Even without the formal regulatory status that would lend it extra credibility, the pet supplements category is growing by leaps and bounds. Total retail sales of pet supplements and nutraceutical treats have increased approximately 10 percent in the last five years, reaching $1.2 billion in 2007. But sales are expected to increase 39 percent in the next five years, reaching $1.7 billion by 2012, according to a new study by Packaged Facts, a division of MarketResearch.com (New York).

Supplements currently represent 74 percent of category sales. However, nutraceutical treats—defined in “Pet Supplements and Nutraceutical Treats in the U.S.” as those that contain supplements or novel botanical ingredients to address specific health conditions—are expected to increase their presence in the market. In fact, Packaged Facts estimates that 5 percent to 10 percent of the supplements and nutraceutical treats sold in the United States actually are all-natural or organic products, a category that could double its market share in the next five years.

The study shows that 33 percent of dog-owning households (12.5 million) and 24 percent of cat-owning households (6.7 million) use supplements and nutraceutical treats, reflecting significant penetration rates as well as a diverse consumer base. 

Joint products, which often target senior pets, represent 30 percent of dog supplement sales, followed by general vitamin/mineral supplements (24 percent) and skin/coat supplements (21 percent). Multivitamins represent an estimated 29 percent of cat supplement sales, followed by skin/coat supplements (22 percent) and joint/senior supplements (17 percent).

Pet specialty shops account for approximately 43 percent of sales of supplements for small pets, including dogs, cats, small animals, birds and herptiles. Veterinarians move 27 percent of these products, while health and natural stores move 14 percent. Mass-market outlets account for only 10 percent of sales in this category.

Pet health care is the primary market driver now, but Packaged Facts predicts that caring for the aging pet population soon will become the most important overall pet market driver and marketing thrust.

It’s no wonder that “functional pampering” has become one of the most important pet market trends of the decade. “Simply put, if a product pampers a pet, that’s great, but if it also meets a functional need, that’s even better,” says the study.

Although raw/frozen pet food continues to represent less than 1 percent of sales in the overall pet food market, growth in this segment influences the pet supplement market because many of these foods require supplementation.

Even though pet supplements currently are the stronghold of independent pet specialty shops, their future—as well as the future of companies that produce and market them—lies partly in the hands of PetSmart and Petco because they focus heavily on value-added specialty brands, according to the study.

To purchase the full report, visit www.packagedfacts.com/Pet-Supplements-Nutraceutical-1391918/. [April 2008 PET AGE]