A trip to Global Pet Expo in Orlando, Florida, USA, in late March provided tangible proof that the pet industry has weathered the recession well and is set for a strong year. There were definitely more people-pet retail store buyers, exhibiting pet product manufacturers and others-than at least year's event, and a palpable buzz filled the aisles and air.
If you're a petfood professional in Russia, Thailand or South Africa, or you make treats, premium petfood or products with health and wellness claims, you're in the driver's seat behind the engines of industry growth. According to Euromonitor International, while the growth rate of global dog and cat food sales fell to about 4% in 2009 after reaching a high of nearly 7% in 2008, that level of growth during a major recession is one most industries would envy.
"On solid ground." That's how Packaged Facts describes the US pet industry in its new report, US Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent Spending. It shows the pet care market grew last year despite the awful economy, and most signs point to continued growth for the next year and beyond.
According to recent reports from the American Pet Products Association and Packaged Facts, the US pet industry stared down the recession and won, gaining 5% last year to a total of US$53 billion. The US petfood category also grew 5%, to US$17.56 billion.
"No more fear." While that may sound like a marketing slogan or rock band (in fact, it is the latter), Mintel sees it as an overall theme for how consumers will behave this year. "While in 2009, fear played an important role in shaping consumer behavior, 2010 will see a return of confidence and adaptation," says Richard Cope, Mintel director.
Here's some good news for our industry, courtesy of a survey recently commissioned by Petco : Nearly 80% of US pet owners say they feel confident their pets' food is healthy and nutritious.
The bad news? Only 43% of respondents say they understand how to evaluate the nutritional value of the food by looking at the ingredients on the label, and only 41% know which ingredients are most nutritious.
In the March 2020 issue of Petfood Industry, learn about pet food supply chain risks, explore dietary factors related to canine dilated cardiomyopathy and discover how sustainability has grown in importance.