When all the receipts are tallied, Americans will have spent $13.64 billion on pet food in 2004—approximately 44 percent of their total spending on pet care and products, according to Business Trend Analysts, a marketing research firm in Commack, N.Y.

Manufacturer-level sales of pet food totaled $10.7 billion in 2003, up 3.6 percent from the previous year, said the research firm, which recently published “2004/2005 Outlook for the U.S. Dog Food Market” and “2004/2005 Outlook for the U.S. Cat Food Market.” Consequently, Business Trend Analysts predicts modest sales growth for dog food, cat food and other pet food in 2004.

Sales of organic pet foods continue to grow, reflecting Americans’ concerns about chemical additives, preservatives and pesticides. Business Trend Analysts estimates that sales of organic pet food will total $32 million for 2004. Although there are only a limited number of certified-organic pet foods available, many high-quality foods are made with preservatives, flavors and other ingredients defined as “natural” by the Association of American Feed Control Officials.

Competition is heating up in the arena of private-label products, the reports show. Supermarkets are offering more private-label pet foods and are giving them specific brand names rather than store names to compete with Wal-Mart and its popular Ol’ Roy and Special Kitty brands.

More private-label brands will be offered in pouch packaging, which is convenient, inexpensive and easy to shelve. Economies of scale are important in this segment: Because packaging and labeling are combined, small orders may be cost-prohibitive.

For more information, contact Business Trend Analysts at (631) 462-5454 or visit www.bta-ler.com. [February 2005 PET AGE]

PET FOOD SALES
	Sales at manufacturer level (in billions)
	2003	2002
Dog food	$6.5	$6.2
Cat food	$3.4	$3.3
Other pet food	$0.83	$0.79
Total pet food sales	$10.73	$10.35

Source: Business Trend Analysts