Ingrid Chu, vp of analysis and insights at American Pet Merchandise Affiliation, spoke at Petfood Discussion board 2024 and shared insights for the pet meals and pet care markets from the corporate’s Nationwide Pet Proprietor Survey (NPOS).
The survey offered invaluable details about how the business has trended earlier than and after the COVID-19 pandemic.
“So, what we collected was that 63% of U.S. households have pets,” mentioned Chu. “And dealing with one of many business specialists we have been in a position to establish that the pet business provided $303 billion into the economic system.”
The NPOS concluded that pet spending stays excessive and robust with an 8.8% CAGR from 2018 to 2024, whereas the CAGR from 2009 to 2017 was 5.7%. It’s forecasted to indicate a stable year-over-year progress via 2030.
“We additionally took a take a look at all the fast-moving client items, the place does pet spending fall?” mentioned Chu. “What we noticed is that pet care is on the prime. Individuals are spending extra money on pet care over every other fast-moving client good.”
Now and earlier than COVID, pet care is persistently performing above common and on prime of the fast-moving client items (FMCG) class.
Pet possession ranges are stabilizing post-pandemic
In accordance with the info, in 2010 about 62% of households owned a pet, this proportion grew exponentially throughout the pandemic and has slowed to about 63% in 2024.
However the total variety of pet-owning U.S. households has elevated steadily over time. In 2010 it was estimated that 46 million households owned a canine, 39 million a cat. In 2024 these numbers have elevated barely, 58 million for canines and 40 million for cats.
Multi-pet family numbers are falling again to pre-pandemic ranges, with many pet house owners being requested to return to work within the workplace.
“It’s not a decline, it’s that issues are going again to what we might usually see in trending information,” mentioned Chu.
Pet house owners are rising extra emotional and hooked up to their pets. Earlier pet house owners are selecting to not add one other pet to their household after dropping one for emotional causes, and fewer for life-style and monetary causes.
Millennials proceed to personal extra pets than every other technology with Gen Z shortly catching up.
Gen Z is the one technology that’s exhibiting progress in pet possession, in keeping with Chu.
Spending habits have modified after COVID years
Most pet house owners are primarily spending the identical post-COVID, however there was a lift in those that spent much less in 2024 than in each 2020 and 2022.
Canine and cat house owners spend the biggest share of their cash yearly on veterinary care, pet merchandise and meals.
Brick-and-mortar and on-line dominate pet associated procuring.
Looking in-store for pet merchandise dropped in 2020 resulting from lockdowns however has begun to bounce again after the pandemic virtually returning to pre-pandemic ranges.
Gen Z and Millennials are utilizing social media most for pet associated procuring and proposals. Pet firm web sites and Fb are the primary supply for studying about new merchandise, however Tik Tok is catching up shortly. Different all visible social media platforms corresponding to YouTube and Instagram are additionally widespread among the many youthful generations.
Gen Z accounted for an elevated variety of pet merchandise bought on-line over the previous 12 months, whereas older generations nonetheless choose procuring at brick-and-mortar shops.
Extra in regards to the Nationwide Pet Proprietor Survey (NPOS)
To evaluate present pet possession within the U.S., the pattern was primarily based off gender, age, area, race/ethnicity, revenue and family measurement. A couple of of the respondent {qualifications} included being at the least 18 or older, nationally represented to present U.S. Census statistics and should personal a pet from the next classes: canines, cats, saltwater and freshwater fish, reptiles, horses, small animals and birds.
The NPOS was carried out in two elements. First, a screener and second, an in depth pet proprietor module. There have been eight totally different modules pertaining to the kind of animal the pet proprietor owned. A complete of 10, 156 pet house owners accomplished the survey.
