to IBISWorld’s Online Pet Food & Pet
Supply Sales market research report, the online market size for petfood,
treats and supplies sold on the Internet will reach US$3.2 billion in 2014.
That's an annual growth rate of 7.8% (from 2009â€“2014, projected). Online
petfood sales totaled US$666 million in 2011, according IBISWorld. The food and
treat category comprised roughly 33% of the US$2 billion online pet-related
sales in 2011."With
rising pet ownership among US households and more owners humanizing their pets,
online petfood and supply stores have fared well over the five years to
2014," says IBISWorld. "Increasing popularity of premium petfood
supplies has also fueled industry growth over the period; since premium goods
are typically priced higher, they provide a good source of revenue for players.
Nevertheless, increasing competition will likely constrain profit
margins." Rising pet ownership in the US and growth across the
e-commerce sector have caused the industry to experience overall growth,
despite the recession.Currently,
the online petfood and treats industry exhibits a low level of concentration.
The top four companies in this industry comprise a combined share of about
16.8% of total revenue from all online sales of pet supplies in 2014.
Meanwhile, the majority of revenue is distributed among several other operations.
"Some competitors, like Walmart, are large retailers that earn substantial
overall revenue, but only a marginal share is relevant to the pet
industry," explains the market report. "Other companies, like
PetSmart, are wholly pet-related, but they earn only a marginal share of their ...