Green Household Cleaning and Laundry ProductsGreen Household Cleaning and Laundry Products
Green Household Cleaning and Laundry ProductsMarketResearch.com
 
Functional Foods: Key Trends by Product Categories and Benefits
Functional Foods: Key Trends by Product Categories and BenefitsFunctional Foods: Key Trends by Product Categories and Benefits
Functional Foods: Key Trends by Product Categories and BenefitsMarketResearch.com
 
Human Capital Management Market by Solution
Human Capital Management Market by SolutionHuman Capital Management Market by Solution
Human Capital Management Market by SolutionMarketResearch.com
 
Power Packaging Technology Trends and Market Expectations
Power Packaging Technology Trends and Market ExpectationsPower Packaging Technology Trends and Market Expectations
Power Packaging Technology Trends and Market ExpectationsMarketResearch.com
 
Natural and Organic Foods and Beverages in the U.S., 4th Edition
Natural and Organic Foods and Beverages in the U.S., 4th EditionNatural and Organic Foods and Beverages in the U.S., 4th Edition
Natural and Organic Foods and Beverages in the U.S., 4th EditionMarketResearch.com
 

Mais de MarketResearch.com (20)

Costco: Leading Research
Costco:  Leading ResearchCostco:  Leading Research
Costco: Leading Research
 
Lottery Market in the US 2016-2020
Lottery Market in the US 2016-2020Lottery Market in the US 2016-2020
Lottery Market in the US 2016-2020
 
Domestic Bedroom Furniture Market Report – UK 2016-2020 Analysis
Domestic Bedroom Furniture Market Report – UK 2016-2020 AnalysisDomestic Bedroom Furniture Market Report – UK 2016-2020 Analysis
Domestic Bedroom Furniture Market Report – UK 2016-2020 Analysis
 
Fleet Management in the Americas – 6th Edition
Fleet Management in the Americas – 6th EditionFleet Management in the Americas – 6th Edition
Fleet Management in the Americas – 6th Edition
 
Cuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses
Cuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and AnalysesCuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses
Cuba - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses
 
Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...
Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...
Circulating Tumor Cell, Cell Free DNA, Exosome and Vesicle Cancer Diagnostic ...
 
Global Connected Car Market (2016 - 2022)
Global Connected Car Market (2016 - 2022)Global Connected Car Market (2016 - 2022)
Global Connected Car Market (2016 - 2022)
 
Global In-flight Wifi Market Outlook 2021
Global In-flight Wifi Market Outlook 2021Global In-flight Wifi Market Outlook 2021
Global In-flight Wifi Market Outlook 2021
 
Global Internet of Nano Things Market 2016-2020
Global Internet of Nano Things Market 2016-2020Global Internet of Nano Things Market 2016-2020
Global Internet of Nano Things Market 2016-2020
 
Customer Experience (CX) in Physician and HCP Engagement
Customer Experience (CX) in Physician and HCP EngagementCustomer Experience (CX) in Physician and HCP Engagement
Customer Experience (CX) in Physician and HCP Engagement
 
Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...
Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...
Global Open Loop Prepaid Cards Market Intelligence, Innovation, Strategy, and...
 
Smart Clothing and Body Sensors
Smart Clothing and Body SensorsSmart Clothing and Body Sensors
Smart Clothing and Body Sensors
 
Global Telecoms - The Big Picture 2016 and Key Industry Statistics
Global Telecoms - The Big Picture 2016 and Key Industry StatisticsGlobal Telecoms - The Big Picture 2016 and Key Industry Statistics
Global Telecoms - The Big Picture 2016 and Key Industry Statistics
 
Computer Software
Computer SoftwareComputer Software
Computer Software
 
Investigator Initiated Trial Management Expedite Approval Timelines and Estab...
Investigator Initiated Trial Management Expedite Approval Timelines and Estab...Investigator Initiated Trial Management Expedite Approval Timelines and Estab...
Investigator Initiated Trial Management Expedite Approval Timelines and Estab...
 
Green Household Cleaning and Laundry Products
Green Household Cleaning and Laundry ProductsGreen Household Cleaning and Laundry Products
Green Household Cleaning and Laundry Products
 
Functional Foods: Key Trends by Product Categories and Benefits
Functional Foods: Key Trends by Product Categories and BenefitsFunctional Foods: Key Trends by Product Categories and Benefits
Functional Foods: Key Trends by Product Categories and Benefits
 
Human Capital Management Market by Solution
Human Capital Management Market by SolutionHuman Capital Management Market by Solution
Human Capital Management Market by Solution
 
Power Packaging Technology Trends and Market Expectations
Power Packaging Technology Trends and Market ExpectationsPower Packaging Technology Trends and Market Expectations
Power Packaging Technology Trends and Market Expectations
 
Natural and Organic Foods and Beverages in the U.S., 4th Edition
Natural and Organic Foods and Beverages in the U.S., 4th EditionNatural and Organic Foods and Beverages in the U.S., 4th Edition
Natural and Organic Foods and Beverages in the U.S., 4th Edition
 

Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition

  • 1. Get more info on this report! Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition July 1, 2010 Although the 2008-2009 recession took a notable toll, natural and organic pet products continue as a top-growth market segment on their way to becoming the standard for premium pet products in the pet specialty channel and other upscale venues. Doing their part, all of the major mass-market and cross-channel marketers are tapping into the trend as well, keeping pressure on smaller marketers to scale up their product offerings even further. Most recently, in mid 2010 Procter & Gamble rocked the pet food industry by acquiring Natura Pet Products, whose natural and organic pet food brands include Innova, Evo, California Natural and Karma—a move that suggests that the natural pet food party is just getting started on the mass-market side. Also underpinning steady market advancement is consumer demand for products perceived to be safer, an appeal that got a big boost from the Spring 2007 recalls and one that continues to define the way marketers formulate and position products. According to pet owner surveys conducted by Packaged Facts, 40% of dog owners and 38% of cat owners purchase natural/organic pet products; nearly half of pet owners would buy more natural/organic pet products if they were more affordable; and almost two-fifths would do so if they were more available. Featuring exclusive consumer data such as these, the report homes in on food and nonfood purchasing trends across multiple categories, as well as attitudes and demographic characteristics of natural and organic pet product purchasers. Building on the analysis presented in the previous two editions of this report, Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition divides the market into two classifications—pet food and pet care—with the latter defined as encompassing all nonfood pet supplies (cat litter, grooming products, flea/tick care products, supplements, clean-up products, etc.). For each classification, coverage includes historical and projected retail sales estimates from 2005 through 2014, competitive strategies of key players, and trends in new product development such as human-grade pet food, raw/frozen pet food, fresh (refrigerated) pet food, eco-friendly nonfood pet products, corporate sustainability initiatives, and cause marketing. Additional data sources include SymphonyIRI marketer/brand sales data for mass-market channels, SPINSscan data for the natural supermarket channel, Datamonitor Product Launch
  • 2. Analytics data tracking new product introductions, and Experian Simmons data profiling trends in pet ownership and product purchasing. About the Author David Lummis is the senior pet market analyst for Packaged Facts. He is also author of the monthly "Market Outlook" column in Pet Product News International, and a regular contributor of articles and market insight to other pet industry magazines as well as major business media including The New York Times and CNNMoney. Mr. Lummis also is President of New Orleans-based Marigny Research Group, Inc., a producer of custom market research reports for Packaged Facts. Since 1986, MRG has prepared more than 175 studies on consumer packaged goods markets and developed full report lines covering pet, demographic, retail and financial markets. Mr. Lummis, who graduated from Yale University, has also written approximately 75 other published B2B reports and is the author of the book, "Value Retailing in the 1990s." Additional Information Market Insights: A Selection From The Report Availability and Affordability as Impediment to Natural Product Purchasing According to Packaged Facts survey data, 39% of pet owners agree that they would buy natural/organic pet products more often if these products were more available where they shop, compared with 29% who disagree. Among those agreeing with this statement, the larger share “somewhat agree” rather than “strongly agree” (at 26% vs. 12%, respectively). Not surprisingly, particularly in a price-conscious era of economic doldrums, affordability is an even bigger issue than availability. Among pet owners overall, half (52%) agree that they would buy natural/organic pet products more often if these products were more affordable, compared with only 22% who disagree. Moreover, 19% strongly agree that they would do so, compared with only 10% who strongly disagree. Locally Sourced Ingredients The 2007 recalls also spurred interest in products made from ingredients that are locally grown, a trend that dovetails with such “green” initiatives as fostering smaller carbon footprints and reducing “food miles” (the distance a food must travel from point of origin to end user). Following the recalls, human-grade organic pet food producer Evanger’s trumpeted that it buys all of its ingredients locally, purchasing most of them within 40 miles of its plant. Similarly, Freshpet told the press that all of the ingredients in its
  • 3. refrigerated pet foods “are fresh, never frozen or preprocessed prior to cooking and all are locally sourced from the United States using stringent quality standards.” Packaged Facts believes “locally grown” retains strong potential as a pet food sales proposition during 2010 and beyond. Trends in the pet food market don’t just follow human trends, they often do so at accelerated rates, and the trend toward locally grown is already in full swing on the human side. In our May 2007 report, Fresh and Local Foods in the U.S., Packaged Facts conservatively estimates that locally grown food could be a $7 billion business by 2011, almost double the 2002 level. This forecast is based on trends including the rapid growth of farmers’ markets, consumer perceptions that locally grown products are tastier and healthier, consumers’ growing desire to support their local economy, and corporate support for sustainable agriculture. [Figure 5-2] In the News Table of Contents Chapter 1: Executive Summary Introduction Scope of Report: Pet Food and Pet Care Report Methodology Market Trends U.S. Retail Sales, 2005-2014 Table 1-1: U.S. Retail Sales of Natural Pet Products, 2005-2014 (in millions of dollars) Pet Food vs. Pet Care Organic Pet Food Sales Litter Dominates Pet Care Classification Mass-Market Sales Trends Natural Supermarket Sales Trends Market Share by Retail Channel Figure 1-1: Share of U.S. Retail Sales of Natural Pet Products by Distribution Channel: 2005 vs. 2009 (percent) Competitive Trends Natural Pet Market Tracking Human Path
  • 4. Procter & Gamble Plus Natura New Brands and Line Extensions Raw Pet Food Market Leaders Freshpet and Tyson Join Forces in Refrigerated Pet Food Natural Product Leaders in the Pet Specialty Channel Dog Food Cat Food Cat Litter Natural Product Leaders in Tracked Mass-Market Channels Dog Food Cat Food Cat Litter Dog/Cat Needs Top Ten Brands in the Natural Supermarket Channel New Product Trends “Natural” Leads New Product Surge “Natural-Related” Claims “Green” Claims Consumer Trends Purchasing Patterns for Natural/Organic Dog Products Purchasing Patterns for Natural/Organic Cat Products Independent Pet Stores Are Highest-Indexing Channel for Natural Product Purchasers Figure 1-2: Retail Channel Indexes: Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (U.S. pet-owning households) Availability and Affordability as Impediment to Natural Product Purchasing Chapter 2: Introduction Scope & Methodology
  • 5. Scope of Report: Pet Food and Pet Care Report Methodology Market Definitions and Terminology Natural Pet Food Defining Natural What “Natural” Isn’t Defining Organic Pet Food Task Force Formed to Clarify Standards April 2010 NOP Recommendation Muddies Organic Pet Food Waters Organic Standards as of May 2010 Sustainability and Other Ethical Issues Third-Party Accreditation Natural vs. Organic Raw Pet Food Product Definition Dr. Billinghurst’s BARF Diet The Raw Meaty Bones (Prey Model) Approach Raw Food Processing Freeze-Drying Pasteurization Raw Food Regulation Terms Often Associated with Natural and Organic “Healthy” Ingredients “Unhealthy” Ingredients Natural Pet Care Products Natural and Alternative Litter Natural Pet Health Products Natural Pet Grooming Products
  • 6. Natural Pest-Control Products Natural Pet Supplements Other Natural Pet Care Products “Ethical” and Environmental Issues Key Ethical Issues Eco-Friendly (“Green”) Locally Grown and “Food Miles” Humane Treatment of Animals No Animal Testing/Cruelty-Free No Genetic Modification or Cloned Animals Fair Trade/Ethically Sourced Sustainable Agriculture and Development Corporate Responsibility The Global Reporting Initiative Governmental and Non-Governmental Criteria and Certification Consumers Union Lists 150 Different “Eco-Labels” Chapter 3: Market Trends Market Size & Growth U.S. Retail Sales, 2005-2014 Table 3-1: U.S. Retail Sales of Natural Pet Products, 2005-2014 (in millions of dollars) Pet Food vs. Pet Care Table 3-2: U.S. Retail Sales of Natural Pet Products by Classification and Category: 2005, 2009 and 2014 (in millions of dollars) Table 3-3: Share of U.S. Retail Sales of Natural Pet Products: 2005, 2009 and 2014 (percent) Food Sales by Type Table 3-4: Share of U.S. Retail Dollar Sales of Natural Dog and Cat Food by Form, 2009 (in millions of dollars)
  • 7. Organic Pet Food Sales Table 3-5: U.S. Retail Sales of Organic Pet Food, 2003-2009 (in millions of dollars) Raw Pet Food Sales Figure 3-1: U.S. Retail Sales of Commercially Prepared Raw Pet Food: 2005, 2009 and 2014 (in millions of dollars) Litter Dominates Pet Care Classification Figure 3-2: Share of U.S. Retail Sales of Natural Pet Care Product Classification by Category: 2005, 2009 and 2014 (percent) Mass-Market Sales Trends Table 3-6: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Pet Food, Litter, and Dog/Cat Needs vs. Total Pet Food, Litter, and Dog/Cat Needs: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars) Dog and Cat Food Table 3-7: Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Total Pet Food and Natural Pet Food by Animal Type: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent) Table 3-8: Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog Food and Total Dog Food by Product Type: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent) Table 3-9: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog and Cat Food vs. Total Dog Food by Category: 52 Weeks Ending April 18, 2010 vs. Year- Ago Period (in millions of dollars) Table 3-10: Share of U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Cat Food and Total Cat Food by Product Type: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent) Cat Litter Table 3-11: U.S. SymphonyIRI-Tracked Dollar, Unit, and, Volume Sales of Natural Cat Litter vs. Total Cat Litter: 52 Weeks Ending April 18, 2010 vs. Year- Ago Period (in millions of dollars, units and pounds) Figure 3-3: Natural/Alternative Cat Litter Share of Tracked Mass-Market Cat Litter Sales, 2003-2009 (percent) Natural Supermarket Sales Trends
  • 8. Table 3-12: Dollar Sales of Pet Products in the Natural Supermarket Channel by Category, 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (in millions of dollars) Figure 3-4: Share of Sales of Pet Products in the Natural Supermarket Channel by Category, 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (percent) Figure 3-5: Estimated Percentage Growth Rate of Pet Product Sales in Natural Supermarkets, 2006-2010 (percent) Market Share by Retail Channel Figure 3-6: Share of U.S. Retail Sales of Natural Pet Products by Distribution Channel: 2005 vs. 2009 (percent) Market Outlook Recession Takes a Toll Table 3-13: Symphony/IRI-Tracked Sales of Pet Products: Total and by Food and Non-Food Category and Segment, 2009 vs. 2008 (in millions of dollars, units and pounds) Slow But (Apparently) Steady Recovery Underway Pet Market Consumers a Bullish Bunch Figure 3-7: Level of Agreement with Statement “I Am Spending Less on Pet Products These Days Because of the Economy,” 2010 (percent of U.S. pet owners) Table 3-14: Level of Agreement with Statement “I Am Spending Less on Pet Products These Days Because of the Economy”: Dog Owners and Cat Owners Overall vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply Purchasers, 2010 (percent of U.S. pet owners) Table 3-15: Level of Agreement with Statement “I Am Spending Less These Days Because of the Economy”: Dog Owners and Cat Owners Overall vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply Purchasers, 2010 (percent of U.S. pet owners) Figure 3-8: Level of Agreement with Statement “I Anticipate Spending More on Pet Products Over the Next 12 Months,” 2010 (percent of U.S. pet owners) Table 3-16: Level of Agreement with Statement “I Anticipate Spending More on Pet Products Over The Next 12 Months”: Dog Owners and Cat Owners Overall vs. Natural Dog Food/Supply Purchasers and Natural Cat Food/Supply Purchasers, 2010 (percent of U.S. pet owners) Heightened Consumer and Governmental Focus on Product Safety
  • 9. New Regulations for Flea/Tick “Spot-ons” Heightened Focus on the Environment Focus on Organic and Sustainable New NOP Recommendation Threatens Organic Pet Food Recession Takes a Toll Organic Ingredient Surplus and Higher Costs to Producers Is Organic Really Better? Confusion over Natural vs. Organic, “Green” A “Greenwashing” Backlash? OTA Bullish on Organic Growth Government Steps Up Support of Organic Industry Strong Consumer Interest Favorable Trends in Multiple Retail Channels Independent Pet Specialty Continues to Shift Toward Natural Table 3-17: Level of Change in Sales Volume Among Independent Pet Specialty Retailers, 2007-2010 (percent) Table 3-18: Natural Product Share of Independent Pet Specialty Store Sales by Animal Category, 2009 (percent) Table 3-19: Share of Independent Pet Specialty Store Sales Derived from Natural Products: By Animal Category and Percentage Level, 2009 (percent) Table 3-20: Change in Amount of Natural/Holistic Products Sold: “Has the Amount of Natural/Holistic Products Your Store Sells Increased, Remained the Same, or Decreased In the Last 12 Months?” (percent) Petco Programs PetSmart and Martha Stewart Room to Grow at Whole Foods A Boom in Mass Channels? Figure 3-9: Level of Agreement with Statements “If Natural/Organic Pet Products Were More Affordable / More Available Where I Shop, I Would Buy Them More Often,” 2010 (percent of U.S. pet owners)
  • 10. Internet a Big Plus for Natural Pet Products Table 3-21: Level of Pet Owner Agreement with Statement: “I Use the Internet to Help Find and Choose Pet Products,” February 2010 (percent) Table 3-22: Level of Pet Owner Agreement with Statement: “I Buy Pet Products Online,” February 2010 (percent) Table 3-23: Selected Internet-Related Psychographics: Adults Overall vs. Pet Owners by Type of Pet, 2009 (percent and index) The Human/Animal Bond Figure 3-10: “Consider My Pet(s) Part of the Family,” 2009 (percent of pet, dog/cat, dog and cat owners) Premium Demographics Table 3-24: Change in Pet Market Consumer Base: Household Income $60K or More vs. Household Income Under $60K, 2005 vs. 2009 (U.S. dog- or cat- owning households) Figure 3-11: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Households, 1998-2008 (percent) Impact of Aging Pet Population Impact of Pet Overweight, Obesity Chapter 4: Competitive Trends Introduction Natural Pet Market Tracking Human Path Key Acquisitions Procter & Gamble Buys Natura Possible Future Acquisitions Targets New Brands and Line Extensions Illustration 4-1: Milk-Bone Natural Snacks No Guarantee of Success Mainstreaming Backlash Organic vs. Natural HSUS Debuts Humane Choice Organic Pet Food
  • 11. Illustration 4-2: Humane Society’s Humane Choice Organic Pet Food Focus on Raw Pet Food Raw Pet Food Market Leaders Focus on Product Safety Paw Naturaw Committed to “Wholesale Direct” The Freezer Case Hurdle Illustration 4-3: Freezer Case of Country Pet’s CANZ Raw Pet Food in Whole Foods Raw Foods Mainstreaming Illustration 4-4: Bravo’s Balance Raw Pet Food Freshpet and Tyson Join Forces in Refrigerated Pet Food Illustration 4-5: Trade Ad Featuring Freshpet Food and Refrigerator Case The Next Big Thing: Jarred Pet Food? Illustration 4-6: Miss Autumn’s Barkery Jarred Organic Pet Food Marketer and Brand Rankings Pet Specialty Still the Locus Natural Pet Food Leaders in the Pet Specialty Channel Table 4-1: Pet Specialty Channel Marketer and Brand Leaders in Dog Food and Cat Food: 2004-2008 (percent) Natural Pet Care Leaders in the Pet Specialty Channel Natural Cat Litter Marketers Figure 4-1: Pet Specialty Channel Marketer and Brand Leaders in Cat Litter 2004-2008 (percent) Multi-Category Natural Pet Care Marketers Category Specialists Mass-Market Marketer and Brand Rankings Dog Food Cat Food
  • 12. Cat Litter Dog/Cat Needs Top Ten Brands in the Natural Supermarket Channel Figure 4-2: Top Brands of Pet Products in the Natural Supermarket Channel: Share of Dollar Sales - 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (percent) Table 4-2: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Dog Food by Marketer, Brand, and Category: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars) Table 4-3: U.S. SymphonyIRI-Tracked Retail Dollar Sales of Natural Cat Food by Marketer, Brand, and Category: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars) Table 4-4: Share of U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter by Marketer and Brand: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (percent) Table 4-5: U.S. SymphonyIRI-Tracked Dollar Sales of Natural Cat Litter by Marketer and Brand: 52 Weeks Ending April 2010 vs. Year-Ago Period (in millions of dollars) Table 4-6: U.S. SymphonyIRI-Tracked Dollar Sales of Natural Dog/Cat Needs by Marketer and Brand: 52 Weeks Ending April 18, 2010 vs. Year-Ago Period (in millions of dollars) Table 4-7: Top Brands of Pet Products in the Natural Supermarket Channel: Dollar Sales - 52 Weeks Ending May 15, 2010 vs. Year-Ago Period (in millions of dollars) Marketing Trends Celebrity Kick Cause-Related Marketing Pet Food Producers Position on Safety Illustration 4-7: Consumer Ad for Natural Balance’s “Buy with Confidence” Program Direct Selling via Internet Advertising and Promotion Illustration 4-8: Humane Choice Organic Pet Food Retail Display
  • 13. Focus on Sustainability Pet Industry Embracing Sustainable Initiatives Figure 4-3: Are “Green” Positioning and Claims Becoming More or Less Important to Your Company vs. a Few Years Ago? (percent) Table 4-8: What Are The Reasons Your Operation Is Adopting Green and Sustainable Practices? (percent) Figure 4-4: How Important Do You Think It Is for Your Organization to Be a Leader in Adopting Sustainable Practices? (percent) Figure 4-5: What Do You Think Is the Likelihood That Increased Sustainability Will Lead to Increasing Long-Term Profits for Your Company? (percent) Table 4-9: Sustainability Practice Areas That Have Already Delivered or Have Significant Potential to Deliver a Strong Return on Investment (ROI) for Your Operation (percent) Sustainable Initiatives in Factory Conversion and Construction Sustainability and Ethical as Company Positioning Sustainability in Product Design Illustration 4-9: Bramton’s Eco-Care Training Pads Eco-Friendly Cat Litter at the Fore Sustainability in Packaging Retailers Also Going Green Table 4-10: Marketers and Brands of Natural, Organic and Eco-friendly Pet Food, 2010 Table 4-11: Marketers and Brands of Natural, Organic and Eco-friendly Products, 2010 Chapter 5: New Product Trends “Natural” Leads New Product Surge Table 5-1: Number of New Natural and Organic Dog Food, Cat Food, and Pet Healthcare Products and Share of Total Category Launches, 2005-2010 (number and percent) “Natural-Related” Claims “Green” Claims Smaller Marketers Continue to Lead Natural Charge
  • 14. Table 5-2: Number of Natural and Organic Pet Food Launches by Company, 2007-2009 Natural/Upscale Overlap Figure 5-1: Percentage of Natural or Organic Pet Product Launches Also Tagged Upscale or Gourmet: 2006-2009 Natural Plus Gourmet Merrick Pet Care a Gourmet/Natural Pioneer Illustration 5-1: Merrick’s Elements Pet Food Supplement Mix Natural/Gourmet Treat Combos Illustration 5-2: Oliver Bentleys LLC Barking Bakery Organic Dog Treats Three Dog Bakery Introduces Bake to Nature Packaged Line Rachael Ray Extends Nutrish Line with Just 6 Treats Senior, Weight Management, and “Special Needs” Products The Holistic Buzz Illustration 5-3: New Packaging for WellPet’s Holistic Select Table 5-3: Number of Dog Food and Treat Launches and Percentage Share of All Dog Food and Treat Launches by Marketing Claim/Package Tag, 2006-2009 Table 5-4: Number of Cat Food and Treat Launches and Percentage Share of All Cat Food and Treat Launches by Marketing Claim/Package Tag, 2006-2009 Table 5-5: Number of Pet Healthcare Product Launches and Percentage Share of All Pet Healthcare Launches by Marketing Claim/Package Tag, 2006-2009 Pet Food All About Ingredients Petco Launches Nutrition Education Campaign Illustration 5-4: Petco Pet Food Label Evaluation Tips Human-Grade Ingredients Honest Kitchen Makes Honest Claim Out of “Human Grade” Country-Coded and U.S.-Sourced Ingredients Locally Sourced Ingredients
  • 15. Figure 5-2: U.S. Retail Sales of Locally Grown Foods: 2002, 2007, and 2011 (in billions of dollars) Functional Ingredients and Condition-Specific Claims Trend Profile: Dogswell, LLC Illustration 5-5: Dogswell Natural Nutraceutical Dog Treats Grain-Free Foods and Treats Illustration 5-6: Blue Wilderness Grain-Free Pet Food Ancestral Diets Hypoallergenic No Wheat Gluten Focus on Raw and Refrigerated Foods Going Organic and Playing Up “Natural” Raw and Human-Grade Raw and Hypoallergenic/Grain-Free New Zealand Appeal Freeze-Dried and Dehydrated Focus on Convenience Focus on Felines Pet Food Mixes and Homemade Foods Company Snapshot: Honest Kitchen Illustration 5-7: Lucy Postins’ Made Out of Love Pet Food Recipe Book Company Snapshot: Nature’s Variety Pet Care Products Cat Litter Illustration 5-8: Advertising for World’s Best Cat Litter’s “New Look” Scoopable and Multi-Cat Formulations Figure 5-3: Purchasing Patterns for Cat Filler/Litter Products by Type, 2005-2009 (percent of U.S. cat-owning households)
  • 16. Illustration 5-9: Swheat Scoop Multi-Cat Natural Wheat Litter New Clay Litters Co-Opting “Natural” Illustration 5-10: Oil-Dri Corp’s Cat’s Pride Natural Scoop Eco-Friendliness Product Safety Litter Boxes and Accessories Pest Controls Illustration 5-11: Advertising for Liquid Net’s Ultimate Insect Repellant for Pets Grooming Products Illustration 5-12: TropiClean “Green” Shampoo and Conditioner Spa/Gift/Travel Appeals Clean-Up Products Supplements and Health Remedies Illustration 5-13: TropiClean’s New Fresh Breath Clean Teeth Gel Pet Beds Toys Collars and Leads Illustration 5-14: Premier Pet’s Eco Gentle Leader Harness Illustration 5-15: Website Banner for Coastal Pet’s Earth Soy Collars and Leads Carriers, Housing, and Bowls Illustration 5-16: Eco Concepts Dog Houses Non-Dog/Cat Supplies Illustration 5-17: Kaytee’s Nature’s Benefits Food for Birds and Small Animals Illustration 5-18: Kaytee’s All-Natural Timothy Hay Plus Chapter 6: Consumer Trends Note on Data Sources Cat-Owning Households Have Slightly Higher Propensity to Buy General-Market “Green” Products
  • 17. Table 6-1: Purchasing of General-Market Natural, Organic, or Eco-Friendly Products, July 2009-March 2010 (percent of U.S. households) Overall Purchasing Patterns for Natural/Organic Dog Products Table 6-2a: Overview of Dog-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Any, 2009/2010 (percent and number among U.S. dog-owning households) Table 6-2b: Overview of Dog-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Natural Dog Food Brand and Organic Pet Food, 2009/2010 (percent and number among U.S. dog-owning households) Urban, Upper-Middle Class, and Gen Y Base for Natural Dog Products Older Boomers Twice as Likely to Buy Natural Dog Foods Spanish TV Is Prime Time for Natural Dog Food Brands Table 6-3: Key Demographic Indicators for Purchasing Natural Products for Dogs: Overall, Pet Food/Treats, and Non-Food Supplies, May/June 2010 (index among U.S. dog owners) Table 6-4: Selected Demographics for Purchasing Natural Brand Dog Foods, July 2009-March 2010 (percent and index among U.S. dog-owning households) Table 6-5: Selected Lifestyle Indicators for Purchasing Natural Brand Dog Foods, July 2009-March 2010 (index among U.S. dog-owning households) Table 6-6: Selected Psychographic Indicators for Purchasing Natural Brand Dog Foods, July 2009-March 2010 (index among U.S. dog-owning households) Demographics for Organic vs. Natural Dog Food Brands Table 6-7: Selected Demographics for Purchasing Organic Dog Food, July 2009- March 2010 (percent and index among U.S. dog-owning households) The Consumer Mindset for Organic Dog Food Table 6-8: Selected Psychographic Indicators for Purchasing Organic Dog Food, July 2009-March 2010 (index among U.S. dog-owning households) Overall Purchasing Patterns for Natural/Organic Cat Products Table 6-9a: Overview of Cat-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Any Natural/Organic Pet Food or Supplies, Natural/Organic Pet Food/Treats, Natural/Organic Pet Supplies Other Than Pet Food/Treats, Natural/Organic Cat Litter and Natural/Organic Flea & Tick Care 2009/2010 (percent and index among U.S. cat-owning households)
  • 18. Table 6-9b: Overview of Cat-Owner Purchasing Patterns for Natural/Organic Pet Supplies: Organic Pet Food, Natural/Alternative Brand Cat Litter, 2009/2010 (percent and index among U.S. cat-owning households) Hispanics Index at 158 for Purchasing Natural Cat Products Metropolitan Skew for Organic Cat Food Psychographic Indicators for Purchasing Organic Cat Food Table 6-10: Key Demographic Indicators for Purchasing Natural Products for Cats: Overall, Pet Food/Treats, and Non-Food Supplies, May/June 2010 (index among U.S. cat owners) Table 6-11: Selected Psychographic Indicators for Purchasing Organic Cat Food, July 2009-March 2010 (index among U.S. cat-owning households) The Natural/Alternative Cat Litter Consumer Independent Pet Stores Are Highest-Indexing Channel for Natural Product Purchasers Table 6-12: Retail Channel Patterns: Purchasers vs. Non-Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (percent and index among U.S. pet-owning households) Figure 6-1: Retail Channel Indexes: Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (U.S. pet-owning households) Retail Draws: PetSmart vs. Petco Table 6-13: Patterns for Shopping at PetSmart vs. Petco: Purchasers vs. Non- Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (percent and index among U.S. pet-owning households) Availability as Impediment to Natural Product Purchasing Table 6-14: Level of Agreement with Statement, “If Natural/Organic Pet Products Were More Available Where I Shop, I Would Buy Them More Often,” 2010 (percent of U.S. pet owners) Table 6-15: Level of Agreement with Statement Among Dog Owners Who Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were More Available Where I Shop, I Would Buy Them More Often,” 2010 (percent of U.S. dog owners) Table 6-16: Level of Agreement with Statement Among Cat Owners Who Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were More Available Where I Shop, I Would Buy Them More Often,” 2010 (percent of U.S. dog owners)
  • 19. Affordability as Impediment to Natural Product Purchasing Table 6-17: Level of Agreement with Statement, “If Natural/Organic Pet Products Were More Affordable Where I Shop, I Would Buy Them More Often,” 2010 (percent of U.S. pet owners) Table 6-18: Level of Agreement with Statement Among Dog Owners Who Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were More Affordable Where I Shop, I Would Buy Them More Often,” 2010 (percent of U.S. cat owners) Table 6-19: Level of Agreement with Statement Among Cat Owners Who Purchase Natural/Organic Pet Products, “If Natural/Organic Pet Products Were More Affordable Where I Shop, I Would Buy Them More Often,” 2010 (percent of U.S. cat owners) Table 6-20: Percent Who Strongly Consider Availability or Affordability as Impediments to Further Purchasing of Natural/Organic Pet Products: By Pet Owner Classification, 2010 (percent) Available immediately for Online Download at http://www.marketresearch.com/product/display.asp?productid=2161071 US: 800.298.5699 UK +44.207.256.3920 Int'l: +1.240.747.3093 Fax: 240.747.3004