Last year may have reset the pet food industry. After the disruptions caused by the pandemic and subsequent supply chain difficulties, United-States-based pet food companies didn’t have major external forces disrupting their businesses in 2024, pet industry consultant Dave Bolen said during his keynote address at the Pet Summit on March 24 held before Global Pet Expo in Orlando, Florida. Under these normalized economic conditions, U.S. pet foods and treats retail sales reached US$65.8 billion in 2024, up 2.1% from 2023, according to American Pet Product Association figures cited by Bolen.
Although macroeconomic forces may have returned to pre-pandemic patterns, certain aspects of the U.S. pet food market may have undergone lasting changes. For one thing, the pet driving industry growth may have changed. Cats are now a growth driver, Bolen said. Dogs had been the base of the market since the beginning of commercial pet food production. Dogs remain most populous pet in the U.S. with approximately 51% of households including a dog, or approximately 68 million pet pooches. Forty-nine million cats live in the U.S., making up 37% of households. However, the number of cats has been rising and pet food sales reflect this. In 2024, dog food sales volume fell 2%, while cat food sales increased 2%.
E-commerce continues to grow
Another significant shift in the pet food market landscape is the increasing role of e-commerce. Bolen highlighted the rapid growth of e-commerce in the pet industry, with online sales nearly doubling in six years. Brick-and-mortar remains important, especially for pet food, while pet supplies and treatments have shifted significantly online. In 2024, pet food sales of in brick and mortar retailers declines by US$0.3 billion, while e-commerce sales increased US$1.4 billion.
In both brick-and-mortar and e-commerce, amalgamation has also re-shaped the industry.
“Retail consolidation is a real thing we have to be aware of,” Bolen said. “Amazon, Walmart and Chewy together are 43 to 44% of total pet product sales.”
To meet the challenges of the changing retail landscape, pet food brands should aim to leverage all the channels available to them, Bolen said.
“When a customer comes first, the customer will last,” he said.
Pet food companies should strive to meet the customer where they are, whether that is online, in-stores or both, he said.
