ROCKVILLE, Md. (PRNewswire) — Premium products remain a fact of life in the U.S. pet market. For over a decade, premiumization has been driving much of the pet market growth, and this trend remains in play, according to market research publisher Packaged Facts in the report Pet Treats and Chews in the U.S.
"The pet overall market has been seeing little expansion in terms of dollar and volume sales, but what gains there have been are primarily a result of higher-priced, higher-quality products entering the market. And absent any other galvanizing factors toward increased pet ownership, ongoing premiumization is crucial if pet market dollar sales are to continue to rise," according to David Sprinkle, research director, Packaged Facts.
In the $5.4 billion market for pet treats and chews, premium products that have made an impact include treats with special nutraceutical ingredients and those offering "human-quality" ingredients adopted from human food market trends, such as superfruits, ancestral grains, and exotic proteins. It's no wonder pet product makers and retailers are drawn to the superpremium edge of the business. In the pet food arena, margins on superpremium foods can reach 40%, compared with 30% for premium brands and 20% or less for standard brands.
Nutraceutical teats in particular are of increasing significance to the premium pet products segment, especially because the "graying" of America's pet population is an important driver of increased pet market spending in many areas. For pet food and treat marketers interested in offering pet owners nutraceutical benefits in a format pets will enjoy, nutraceutical treats and chews are the perfect middle ground between treats and supplements. Additionally, consumers are better able to rationalize any extra expense associated with premium nutraceutical products because they are perceived to offer "2 in 1" in the form of treats that provide treatment for health conditions. According to Packaged Facts' January 2015 pet owner survey, 65% of dog owners and 55% of cat owners agree that pet treats offering special nutrition can be beneficial to pets with specific health conditions. Among pet owners polled, one-third strongly agreed and one-quarter somewhat agreed that pet treats played an important role in their pets' health.
Pet Treats and Chews in the U.S. provides a broad overview of the market with a focus on future trends, including the importance of product safety, the encroachment of natural products in mass-market outlets, the impact of humanization on the treat market, and growth of functional and grain-free treat options. The report also provides extensive retail sales breakouts along with an examination of the competitive situation, quantifying marketer and brand shares. For more information or to purchase the report visit: http://www.packagedfacts.com/redirect.asp?progid=87839&productid=9101138.
About Packaged Facts
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at www.PackagedFacts.com and are also available on www.marketresearch.com and www.profound.com.