Chapter 1: Executive Summary
Introduction
Scope of Report
Four Product Categories
Report Methodology
Market Trends
U.S. Retail Sales Top $4 Billion in 2008
Food the Largest Category, But Medications Gaining
Market Share by Retail Channel
Figure 1-1: Share of U.S. Retail Sales of Senior, Weight Management and Special Needs Pet Products by Category, 2004 vs. 2008 (percent)
IRI-Tracked SWM Pet Food Dollar Sales Up, Volume Sales Down
Market Outlook
Marketing Trends
A Multicategory Market
Pet Food at the Core
Competitive Structure of Overall Market
Pet Food Market Provides Solid Base for Senior and Weight Management Foods
Formulations and Ingredients
Product Package Tags and Marketing Claims
Top Global Pharmaceutical Marketers Heavily Investing in Pet Medications
Devices Encompass Myriad Products Concentrated in Five Segments
Joint/Senior Products Are Most Extensive Supplements Category
Consumer Trends
20% Use Light/Weight Management or Senior Formulas
Dry Light/WM Formulas Surpass Senior Formulas
White Collar Draw for Light/WM Formula Dry Dog Foods
Figure 1-2: Household Purchasing Rates for Light/Weight Management Dry and Canned Dog and Cat Food: 2004 vs.
2008/09 (percent of U.S. households with dogs or cats)
Patterns for Pet Supplements and Weight Control Treats
Light/WM and Senior Crowd Are Prime Pet Owners
Chapter 2: Market Trends
Introduction
Scope of Report
Four Product Categories
Report Methodology
Market Size and Composition
U.S. Retail Sales Top $4 Billion in 2008
Table 2-1: U.S. Retail Sales of Senior, Weight Management and Special Needs Pet Products by Category, 2004 vs. 2008 (in millions of dollars)
Food the Largest Category, But Medications Gaining
Figure 2-1: Share of U.S. Retail Sales of Senior, Weight Management and Special Needs Pet Products by Category, 2004 vs. 2008 (percent)
Market Share by Retail Channel and Category
Figure 2-2: Share of U.S. Retail Sales of Senior and Weight Management Pet Food by Distribution Channel, 2008 (percent)
IRI-Tracked SWM Pet Food Dollar Sales Up, Volume Sales Down
Table 2-2: IRI-Tracked Dollar Sales of Senior and Weight Management Pet Food, 2003-2008 (in millions of dollars)
Table 2-3: IRI-Tracked Volume Sales of Senior and Weight Management Pet Food, 2003-2008 (in millions)
Sales by Segment and Animal Type
Figure 2-3: Share of IRI-Tracked Sales of Senior and Weight Management Pet Food by Type: Weight Management vs. Senior, 2003-2008 (percent)
Table 2-4: Share of IRI-Tracked Sales of Senior and Weight Management Pet Food: Dog Food vs. Cat Food, 2003-2008 (percent)
Table 2-5: 2004-2008 and 2003-2008 Compound Annual Growth Rates, Dollar Sales Gains and Share of Total Growth in IRI-Tracked Sales of Senior and Weight Management Pet Food (in millions of dollars and percent)
Dog Food Dollar and Volume Sales
Cat Food Dollar and Volume Sales
Table 2-6: IRI-Tracked Dollar Sales of Senior and Weight Management Dog Food by Type, 2003-2008 (in millions of dollars)
Table 2-7: IRI-Tracked Volume Sales of Senior and Weight Management Dog Food by Type, 2003-2008 (in millions)
Table 2-8: IRI-Tracked Dollar Sales of Senior and Weight Management Cat Food by Type, 2003-2008 (in millions of dollars)
Table 2-9: IRI-Tracked Volume Sales of Senior and Weight Management Cat Food by Type, 2003-2008 (in millions)
Market Outlook
Senior, Weight Management Products Underpin Broader Industry Focus on Pet Health
A Recession-Resistant Market
Table 2-10: Percent of Pet Owners Who Anticipate Spending Less on Pet Food/Supplies or Pet Services in Next 12 Months, February 2009
Table 2-11: Mean Veterinary Expenditures: By Human/Animal Bond Among Dog and Cat Households, 2006 (in dollars)
Figure 2-4: Share of Total U.S. Pet Market Expenditures: $70K+ vs. Under $70K Income Brackets, 1997-2007 (percent)
Figure 2-5: Share of U.S. Pet Market Expenditures by Category: $70K+ Income Bracket Households, 1997 vs. 2007 (percent)
The Aging Pet Population
Figure 2-6: Percentage of Dogs and Cats Age 6 and Over: 1996 vs. 2006 (percent)
Pet Overweight, Obesity Contribute to Chronic Conditions
Table 2-12: Percentage and Number of Overweight and Obese Dogs and Cats, 2008
Table 2-13: Percentage and Number of Overweight and Obese Dogs and Cats, 2007
Increasing Consumer Awareness of Pet Overweight, Obesity
The Association for Pet Obesity Prevention (APOP)
The Hill's/AVMA Alliance for Healthier Pets Program
Other Marketers Also Tackling the Issue
Trade Media on Board in Promoting Awareness
Consumer Interest in Functional Pet Foods Strong and Growing
Table 2-14: Use of Specially Formulated Dog Food: 2004, 2006 and 2008 (percent)
Table 2-15: Use of Specially Formulated Cat Food: 2004, 2006 and 2008 (percent)
Table 2-16: Percentage of Dog and Cat Owners Who Purchased Fortified Pet Food in the Past 12 Months: 2002, 2004, 2006 and 2008 (percent)
Pet Food Labeling Requirements and Calorie Statements
Sales of Pet Medications Going Strong
Figure 2-7: U.S. Retail Sales of Pet Medications: 2003, 2007 and 2012 (in billions of dollars)
Pet Supplements on the Ups
Figure 2-8: U.S. Retail Sales of Pet Supplements and Nutraceutical Treats: 2003, 2007 and 2012 (in millions of dollars)
Increased Veterinary Focus on Senior, Overweight Pets
Senior, Healthy Weight Also a Focus for Other Pet Care Service Providers
Looking Abroad
Projected Market Growth
Table 2-17: Projected U.S. Retail Sales of Senior, Weight Management and Special Needs Pet Products by Category, 2008 vs. 2013 (in millions of dollars)
Figure 2-9: Projected Share of U.S. Retail Sales of Senior, Weight Management and Special Needs Pet Products by Category, 2008 vs. 2013 (percent)
Chapter 3: Marketing Trends
Introduction
A Multicategory Market
Pet Food at the Core
Table 3-1: Number of New Senior and Weight Management Pet Product Reports, 2005-2009
Table 3-2: Marketers of Senior Pet Products by Cumulative Number of New Product Reports and SKUs, 2005-2009
Table 3-3: Marketers of Weight Management Pet Products by Cumulative Number of New Product Reports and SKUs, 2005-2009
Competitive Structure
Pet Food
Most Weight Management, Senior Pet Foods Part of Major Brand Lines
Table 3-4: Number of New Senior and Weight Management Pet Product SKUs, 2005-2009
Competitive Activity Divided Between Mass-Market, Pet Specialty, and Veterinary/Professional Channels
Nestlé Purina's Mass-Market Lead Carries Over into Weight Management, Senior Foods
Table 3-5: Marketer Shares of IRI-Tracked Dollar Sales of Weight Management and Senior Dog and Cat Food by Type, 2003-2008 (percent)
Table 3-6: Marketer Shares of IRI-Tracked Dollar Sales of Weight Management and Senior Dog Food by Type, 2003-2008 (percent)
Table 3-7: Marketer Shares of IRI-Tracked Dollar Sales of Weight Management and Senior Cat Food by Type, 2003-2008 (percent)
Relatively Few $10-Million-Plus Products
Table 3-8: Selected Brands of Weight Management Dog Food: IRI-Tracked Dollar, Unit and Volume Sales, 2003-2008 (in millions of dollars)
Table 3-9: Selected Brands of Weight Management Cat Food: IRI-Tracked Dollar, Unit and Volume Sales, 2003-2008 (in millions of dollars)
Table 3-10: Selected Brands of Senior Dog Food: IRI-Tracked Dollar, Unit and Volume Sales, 2003-2008 (in millions of dollars)
Table 3-11: Selected Brands of Senior Cat Food: IRI-Tracked Dollar, Unit and Volume Sales, 2003-2008 (in millions of dollars)
Lagging Volume Sales Underscore Price Increases
Table 3-12: Average Price Per Unit on Selected Brands of Weight Management Dog and Cat Food, 2003-2008 (in dollars)
Table 3-13: Average Price Per Unit on Selected Brands of Senior Dog and Cat Food, 2003-2008 (in dollars)
Pet Specialty Channel Offers Rich Selection of Weight Management, Senior Fare
Hill's Teams up with AVMA to Drive Pet Obesity Awareness, Takes on Competitors Online
Royal Canin Promotes Healthy Weight in Consumer Advertising
Veterinary Products Part of Condition-Specific Lines
Purina Sponsors OM Weight-Loss Challenge, Senior Feeding Guidelines
Euphemistic Names Increase Consumer Appeal, Skirt Regulations
Formulations and Ingredients
Protein Paradigm Shifting in Senior Foods
New Kibble Textures Blend Soft and Crunchy
Indoor Cat Food Further Segmenting
Functional Treats Going Strong
Alternative Forms and Supplement Cross-Overs
Product Package Tags and Marketing Claims
Table 3-14: Number of New Senior Pet Product Reports by Top 20 Package Tag/Claims, 2005-2009
Table 3-15: Number of New Weight Management Pet Product Reports by Top Package Tag/Claims, 2005-2009
Pet Medications
Top Global Pharmaceutical Marketers Heavily Investing in Pet Medications
Pain Management a High Growth Area
Obesity/Overweight and Diabetes
Pfizer Debuts Slentrol
Marketing Appeals
Slentrol Goes Abroad
Diabetes Support
Cognitive Dysfunction
Breakthrough Drugs Revolutionizing Cancer Therapy
Technology Promises New Options for Geriatric Pets
Longevity: Increased Veterinary Focus on Geriatric and Specialized Care for Overweight Pets
Canine Rehabilitation Moving Toward Accreditation
Hospice Care Another Growing Focus
Devices and Other Assistance Products
Myriad Products Concentrated in Five Segments
Marketers Range from Top Overall Market Players to Tightly Focused Specialists
Mobility Devices
Harnesses and Leashes
Ramps and Stairs
Wheeled Devices
Footwear and Accessories
Hygienic Products
Bedding
Toys
Watering and Feeding Devices
Pet Supplements
Competitive Structure
PetAg Positions on Senior Segment
NASC Spearheading Push Toward Regulatory Status
Competition from Functional Pet Foods
Expansion from Supplements into Treats
Senior Health Products High Up on Canine and Feline Supplement Sales Charts
Figure 3-1: Share of U.S. Retail Sales of Dog Supplements by Type: 2009 (percent)
Figure 3-2: Share of U.S. Retail Sales of Cat Supplements by Type: 2009 (percent)
Joint and Bone Health Products
Digestive Health, Immune Support and Probiotics
Other Senior Conditions Include Heart, Cognitive, Eye and Bladder Health
Condition-Specific Lines Target Multiple Senior Ailments
Weight Loss/Maintenance Supplements
Chapter 4: The Consumer
Notes on Data Sources
20% Use Light/Weight Management or Senior Formulas
Table 4-1a: Household Purchasing Rates for Light/Weight Management or Senior Products: Dry and Canned Dog and Cat Food: 2004 Through 2008/09 (percent of U.S. households with dogs or cats)
Table 4-1b: Number of Households Purchasing Light/Weight Management or Senior Products: Dry and Canned Dog and Cat Food: 2004 Through 2008/09 (in millions of U.S. households with dogs or cats)
Dry Light/WM Formulas Surpass Senior Formulas
Figure 4-1: Household Purchasing Rates for Light/Weight Management Dry and Canned Dog and Cat Food: 2004 vs. 2008/09 (percent of U.S. households with dogs or cats)
10% Use Light/WM Formula Dry Dog Foods
Table 4-2: Purchasing Rates for Light/Weight Management or Senior Pet Food Products: Dog Owners, 2004 vs. 2008/09 (percent of U.S. households with dogs)
White Collar Draw for Light/WM Formula Dry Dog Foods
Table 4-3: Demographic Indicators for Purchasing of Light/Weight Management Formula Packaged Dry Dog Food, 2008/09 (percent, number and index among dogowning households)
Older, Retired Skew to Senior Formula Purchasers
8% Use Light/WM Formula Dry Cat Foods
Table 4-4: Demographic Indicators for Purchasing of Senior Formula Packaged Dry Dog Food, 2008/09 (percent, number and index among dog-owning households)
Table 4-5: Demographic Indicators for Purchasing of Senior Formula Canned Dog Food, 2008/09 (percent, number and index among dog-owning households)
Table 4-6: Demographic Indicators for Purchasing of Light/Weight Management Formula Canned Dog Food, 2008/09 (percent, number and index among dog-owning households)
Table 4-7: Purchasing Rates for Light/Weight Management or Senior Pet Food Products: Cat Owners, 2008/09 (percent of U.S. households with cats)
Younger Skew for Light/WM Formula Dry Cat Foods
Table 4-8: Demographic Indicators for Purchasing of Light/Weight Management Formula Packaged Dry Cat Food, 2008/09 (percent, number and index among cat-owning households)
Older, Urban Base for Senior and Canned Formulas
Table 4-9: Demographic Indicators for Purchasing of Senior Formula Packaged Dry Cat Food, 2008/09 (percent, number and index among cat-owning households)
Table 4-10: Demographic Indicators for Purchasing of Senior Formula Canned Cat Food, 2008/09 (percent, number and index among cat-owning households)
Patterns for Pet Supplements and Weight Control Treats
Figure 4-2: Percent of Dog-Owning Households Who Buy Pet Vitamins/Supplements: Overall vs. Light/Weight Management or Senior Formula Pet Food Purchasers, 2008/09 (percent of dog-owning households)
Table 4-11: Percentage of Dog Owners Purchasing Treats for Weight Control: By Size of Dog, 2006 vs. 2008
Light/WM and Senior Crowd Are Prime Pet Owners
Table 4-12: Selected Pet Psychographics: Dog or Cat Owners Overall vs. Dog or Cat Owners Who Purchase Light/Weight Management or Senior Products, February 2009 (percent and index)
Table 4-13: Use of Natural/Organic Pet Products: Dog or Cat Owners Overall vs. Dog or Cat Owners Who Purchase Light/Weight Management or Senior Products, February 2009 (percent and index)
Service Oriented Pet Owners Over-Index for Senior, Light/WM Products
Table 4-14: Pet Product Shopping Patterns by Retail Channel or Outlet: Dog or Cat Owners Overall vs. Dog or Cat Owners Who Purchase Light/Weight Management or Senior Products, February 2009 (percent and index)
Table 4-15: Use of Dog Care Services by Types of Specialty Dog Food Formula Purchased, February 2009 (percent and index)
Table 4-16: Use of Veterinary Services by Types of Specialty Dog Food Formula Purchased, February 2009 (percent and index)
Table 4-17: Use of Cat Care Services by Types of Specialty Cat Food Formula Purchased, February 2009 (percent and index)
Table 4-18: Use of Veterinary Services by Types of Specialty Cat Food Formula Purchased, February 2009 (percent and index)
