“Marketers are certainly on board the convenience wagon as the number of new convenience product lines and SKUs launched each year has been steadily escalating since 2002,” said Don Montuori, publisher of Packaged Facts. “There is also a trend blending convenience with luxury that is reaching more than just the affluent market as the appeal of pet pampering reaches widely to all pet owner demographics and income levels.”

According to “All Things Convenient: Product, Packaging and Consumer Trends in the Pet Food, Supplies and Travel Markets,” several factors are converging in the $44 billion market for pet products and services to create dynamic opportunities for convenience, travel and portable products. The “premiumization” trend across all categories is leading marketers to scale up products in an effort to switch consumers to higher price points.

Some of the busiest pet-owning demographics—working singles, aging baby boomers and dual-income/no-kids couples—are tried-and-true purchasers of premium pet products who shell out big bucks for convenience products.

From 2002 to 2006, the number of pet convenience product lines specifically positioned as “upscale” increased sixfold, from seven to 41.

Underscoring the potential for upscale pet products of all types is the growing importance of more affluent demographic groups. In 2004, households earning $70,000 or more were responsible for 44 percent of aggregate pet food expenditures, versus 15 percent in 1994. Furthermore, these higher-income households were responsible for 43 percent of expenditures in the “pet purchase/supplies/medicine” category in 2004, up from 21 percent in 1994. “While some of this growth is the result of an increase in the number of upper-income households, it also signifies the success of marketers in tapping into pet owners’ desire to pamper their pets by providing them with the best products available,” the report said.

Almost half of all dogs and cats today are 6 years old or older, according to Packaged Facts estimates. This is significant for the pet market, and particularly to the fast-growing convenience and travel segments, as functional convenience products address safety-related issues and age-related conditions. “Perhaps even more important, longer lives for pets mean deeper emotional bonds between pets and their keepers, and thus an increased willingness among pet owners to invest even more heavily in keeping their furry friends healthy and happy in their golden years,” the report said.

Pet owners’ reliance on the Internet for many kinds of pet travel and convenience products bodes well for Internet sales. Packaged Facts estimates that the online channel is growing significantly faster than any other pet channel, and predicts that online sales will approach $1 billion by 2010.

More than half (52 percent) of cat owners and 50 percent of dog owners—compared with 44 percent of adults overall—report that the “Internet has changed the way I get product info.” Furthermore, 37 percent of cat owners and 34 percent of dog owners—compared with 30 percent of adults overall—report that the “Internet has changed how I shop for products.” Approximately 5 percent of all dog and cat owners shop for pet supplies online.

For more information on “All Things Convenient: Product, Packaging and Consumer Trends in the Pet Food, Supplies and Travel Markets,” visit www.PackagedFacts.com. [April 2007 PET AGE]