Packaged Facts analysts forecast that United States pet product retail sales will reach US$68.76 billion by 2024. To reach that figure, pet food and other product retail sales will grow at an estimated 4.7% combined annual growth rate. In 2019, U.S. pet product sales stood at US$54.62 billion, up 5.1% annually from 2015 when sales stood at US$45.34 billion.
To reach those figures, sales of pet food and other products have evolved from “omnichannel” to “omnimarket,” according to Packaged Facts publisher and Petfood Industry columnist David Sprinkle. Pet owners no longer buy pet foods from a single source. Now, brick-and-mortar vs. e-commerce shopping are not mutually exclusive. What’s more, pet owners are not as loyal to specific retailers, brands or locations. This change is evident in shifting sales patterns that may continue into 2024.
From 2015 to 2019, pet product sales among pet specialty, mass market and grocery have maintained a relatively constant ratio that may persist into the near future. However, internet-based sales of pet products have chipped away at the sales of the other three retail sectors.
In 2015, pet specialty retailer sales, at US$10.88 billion, made up 24% of the total and declined slightly to 22% of sales in 2019, as US$11.88 billion. By 2024, sales may decline further to US$12.30 billion and 21% market share.
Mass market, including Walmart, pet product sales stood at US$9.52 billion and made up 21% of the total in 2015. Mass market sales maintained their hold on 21% of sales in 2019, while the value increased to US$11.36 billion. In 2024, sales may retain that 21%, which will grow to US$15.05 in value.
Food retailers, like grocery stores, declined from 16% of the pet product market and US$7.25 billion in sales to 12% of the market and US$6.50 billion. In 2024, that percentage may remain the same, but will grow to US$8.12 billion.
E-commerce retail sales of pet food and products grew dramatically from 2015 to 2019, and may continue to grow into 2024, though at a slower pace. In 2015, internet sales of pet products were US$3.17 billion, making up 7% of the total. By 2019, e-commerce pet product sales had grown to 22% of the market and US$12.25 billion. Those sales are headed towards US$18.21 billion and 24% of total sales.
Pet owners want a lot from their pet food brands. They want primary proteins that suit what they believe is best for their animal. They want grains or they don't. They want something customized, but it has to be easy to understand.
Constraints and crises, like those experienced in 2020, help drive innovation and sustainability offers context.