Pet Food industry

Table of contents

01 Executive summary
04 Major industry players

02 Pet Food industry overview

05 Industry trends within eCommerce

03 Key trends in pet care

06 Threats & opportunities
Executive summary
Executive summary

● Pet Food industry is growing rapidly

The Pet Food industry size was valued at $136 billion in 2022 and is expected
to reach $224 billion by 2027, with a CAGR of 11.1% during 2023-2027.

● How eCommerce transforms the Pet Food industry

The pandemic has led to the global digitalization of the Pet Food industry.
Proposed solutions
Millennial and baby boomer pet owners have started utilizing online
Cooperation with pet care partners and provision of
opportunities from pet food manufacturers and retailers instead of visiting
additional partner services such as pet insurance,
brick-and-mortar stores for safe and convenient shopping. The Pet Food
telehealth, and veterinary services, grooming
eCommerce market is highly competitive and fast-changing. The eCommerce
services; collaboration with influencers to increase
trends are shifting towards loyalty and reward programs, affiliate marketing,
brand visibility; providing personalized products and
mobile commerce, social shopping, and live streaming. The industry is also
offers will help online retailers strengthen their
seeing the rise of subscription services.
position in the industry.
● Pet Food industry faces some challenges
The challenges facing the Pet Food industry include rising demand for
products and supply chain issues, limited animal fat supplies, packaging
problems, and high inflation pressure in pet food.

4
Pet Food industry overview
Pet Food industry overview

General industry statistics

The Pet Food industry is expected to reach
a volume of $224 billion by 2027.

● Pet Food industry revenue: $136 billion in 2022

● CAGR: 11.1% (2023-2027) $53.8B $6.9B $5.9B $6B $5.2B

● There are probably more than a billion pets in the world. 70% of US households
(90.5 million homes) owned a pet as of 2022, compared to 46% in the EU (90
+11.1%
million homes).

● The expansion of the middle class contributes to the pet population's growth in
emerging markets. Also, pet ownership is on the rise, especially in the
households of millennials, which tend to be smaller families and have children
later in life.

● The dog segment dominated the market and accounted for over 40% of the
revenue share in 2021. Consequently, dry food also accounted for the largest
share of 44.9%. Dry food helps ensure good oral care in dogs with minimal tartar
buildup on the animal's teeth and by reducing plaque.

Sources: Statista, Lemonade, FEDIAF EuropeanPetFood, Research and Markets

6
Pet Food industry overview

How many pets are there in the world?

Pet population in major markets

Dogs
Cats

It should come as no surprise that dog is the most popular pet in the world. However, in the
European region, cats are still more popular than dogs. In 2021, the population of pet cats in
Europe exceeded 113 million, with the highest numbers in Germany and France.

The younger generation fuels the pet craze because, in 2022, pet ownership increased the
most among the 18- to 34-year-old group (by 77%).

Sources: HealthforAnimals, Morgan Stanley

7
Pet Food industry overview

Pet Food eCommerce market

The Pet Food eCommerce market includes the following types of retailers:

● Large online marketplaces such as Amazon

According to PipeCandy analysis, the largest category of the market—over 70% of ● Pure online retailers offering a range of pet products and services, as well as pet
online pet food stores saw web sales of less than $1 million. Regarding the number of pharmacies, such as Chewy, PetMed Express, and Zooplus
visits, half of the companies had from 1,000-10,000 visitors per month. ● Brick-and-mortar retailers that sell through their websites, such as PetSmart, Petco Health
and Wellness Company, and Pets at Home Group Plc
● Other big retailers that sell through their websites, such as Walmart, Target, and Tesco
● Veterinarians who sell through their websites

Pet Food eCommerce market size by web sales Pet Food eCommerce market size by web traffic

500K-1M 0.2%

<1M 70.9%

1M-5M 25.4%
<1K 17.3%
5M-10M 2%
1K-10K 50.9%
$93 billion
10M-25M 0.9%
10K-25K 13.6%

0.1%
154,309 active pet
25M-50M
food stores 25K-100K 12.3%
50M-100M 0.1%
100K-500K 4.9%

100M-250M 0.2%
>500K 1%

1B-5B 0.1%

Source: PipeCandy

8
Key trends in pet care
 Searches for ‘‘pet insurance’’ continue to grow
Key trends in pet care

A new level of care and technology

● Increase in pet investment
Spending on pets has not only increased during the pandemic, but it's also been considered
increasingly inelastic, which means that even when pet owners cut other parts of their
budget, spending on pet care often stays at the same level. According to a Morgan Stanley
survey, 34% of pet owners plan to increase their spending on pet food in 2023, while 32%
predict that they will spend more money on their pet's health. Pet insurance is an area of
solid growth, with annual growth of almost 26% between 2017 and 2021; the number of pets
2019 2020 2021 2022 2023
insured increased by 21.5% over the same period and is set to rise further

● Humanization
Sales growth of frozen & refrigerated pet food
According to Euromonitor International’s Voice of the Consumer: Lifestyle Survey, 71% of pet
owners worldwide consider their pets family members. For example, Spain has introduced
shared custody of pets for couples after separation or divorce. Increasingly humanizing their
pets, owners strive to provide them with good quality, expensive food and products. There
has been significant growth in wet food, therapeutic premium pet food, and frozen foods

● Emerging of new product categories

The era of new categories of pet care products is coming, and there is a significant amount
of innovation in the research & development of pet products. For example, pet wipes, pet
toothpaste, smart toys, and high-tech automatic pet feeders have already emerged in the
pet industry and resonated with consumers

Sources: Morgan Stanley, Euromonitor International, Exploding Topics, Nielsen. Q1 2022 Pet Trend Report

10
FluentPet Connect is a new app that tells pet owners when their dog
presses a button. The app lets “track words, trends, and patterns to Litter-Robot 3 Connect is the
understand better what the pet is saying” and sends pet owners a highest-rated, WiFi-enabled,
message not to miss a “message” or a “milestone.” automatic, self-cleaning litter
box for cats.

GULIGULI Smart Companion Robot is an app-controlled robot that lets you see,
talk to, play with, and give treats to your cat or dog when you're not home.

Bird Buddy Hummingbird

Feeder is a smart bird feeder
that notifies you of bird visitors
and captures and collects their
photos.

11
Key trends in pet care
NielsenIQ Label Insight pet food database
Healthy and sustainable approach
USDA certified biobased product Plastic free
● Rise in functional food ingredients
2 categories 1 categories
Demand for functional and natural ingredients extends from packaged food to
pet care products. Probiotics and hypoallergenic ingredients, fortified $2.5M sales $11.3M sales
superfoods, minerals and botanicals, and calming treats are all at the peak of the +329% vs 2 years ago +387% vs 2 years ago

industry's popularity. For example, calming is an established and popular

attribute when searching for pet food, with a 40% increase in 2022 compared to Sustainable packaging B corporation
the previous year
4 categories 7 categories

According to Euromonitor International, four key claims—grain-free, no artificial $899K sales $3.8M sales
preservatives, colors, and flavors—are increasingly appearing on pet food +769% vs 2 years ago +593% vs 2 years ago
packaging. According to NielsenIQ’s Label Insight derived ingredient analysis
products claiming “no animal by-products” are growing rapidly, 14% YOY. 96% of
pet food products not making this claim on their websites miss out on a huge
Social Sustainable Environmental Sustainable Animal
Department
growth opportunity responsibility farming sustainability packaging welfare

● Concerns about sustainability Total store +10.7% +13.4% +17.1% +13.4% +24.3%

Pet owners are increasingly concerned about their impact on the planet, which Total pet care -27.2% +205% +6.6% +55.7% -3%
offers the potential for growth in eco-friendly packaging and ingredients.
According to a Euromonitor International survey, almost 60% of pet owners are Pet food -28.2% +205% +5.1% +92.3% -3%
trying to reduce their use of plastic, and 45% prefer sustainable packaging.
Although today only 6% of pet food products in the NielsenIQ Label Insight pet Pet supplies +251% — +12.2% +23.7% -17.9%
food database make a sustainable claim, it doesn't mean the sustainability
approach in the Pet Food industry should be underestimated Pet treatments +24.5% — +5.4% +24.8% +40.7%

Sources: Euromonitor International, Exploding Topics, Nielsen. Q1 2022 Pet Trend Report
* USDA Certified Biobased Product label assures a consumer that the product contains a USDA-verified
amount of renewable biological ingredients. B Corporation is a private certification of for-profit
companies of their "social and environmental performance 12
Consumer behavior
 How loyal are you you to pet food brands?
Consumer behavior

Pet owner preferences

I stick with the same brand

According to Yummypets Survey of consumers in the US, Canada, France, Belgium, and
the UK in September 2022:

● Over 60% consistently purchase the same pet food brand, while 38% prefer switching
brands. Half of puppy and kitten owners buy pet food in the supermarket and grocery
stores, and a third of consumers—pet stores and retailers, almost 15%—online. It
I tend to switch between
should be noted that Belgians make online pet food purchases online more often than
different brands of pet food
Canadians

● 36% of respondents buy food for their puppies or kittens 2-3 times a month, 30% buy
it once a week, and 7% buy it less often. Also, the survey results show that French pet
owners buy food for their puppies and kittens less frequently than owners from other Where do you mainly buy food for your kitten/puppy?
countries
Supermarkets/
● 27% of respondents say they care most about the quality of ingredients when choosing Grocery stores
a pet food brand, 20% choose the life stage appropriate food, and 19% choose brands
that contain only healthy ingredients Specialized stores (pet
stores, pet retailers)
● More than 30% purchase treats for their pets several times a month. British consumers
buy treats more often than French pet owners. Almost a quarter of pet owners (23.7%)
Online
buy toys for their puppies and kittens several times a month. American respondents
are more likely to buy toys for their pets than French consumers
Vet clinic
● Most respondents (64.1%) say having a puppy or kitten is as expensive as expected,
while 27.8% state that the costs are higher than expected. Belgian and French pet
owners believe that they will spend less on their pets over time, in contrast to most Other (independent
stores, breeder)
survey respondents

Source: GlobalPETS 14
Consumer behavior

Purchasing pet products online

Where did you purchase pet food for your pet most recently? eCommerce gives pet owners exactly what they want: convenience and
comfort; product information and choice; pricing comparisons that make the
value clear; devoted focus on customer relationships. According to JungleScout
survey, pet owners most appreciate discounts with automated ‘’subscribe and
save’’ programs, a larger selection of products, and fast shipping offered with
online shopping. On another side, brick-and-mortar pet stores have a unique
advantage in that customers can bring their furry friends to help them make
purchasing decisions.

Why do you buy pet supplies online rather than visiting a store?

December 2020

November 2021

February 2022

Sources: Statista-1, Statista-2, JungleScout

15
Major industry players
Major industry players

Global pet food companies in the world

Top largest pet food manufacturers by revenue in 2021, $ billion Although Europe and North America were the front runners in global pet
food production in 2021, both regions produced over ten million metric
tons in that year, 12 of the top 15 pet food manufacturers are based in
the US, and 4 of the top 5 online pet food stores are also from the US.

Top pet food and supplies online stores global in 2021

Monthly
№ Country Website Revenue Growth
visits

1 chewy.com 45M $8,890.8M 24.4%

2 petsmart.com 15.9M $1,046.0M 3.1%

3 petco.com 16.5M $546.9M 9.9%

4 zooplus.de 3.5M $536.8M 21.5%

5 barkbox.com 2.8M $405.4M 32.7%

Sources: Insider Monkey's, Yahoo Finance, ecommerceDB, Statista

17
 Top pet food and supplies online stores in Europe
Based on ecommerceDB data, here are the top stores in Europe's largest online pet care markets: Germany, France, the UK, and Italy. Zooplus, an online retailer from
Germany, is the leader in eCommerce in the European market.

Monthly Monthly
Country Website Revenue Growth Country Website Revenue Growth
visits visits

zooplus.de 3.5M €453.6M 17.1% petsathome.com 4.9M €181.9M 10.3%

fressnapf.de 4.1M €121.8M 36.8% zooplus.co.uk 974.9K €130.7M 12.3%

zooroyal.de 1.1M €76.7M 1.4% viovet.co.uk 685.7K €64.4M 39.9%

bitiba.de 548.1K €60M 2.9% animeddirect.co.uk 427.4K €56.6M 19.1%

medpets.de 438.1K €29.8M 6.2% petdrugsonline.co.uk 652.6K €39.1M 23.5%

zooplus.fr 2.2M €290.5M 11.7% zooplus.it 1.5M €141.6M 9.7%

feuvert.fr 2.0M €95.3M 0.3% arcaplanet.it 1.0M €36.5M 2.3%

wanimo.com 481.7K €32.4M -23.8% maxizoo.it* 59K €17.2M 11.0%

bitiba.fr 209.2K €31M -1.0% bitiba.it 180.1K €13.2M -0.8%

croquetteland.com 239.1K €26M 135% zoomalia.it 199.8K €10M 62.6%

Sources: ecommerceDB, Similarweb

* Maxi Zoo is part of the Fressnapf Group

18
Industry trends within eCommerce
Industry trends within eCommerce

Omnichannel approach
% of dollars spend spent on pet food
NielsenIQ data showed that the share of omnichannel pet food sales increased by 7% from
March 2020 to March 2022. Comparing buying behavior at the beginning and end of the
pandemic, NielsenIQ found that the omnichannel shopper category increased the most due to
COVID-19.

Besides the trend of direct-to-consumer sales in the Pet food eCommerce market, there has
been a significant demand for Click & Collect services. Now, many pet supplies retailers offer
various eCommerce pick-up options, such as contactless curbside pick-up by Petco, one of
the largest American pet retailers. Retailers are also expanding their customer base by
collaborating with third-party logistics providers. For example, Petco and Shipt, an online
grocery delivery company, joined forces in 2019 to provide same-day delivery of pet supplies
from Petco stores throughout the US to Shipt members.

In addition to an omnichannel approach and improved interaction with potential consumers,

many pet product retailers provide additional services to their customers in partnership with
other players in the Pet care industry. For example, Chewy, a leading online pet supplies
retailer, now offers pet insurance products and other services and has a marketplace for
veterinarians. Petco provides veterinary services, pet insurance, grooming services, dog
washing, and a wide range of pet supplies, pet food, and pet products.

French retailer Animalis offers a unique service—a protection program. If, for some reason, an
animal is returned to the shop, it will not be abandoned; Animalis Animal Protection, made up
of Animalis employees (shops and head office), will temporarily take in the animal until
Animalis finds a new family.

Sources: Nielsen, dvm360, Animalis

20
Industry trends within eCommerce

Loyalty, rewards, and affiliate marketing

Loyalty programs Dogs Naturally loyalty program
As about 88% of pet owners shop for specific brands, reward programs play a huge part in
providing an exceptional experience for pet lovers. Three main ways to build a rewards
program in the Pet care industry are rewarding customers for social sharing, using VIP tiers to
inspire achievement, and encouraging referrals from loyal customers.

For example, Vetostore, a small French platform offering multi-category pet products, provide
a 3% discount for all members of their loyalty programs. Zooplus, a leading online retailer of
pet food and supplies in Europe, offers a simple point-based loyalty program. Another French
retailer Zoomalia, also available in eight other European countries, uses a similar approach to
their loyalty program.

So how can loyalty programs help turn first-time shoppers into loyal customers?

Edgard & Cooper's loyalty program is based on their brand values and offers customers to
redeem points to feed rescue dogs and plant trees. This also matches their company-wide
pledge to donate 1% of all sales to pets in need. Edgard & Cooper have increased their AOV by
22%, the number of active customers by 35% and their customer retention rate by 38%.

Dogs Naturally use their loyalty program to drive user-generated content. Using a
point-based loyalty program where customers earn points for leaving reviews, the company
has collected more than 11,000 reviews.

TruDog has converted more than 30,000 new customers into members who spend 74% more
than regular customers. The company has also seen a 66% increase in repeat purchases by
loyalty program members.

Sources: LoyaltyLion-1, LoyaltyLion-2 21

 Zooplus loyalty program
Zoomalia loyalty program

Petco loyalty program

Edgard & Cooper loyalty program

22
Industry trends within eCommerce

Loyalty, rewards, and affiliate marketing

eCommerce gift cards in pet care Chewy eGift card

eGift cards are pre-paid with a set amount of money the client
can redeem for products or services from a particular online
shop.

eGift cards in the Pet Food industry are often bought as gifts for
friends and relatives, allowing them to choose something from
the online store in question themselves for their pets. The
majority of eGift cards work via gift card codes. Once the gift
card has been bought, a code will be generated by the seller
and sent to the recipient via email. After that, the gift recipient
can use it during online shopping. PetSmrt Gift card
Launching a gift card program for pet food online retailers
come with an array of benefits, including:
Petco eGift card
● Drive more traffic to the website
● Easy to sell and give
● Boost customer loyalty
● Increase sales
● Improve brand awareness
● Provide seasonal boosts

23
Industry trends within eCommerce

Loyalty, rewards, and affiliate marketing

Affiliate programs

With access to the best pet food affiliate programs, bloggers and influencers can share this revenue by referring their subscribers to great products. Affiliate programs
worldwide allow people to promote pet food companies' products and earn money for sales they make. Some of the notable affiliate programs in the Pet Food industry
are listed below:

Cookie
Retailer About Commission rate Promo support
duration

15% for every new customer’s first purchase

Yumove makes pet supplements for joint Bespoke copy, banners, imagery, and video
and 1% commission on all future sales to 30-day
care, skincare, digestion, and more content upon request
customers introduced by the affiliate

Client discounts, nutritional leaflets,

Butternut Box is the UK's home for fresh dog Payment or credit for every new customer
No info educational materials, and a dedicated
food delivery introduced
ambassador team

Zooplus is an online retailer of pet supplies, Large selection of advertising materials, deals
offering everything from collars to food and Up to 4% per sale 30-day and discounts, and daily updated product
grooming products feeds to help find products to promote

Ollie is a tailored service that creates fresh Most recent product updates, events, content,
Up to $60 per sale 30-day
dog food specifically for dog’s dietary needs and all things Ollie

Source: The Canine Copywriter

24
Industry trends within eCommerce

Subscription services
The rise of subscription services helps increase the popularity of online pet food sales, as
these services work well for buying regular shelf-stable items. Consumers are more likely to
stick with one brand and less likely to browse through other products.

Such autoship programs are already widespread in the US but not so popular in Europe.
According to Consumer Intelligence Research Partners, 44% of Chewy customers have
enrolled in the retailer's Autoship program for automated replenishment of their pet supplies.
On average, Chewy Autoship customers spend more per year ($820) and make more
purchases (15.5 times per year) compared to other Chewy customers ($423 and 10.4 times
per year). They also spend more per order than those who don't choose automatic
reordering ($53 compared to $41, respectively). Chewy heavily promotes its Autoship
program on its home page, offering a discount of 35% off the first order. As a result, Chewy's
Autoship revenue has grown by 77% over two years.

Petco, a main competitor of Chewy in pet supplies, also has its autoship program called
Repeat Delivery, launched in 2018. Petco offers a vast range of other subscription services,
such as Vital Care, which provides routine veterinary care and grooming for a monthly fee.
Petco states that the recurring revenue from these programs accounts for roughly half of its
total revenue, which is lower than Chewy's 71% revenue from autoship services. However, it's
worth noting that these two retailers have different business models. Chewy operates only
online and relies on closing sales through programs like Autoship, whereas Petco operates
over 1,500 physical stores across the US, Mexico, and Puerto Rico and aims to attract pet
owners to its physical stores.

Source: Digital Commerce 360

25
Industry trends within eCommerce

Mobile apps
What are the benefits of launching a mobile app for pet food and supplies brands?

● Expanding brand awareness

Petco mobile app
● Improving customer engagement
● Enhancing customer loyalty
● Increasing sales
● Providing better customer service
● Data collection and analysis

Pet food retailers like Chewy, Petco, Zooplus, Maxizoo, and Brekz
are already using mobile apps to improve their eCommerce.

Brekz mobile app

26
Industry trends within eCommerce

Social media advertising

Research conducted by Mars Petcare, the leading petcare company globally, found that 65%
of pet owners share content about their pets on social media platforms twice a week on
average.

Additionally, another survey states that 67% of pet owners follow pet-related accounts on
Instagram or Facebook rather than anywhere else. Therefore, pet supply brands seeking to
attract more customers can benefit from using social media to position themselves as a
voice within this community, playing to the trends in the Pet care industry.

Social media isn't standing still, either. At the end of October 2022, TikTok Shop UK launched
a pet category so that the TikTok community can now buy pet care products from some of
the world's best-known pet brands directly through TikTok Shop UK retailers.

Many pet product retailers actively use educational and user-generated content, shoppable
content, and branded hashtags on social media to stay competitive. Let's look at a case
study of improving a brand's eCommerce performance with the right social media marketing
strategy.

4Legs is an Australian business that creates and sells delicious and nutritious natural, chilled,
and gourmet dog food. Using great brand imagery and customer reviews to create posts, the
company, with the help of digital agency Emote, achieved a 161% increase in Instagram
followers (in just 30 days) and a 966% increase in Facebook engagement (3 months on from
the previous period). 4Legs also increased traffic to its website by a third by creating a
custom landing page which the company directed specific social traffic towards.

Sources: Common Thread Collective, TikTok.Newsroom, Emote

27
Industry trends within eCommerce

Live streaming
Pet supplies brands have the unique opportunity to enhance their sales and showcase their
expertise as animal experts through live streaming. And small pet shops can increase their
visibility among local audiences through such live shopping tools. High-tech pet accessories,
such as wearable tracking devices that monitor your pet's health and activity during the day,
and self-cleaning litter boxes are the most appropriate type of pet products for live streaming
sales because they need to be explained in more detail.

Although live video shopping is still more popular in Asia, experts believe the trend will
eventually spread to the west. Petco joined the live streaming sales market in the US in April
2021 with a Facebook Live session selling their private labels, Youly and Reddy. This event
generated a 12% increase in Petco.com traffic.

Petco's next live shopping event, Petco Field Day, was held in July 2021. It was a
sports-focused live stream that featured games, demonstrations, and educational content on
physical and mental exercises for pets. The event was a huge success, reaching 2.43 million
live viewers and achieving twice the return on ad spend compared to the previous live
streaming event.

Petco's strategy for their live streams includes clear callouts and opportunities to shop. Jay
Altschuler, VP of Media Transformation at Petco, said in an interview with Retail TouchPoints:
“Our biggest unlock has been seeing live social commerce activations as more than just a
single moment in time. We engage pet parents and create excitement for our brand in the live
event, then extend the experience to even more pet parents through a mix of organic, paid,
commerce, and influencer for a three- to four-week campaign’’.

Source: Retail TouchPoints

28
Industry trends within eCommerce

Telehealth
Chewy strives to improve accessibility and affordability in pet
health care by expanding its services to include telehealth and
medicinal compounding. In October 2020, a US pet supplies
retailer launched Connect with a Vet, which allows pet owners to
connect with a licensed veterinarian to discuss concerns and
receive advice about their pet's health. Note that veterinarians
cannot diagnose, treat, or prescribe medication via this service.
During the program's pilot phase, 80% of users gave it a perfect
score of 10 out of 10.

In addition, this telehealth service is free for customers enrolled

in Chewy's Autoship program, which could increase sign-ups and
customer retention rates. Chewy's custom medication
compounding service, introduced in the US in November 2020,
offers personalized medicines to medications to meet pets'
specific needs. According to their 2021 report, two-thirds of the
company's compounding customers are new to Chewy Health,
and over 20% are new to Chewy.

According to NielsenIQ data, 3 of 10 dog or cat owners are

willing to try online pet health services. Therefore, such online
services could potentially grow in the near future.

Sources: dvm360, Chewy, Nielsen

29
Threats & opportunities
Threats & opportunities

Main challenges
● Transportation issues: Pet Food industry, especially cat food, has been greatly
affected by the increase in demand. The need for ingredients has also increased, but, like
Consumer attitudes towards pet care products
many other sectors in the past two years, problems in the supply chain have made it difficult and the economy in the US in 2022
for suppliers to provide ingredients and supplies to manufacturers.
Given current supply chain and staffing
● Limited animal fat supplies: animal fat supplies are in short supply due to the use of issues, I am concerned I am not be able to
get the pet care products I need for my pet
animal fats for processing biodiesel. The fourth- and fifth-largest categories of animal
ingredients in pet food are beef and animal fats, with over 300,000 tons used annually
Given my current finances/the economy,
combined. The limited availability of raw materials is also affected by animal diseases, the I plan to spend less money on pet supplies
war in Ukraine, and sanctions on Russia.

I plan to switch to a different brand of pet

● Packaging woes: supply chain disruptions are affecting food and packaging, with supplies to save money
limited supplies of glass, containerboard, cardboard, and aluminum. Aluminum can
availability in the US is decreasing due to reduced production in China, which makes up 75%
of the total can usage for US pet food manufacturers. I plan to switch to a different brand of pet
food to save money

● High inflation: a survey conducted in June 2022 shows that 23% of US pet owners plan
Given my current finances/the economy,
to spend less money on pet food. Many pet owners are unable to bear the additional costs. I plan to spend less money on pet food
In Europe, retailers and suppliers struggle to maintain the online availability of goods;
however, inflation in the pet food category continues to rise. For example, France sees the
highest increase (31%) in dog and cat food prices among other European countries.

Sources: Pet Food Processing, Statista, Euromonitor International

31
 % of % sales Average
Annual
Pet food attribute products growth missed
sales
missing (1 year) dollars

Threats & opportunities Urinary health 0.0% $72.6M 9.2% $0.0

Key opportunities Organic 0.0% $42.0M 6.2% $0.0

Lamb 0.0% $707M 11% $0.0

● DTC sales: pet owners are turning towards direct-to-consumer (DTC) sales more and
more. Pet food brands should consider this and start using DTC programs as at least one
Beef 0.0% $5.7B 7.5% $0.0
channel of distribution because data shows that 57% of all product manufacturers currently
utilize DTC models in response to consumer demand and expectations.
Skin and coat health 35.5% $5.1B 13.9% $1.1B

● Rich attribution: according to NielsenIQ data, based on analysis of the websites of 5 or

Chicken 7.8% $11.3B 9.2% $881M
more pet food retailers, attributes such as "skin and coat health", "chicken", "dental care",
"digestive health", "pork", mentioned on the retailers' websites, have missed potential. The
Weight management 0.0% $1.1B 8.3% $0.0
"Fish" attribute has the highest missed revenue for online pet food retailers—$3.1 billion.

Dental care 42.2% $4.3B 14.7% $1.8B

● Focus on felines: before, cats were often considered 'underserved' in the Pet Food
industry. The cat food market is expanding due to increased innovation and new product
Liver health 0.0% $5.9B 35.7% $0.0
developments that cater to specific feline needs, including unique and cutting-edge
formulations. In addition, they primarily target senior pet cats and have become popular
Digestive health 55.4% $3.5B 12.3% $1.2B
products that could potentially increase life expectancy.
Pork 80.7% $1.5B 11.1% $1.2B
● Personalized nutrition: innovative online pet food companies are revolutionizing the
market by offering customized blends tailored to each pet's profile. Using numerous unique Duck 0.0% $275M 4.9% $0.0
characteristics, these manufacturers produce food optimized for a specific pet and even
include the pet's name on the packaging. Personalized nutrition is a significant growth area Fish 60% $5.2B 12.7% $3.1B
in the food industry and particularly appeals to millennials.
Turkey 0.0% $2B 11.7% $0.0

Source: Nielsen. Digital Depth Analysis: The e-commerce experience audit

32
Thank you!
Any questions?

[email protected] [email protected]