US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

Despite Pet Industry’s Strengths, 17% Sales Drop Projected for 2020

The pet industry is famously recession resistant, coming through both the September 11, 2001, attacks and the Great Recession of 2008-09 relatively unscathed. However, not even the new “pet parent” sensibility can make the pet industry recession-proof in the midst of the novel coronavirus pandemic. 

In its just-published U.S. Pet Market Outlook 2020-2021, market research firm Package Facts forecasts that total U.S. retail sales of pet products and services will decline by 17% in 2020, compared with the 5% growth anticipated prior to the coronavirus pandemic. The firm projects a substantial, though partial, rebound in 2021 that will stem from the underlying strength of the pet industry.

The U.S. pet industry is coming off a strong performance in 2019, with overall sales of products and services rising 5.4% despite the maturity and impressive scope of the pet industry.

For more information, see the rest of the pet industry coverage from our sister publisher, Packaged Facts.

  Consumer Goods      Covid-19    

Pet Ownership in Challenging Times & the Effect on Pet Industry Sales

Increased ownership rates for dogs, a pattern evident in the wake of the Great Recession, “might help soften the blow of pet industry losses,” according to David Sprinkle, research director for Packaged Facts, “and in the long term, losses aren’t characteristic to the U.S. pet market.”

Ownership (and adoption from pet shelters) of the most companionable and pettable pets may get a boost among a national population that is now largely isolated, staying at home, and well aware of the mental and physical health benefits of pet ownership.

New pet parents tend to be key buyers of pet products as they look to accommodate an expansion of their pet family or to make their home suitable for their first pet. Pet industry businesses can partner with pet shelters and rescue groups to highlight the ongoing need for homes for these animals and the companionship benefits they have for homebound people.

For more information, see Pet Market Outlook 2020-2021 along with the rest of the pet industry coverage from our sister publisher, Packaged Facts.

  Consumer Goods      Covid-19    

Opportunities in the Pet Industry

The pet industry is expected to see declines in three out of the four pet industry sectors –pet food and treats, veterinary services, non-food pet supplies, non-medical pet services – in a year affected by COVID-19 and economic challenges.  

Non-medical pet service sales are expected to suffer the sharpest drop in 2020 – at 47% – due primarily to the link between pet boarding services and business/leisure travel. Also projected to drop in 2020  are sales to the veterinary sector and of non-food pet supplies, reflecting in part the discretionary nature of some of the services and products involved.

However, somewhat mitigating the overall market loss will be continued (though tapered) growth in essentially non-discretionary pet products, primarily pet food and cat litter. Pet food, the largest pet industry sector, is forecast to grow 4% in 2020, compared with a 6% growth forecast before the COVID-19 pandemic impact. A slightly less rosy outlook for pet food sales will reflect, as during the Great Recession, some trading down to value and store brands.

Key opportunities exist in products and services that emphasize the ongoing well being of pets. Suppliers will also want to emphasize the value associated with their products.

For more information, see Pet Market Outlook 2020-2021 along with the rest of the pet industry coverage from our sister publisher, Packaged Facts.

  Consumer Goods      Covid-19    

Pet Industry: Opportunities in E-Commerce

A continued boom in pet product e-commerce delivered incremental gains in 2019, while a larger-than-expected pet food sales increase in mass channels bolstered the overall market.

Online retailers are well-positioned to continue gains in shares and sales. A pre-coronavirus pandemic surge in Internet sales of pet products – leading to a platinum-plated IPO for Chewy.com – spurred massive pet market investment in e-commerce logistics, which should help shore up the products side of the industry in the coming months. This advantage is doubly important because the shift to e-commerce has grown the overall pet products sector and not merely cannibalized sales from brick-and-mortar outlets. Packaged Facts projects the online share of overall pet product sales to reach 24% this year and 26.5% by 2024.

For more information, see Pet Market Outlook 2020-2021 along with the rest of the pet industry coverage from our sister publisher, Packaged Facts.

  Consumer Goods    

Wipes to Clean Your Smartphone & Other Frequently Touched Surfaces

On Monday March 9, Apple issued new guidance for how to clean its devices. The statement notes that 70% isopropyl alcohol wipes or Clorox Disinfecting Wipes can be used on the hard nonporous surfaces (e.g., display, keyboard, and other exterior surfaces). The company cautioned not to submerge the products or allow moisture to get into any openings.

Infection prevention specialists have long noted that smartphones and other such hand-held devices are germ magnets since people carry them with them all the time, pass them among other people, and put them to their faces when making phone calls. As such, wiping down these and other commonly touched surfaces is good practice.

It is reported that wipes and other products that are effective at protecting against colds, flu, and other human coronaviruses are probably helpful against COVID-19 as well. The EPA generated a list of registered antimicrobial products for use against novel coronavirus SAR-CoV-2, the cause of COVID-19. It notes that the registration number, found on the product label, is the more important piece of information to look for when purchasing, since the antimicrobial agent might be used in a variety of products or sold under multiple brand names.

The Freedonia Group National Online Consumer Survey, conducted July-August 2019, found that women were more likely than men to have purchased any type of disposable wipe product at any point in the last 12 months. Women were far more likely to have bought a surface cleaning wipe product, but men had a slight edge on buying antibacterial skin cleaning wipes.  

For more information, see The Freedonia Group’s Wipes, Industrial & Institutional Cleaning Chemicals, Global Disposable Medical Supplies, and US Disposable Medical Supplies reports.

  Consumer Goods      Covid-19      Textiles & Nonwovens