Canadian pet owners have been navigating significant financial pressures over the past 18 months, leading to notable shifts in pet-related spending. According to a recent survey conducted by Packaged Facts in June 2024, 70% of Canadian pet owners report spending more on pet products than they used to, driven largely by inflation-related price hikes. However, nearly 40% of respondents have had to reduce their spending due to economic challenges exacerbated by the pandemic and ongoing price increases.
In 2023, Canadian retail sales of dog and cat food reached approximately USD 3.9 billion, marking a 2% increase over 2022. This growth, however, was primarily due to rising prices rather than increased sales volume. Despite these financial strains, Canadian pet owners continue to prioritize their pets, valuing them as vital companions and family members. This heightened appreciation for pets' roles in mental and physical well-being is driving a sustained willingness to invest in premium pet products and services.
“Pet owners are looking for products that will keep their pets happy and healthy,” notes Shannon Landry, Packaged Facts’ Pet Brand manager. “Many pet owners will go to great lengths to ensure their pets’ wellness, even if it means cutting back on purchases for themselves.”
The survey also reveals that 68% of Canadian dog and cat owners are willing to spend more on pet foods that offer additional health and wellness benefits. This aligns with ongoing "humanization" trends in the pet food industry, where consumers seek products resembling human food in quality and preparation. The fresh, gently-cooked pet food trend, which has gained significant traction in the U.S., is now making inroads in Canada. Freshpet, a pioneer in this category, is facing increased competition from smaller players like Tom&Sawyer. Retailers are also capitalizing on this trend, as demonstrated by Pet Valu's entry into the fresh pet food market with its Performatrin Culinary line.
While Canadian pet owners are willing to spend on high-quality products, they are also becoming more value-conscious. Many are actively seeking out sales and participating in loyalty programs. Additionally, there is growing scrutiny over spending on veterinary and non-medical services, with the latter being the largest area where pet owners have reduced expenditures over the past year.
For more insights and detailed analysis of these trends, Packaged Facts has released the fully revised Canadian Pet Market Survey, 3rd Edition.
To request the report summary, please contact Packaged Facts’ Media Manager, Corinne Gangloff, at [email protected].
