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Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition


Although the 2008-2009 recession took a notable toll, natural and organic pet products continue as a top-growth market segment on their way to becoming the standard for premium pet products in the pet specialty channel and other upscale venues. Doing their part, all of the major mass-market and cross-channel marketers are tapping into the trend as well, keeping pressure on smaller marketers to scale up their product offerings even further. Most recently, in mid 2010 Procter & Gamble rocked the pet food industry by acquiring Natura Pet Products, whose natural and organic pet food brands include Innova, Evo, California Natural and Karma—a move that suggests that the natural pet food party is just getting started on the mass-market side.

Also underpinning steady market advancement is consumer demand for products perceived to be safer, an appeal that got a big boost from the Spring 2007 recalls and one that continues to define the way marketers formulate and position products. According to pet owner surveys conducted by Packaged Facts, 40% of dog owners and 38% of cat owners purchase natural/organic pet products; nearly half of pet owners would buy more natural/organic pet products if they were more affordable; and almost two-fifths would do so if they were more available. Featuring exclusive consumer data such as these, the report homes in on food and nonfood purchasing trends across multiple categories, as well as attitudes and demographic characteristics of natural and organic pet product purchasers.

Building on the analysis presented in the previous two editions of this report, Natural, Organic and Eco-Friendly Pet Products in the U.S., 3rd Edition divides the market into two classifications—pet food and pet care—with the latter defined as encompassing all nonfood pet supplies (cat litter, grooming products, flea/tick care products, supplements, clean-up products, etc.). For each classification, coverage includes historical and projected retail sales estimates from 2005 through 2014, competitive strategies of key players, and trends in new product development such as human-grade pet food, raw/frozen pet food, fresh (refrigerated) pet food, eco-friendly nonfood pet products, corporate sustainability initiatives, and cause marketing. Additional data sources include SymphonyIRI marketer/brand sales data for mass-market channels, SPINSscan data for the natural supermarket channel, Datamonitor Product Launch Analytics data tracking new product introductions, and Experian Simmons data profiling trends in pet ownership and product purchasing.

About the Author

David Lummis is the senior pet market analyst for Packaged Facts. He is also author of the monthly "Market Outlook" column in Pet Product News International, and a regular contributor of articles and market insight to other pet industry magazines as well as major business media including The New York Times and CNNMoney. Mr. Lummis also is President of New Orleans-based Marigny Research Group, Inc., a producer of custom market research reports for Packaged Facts. Since 1986, MRG has prepared more than 175 studies on consumer packaged goods markets and developed full report lines covering pet, demographic, retail and financial markets. Mr. Lummis, who graduated from Yale University, has also written approximately 75 other published B2B reports and is the author of the book, "Value Retailing in the 1990s."

Table of Contents :

Chapter 1: Executive Summary


Scope of Report: Pet Food and Pet Care

Report Methodology

Market Trends

U.S. Retail Sales, 2005-2014

Table 1-1: U.S. Retail Sales of Natural Pet Products, 2005-2014 (in millions of dollars)

Pet Food vs. Pet Care

Organic Pet Food Sales

Litter Dominates Pet Care Classification

Mass-Market Sales Trends

Natural Supermarket Sales Trends

Market Share by Retail Channel

Figure 1-1: Share of U.S. Retail Sales of Natural Pet Products by Distribution Channel: 2005 vs. 2009 (percent)

Competitive Trends

Natural Pet Market Tracking Human Path

Procter & Gamble Plus Natura

New Brands and Line Extensions

Raw Pet Food Market Leaders

Freshpet and Tyson Join Forces in Refrigerated Pet Food

Natural Product Leaders in the Pet Specialty Channel

Dog Food

Cat Food

Cat Litter

Natural Product Leaders in Tracked Mass-Market Channels

Dog Food

Cat Food

Cat Litter

Dog/Cat Needs

Top Ten Brands in the Natural Supermarket Channel

New Product Trends

“Natural” Leads New Product Surge

“Natural-Related” Claims

“Green” Claims

Consumer Trends

Purchasing Patterns for Natural/Organic Dog Products

Purchasing Patterns for Natural/Organic Cat Products

Independent Pet Stores Are Highest-Indexing Channel for Natural Product Purchasers

Figure 1-2: Retail Channel Indexes: Purchasers of Natural/Organic Pet Products, July 2009-March 2010 (U.S. pet-owning households)

Availability and Affordability as Impediment to Natural Product Purchasing

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