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.

The U.S. pet products and services market is on an upward trajectory, and a variety of pet startups are driving new innovation and growth. With sales reaching $74 billion in 2014, the pet industry is expected to hit $91 billion in 2019, according to a Packaged Facts report. Approximately 56 percent of U.S. households own pets — providing a large, expanding customer base for a range of businesses.

Technology is also opening the door for dynamic new enterprises. Many pet startups are taking business models that have been popular in other industries — such as Airbnb, Skype, and Fitbit — and applying them to the pet industry. Other startups are incorporating health food trends into pet foods, creating new pet-related apps, or providing dog training courses online.

Sales-wise, the impulse to give treats to pets is the gravy of the pet food market. According to Simmons National Consumer Survey data from Experian Marketing Services, 79% of dog owners and 47% of cat owners buy pet treats. Among U.S. households overall (total households, not just pet-owning households), 38% buy dog or cat treats—for perspective, that’s about the same percentage as those that buy crackers.

Digital technologies have disrupted industry after industry, and consumer packaged goods are up next. Amazon, notably, continues to launch new services and sales platforms such as Prime Pantry and Subscribe & Save—along with its Prime Air plans for delivering products by drones to consumers, notwithstanding recent regulatory setbacks from the FAA. Traditional retailers are thinking more boldly as well, with Walmart focused on “winning at the intersection of digital and physical.”

The U.S. pet market is one of the largest in the world with dedicated pet parents wanting the best for the little loved ones. Even through the recent economic downturn, sales of dog and cat treats remained strong. With health-conscious decisions becoming more prominent in owners own lives, it makes sense that 38% of pet owners believe that natural and organic pet products are often better than standard brands. The future of pet products will be filled with healthier and natural ingredients.

Cat products account for over a third of sales in the CAN$2 billion Canadian pet products market, and Canadian cat owners are fully in step with the pet pampering and product premiumization trends that have long characterized the U.S. market. By some measures, in fact, Canadian cats are more than a whisker ahead. According to pet owner surveys conducted by Packaged Facts over the April to June 2014 period, 30% of Canadian cat owners purchase cat food formulations that feature poultry or meat as the first ingredient, compared with 19% of U.S. cat owners. 

The diseases that can affect cattle, pigs and other livestock and endanger the food supply are numerous, yet still growing. Swine fever, neosporosis, foot-and-mouth disease and other diseases are among the threats to animals that humans eat. Test makers have answered the call to develop products that can help food manufacturers and government agencies protect livestock and ensure a safe food supply at the beginning of the chain. For this reason, the Veterinary Diagnostics market can expect healthy revenue growth, according to insights from a Kalorama Information report on the topic.

As we say goodbye to 2013 and ring in the new year, it's important to look ahead at what we can expect throughout 2014. Continuing on the ideas of the 2013 trends, the pet industry should experience slight, but steady, growth across the board in in the upcoming year, according to pet industry experts and MarketResearch.com publisher Packaged Facts. In Packaged Facts' report U.S. Pet Market Outlook, 2013-2014, they project a wide variety of industry trends that will gain momentum next year.