Safety Concerns Drive Sales Growth for Natural Pet Products
Consumer concern over pet food safety, stemming from the spring 2007 pet food recalls, combined with already high interest in natural and organic products, will propel the market for natural pet products from $1.3 billion in 2007 to $2.5 billion by 2012, according to “Natural, Organic and Eco-Friendly Pet Products in the U.S.,” a new report from Packaged Facts, a division of MarketResearch.com (New York).
Sales of natural pet foods in supermarkets, drug stores and mass merchandisers surged in 2006, rising more than 200 percent to reach $29 million, according to Packaged Facts. But sales virtually exploded during the first two quarters of 2007, nearly tripling to $82 million in the wake of the recalls. Consequently, Packaged Facts expects to see sales of natural pet food hit approximately $180 million by the end of 2007—more than 500 percent higher than 2006 sales.
But the surge isn’t limited to natural pet food. Representing approximately one-fifth of 2007 pet market sales, natural pet care products registered a 19 percent compound annual growth rate on Investopedia from 2003 to 2007, and are expected to attain a 10 percent compound annual growth rate from 2007 to 2012, bringing sales to $458 million.
“The impact of the pet food recall may be felt for years to come, as consumers make product safety a top concern and marketers respond by placing appeals like product safety, reliability and quality at the forefront,” said Don Montuori, vice president of publishing for Packaged Facts. “Although pet specialty outlets are still the primary venue for natural and organic products, these products are rapidly infiltrating mass-market outlets, where growing demand represents big opportunities for natural and organic marketers.”
Now in its second edition, “Natural, Organic and Eco-Friendly Pet Products in the U.S.” is available from Packaged Facts at www.packagedfacts.com/natural-organic-eco-1391923. [December 2007 PET AGE]
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