Pet Food in the US, 18th Edition

Report Overview

What is a key driver for sales of higher-priced, premium fare?

• Pet food as number one health and wellness product

This report covers the retail market for pet food in the United States, focusing on products for dogs and cats. The full retail spectrum is quantified, including online sales, mass-market outlets, pet specialty stores (chains and independents), and other channels. Sales through the veterinary channel are excluded.

The report divides the market into two categories, each with four segments:

Dog food – dry, wet (aka “canned”), frozen/refrigerated, and semi-moist

Cat food – dry, wet (aka “canned”), frozen/refrigerated, and semi-moist

This report also examines meal toppers and other pet food add-ins to provide market perspective and track overall trends in pet food.

Although pet food inflation has subsided, its lingering impact can be felt across the market. Pet owners who have been battling years of elevated prices in all consumer goods categories, on top of other economic pressures, have been strained to the breaking point. Pet food has proven itself to be amazingly resilient in both this and previous economic crises, and pet food’s position as a non-discretionary item has spared it many of the cutbacks seen in the non-food pet supplies sector, but Packaged Facts’ survey results suggest that over the past two years, a growing share of pet owners have cut back on pet food spending. Value is key, as pet owners are seeking products that provide high quality at a lower price point. That said, pet food’s position as the number one health and wellness product (as shown in Packaged Facts survey results) remains a key driver for sales of higher-priced, premium fare which remains on the radar of many higher-income pet owners, who are still pushing growth in fresh pet foods and freeze-dried/air-dried products. Packaged Facts projects that sales of dog and cat food will grow from nearly $52 billion in 2023 to over $64 billion in 2028, reflecting a compound annual growth rate of 4.4% for the period, a return to the kind of growth seen prior to the COVID era.

Featuring in-depth analysis of these and other factors contributing to the changes this market is experiencing, this completely revised 18th edition of Packaged Facts’ Pet Food in the US provides historical and projected overall sales (2018-2028), as well as separate sales tracking and projections for dog and cat food. The report also examines trends by form (dry, wet, semi-moist, frozen/refrigerated, and freeze-/air-dried), ingredients, and product claims across the full retail spectrum including online retailers, mass-market outlets, the pet specialty channel, and other channels. Relying on survey data from Packaged Facts’ proprietary January 2024 and July-August 2024 Surveys of Pet Owners, as well as MRI-Simmons Summer 2024 consumer study, Pet Food in the US provides a detailed look at pet owner sentiment and pet food usage by type, marketer, and brand. Other topics of discussion include cross-market trends; consumer expenditures; market opportunities; mergers and acquisitions; channel trends including e-commerce and omnichannel; and new product and marketing trends—all presented through the lens of the current economic environment.

Market Outlook

Long-Term Elevated Prices and Other Economic Challenges Persist

Although inflation has slowed dramatically as this report goes to press, heightened prices remain and consumers who have been battling challenging economic conditions since the onset of the pandemic have been strained to the breaking point. Pet food has proven itself to be amazingly resilient in both this and previous economic crises, and pet food’s position as a non-discretionary item has spared it many of the cutbacks seen in the non-food pet supplies sector. However, Packaged Facts’ survey results suggest that over the past two years, a growing share of pet owners have cut back on pet food spending. Value is key, as pet owners are seeking products that provide high quality at a lower price point. That said, pet food’s position as the number one health and wellness product (as shown in Packaged Facts survey results) remains a key driver for sales of higher-priced, premium fare, which remains on the radar of many higher-income pet owners who are still pushing growth in fresh pet foods and freeze-dried/air-dried products.

Pet Food Trends by Type and Formulation

Usage Rates for Pet Foods

A bird’s eye view of historical usage rates makes evident several trends in pet food category. Usage rates for dry pet food, whether for dogs or for cats, remain flat given its ubiquity. The longer-term growth has mainly been in wet (canned, plastic cup, or pouch) food. While use of wet dog food has edged upward, usage rates for wet cat food remain significantly higher and are rising faster. Packaged Facts’ July-August 2024 Survey of Pet Owners indicates that approximately 45% of dog and cat owners use regular/adult formulation pet food, in tandem with heightened pet owner attention to the health and wellness needs of pets. Size-specific formulations are among the most popular specialized formulations. Although fresh (both frozen and refrigerated) pet foods haven’t reached the usage level of traditional kibble and wet pet foods, gently cooked products are growing in popularity and have broken into the mainstream.

Notable New Product Trends

With all the economic challenges facing pet owners, despite the resiliency of the pet food market, it was only a matter of time before some pet owners began exploring alternative, lower-priced options. Private label and other value-positioned products are in demand as many pet owners seek out lower-priced options that still provide quality. Despite the belt-tightening that is happening in some pet households, however, other pet owners are still investing in higher-priced fare such as fresh pet foods and air-/freeze-dried formulations. Alternative protein sources, including plant-based and insect-based options, are gaining steam as pet owners look for more sustainable options. While science-based formulations offer piece of mind with veterinary backing, functional products that address specific conditions allow pet owners to kill two birds with one stone by addressing health issues through the food they are feeding their pets.