Senior, Weight Management and Special Needs Pet Products in the U.S.

Senior, Weight Management and Special Needs Pet Products in the U.S.

Although senior, weight management and special needs (SWM) products for pets have been around for many years, they have yet to achieve a level of market penetration commensurate with the proportion of senior and overweight pets, and in the current market climate these segments appear to be ripe for significantly greater development. Along with the intense health and “premiumization” focuses in the pet market overall, key market drivers include the growing numbers of “qualified” pets. According to the American Veterinary Medical Association, the percentage of the U.S. dog population age 6 or more increased from 42% in 1996 to 44% in 2006, while the percentage of cats age 6 or more rose from 37% to 44%. The Association for Pet Obesity Prevention reports that 44% of dogs and 57% of cats were overweight or obese as of 2008, up 1 and 4 percentage points, respectively, since 2007, with older animals displaying a much higher incidence of obesity/overweight.


Considering the market as a whole, Packaged Facts estimates U.S. retail sales at $4.3 billion in 2008, with sales projected to climb to 2013, reflecting a compound annual growth rate of over 9%. Building on expert analysis developed across Packaged Facts’ extensive pet market research collection, this all-new report examines every area of the market, segmenting it into four categories: ⁽¹⁾ pet food, including nutraceutical treats; ⁽²⁾ prescription pet medications; ⁽³⁾ devices and other non-food assistance products, including mobility devices (harnesses, wheelchairs, footwear, etc.), hygienic products, bedding, toys, and watering and feeding devices; and ⁽⁴⁾ pet supplements. For each of these categories, the report examines key competitive trends, leading marketers, and the product trends shaping the market now and into the future.


Featuring custom pet owner profiling based on a 2009 pet owner poll conducted by Packaged Facts, the report also profiles users of lite and weight management dog and cat food in depth, using data from Experian Simmons’ Winter 2008/2009 National Consumer Study, with additional data sources including Information Resources, Inc. InfoScan Review data to quantify pet food sales trends and marketer shares in mass-market channels, and the American Pet Products Association 2009-2010 APPA National Pet Owners Survey.

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)