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

U.S. Pet Food Market Update, 2011: Marketing the Benefits of Pet Ownership. David Lummis. Packaged Facts . Senior Pet Market Analyst. Today’s Agenda. U.S . pet food market update: State of the Market Summary Trends in pet/human health correlation research

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

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

  2. Today’s 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 Category:2010 vs. Year Ago(in billions) Source: Packaged Facts Pet Market Outlook 2010-2011

  6. % Change in U.S. Retail Sales of Pet Food, 2006-2015 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.” Source: Packaged Facts national online survey, May/June 2010

  9. Market Exits Pet Promise Dog Whisperer 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 Source: Product Launch Analytics; Packaged Facts. This material is reprinted with permission.

  12. Premium Private Label Wegman’s Bruiser Complete Nutrition Dry Dog Food Target’s 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 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) 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 Sponsors—PETCO 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) 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) 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. APPA—Pets Add Life

  33. APPA—Pets 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 Trust—Pets 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) 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 504-931-6322 mrginc@cox.net Packaged Facts Senior Pet Market Analyst

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