The market for pet products and services is expected to rebound in 2015 compared to last year and experience higher sales in different market segments. By 2019, the industry is expected to hit $91.72 billion in sales. To maximize potential opportunities, companies in the pet industry need to understand the current trends that have affected the market as well as the emerging trends that are expected to drive the market in the coming year. In this post, we'll share findings from the comprehensive report U.S. Pet Market Outlook, 2015-2016 by Packaged Facts and explain the major trends that will affect pet product sales throughout 2016.
New Trends That Will Influence the 2016 Pet Market
Aging Pets Require More Care
One major reason Americans are spending more on their pets is because their pets are getting older. Aging animals suffer from age-related conditions such as joint, coronary, cognitive, and immune-system issues, and even diabetes and cancer. As of January 2015, 39 percent of dog owners have a dog aged 7 and older, while 43 percent of cat owners have a cat in the oldest age bracket. These pet owners are targets for manufacturers of senior pet products and veterinary services. Because older pets require specialized care, prices for senior pet products and services can be well above average, allowing companies to earn more revenue.
Pet Industry Attracts Entrepreneurs
A variety of pet start-ups have opened up shop in 2015, and it doesn’t look like they’re slowing down anytime soon. These new companies are entering the market with innovative products and services for all types of pet owners. Even shows like Shark Tank have seen high numbers of pet products looking to make it big, including Fresh Patch, Pet Paint, TurboPUP, and more.
Industry Banks on High-Income Households
High-income households are expected to be a major demographic for pet product brands. The Packaged Facts report identifies upper-income households as a dominant force in the industry, estimating that three-fifths of pet market spending will come from this group. High-income pet owners are also expected to be a driving force behind premiumization products, as they seek out the best products for their furry friends.
Trends from 2015 That Will Carry Over into the New Year
The pet industry saw a wave of premiumization in 2014, such as organic and natural treats, food, and toys, as well as high-tech medical therapies, prescription medications, and luxury services. The trend is not without pushback, however. In an earnings conference call, PetSmart stated that they had been placing too much emphasis on premium brands and had not been paying enough attention to mass brands. But because most industry innovation occurs in premium pet products, we can still expect new products to continue to emerge in 2016.
Human and Pet Bond Still a Major Marketing Theme
Many companies and brands still push the human/pet bond theme that we have seen in past marketing and PR campaigns. Pet companies understand that the love humans have for their pets is a driving factor in their spending. We will not see this pet marketing trend die down anytime soon.
Overweight Pets an Ongoing Concern
Data collected from Veterinary Pet Insurance Co., the Association for Pet Obesity Prevention, Purina Dog Chow, and Packaged Facts all show that there are too many overweight and obese pets, and owners are not recognizing the problem. A survey conducted in January 2015 found that only 11 percent of dog owners say they have an overweight dog and 20 percent of cat owners say they have an overweight cat. When in reality, just over half of American dogs are overweight, and 58 percent of cats are overweight. Overweight cats and dogs can experience major health issues. Excess weight can aggravate joint disease and heart conditions, lead to Type 2 diabetes, and even create skin conditions.
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