The pet industry is undergoing a significant shift, with value becoming a key competitive strategy for businesses. As outlined in Packaged Facts’ latest report, US Pet Market Outlook, 2024-2025, macroeconomic and industry-specific factors are driving this change, making it essential for businesses to prioritize value for pet parents.
David Lummis, report analyst, notes, “The promise of money savings and added value is possibly the oldest promotional maneuver, but with the economic trauma of the pandemic and its aftermaths still rippling through, there may be no better time to focus on value to attract shoppers and engender customer loyalty.”
The National Retail Federation predicts slower consumer spending growth in 2024 due to tighter credit conditions, higher borrowing costs, a cooling labor market and political uncertainty. Although gas prices are down and inflation has been moderating, normalization isn’t expected until 2025. Additionally, dog population growth, which accounts for two-thirds of pet industry sales, remains flat.
Data from Packaged Facts’ January 2024 Survey of Pet Owners reveal that nearly one-third of pet owners have had their ability to buy non-essentials negatively impacted by the economic environment. As a result, three-fourths are actively seeking lower prices, special offers and sales.
While pet owners are cost-conscious, their priority remains the health of their pets. Product quality tops the list of important factors in pet care spending choices, followed by good value for prices, convenience in shopping/buying and low-priced products.
In response to these trends, pet industry marketers, manufacturers, retailers and service providers have an opportunity to offer lower-priced products, facilitate do-it-yourself pet care, provide affordable pet insurance and wellness plans and offer flexible payment options.
For media inquiries or to request the report executive summary for US Pet Market Outlook, 2024-2025, please contact Packaged Facts’ media manager, Corinne Gangloff, at [email protected].
