Consumers love pets, and so do food retailers

By Jordan Rost

One thing can be said for certain: Americans love their pets. Whether cats, dogs, birds, or fish, consumers cherish them as part of their family or household. As a result, pet owners spend a great deal on food and care items for their furry friends. And consumers, who are increasingly paying more attention to health concerns and ingredients in the food they consume, are taking a similar approach when it comes to the foods they purchase for their dogs and cats.

Across center store aisles in traditional* retail channels such as grocery stores, mass merchants, drug stores and convenience stores, the pet aisle is valued at more than $20 billion annually, and that shouldn’t be ignored. In fact, total pet care saw growth four times that of the overall center store sales rate. This indicates that pet owners across the country are likely to continue spending their dollars on pet food and other pet care items, further fueling the growth of this category.

For private label retailers with skin in the game, two trends worth paying attention to may provide opportunities for growth as consumers continue to shop more mindfully for their pets.

Pet care accessories: Private brands preferred

When it comes to caring for their beloved friends, recent Nielsen data shows that consumers are increasingly turning to store brand pet accessories and other non-food items such as litter, flea repellent, and medicine/treatment products. Growth across private label products in this space demonstrate consumers’ willingness to sacrifice brand-name items for the store brand alternative, thanks to availability and price savings within the store.

In the latest 12 months ending Feb. 25, flea and tick pet products (netting sales of $395 million in center store, traditional retail channels) jumped 68.4 percent in private brand dollars, while its branded competition declined 1.7 percent. Fish care products drove $171 million in sales, with private label owning 14 percent share of the category and increasing by 18.8 percent from the previous year. Store brand litter supplies grew 15.7 percent in dollars, owning 8 percent of the total litter supplies category. But it doesn’t end with maintenance items; consumers want their pets to have fun! Private brand pet toys increased 7.7 percent in dollar sales over the past year.  

The healthy humanization of pet food

While the humanization of pet food isn’t a new trend, it may offer more of an opportunity than retailers  realize. And for health-conscious consumers, that means focusing more on package claims that point to healthful ingredients, such as food without artificial colors and with natural ingredients and a high vitamin and mineral presence.

When it comes to pet food overall, consumers are looking for food with no artificial colors or flavors. In fact, over the past year, pet care sales surrounding this wellness claim have soared by 20.5 percent. Dog food with package claims stating the absence of artificial colors and flavors represented $2 billion in sales (up 20.9 percent), while the same claims for cat food drew $313 million in sales (up 13.8 percent).

For natural pet foods, these product claims have led to a 22.3 percent increase among pet care products, particularly for dog and cat food (up 26 percent and 12 percent in sales, respectively). In the case of pets’ nutrient intake, vitamin and mineral presence is critical. Pet medicine products that display this claim represent $14 million in sales, up 29 percent from the previous year.

While brand name in pet care is certainly important, store brands should take note of the pockets of opportunity in the category segments where consumers are the most versatile in their brand preference. From a health and wellness perspective, noting certain claims such as natural and vitamin/mineral presence are proving to be important attributes for pet owners. In addition, store brands should also strategize to ensure that pet care accessories are front and center, as they are some of the highest-growth segments within private label across the pet aisle.

*NOTE: The data included in this article represents retail sales of UPC-coded items within U.S. grocery stores, drug stores, mass merchandisers, convenience stores, select dollar stores, select warehouse clubs and military commissaries (DeCA), derived Nielsen’s xAOC measurement capability.

This column previously appeared in Store Brands’ May print edition. Rost is vice president of consumer insights for New York City-based Nielsen. His work explores emerging trends, shifting buying and media consumption behaviors and helps manufacturers and retailers make more informed business decisions. He shares his expert industry insights via thought leadership content and industry talks and with Nielsen’s clients.