Branding Drives
Pet Industry Sales
Even though consumers don’t show high levels of enthusiasm
for brands in most pet product categories, their growing demand
for premium products and services could fuel growth for premium
and functional fare bearing familiar and well-regarded brand
names—including licensed products featuring nostalgic
pet heroes such as Lassie and Old Yeller, according to a new
report by Packaged Facts, the publishing division of MarketResearch.com
Inc. (New York).
Several converging factors are expected to drive the pet
market, now valued at $44 billion, to $52 billion by 2009,
according to “Brand Building in the U.S. Market for
Pet Products and Services: Manufacturer, Private-label, Licensed
and Human Brands.” Creating a dynamic opportunity for
brand development are the extension and repositioning of existing
brands, the development of new-generation brands, and the
application of established human brands—including licensed
properties not formerly associated with the market—to
pet products.
Developing store brands has become a key strategy for retailers
seeking to differentiate themselves from their competition,
build customer traffic and store loyalty, and generate greater
profits. Once relegated to national chains, private labeling
is becoming more popular among smaller operators.
The growing importance of specific demographic groups may
further guide the development of new and more innovative pet
brands. For example, not only are more two-adult households
without children (including dual-income couples and empty-nesters)
buying pets, but they also are more likely to purchase more
expensive pet products and services. According to Packaged
Facts, 48.8 percent of households in this demographic owned
dogs or cats in 2003, but 55.5 percent owned dogs or cats
in 2005.
Another key demographic category is households earning $70,000
or more. This group almost tripled its aggregate share of
pet food spending from 1994 to 2004—from 15 percent
to 44 percent, according to Packaged Facts. [February 2007
PET AGE]
Click here to see the U.S. PET INDUSTRY SALES BY SEGMENT breakdown.
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