Rockville, MD. US dog and cat food sales are expected to reach $37.1 billion in 2021, according to Packaged Facts. This is a 6.4% increase compared to the market research firm’s 2020 sales count.
Furthermore, this recession-proof pet industry category is expected to reach $47.9 billion by 2025 with a robust and steady compound annual growth rate (CAGR) of 6.6%.
David Sprinkle, Director of Research at Packaged Facts, noted that the COVID-19 pandemic has accelerated investment, product development, marketing and retail trends in this category. These “fast forward” trends include superior, natural, science-based formulas, unconventional forms like fresh, chilled/frozen and alternative proteins, increased demand for sustainability and ethical sourcing, and eroding traditional POS frontiers.
Stronger bonds with companion animals and an interest in emerging formats have led to some shifts in the use of categories. While dry dog food continues to lead the pack in terms of sales, refrigerated/frozen cat and dog foods are gaining speed, along with cat foods and wet dog foods, according to Chicago-based market research firm IRI.
According to Packaged Facts, cat treat use rates rose from 39% in 2007 to 60% in 2021, and wet cat food purchase rates rose from 49% to 60% over the same period. The company noted that historical purchase rates of wet cat foods continue to be at higher rates than those of wet dog foods, even with higher rates of use of wet dog foods. The same is true for dog and cat treats — purchases of cat treats have gone up, but dog treats remain.
Earlier this year, Packaged Facts shared insights pointing to the burgeoning pet e-commerce space. Currently, the top three players in this field are Amazon, Chewy, and Walmart. Additionally, the company predicted that total pet retail sales would reach $94.6 billion by 2025, with e-commerce accounting for 53% of total sales in the market by that time.
The market research firm also noted that independent pet retailers are increasingly using new ways for pet owners to shop and pick up products to stay competitive, including online buying, in-store pickup, curbside pickup, and speed. Delivery programs.
Fact-packed shares this pet food and fast food outlook on its focus on the US pet market: Pet Food Update, released November 2021.
keep up with the latest pet food trends on our indicators page.