Pet Supplies and Pet Care Products in the U.S., 8th Edition: Pet Health and Pampering: The New Value Equation

Chapter 1: Executive Summary
Introduction
Market Definition
Exclusions
Four IRI-Tracked Product Categories
Report Methodology
The Market
Retail Sales Slow in 2009
Figure 1-1: U.S. Retail Sales of Pet Supplies: 2005, 2009 and 2014 (in millions of dollars)
IRI-Tracked Sales at $1.9 Billion
Sales by Product Type
Natural and Organic Product Sales and Market Share
Retail Channel Shares and Trends
State of the Market
The Marketers
Number and Types
Second-Tier Multi-Category Marketers
Natural Product Specialists
Nestlé Purina Leads in IRI-Tracked Sales
Mergers & Acquisitions
Celebrities Weight In
Licensing Bigger Than Ever
The Private-Label Factor
Marketing and New Product Trends
Pet Market Advertising Tops $500 Million
Non-Traditional Media
Social Networking
Cause-Related Marketing
"Green" Initiatives
2009 a Record Year for New Product Entries
Dominant Themes Involve Premium Appeals
Retail Channel Trends
Economic Concerns Intensify Cross-Channel Competition
The PetSmart/Petco Dynamic Duo
Pet Superstores vs. Discount Stores
Independents and Supermarkets Continue to Slide
Non-Traditional Channels Gaining Ground
Independent Pet Stores Feel Economic Pinch
The Consumer
53% of Households Own Pets
Overview of Dog and Cat Supply Purchasing
Figure 1-2: Household Purchasing Rates for Dog or Cat Supplies by Category, 2009 (percent of U.S. households)
Two-Thirds Are Receptive to Affordable Natural/Organic Pet Supplies

Chapter 2: The Market
Introduction
Market Definition
Exclusions
Four IRI-Tracked Product Categories
Trade Associations and Shows
Regulatory Agencies and Trends
Report Methodology
Market Size and Growth
Retail Sales Slow in 2009
Table 2-1: U.S. Retail Sales of Pet Supplies, 2005-2009 (in millions of dollars)
IRI-Tracked Sales at $1.9 Billion
Table 2-2: IRI-Tracked Sales of Pet Supplies, 2005-2009 (in millions of dollars)
Table 2-3: IRI-Tracked Sales of Pet Supplies by Category, 2009 vs. 2008 (in millions of dollars and units)
Table 2-4: IRI-Tracked Sales of Pet Supplies: By Category, 2005-2009 (in millions of dollars)
Table 2-5: Growth of IRI-Tracked Sales of Pet Supplies: By Category, 2006-2009 (percent)
Table 2-6: Dollar Change in IRI-Tracked Sales of Pet Supplies by Category, 2005-2009 (in millions of dollars)
Market Composition
Sales by Product Type
Figure 2-1: Share of U.S. Retail Sales of Pet Supplies by Animal Type: 2009 (percent)
Share of Dog Supply Sales by Product Category
Table 2-7: Share of U.S. Retail Sales of Dog Supplies: By Category, 2009 (in millions of dollar and percent share)
Table 2-8: Average Annual Dog Supply Expenses: By Category, 2009 (in dollar)
Share of Cat Supply Sales by Product Category
Table 2-9: Share of U.S. Retail Sales of Cat Supplies: By Category, 2009 (in millions of dollars and percent share)
Table 2-10: Average Annual Cat Supply Expenses: By Category, 2009 (in dollar)
Share of IRI-Tracked Sales by Product Category
Table 2-11: Share of IRI-Tracked Sales of Pet Supplies by Product Category: 2003, 2006 and 2009 (percent)
Share of Independent Pet Store Sales by Animal Type
Table 2-12: Share of Independent Pet Store Pet Supply Sales by Category: 2005-2008 (percent)
Share of Dog Category Sales by Product Type
Table 2-13: Share of Independent Pet Store Sales of Dog Products: By Category, 2005-2008 (percent)
Share of Fish Category Sales by Product Type
Table 2-14: Share of Independent Pet Store Sales of Fish Products: By Category: 2005 vs. 2008 (percent)
Share of Cat Category Sales by Product Type
Table 2-15: Share of Independent Pet Store Sales of Cat Products: By Category, 2005-2008 (percent)
Share of Small Mammal Sales by Product Type
Table 2-16: Share of Independent Pet Store Sales of Small Mammal Products: By Category, 2008 (percent)
Share of Bird Category Sales by Product Type
Share of Herptile Category Sales by Product Type
Table 2-17: Share of Independent Pet Store Sales of Bird Products: By Category, 2005 vs. 2008 (percent)
Table 2-18: Share of Independent Pet Store Sales of Herptile Products: By Category, 2008 (percent)
Natural and Organic Product Sales and Market Share
Figure 2-2: U.S. Retail Sales of Natural and Organic Pet Care Products: 2004, 2009 and 2014 (in millions of dollars)
Figure 2-3: U.S. Retail Sales and Share of Natural Pet Care Products: By Category, 2004 vs. 2009 (percent)
Retail Channel Shares and Trends
Table 2-19: Share of Pet Supply Sales: By Retailer Type, 2006 vs. 2009 (percent)
Dog/Cat Household Pet Supply Purchasing by Channel
Table 2-20: Pet Product Purchasing Patterns Among Dog or Cat Owners: By Retail Channel, 2007-2009 (percent of U.S. dog- or cat-owning households)
Market Outlook
State of the Market
Recession Receding—Slowly
Pet Market Impact
Table 2-21: Percent of Pet Owners Who Anticipate Spending Less on Pet Food/Supplies or Pet Services in Next 12
Months, February 2009
Table 2-22a: Pet Owner Patterns: By Change in Financial Situation Compared With 12 Months Ago, 2009 (percent of U.S. pet-owning households)
Table 2-22b: Pet Owner Population: By Change in Financial Situation Compared With 12 Months Ago, 2009 (millions of number of U.S. pet-owning households)
Table 2-22c: Pet Owner Indexes: By Change in Financial Situation Compared With 12 Months Ago, 2009 (U.S. petowning households)
Human/Animal Bond a Potent Force
Figure 2-4: "Consider My Pet(s) Part of the Family": By Percent of Pet, Dog/Cat, Dog and Cat Owners, February 2009 (percent)
Table 2-23: Mean Number of Veterinary Visits: By Human/Animal Bond Among Dog and Cat Households, 2006
Table 2-24: Mean Veterinary Expenditures: By Human/Animal Bond Among Dog and Cat Households, 2006 (in dollars)
All Things Pet Health
Product Safety a Growing Concern
Natural/Organic Products
Table 2-25: Percent of Pet Owners Who Purchased Natural/Organic Pet Products in Last 3 Months: Dog Owners vs. Cat Owners, February 2009 (percent of U.S. dog or cat owners)
Table 2-26: Percent of Pet Owners Who Would Buy More Natural/Organic Pet Products If They Were More Available or More Affordable, February 2009 (percent of U.S. dog or cat owners)
Functional Products
Figure 2-5: U.S. Retail Sales of Natural and Organic Pet Products: 2003, 2007 and 2012 (in millions of dollars)
Figure 2-6: U.S. Retail Sales of Pet Supplements and Nutraceutical Treats: 2003, 2007 and 2012 (in millions of dollars)
Figure 2-7: U.S. Retail Sales of Pet Medications: 2003, 2007
and 2012 (in billions of dollars)
Senior, Overweight and Special Needs Pet Products
Figure 2-8: Share of U.S. Retail Sales of Senior, Weight Management and Special Needs Pet Products: By Category, 2008 (percent)
Premium Demographics Helping to Drive Expenditures
Table 2-27: Average U.S. Household Expenditures on Pet Supplies: 1998-2008 (in dollars)
Table 2-28: Share of U.S. Pet Supplies Expenditures: $70K+ vs. Under $70K Income Brackets, 1998-2008 (percent)
Table 2-29: $70K+ Household Share of U.S. Pet Market Expenditures: Total and By Category, 1998 vs. 2008 (percent)
Impact of Aging Pet Population
Figure 2-9: Percentage of Dogs and Cats Age 6 and Over: 1996 vs. 2006 (percent)
Impact of Pet Overweight, Obesity
Table 2-30: Percentage and Number of Overweight and Obese Dogs and Cats, 2008
Table 2-31: Percentage and Number of Overweight and Obese Dogs and Cats, 2007
Rise in Pet Travel Favors Many Product Categories
Favorable Trends in Pet Ownership
Figure 2-10: Household Penetration Rates for Selected Dogor Cat-Owning Classifications: 2003 vs. 2009 (percent of U.S. households)
Table 2-32: Household Penetration Rates for Selected Pet-Owning Classifications, 2007-2009 (percent of and number of U.S. households in millions)
More Pets than People
Table 2-33: Number of Pets in the United States by Type: 2000, 2002, 2004, 2006 and 2008 (number in millions and percent)
Impact of Boomers and Graying Population
Figure 2-11: Dog or Cat Ownership Rates by Age Bracket: 2003 vs. 2009 (percent of U.S. households)
Table 2-34: Household Penetration Rates for Selected Pet-Owning Classifications: By Generational Cohort, 2009 (percent of U.S. households)
Table 2-35: Household Populations for Selected Pet-Owning Classifications: By Generational Cohort, 2009 (number of U.S. households in millions)
Table 2-36: Indexes for Selected Pet-Owning Classifications: By Generational Cohort, 2009 (U.S. households)
Table 2-37: Number and Share of Total U.S. Population Growth for Selected Age Brackets: 2010, 2015 and 2020 (in thousands of number and percent)
Role of Gen Ys and Gen Xers
No-Kid Pet Household Clout
Table 2-38: Childless Dog or Cat Owners: Dog/Cat Ownership Rates and Share of Total Dog/Cat Owners: 2003, 2006 and 2009 (percent)
Celebrity Involvement and Pet-Themed Hit TV Series
Looking Ahead: Trends and Opportunities
Table 2-39: Projected U.S. Retail Sales of Pet Supplies: 2009-2014 (in millions of dollars)

Chapter 3: The Marketers
Competitive Overview
Number and Types
Multi-Category Market Leaders
Second-Tier Multi-Category Marketers
Natural Product Specialists
Category Leaders
Cat Litter
Flea/Tick-Control Products
HBC (Grooming, Supplements, Oral Care)
Clean-Up/Odor-Control Products
Dog Chews
Toys
Training/Containment Products
Shelter, Crates, Carriers, Furniture
Non-Dog/Cat Supplies
Mergers & Acquisitions
Table 3-1: Timeline of U.S. Pet Supplies Marketer and Brand Acquisitions and Sales: 2004-2009
Human Product Mega-Marketers
Illustration 3-1: Orvis Dog Bed Selector Website Banner
Impact of Retailer Consolidation
Non-Food/Food Cross-Over
Mass/Pet Specialty Cross-Over
Channel and Retailer Exclusivity
Celebrities Weight In
Cesar Millan
Martha Stewart
Retailer Exclusivity
Licensing Bigger Than Ever
Illustration 3-2: Advertising for Vo-Toys’ Licensed Jeep Pet Products Collection
Disney’s Bolt
Pet Market Licensing Leaders
Jakks Pacific
Illustration 3-3: Advertising for Jakks Pacific’s Licensed AKC Pet Product Line
Illustration 3-4: Jakks Pacific’s Minnie Mouse Pet Apparel
Pet Brands
Purina Jumps In
The Kid Factor
Licensing Pros and Cons
The Private-Label Factor
Table 3-2: IRI-Tracked Sales of Private-Label Pet Supplies by Category: 2003, 2006 and 2009 (in millions of dollars and percent)
Table 3-3: U.S. Market for Pet Supplies: Selected Marketers and Leading Brands, 2009
Marketer and Brand Shares
Methodology
Nestlé Purina Leads in IRI-Tracked Sales
Figure 3-1: Top Marketers of Pet Supplies by Share of IRITracked Sales: 2006 vs. 2009 (percent)
Cat Litter Category: Consolidated But Still Branching Out
Figure 3-2: Top Marketers of Cat Litter by Share of IRITracked Sales: 2006 vs. 2009 (percent)
Competition Up in Natural Niche
Figure 3-3: Top Natural Cat Litter Brands by Share of IRITracked Sales: 2006 vs. 2009 (percent)
Other Dog/Cat Supplies: Category Leader Hartz Suffers Major Loss
Figure 3-4: Top Marketers of Other Dog/Cat Supplies by Share of IRI-Tracked Sales: 2006 vs. 2009 (percent)
Dog Chews: No. 1 Hartz Posts Big Losses
Figure 3-5: Top Marketers of Dog Chews by Share of IRITracked Sales: 2006 vs. 2009 (percent)
Non-Dog/Cat Supplies: Central Garden & Pet Coming on Strong
Figure 3-6: Top Marketers of Non-Dog/Cat Supplies by Share of IRI-Tracked Sales: 2006 vs. 2009 (percent)
Brand Rankings in the Pet Specialty Channel
Table 3-4: Marketer Sales and Shares of Pet Supplies in IRITracked Outlets by Category: 2008 vs. 2009 (in millions of dollars and percent)
Table 3-5: IRI-Tracked Sales of Cat Litter by Marketer and Brand: 2008 vs. 2009 (in millions of dollars and percent)
Table 3-6: Cat Litter Marketers by Dollar Change in IRITracked Sales: 2008 vs. 2009 (in millions of dollars)
Table 3-7: Cat Litter Brands by Dollar Change in IRI-Tracked Sales: 2008 vs. 2009 (in millions of dollars)
Table 3-8: IRI-Tracked Sales of Other Dog/Cat Supplies by Marketer and Brand: 2008 vs. 2009 (in millions of dollars and percent)
Table 3-9: Other Dog/Cat Supplies Marketers: By Dollar Change in IRI-Tracked Sales, 2008 vs. 2009 (in millions of dollars)
Table 3-10: Other Dog/Cat Brands by Dollar Change in IRITracked Sales: 2008 vs. 2009 (in millions of dollars)
Table 3-11: IRI-Tracked Sales of Dog Chews by Marketer and Brand: 2008 vs. 2009 (in millions of dollars and percent)
Table 3-12: Dog Chews Marketers by Dollar Change in IRITracked Sales: 2008 vs. 2009 (in millions of dollars)
Table 3-13: Dog Chews Brands by Dollar Change in IRITracked Sales: 2008 vs. 2009 (in millions of dollars)
Table 3-14: IRI-Tracked Sales of Non-Dog/Cat Supplies by Marketer and Brand: 2008 vs. 2009 (in thousands of dollars and percent)
Table 3-15: Non-Dog/Cat Supplies Marketers by Dollar Change in IRI-Tracked Sales: 2008 vs. 2009 (in thousands of dollars)
Table 3-16: Non-Dog/Cat Supplies Brands by Dollar Change in IRI-Tracked Sales: 2008 vs. 2009 (in thousands of dollars)
Table 3-17: Pet Specialty Market and Brand Leaders in Key Pet Supply Categories: 2004, 2006 and 2008
Competitor Profile: Central Garden & Pet
A Pet Supplies and Household Garden Market Leader
Company Acquires Farnam
A Pet Specialty and Mass-Market Leader
Table 3-18: IRI-Tracked Sales of Central Garden & Pet Pet Products by Category: 2008 vs. 2009 (in millions of dollars and percent)
Illustration 3-5: Central Garden & Pet’s New Comfort Zone Feline Wipes
Competitor Profile: Drs. Foster & Smith
The Top U.S. Pet Catalog Marketer
Building an Internet Presence
On the Air
Cause Marketing
Environmental Commitment
Aquatic Services
Competitor Profile: Hartz Mountain Corp
Corporate Overview
Mass-Market Sales Slipping
Table 3-19: IRI-Tracked Sales and Market Share of Hartz Mountain Pet Supplies, 2005-2009 (in millions of dollars and percent)
Product Innovation
Corporate Responsibility
Hartz Website Includes Online Tip Exchange
Looking Abroad
Competitor Profile: Doskocil (Petmate)
A Multi-Category Pet Supplies Powerhouse
Building on Innovation
Problem-Solution Focus
Aspen a Best-Selling Brand
Table 3-20: Doskocil’s IRI-Tracked Sales of Dog and Cat Supplies, 2008 vs. 2009 (in millions of dollars and percent)
Environmental Initiatives
Competitor Profile: Sergeant’s Pet Care, Inc
Overview
Table 3-21: IRI-Tracked Sales and Market Share of Sergeant’s Pet Care, 2005-2009 (in millions of dollars and percent)
Bulking Up Through Acquisitions
New Product Innovations
Increased Web Presence
Competitor Profile: Spectrum Brands
Company Overview
Table 3-22: Share of Spectrum Brands Net Sales, 2007-2009 (percent)
Abandoning Acquisitions Strategy
An Optimistic Outlook
Table 3-23: Spectrum Brands’ IRI-Tracked Pet Product Sales, 2008 vs. 2009 (in millions of dollars and percent)

Chapter 4: Marketing and New Product Trends
Marketing Trends
Pet Market Advertising Tops $500 Million
Table 4-1: Media Breakout of U.S. Advertising Expenditures on Pet Products, 2004-2008 (percent)
Human/Animal Bond More Important Than Ever
Illustration 4-1: Advertising for Bayer’s K9 Advantix
Value-Focused Advertising
Other Key Themes
Celebrity Kick
Trade Advertising and Promotions
Illustration 4-2: Advertising for Pet Care Systems’ Swheat Scoop
Non-Traditional Media
Internet Advertising
Social Networking
Cause-Related Marketing
Pet Marketers Embracing Sustainable Initiatives
Professional Endorsement and "Pro-Branding"
Brand "Toning"
Illustration 4-3: Advertising for Bramton’s Vet’s Best Line
New Product Trends
2009 a Record Year for New Product Entries
Table 4-2: Number of New Pet Supply Product Lines and SKUs, 2005-2009
Dominant Themes Involve Premium Appeals
Table 4-3: Top Pet Supply Product Selling Points by Package Tags/Marketing Claims, 2005-2009
Leading Marketers by Level of New Product Introductions
Table 4-4: Top Companies by Number of Pet Supplies New Product Launches: 2005-2009
Common Denominators in New Product Development
Value-Added/Functional
Natural/Organic
Product Humanization and Pet Pampering
Illustration 4-4: Advertising for ConairPets’ Grooming Clippers
Illustration 4-5: Advertising for Petmate’s Lifestyle Collection
Convenience
Illustration 4-6: Advertising for Liquid Net’s Ultimate Insect Repellant for Pets
Safety
Illustration 4-7: Advertising for Invisible Fence Training and Containment Products
Oral Care
Illustration 4-8: Advertising for Bamboo’s QuadBrush Ultimate Pet Toothbrush
Special Needs Products
Gifting and Luxury Products
Table 4-5: Pets and Gifts/Birthdays/Holidays: 2008 (percent, dollar, and number)
Illustration 4-9: Holiday Advertising for Humane Society Online Store
Luxury Products
Flea/Tick Products
Online Selling
Illustration 4-10: Advertising for DrsFosterSmith.com
Value
Safety
Natural
New Drugs and Anti-Diversion Initiatives
Cat Litter and Accessories
Illustration 4-11: Advertising for World’s Best Cat Litter
Illustration 4-12: Oil-Dri Corp’s Cat’s Pride Natural Scoop
Illustration 4-13: Automated Pet Care Products’ Litter-Robot
Toys
Interactive
Senior and Weight-Maintenance
Illustration 4-14: MultiVet’s SlimCat Food Distributor Ball
Super-Durable and Combo Chew/Food
Natural/Organic/Eco-Friendly
Small Dog Toys
Dog Chews
Variety
Oral Care
Functional
"Ethical" Claims
Grooming Products
Illustration 4-15: Advertising for Spa Lavish Your Pet’s Spa Colors Grooming Line
Illustration 4-16: Advertising for TropiClean’s TropiClean Pet Shampoo
Illustration 4-17: Advertising for HydroSurge RapidBath
Supplements
Illustration 4-18: Advertising for Nestlé Purina’s FortiFlora Supplement
Clean-Up/Odor-Control Products
Illustration 4-19: Advertising for Procter & Gamble’s Febreze Pet Odor Eliminators
Illustration 4-20: Advertising for Kegel’s Fizzion Concentrated Cleaner
Illustration 4-21: Advertising for Paramount’s AKC and CFA Clean-Up Products
Collars, Leashes and Leads
Illustration 4-22: Skeelo’s LumiLeash Retractable Leash
Illustration 4-23: Premier Pet’s Eco Gentle Leader Harness
Illustration 4-24: Website Banner for Coastal Pet’s Earth Soy Collars and Leads
Illustration 4-25: Dosha Dog’s Fashion Collars
Carriers, Crates, Shelter
Illustration 4-26: Creature Leisure’s The Carry Den XT
Illustration 4-27: New York Dog’s Little Red Barn Portable Dog Home
Bedding
Watering and Feeding Devices
Illustration 4-28: Omega Paw’s Portion Pacer Dog Bowl
Illustration 4-29: Veterinary Ventures’ Drinkwell 360 Pet Fountain
Electronic/High-Tech
Illustration 4-30: Advertising for Panasonic’s PetCam Network Camera
Pet ID Systems
Illustration 4-31: Advertising for IDtag.com
Illustration 4-32: White Bear Technologies’ RoamEO Pet Location System
Home DNA Test Kits
Illustration 4-33: Advertising for Mars Veterinary’s Wisdom Panel MX
Smart Pet Doors
Illustration 4-34: Advertising for New PetSafe Training Products
Non-Dog/Cat Supplies
Kid-Appeal
Illustration 4-35: SuperPet USA’s CritterTrail Treat Zone Habitat
Health/Functional
Illustration 4-36: Kaytee’s All-Natural Timothy Hay Plus
Illustration 4-37: Zoo Med Laboratories’ AvianSun Bird Lamp
Natural/Eco-Friendly
Illustration 4-38: T Weiss Organics’ Algae Magic Algae Inhibitor
Convenience/Effectiveness
Illustration 4-39: Lifegard Aquatics’ Lifegard WOW Aquarium Filter/Pump
Style
Illustration 4-40: Penn-Plax Life-Style Bird Cage
Illustration 4-41: Casco Group’s biOrb Life Aquarium
Category Cross-Over