Premiumization a Potent Trend
Also contributing to pet treats and chews’ stellar sales growth is an increase in cat treat usage and price points, in synch with the industry-wide trend of premiumization. Packaged Facts expects sales to continue their double-digit advance in 2021, growing 15% to $9.9 billion, on top of the remarkable 20% increase in 2020. Long-term growth remains bullish as well, with a projected 12% 2020-2025 compound annual growth rate bringing sales to $15 billion. Additional market stimulators include humanization, natural/organic ingredients, limited ingredient formulations, made and/or sourced in the USA products, functional ingredients (CBD), and exotic proteins.
Scope of Report
Pet Treats and Chews in the U.S., 4th Edition provides detailed analysis of the many pet treat and chew product types in high demand, and examines how marketers are responding to the new competitive landscape including e-commerce and issues of product safety and transparency.
Building on analyses presented in previous editions of this report, this fully updated fourth edition breaks out historical and projected retail sales from 2016 through 2025 across four categories of treats and chews segmented by dogs and cats: indulgent treats, rawhide/long-lasting chews, functional treats/chews, and dental treats/chews. The report also explores competitive strategies of key players, trends in marketing and new product development, and retail dynamics including the e-commerce boom and omnichannel marketing. Featuring exclusive data from Packaged Facts’ Surveys of Pet Owners as well as usage rates drawn from the MRI-Simmons National Consumer Study database, the report examines purchasing trends by product type and brand, as well as attitudes and demographic characteristics of pet treats and chews purchasers.
The information contained in this report was obtained from primary and secondary research. Primary research includes national online consumer polls of U.S. adult pet owners (age 18+) conducted on an ongoing basis by Packaged Facts, designed to measure purchasing patterns and attitudes regarding pet products and services. With sample sizes of approximately 2,000 pet owners, these surveys are based on national online research panels that are census representative on the primary demographic measures of age, gender, geographic region, race/ethnicity, and household income. The main survey used in this report was conducted in August/September 2021.
Our primary research also includes interviews with pet market experts; participation in pet industry events including the American Pet Products Association’s Global Pet Expo and Petfood Industry/Watt Publishing’s Petfood Forum; on-site examination of retail stores; and internet canvassing including websites and blogs.
Secondary research includes gathering information and data from consumer business and trade publications such as Pet Age, Pet Business, and Pet Product News International; company profiles in trade and consumer publications; and information culled from Packaged Facts’ extensive pet market research database and report collection.
Sales estimates are based on published and estimated sales of major market participants; background data from syndicated sales-tracking sources; market size estimates from other sources appearing in the business and trade press; figures obtained through consultation with pet market participants; the performance of relevant retail venues; and consumer usage rates for pet treats. The consumer trend discussion draws on trended MRI-Simmons National Consumer Study data though the Spring 2021 release.
This Packaged Facts report examines the U.S. market for pet treats and edible chews with a focus on products for dogs and cats. This report provides data, forecasts, and insights including product, format, nutrition, ingredient, and functional trends for indulgent treats, rawhide and other edible chews, functional treats, and dental treats and chews.
The report highlights several key trends in the U.S. pet treats and chews market:
COVID-spurred growth: Throughout the pet industry, 2020 turned out to be a banner year, the treats category included; overall treats sales grew by nearly 20%, above the 15% growth for pet food and treats overall. In fact, the treats category growth surpassed that of nearly every other major retail product category, with the exception of pet supplements and grooming equipment and supplies.
Lasting effects of COVID-19: The pet market overall continues to be impacted by the coronavirus pandemic in ways that will be felt for years. Many pet owners are still feeling the economic sting brought on by unpredictable employment and skyrocketing prices for consumer goods.
Working from home leads to more treat-giving: Packaged Facts survey results from August/September 2021 show that 58% of dog and cat owners agree that they have been giving their pets treats more frequently as a result of spending more time at home with them.
Pet treats provide “family” bonding moments: Treats play an important role in the human-pet bond. Not only do pet owners use treats to encourage good behavior (for training purposes, for example), they use them to express feelings of affection for their pets—“treat time” has become a way for pet owners to show their pets just how much they mean to them.