Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Pets making themselves at home
Children and pets often go together
Pets as surrogate children
Pet food prices expected to rise in second half of 2011
Pet innovations mirroring human market
Purina is top dog in terms of marketing support
Pet owner profile
Pet owners’ attitudes and behaviors
Insights and Opportunities
Pet insurance coverage limited, but offers growth potential
Dog parks as a marketing platform
Incorporating pet-friendly features into home designs
Marketing sponsorships of pet events
Pet monitors may be worth keeping an eye on
Inspire Insights
Trend: Snack Society
Trend: Totophobia
Pet Industry Total Expenditures and Forecast
Key points
Pet industry’s annual gains a pretty good trick considering economy
Figure 1: Total U.S. pet industry expenditures, at current prices, 2006-16
Figure 2: Total U.S. pet industry expenditures, at inflation-adjusted prices, 2006-16
Fan chart forecast
Figure 3: Total U.S. pet industry expenditures and fan chart forecast with best/worst case scenarios, at current prices, 2006-16
Breakdown of total U.S. pet industry expenditures
Figure 4: Total U.S. pet industry expenditures, by segment, 2010-11
Pet food market growth is modest but steady
Figure 5: Total U.S. sales and forecast of pet food, at current prices, 2006-11
Pet supplies market posting small annual gains
Figure 6: Total U.S. sales and forecast of pet supplies, at current prices, 2006-16
Market Drivers
Key points
Pets living longer lives
Households with children present large target audience
Figure 7: Families, by presence of own children younger than 18 in household, 1950-2010
Some young adults opting for pets instead of children
Figure 8: U.S. birthrate, 2003-11
Marketing Challenges
Key points
Huge pet food recall requires rebuilding of brands and trust
Pet products are actually marketed to humans
Expected rise in pet food prices may be hard to swallow
Figure 9: Real disposable income, 2007-11*
Switches in pet’s diet can lead to stomach upset
Pet Ownership in America
Key points
Pet ownership at all-time high
Figure 10: Average annual dog/cat expenses, 2011
Pet ownership going to the dogs
Fish are a good catch in terms of pet numbers
Figure 11: Number of U.S. households that own a pet and number of pets, 2011
Southern hospitality extends to pet ownership
Figure 12: adults with pets, by region, 2007 and 2011
Higher education levels showing increase in pet ownership
Figure 13: adults with pets, education level, 2007 and 2011
Innovations and Innovators
Overview
Functional pet foods
Premium/indulgent pet food and treats
Lifestyle pet products
Pet-friendly vehicle features appeal to dog owners
Company Profiles and Marketing Strategies
Key points
Nestlé Purina PetCare Company
Purina online
Brand analysis: Purina
Figure 14: Brand analysis of Purina
Pedigree
Pedigree online
Brand analysis: Pedigree
Figure 15: Brand analysis of Pedigree
Bayer HealthCare Animal Division
Bayer HealthCare Animal Division online
Brand analysis: Bayer HealthCare Animal Division
Figure 16: Brand analysis of Bayer HealthCare animal division
TV presence
Overview
Fancy Feast
Figure 17: Fancy Feast “the best ingredient is love,” April 2011
Travelers Insurance
Figure 18: Travelers Insurance, “It’s better under the Umbrella,” 2011
Claritin D allergy medication
Figure 19: Claritin D, “Live Claritin Clear,” September 2010
Hoover Max Extract
Figure 20: Hoover Max Extract, “Superior Cleaning,” January 2011
3M Scotch Lint Roller
Figure 21: 3M Scotch Lint Remover, “The Sticky Experts,” April 2010
Pet Types and Number in Household
Key points
Pet owners make room for multiple animals in their homes
Figure 22: Type and number of pets in household, May 2011
Figure 23: Type and number of pets in household, by age, May 2011
Dogs are the most common type of pet
Figure 24: Type and number of pets in household, by dog/cat ownership, May 2011
Compared to renters, homeowners more likely to have cats or dogs
Figure 25: Dog and cat ownership by residence type, February 2010-march 2011
Source and Selection of Most Recently Acquired Pet
Key points
Shelters/rescue groups are primary source for dogs and cats
Figure 26: Source of most recently acquired dog or cat, by dog/cat owners, May 2011
Specific breed much more important to dog owners than cat owners
Figure 27: Selection of most recently acquired pet, by dog/cat owners, May 2011
Men more likely than women to focus on specific dog breed
Figure 28: Selection of most recently acquired dog, by gender, May 2011
Figure 29: Selection of most recently acquired dog, by age, May 2011
Figure 30: Selection of most recently acquired dog, by household income, May 2011
Size of Dog Owned by Household
Key points
Size does matter—when it comes to dogs
Figure 31: Sizes of dogs owned by household, by gender, May 2011
As owners grow older, dogs grow smaller
Figure 32: Sizes of dogs owned by household, by age, May 2011
Figure 33: Sizes of dogs owned by household, by household income, May 2011
Dogs—Household Freedoms and Services
Key points
Dogs often considered part of the family
Figure 34: Household treatment/care, by gender, May 2011
Older owners afford dogs their freedom
Figure 35: Household treatment/care, by age, May 2011
Lower-income household dogs are roughing it outdoors
Figure 36: Household treatment/care, by household income, May 2011
Dog-related products and services have room for growth
Figure 37: Dog products and services used, by gender, May 2011
Younger dog owners’ interest in pet insurance spells growth for future
Figure 38: Dog products and services used, by age, May 2011
Wealthier dog owners splurging on services
Figure 39: Dog products and services used, by household income, May 2011
Dogs—Veterinarian Visits
Key points
Dog owner’s age and income impacts frequency of vet visits
Figure 40: Frequency of taking dog to the vet, by key demographics, May 2011
Yellow Pages veterinarian searches comparable to other medical and professional services
Figure 41: Referred to Yellow pages in the last 12 months, by dog/cat owners, February 2010-March 2011
Figure 42: Yellow pages services referred to in the last 12 months, by dog/cat owners, February 2010-March 2011
Dogs—Current Use and Interest in Pet Services
Key points
Kitchens going to the dogs
Figure 43: Dog services use and interest, May 2011
Younger dog owners most interested in pet-friendly amenities
Figure 44: Dog services use and interest, by age, May 2011
Figure 45: Dog services use and interest, by household income, May 2011
Looking for dog perks in the city
Figure 46: Dog services use and interest, by urban area, May 2011
Attitudes and Behaviors Toward Pets
Key points
Pet’s health condition is critical to owners
Figure 47: Attitudes and behaviors toward pets, by dog/cat owners, May 2011
Dog owners’ attitudes and behaviors
Figure 48: Attitudes and behaviors toward dogs, by gender, May 2011
Increased awareness of own health among older owners transfers to dogs
Figure 49: Attitudes and behaviors toward dogs, by age, May 2011
Figure 50: Attitudes and behaviors toward dogs, by household income, May 2011
Cat owners’ attitudes and behaviors
Figure 51: Attitudes and behaviors toward cats, by gender, May 2011
Figure 52: Attitudes and behaviors toward cats, by household income, May 2011
Feelings About Pets
Key points
Dogs and cats are considered part of the family
Figure 53: Feelings about pets, by dog/cat owners, May 2011
Pet owners tend to be satisfied with their lives
Figure 54: Effect of pet ownership on happiness, by dog/cat owners, February 2010-March 2011
Pet owners’ feelings about their dogs
Figure 55: Feelings about dogs, by gender, May 2011
Figure 56: Feelings about dogs, by age, May 2011
Figure 57: Feelings about dogs, by household income, May 2011
Pet owners’ feelings about their cats
Figure 58: Feelings about cats, by gender, May 2011
Figure 59: Feelings about cats, by household income, May 2011
Impact of Race and Hispanic Origin
Key points
Black pet ownership tends to be lower than other races/ethnicities
Figure 60: Type and number of pets in household, by race/Hispanic origin, May 2011
Whites favor larger dogs
Figure 61: Sizes of dogs owned by household, by race/Hispanic origin, May 2011
Whites tend to give dogs more freedom around the house
Figure 62: Household treatment/care, by race/Hispanic origin, May 2011
Blacks more interested in dog products/services
Figure 63: Dog products and services used, by race/Hispanic origin, May 2011
Hispanics most interested in pet-friendly accommodations
Figure 64: Dog services use and interest, by race/Hispanic origin, May 2011
Hispanics enjoy the fun side of dog ownership
Figure 65: Attitudes and behaviors toward dogs, by Hispanic origin, May 2011
Cluster Analysis
Dog=animal
Characteristics
Opportunity
Dog=child
Characteristics
Opportunity
Dog=companion
Characteristics
Opportunity
Cluster characteristic tables
Figure 66: Dog owner clusters, May 2011
Figure 67: Source of most recently acquired dog, by dog owner clusters, May 2011
Figure 68: Sizes of dogs owned by household, by dog owner clusters, May 2011
Figure 69: Household treatment/care, by dog owner clusters, May 2011
Figure 70: Dog products and services used, by dog owner clusters, May 2011
Figure 71: Frequency of taking dog to the vet, by dog owner clusters, May 2011
Figure 72: Feelings about pets, by dog owner clusters, May 2011
Cluster demographic tables
Figure 73: Dog owner clusters, by gender, May 2011
Figure 74: Dog owner clusters, by age, May 2011
Figure 75: Dog owner clusters, by household income, May 2011
Figure 76: Dog owner clusters, by race, May 2011
Cluster methodology
Custom Consumer Groups
Key points
Presence of children a big influence on pet ownership
Figure 77: Type and number of pets in household, by marital status and presence of children in household, May 2011
Figure 78: Sizes of dogs owned by household, by marital status and presence of children in household, May 2011
Parents less likely to choose their dog, more likely to acquire it as a “gift”
Figure 79: Selection of most recently acquired dog, by marital status and presence of children in household, May 2011
Cats received as gifts/chosen by someone else one third of the time
Figure 80: Selection of most recently acquired cat, by marital status and presence of children in household, May 2011
Dogs in childless households have more freedom to roam
Figure 81: Household treatment/care, by marital status and presence of children in household, May 2011
Married and childless owners more likely to pamper their dogs
Figure 82: Dog products and services used, by marital status and presence of children in household, May 2011
Unmarried owners want perks for their pets
Figure 83: Dog services use and interest, by marital status and presence of children in household, May 2011
Childless owners “parent” their pets
Figure 84: Attitudes and behaviors toward dogs, by marital status and presence of children in household, May 2011
Figure 85: Feelings about dogs, by marital status and presence of children in household, May 2011
Appendix—Other Useful Consumer Tables
Type of pets in household
Figure 86: Type and number of pets in household, by marital status by presence of children in household, May 2011
Sizes of dog(s) household owns
Figure 87: Sizes of dogs owned by household, by marital status by presence of children in household, May 2011
Figure 88: Sizes of dogs owned by household, by urban area, May 2011
Selection of most recently acquired pet
Figure 89: Selection of most recently acquired dog, by marital status by presence of children in household, May 2011
Figure 90: Selection of most recently acquired dog, by urban area, May 2011
Figure 91: Selection of most recently acquired cat, by marital status by presence of children in household, May 2011
Figure 92: Selection of most recently acquired cat, by urban area, May 2011
Dogs’ household freedom
Figure 93: Household treatment/care, by marital status by presence of children in household, May 2011
Figure 94: Household treatment/care, by urban area, May 2011
Dog products and services
Figure 95: Dog products and services used, by marital status by presence of children in household, May 2011
Figure 96: Dog products and services used, by urban area, May 2011
Dog frequency of vet visits
Figure 97: Frequency of taking dog to the vet, by marital status/presence of children in household, May 2011
Figure 98: Frequency of taking dog to the vet, by urban area, May 2011
Dog services use and interest
Figure 99: Dog services use and interest, by marital status by presence of children in household, May 2011
Attitudes and behaviors toward dogs
Figure 100: Attitudes and behaviors toward dogs, by marital status by presence of children in household, May 2011
Figure 101: Attitudes and behaviors toward dogs, by urban area, May 2011
Feelings about dogs
Figure 102: Feelings about dogs, by marital status by presence of children in household, May 2011
Figure 103: Feelings about dogs, by urban area, May 2011
Appendix—Trade Associations