New Tricks to Address Key Trends in the Pet Industry

The pandemic’s impact on the pet industries was like a dog shaking off after a bath. A messy, unpredictable spray of challenges and opportunities that ultimately leave us in a fresh new place. But what happens next? The Harvey Agency has curated insights to help point the way.

Ripples of the Pandemic Pet Boom

The dramatic increase in first-time pet adoptions during COVID-19 led to significant increase in the sales rates, though forecasts call for a drop off in coming years.

• 7 in 10 US households now have a pet
• $240B in global sales projected by 2026
• 8% growth in sales of pet products in 2021
• 5% compound annual growth rate in pet products from 2021 to 2026

Our take away: Lean In.

A robust market lowers the risk of expanding investment into marketing products, developing products, and diversifying sales platforms. The influx of new brands suggest the urgency to get started now.

Pets Eating Better Than We Do?

Consumers will increasingly look for foods with no artificial colors, flavors or preservatives. Solution-based products (such as weight management and dietary restriction) will continue to gain favor. 

• 33% of Millennials and Gen Z intend to spend less on pet food
• 54% of pet food brands see sustainability as the biggest trend in 2022
• 3 in 5 US pet owners will pay more for foods that provide a specialized diet

Our take away: Differentiate where it matters.

With an increasing interest on not only the quality of the food but where it comes from and what its impact is in the world, brands have an opportunity to stand out by showing how their core values and brand personality align with what’s important to consumers.

Yanking the Supply Chain

Labor shortages and rising costs of materials will continue to lead to disruptions in availability and higher prices at the checkout line. Consumers will also demand greater sustainability and transparency into the supply chain.

• 87% increase in the cost of chicken from 2020 to 2021
• 35% projected growth in animal care jobs - above average for all occupations
• 1 in 4 companies will be raising costs to consumers by more than 10%

Our take away: Focus on the income-stable generations.

A sizeable percentage of Gen Z and Millennial pet owners expect to cut back on pet expenses as prices rise. With more disposable and stable incomes, Gen X and Boomers haven’t changed their buying habits significantly. Consider bigger marketing pushes to those segments who can afford the increased costs.

_{Sources: 
Euromonitor Passport - Pet Products in the US (April 2021)
Dun & Bradstreet First Research - Pet Care Indsutry (February 2022)
Petfood Indsutry magazine (January 2022)}