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U.S. Pet Food Market Update, 2011: Marketing the Benefits of Pet Ownership

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U.S. Pet Food Market Update, 2011: Marketing the Benefits of Pet Ownership David Lummis ... New York City The YMCA of Prospect Park, October 16 Chicago ... – PowerPoint PPT presentation

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Title: U.S. Pet Food Market Update, 2011: Marketing the Benefits of Pet Ownership


1
U.S. Pet Food Market Update, 2011Marketing the
Benefits of Pet Ownership
  • David Lummis
  • Packaged Facts
  • Senior Pet Market Analyst

2
Todays Agenda
  • U.S. pet food market update State of the Market
    Summary
  • Trends in pet/human healthcorrelation research
  • Target demographics and action opportunities

3
Report Resources
  • U.S. Pet Market Outlook, 2011-2012(April 2011)
  • Pet Food in the U.S., 9th Edition(March 2011)
  • Pet Supplements and Nutraceutical Treats, 3rd
    Edition (February 2011)
  • Natural, Organic Eco-Friendly Pet Products in
    the U.S., 3rd Edition (July 2010)

4
State of the Market 2011
5
U.S. Pet Market Retail Sales by Category2010
vs. Year Ago(in billions)
Classification 2010 Sales Change Over 2009
Veterinary Services 19.69 7.0
Pet Food 18.35 2.8
Pet Supplies 10.92 2.0
Other Pet Services 6.11 5.0
Total 55.07 4.3
Source Packaged Facts Pet Market Outlook
2010-2011
6
Change in U.S. Retail Sales of Pet Food,
2006-2015
 YEAR Change
2015 3.6
2014 3.6
2013 3.6
2012 3.5
2011 3.0
2010 2.8
2009 5.0
2008 5.4
2007 6.1
2006 5.0
2010 Sales 18.4 b
Source Packaged Facts
7
From Recession to New Normal
  • Shopper/Retailer Trends
  • coupons
  • loyalty cards
  • meal planning
  • shopping lists
  • delayed gratification
  • lowered standards
  • store switching
  • brand switching
  • channel switching
  • clarifying want versus need
  • reassessing convenience (larger packages, smaller
    packages, etc.)

8
I am spending less on pet products these
daysbecause of the economy.
Level of Agreement Dog OwnersOverall Natural Dog Food/Supply Purchasers Cat OwnersOverall Natural Cat Food/Supply Purchasers
Strongly Agree 12 15 10 13
Somewhat Agree 24 27 23 26
No Opinion/Not Applicable 24 18 22 20
Somewhat Disagree 26 25 28 27
Strongly Disagree 14 15 17 15
Source Packaged Facts national online survey,
May/June 2010
9
Market Exits
Dog Whisperer
Pet Promise
Goodlife Recipe Dog Food
10
I think many pet products are becoming too
expensive.
Source Packaged Facts online pet owner poll,
February 2011
11
Private-Label Pet Food Introductions, 2000-2010
Market/Category 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Reports Reports Reports Reports Reports Reports Reports Reports Reports Reports Reports Reports
Dog Food 0 4 5 4 3 0 8 4 1 6 23
Cat Food 0 0 2 8 0 1 2 3 4 1 7
Total 0 4 7 12 3 1 10 7 5 7 30
SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs SKUs
Dog Food 0 8 15 19 6 0 47 18 9 10 109
Cat Food 0 0 14 40 0 1 7 10 28 4 28
Total 0 8 29 59 6 1 54 28 37 14 137
Source Product Launch Analytics Packaged
Facts. This material is reprinted with
permission.
12
Premium Private Label
Wegmans Bruiser Complete Nutrition Dry Dog Food
Targets Boots Barkley Multi-Flavored Dog
Biscuits
13
70K Household Share of U.S. Pet Food
Expenditures
14
Top Marketing Claims by Number ofNew Pet Food
Product Reports, 2008-2010
Package Tag/Claim 2008 2009 2010
Natural 159 182 211
High Vitamins 111 114 106
Upscale 139 168 88
High Protein 89 75 87
High Minerals 93 84 86
No Preservatives 89 99 75
Real 54 48 63
No Wheat 67 56 61
No Artificial Color 67 58 45
Low Fat 45 34 41
Source Product Launch Analytics Packaged
Facts. This material is reprinted with
permission.
15
Dog or Cat Ownership Rates by Animal Type
2007-2010(percent of U.S. households)
Classification 2007 2008 2009 2010
Classification
Any 51.9 54.1 53.3 53.0
Dogs 34.9 35.2 35.9 36.0
Cats 25.6 26.7 26.1 24.8
Fish 7.8 7.4 6.9 6.4
Birds 4.6 4.9 4.2 3.2
Rabbits/ Hamsters 2.1 2.1 2.0 1.6
Reptiles 2.0 2.1 1.7 1.6
Other 2.9 2.9 2.7 3.1
Note Percentages are based on a total of 111.9
million households in 2007, 113.5 million
households in 2008, 114.2 million households in
2009, and 114.6 million households in
2010. Source Pet Food in the U.S., 9th Edition
compiled by Packaged Facts based on Experian
Simmons National Consumer Studies
16
  • The U.S. pet industry cannot sustainhealthy
    growth without increasing ratesof household pet
    ownership.

17
The Holistic Human-Pet Health Connection
18
Trends in Pet/Human Health Correlation Research
19
Mars Waltham Center for Pet Nutrition
  • August 2009 Waltham Center for Pet Nutrition
    commits 2 million to the Eunice Kennedy Shriver
    National Institute of Child Health and Human
    Development (NICHD) for Human-Animal Interaction
    (HAI) research.
  • The NICHD (division of National Institutes of
    Health) combines the donation with funding from
    the National Institute of Nursing Research to
    form the first formal program in HAI.
  • Previous studies have been small scale,
    observational or anecdotal.
  • Mars donation will span four years and help fund
    NICHD studies in three areas
  • Impact of human-animal interaction on typical
    development and health
  • Clinical trials focusing on role animals play in
    physical and psychological therapeutic
    treatments and
  • Impact of animals on public health, including
    cost-effectiveness of animals in reducing and
    preventing disease.

20
Mars Power of Pets Program
  • Launched in September 2010, in collaboration with
    YMCAs in five cities to promote benefits of pet
    ownership to human health.
  • New York City The YMCA of Prospect Park,
    October 16
  • Chicago The Hastings Lake YMCA,  October 23
  • Washington, D.C. The YMCA of Silver Spring,
    October 24
  • Nashville, Tenn. The Brentwood YMCA, November 6
  • Portland, Ore. Spring 2011
  • Mars study of 1,000 US pet owners
  • Improving overall well-being is main reason for
    having a pet (66)
  • Companionship (61)
  • Positive emotions associated with pets
    happiness (83), love (70), calmness (65),
    excitement (31), invigoration (18)

21
Human Animal Bond Research Initiative Foundation
(HABRI)
  • Petailing 2010 Leadership Conference
  • Bob Vetere, President, APPA and President of
    HABRI Foundation.
  • Founding SponsorsPETCO and APPA
  • Support federal research to provide scientific
    evidenceof health benefits for humans from their
    relationships with their pets.
  • Form broad-based coalition of organizations and
    entities that will create central database of
    scientific research on the human health benefits
    of companion animals, under the leadership of
    Dr. Alan Beck at Purdue University.
  • Educate and inform Congress of the important role
    that our pets play in human health.
  • Lobby Congress to create a Human Animal Bond
    Research Center within the National Institutes of
    Health.

22
Delta Society
  • Pet Partners (therapy animal program)
  • Animal-Assisted Therapy Professionals Resources
  • National Service Animal Resource Center 
  • Resource Center Research and Articles relating
    to the human-animal bond
  • YouTube Video

23
Target Demographicsand Action Opportunities
24
Dog or Cat Ownership Rates by Generational
Cohort 2010(percent of U.S. households)
Classification Gen Y Adult(18-29) Gen X(Age 30-44) Boomers(45-64) Seniors(65)
Any Pet 50.1 58.6 58.9 37.2
Dogs 34.7 42.4 39.0 23.3
Cats 18.7 27.0 29.3 17.7
Fish 10.2 8.3 6.3 1.8
Birds 2.0 2.4 4.1 3.5
Any Other 7.6 8.8 4.7 1.3
Note Percentages are based on a total of 114.6
million households in 2010. Source Pet Food in
the U.S., 9th Edition compiled by Packaged Facts
based on Experian Simmons National Consumer Study
25
Dog or Cat Ownership Rates by Generational
Cohort 2010(index of U.S. households)
Classification Gen Y Adult(18-29) Gen X(Age 30-44) Boomers(45-64) Seniors(65)
Any Pet 95 111 111 70
Dogs 96 118 108 65
Cats 76 109 119 72
Fish 159 129 98 27
Birds 62 75 127 110
Any Other 137 158 85 24
Source Pet Food in the U.S., 9th Edition
compiled by Packaged Facts based on Experian
Simmons National Consumer Study
26
Low Incidence Pet Ownership Population Segments
  • Hispanics
  • African Americans
  • Asians
  • Children
  • Seniors
  • CHART

Source Pet Food in the U.S., 9th Edition
compiled by Packaged Facts based on Experian
Simmons National Consumer Study
27
The Healing Power of Pets
  • Dr. Marty Becker, resident vet on ABC TV's Good
    Morning America
  • Describes how pets can prevent, detect, treat,
    and in some cases cure a variety of maladies,
    from arthritis to asthma, and from Alzheimer's to
    depression.
  • Decrease cardiovascular risk factors
  • Motivate sedentary owners to exercise
  • Help people deal with chronic pain.

28
Delta Society
  • Pet Partners (therapy animal program)
  • Animal-Assisted Therapy Professionals Resources
  • National Service Animal Resource Center 
  • Resource Center Research and Articles relating
    to the human-animal bond
  • YouTube Video

29
Delta Society Benefits to Kids
30
Delta Society Benefits to Adults
31
Delta Society Benefits to Seniors
32
APPAPets Add Life
33
APPAPets Add Life
34
Pet Care Trust
  • Formed in 1990 by the American Pet Products
    Association (APPA),  the Pet Industry
    Distributors Association (PIDA) and the World Pet
    Association (WPA) to
  • Sponsor and disseminate information on companion
    animal programs and role of companion animals in
    improving quality of life of pet owners.
  • Collect and disseminate educational materials to
    teachers and schools, the media, and the pet
    industry on responsible ownership and pet care.
  • Interact with associations, organizations, and
    societies to coordinate programs of mutual
    interest.
  • Educate the public on benefits of the human
    animal bond and human companion animal bond.
  • Be an information resource for the general public
    and pet industry.

35
Pet Care TrustPets in Classroom Program
  • Program launched in September 2009
  • Expands on Fish in Classroom Program
  • Online program offers grants to teachers who
    include pets in lesson plans
  • Instilling compassion and encouraging responsible
    pet care

36
Celebrity PR
37
Social Media
38
My pet has a positive impact on my physical
health.
Source Packaged Facts online pet owner poll,
February 2011
39
Dog or Cat Ownership Rates by Animal Type
2007-2010(percent of U.S. households)
Classification 2007 2008 2009 2010
Classification
Any 51.9 54.1 53.3 53.0
Dogs 34.9 35.2 35.9 36.0
Cats 25.6 26.7 26.1 24.8
Fish 7.8 7.4 6.9 6.4
Birds 4.6 4.9 4.2 3.2
Rabbits/ Hamsters 2.1 2.1 2.0 1.6
Reptiles 2.0 2.1 1.7 1.6
Other 2.9 2.9 2.7 3.1
Note Percentages are based on a total of 111.9
million households in 2007, 113.5 million
households in 2008, 114.2 million households in
2009, and 114.6 million households in
2010. Source Pet Food in the U.S., 9th Edition
compiled by Packaged Facts based on Experian
Simmons National Consumer Studies
40
  • David Lummis
  • Packaged Facts
  • Senior Pet Market Analyst
  • 504-931-6322
  • mrginc_at_cox.net
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